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Contemporary Management NEW ERA OF MANAGEMENT LECTURE 2 Dr. Mohamed Hesham Mansour
Copyright © All rights reserved. 2 “I forget what I was taught, I only remember what I’ve learnt.”
The Evolution of Management Thinking Chapter 2
WHY HISTORY MATTERS TO MANAGERS? A study of the past contributes to understanding both the present and the future??!!!
Copyright © All rights reserved. 5 Historical Perspective Provides a context or environment Develops an understanding of societal impact Achieves strategic thinking Improves conceptual skills Social, political, and economic forces have influenced organizations and the practice of management
Copyright © All rights reserved. 6 Management Perspectives Over Time 1930 Humanistic Perspective Classical Systems Theory The Technology-Driven Workplace The Learning Organization 1970 Contingency Views Total Quality Management Management Science Perspective Exhibit 2.1, p.44
Copyright © All rights reserved. 7
8 Classical Perspective: 3000 B.C. The Factory system in the 1800s ● Rational, scientific approach to management – make organizations efficient operating machines ● Scientific Management ● Bureaucratic Organizations ● Administrative Principles
Copyright © All rights reserved. 9 Scientific Management: Taylor “In the past the man has been first. In the future, the system must be first” Correct movements, tools and sequencing instead of rule-of-thumb General Approach Developed standard method for performing each job. Selected workers with appropriate abilities for each job. Trained workers in standard method. Supported workers by planning work and eliminating interruptions. Provided wage incentives to workers for increased output. Henry Gantt
Copyright © All rights reserved. 10 Scientific Management: Frank& Lillian Gilbreth “Time and motion study” General Approach Efficiency. The one best way to do work. Brick layers versus surgical operating table. First lady of management with12 children. Cheaper by the dozen Industrial psychology& HR.
Copyright © All rights reserved. 11 Scientific Management Contributions Demonstrated the importance of compensation for performance. Initiated the careful study of tasks and jobs. Demonstrated the importance of personnel and their training. Criticisms Did not appreciate social context of work and higher needs of workers. Did not acknowledge variance among individuals. Tended to regard workers as uninformed and ignored their ideas
Copyright © All rights reserved. 12 Bureaucracy Organizations Max Weber Prior to Bureaucracy Organizations – European employees were loyal to a single individual rather than to the organization or its mission – Resources used to realize individual desires rather than organizational goals Systematic approach –looked at organization as a whole
Copyright © All rights reserved. 13 Bureaucracy Organizations Positions organized in a hierarchy of authority Managers subject to Rules and procedures that will ensure reliable predictable behavior Personnel are selected and promoted based on technical qualifications Administrative acts and decisions recorded in writing Management separate from the ownership of the organization Division of labor with Clear definitions of authority and responsibility Exhibit 2.3, p. 49
Copyright © All rights reserved. 14 Administrative Principles Contributors: Henri Fayol, Mary Parker, and Chester I. Barnard Focus: – Organization rather than the individual – Delineated the management functions of planning, organizing, commanding, coordinating, and controlling
Copyright © All rights reserved. 15 Henri Fayol Division of labor Authority& Responsibility Discipline Unity of command Unity of direction Subordination of individual interests Remuneration Division of labor Authority& Responsibility Discipline Unity of command Unity of direction Subordination of individual interests Remuneration Centralization Scalar chain Order Equity Stability and tenure of staff Initiative Esprit de corps Centralization Scalar chain Order Equity Stability and tenure of staff Initiative Esprit de corps 14 General Principles of Management
Copyright © All rights reserved. 16 Mary Parker Follett Importance of common super-ordinate goals for reducing conflict in organizations – Popular with businesspeople of her day – Overlooked by management scholars – Her ideas served as a contrast to scientific management and are reemerging as applicable for modern managers in dealing with rapid change in global environment Leadership – importance of people vs. engineering techniques Ethics - Power - Empowerment
Copyright © All rights reserved. 17 Chester Barnard Informal Organization – Cliques – Naturally occurring social groupings – Organizations are not machines Acceptance Theory of Authority – Free will – Can choose to follow management orders
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Copyright © All rights reserved. 19 Humanistic Perspective Emphasized understanding human behavior, needs, and attitudes in the workplace ● Human Relations Movement ● Human Resources Perspective ● Behavioral Sciences Approach
Copyright © All rights reserved. 20 Human Relations Movement- OB Emphasized satisfaction of employees’ basic needs as the key to increased worker productivity DAIRY FARM VIEW OF MANGEMENT
Copyright © All rights reserved. 21 Hawthorne Studies “Is it light or something else” Ten year study Four experimental & three control groups Five different tests Test pointed to factors other than illumination for productivity 1st Relay Assembly Test Room experiment, was controversial, test lasted 6 years Elton Mayo Interpretation: money was not the cause of increased output Factor that increased output, Human Relations
Copyright © All rights reserved. 22 Human Resources Perspective Suggests jobs should be designed to meet higher-level needs by allowing workers to use their full potential
Copyright © All rights reserved. 23 Physiological Safety Belongingness Esteem Self- actualization Abraham Maslow’s Hierarchy of Needs Based on needs satisfaction
Copyright © All rights reserved. 24 Dislikes work& will avoid it Must be coerced, controlled, directed, or threatened with punishment Prefers direction, avoid responsibility, little ambition, want security Do not dislike work Self direction and self control Seeks responsibility Imagination, creativity widely distributed Intellectual potential only partially utilized Douglas McGregor Theory X & Y Theory X AssumptionsTheory Y Assumptions
Copyright © All rights reserved. 25 Douglas McGregor Theory X & Y Few companies today still use Theory X Many are trying Theory Y techniques Experiential Exercise: Theory X and Theory Y Scale
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Copyright © All rights reserved. 27 Behavioral Sciences Approach Applies social science in an organizational context Draws from economics, psychology, sociology, anthropology, and other disciplines – Understand employee behavior and interaction in an organizational setting – OD – Organization Development Sub-field of the Humanistic Management Perspective
Copyright © All rights reserved. 28 Management Science Perspective Emerged after WW II Applied mathematics, statistics, and other quantitative techniques to managerial problems Operations Research – mathematical modeling Operations Management – specializes in physical production of goods or services Information Technology – reflected in management information systems
Copyright © All rights reserved. 29 Recent Historical Trends ● Systems Theory ● Contingency View ● Total Quality Management (TQM)
Copyright © All rights reserved. 30 Systems View of Organizations Exhibit 2.5, p. 58
Copyright © All rights reserved. 31 Systems View of Organizations Open systems VS closed systems- interactions Entropy- run down and die Synergy- 1+1=3 Subsystems- dependency Exhibit 2.5, p. 58
Copyright © All rights reserved. 32 Contingency View of Management Successful resolution of organizational problems is thought to depend on managers’ identification of key variations in the situation at hand
Copyright © All rights reserved. 33 Total Quality Management - TQM W. Edwards Deming Focuses on managing the total organization to deliver quality to customers – Employee involvement – Customer focus – Benchmarking – Continuous improvement
Copyright © All rights reserved. 34 Elements of a Learning Organization Learning Organization Open Information Empowered Employees Team-Based Structure Exhibit 2.7, p. 61
Copyright © All rights reserved. 35 Types of E-Commerce Business-to-Consumer B2C Selling Products and Services Online Business-to-Business B2B Transactions Between Organizations Consumer-to-Consumer C2C Electronic Markets Created by Web-Based Intermediaries Exhibit 2.8, p. 63
Copyright © All rights reserved. 36 Assignment # 2 (GROUPS) (21/02/2010) Prepare and present chapter 3 “The environment and corporate culture”
Copyright © All rights reserved. 37 THANK YOU
The Evolution of Management Thinking Chapter 2. New Approach to Management Success accrues to those who learn how v To be leaders v To Initiate change.
The Evolution of Management Thinking CHAPTER 2. Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 2 Learning Objectives.
GROUP 1: Caisido, Costes, Stefanowitz, Te. In today’s marketplace, change is rapid and managers are expected to deal with a broad set of issues and needs.
Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.Developed by.
Developed by Stephen M.PetersCopyright © 2000 by Harcourt, Inc. All rights reserved. Two hapter Historical Foundations of the Learning Organization © 2000.
© 2006 by South-Western, a division of Thomson Learning. All rights reserved 1-1 Chapter 1 Management History.
The Evolution of Management Thinking Chapter 2. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 2 New Approach.
Chapter 2 The Evolution of Management Thinking. Studying management history helps your conceptual skills Social Forces – influence of culture that guides.
MANAGEMENT RICHARD L. DAFT. The Evolution of Management Thinking CHAPTER 2.
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
EVOLUTION OF MANAGEMENT MANAGEMENT YESTERDAY AND TODAY.
2–1 Management Theories Classical Viewpoint 2.Bureaucratic Management Max Weber (German Sociologist 1864 – 1920) A form of organization characterized by:
2-1 Chapter 2 The Evolution of Management Theory.
History and Evolution Of Management Thought CHAPTER-2.
Theories of Management Classical Behavioral Management Science Systems Theory Sociotechnical Theory Contingency Theory.
EVOLUTION OF MANAGEMENT CHAPTER 2. Studying history is a way to achieve strategic thinking, see the big picture and improve conceptual skills. Social,
Chapter 2 History of Management Thought © 2015 YOLO Learning Solutions.
© Pearson Education Limited 2015HM-1 Chapter HM A Brief History of Management’s Roots.
The History of Management. 4 Main Groups of Theories (6 actual theories altogether) Classical Behavioral Management Science Integrative: – Systems Theory.
History and Evolution of Management Thought. Development of Major Management Theories Pre-classical contri- butions Classical theorists Behavioral approach.
Management History Module BUS 206 Erlan Bakiev, Ph. D. Zirve University Spring 2012.
Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 2: Management History Lecturer: [Dr: Naser Al-Khdour]
Introduction to Management LECTURE 2: Introduction to Management MGT
Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1- 1 Copyright © 2008 Pearson Education.
Copyright ©2015 Pearson Education, Inc.HM-1 Chapter HM A Brief History of Management’s Roots.
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–1 CHAPTER 2 PIONEERING IDEAS.
The Managerial Process Chapter 1 Current Thrust Information management Greater level of automation Technologically oriented Knowledge management Managing.
Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin Management Theories Ch. 2 Management A Practical Introduction Angelo.
© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George.
Chapter 2 History of Management © 2015 Cengage Learning MGMT7.
Amity School of Business Management Foundation Module-I By Neeti Saxena Assistant Professor, ASB 1.
1 Chapter 2 History of Management Designed & Prepared by B-books, Ltd. MGMT Chuck Williams.
Chapter 2 The Evolution of Management Thought Leanne Powers MHR301 From McGraw-Hill Irwin Contemporary Management.
Chapter 2 Management Theories Chapter 2 Management Theories.
Chapter 2 The History of Management. 2 In the Beginning After reading the next section, you should be able to: 1.explain the origins of management.
Chapter II Evolving Management Approaches and Behavioral Management.
Copyright © Houghton Mifflin Company. All rights reserved.2–1 The Importance of Theory and History Why Theory? –Theory: a conceptual framework for organizing.
McGraw-Hill/IrwinCopyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Two The Evolution of Management Thought.
Chapter Two Management Theory Essential Background for the Successful Manager McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All.
PowerPoint Presentation by Charlie Cook The University of West Alabama Plunkett Attner Allen © 2008 Thomson/South-Western All rights reserved. CHAPTER.
Chapter 2Management Fundamentals - Schermerhorn & Wright1 HISTORY OF MANAGEMENT Insights Classical Frederick Taylor Henri Fayol Max Weber Behavioral Hawthorne.
Principles of Management Session. 2 Management Yesterday & Today USMAN SADIQ (Ph.D. Scholar)
© Prentice Hall, © Prentice Hall, ObjectivesObjectives 1.An understanding of the classical approach to management 2.An appreciation.
CLASSICAL MANAGEMENT SCIENTIFIC APPROACHES.
MGT 200 Management Theory n Required Reading: Chapter 2 of textbook Peter Senge Article Meg Wheatly Interview n Today’s Topic: History of Management Theory.
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