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Influences Having an Impact on Organizations & Management Management practices and perspectives vary in response to the following factors in the society Social Forces … values, needs, and standards of behavior Political Forces … influence of political and legal institutions on people & organizations Economic Forces … forces that affect the availability, production, & distribution of a society’s resources

Management Perspectives Over Time 2000 2010 The Technology-Driven Workplace 1990 2010 The Learning Organization 1980 Total Quality Management 2000 1970 Contingency Views 2000 1950 2000 Systems Theory 1940 Management Science Perspective 1990 1930 Humanistic Perspective 1990 1890 Classical 1940

Classical Perspective Three Sub-Fields Scientific Bureaucratic Organizations Administrative Principles

Characteristics of Scientific Management Approach 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. 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.

Bureaucracy Organizations Approach Labor is divided with clear definitions of authority and responsibility. Positions are organized in a hierarchy of authority. Personnel are selected and promoted based on qualifications. Management is separate from the ownership. Managers are subject to rules and procedures that will ensure reliable, & predictable behavior. Rules are impersonal and uniformly applied. SOURCE: Adapted from Max Weber, The Theory of Social and Economic Organizations, ed. and trans. A.M. Henderson and Talcott Parsons (New York: Free Press, 1947), 328-337.

Administrative Principles Approach Contributors to this approach, Henri Fayol, Mary Parker, and Chester I. Barnard Focused on organization rather than the individual Delineated the management functions of planning, organizing, commanding, coordinating, and controlling

Henri Fayol’s 14 Points Division of labor Authority Discipline Unity of command Unity of direction Subordination of individual interest Remuneration Centralization Scalar chain Order Equity Stability and tenure of staff Initiative Esprit de corps

Humanistic perspective Emphasized the importance of understanding human behaviours,needs and attitudes in the work place. Three subfields Human relations movement Human resources perspective Behavioral sciences approach

Human Relations Movement A movement in management thinking and practice that emphasized satisfaction of employees’ basic needs as the key to increased worker productivity

Human Relations Movement-Hawthorne Studies 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 Interpretation, money not cause of increased output Factor that increased output, Human Relations

Human Resources Perspective A management perspective that suggests jobs should be designed to meet higher level needs by allowing workers to use their full potential. It combines prescriptions for design of job tasks with theories of motivation. Contributors-Abraham Maslow & Douglas McGregor

Abraham Maslow’s Need Hierarchy Based on needs satisfaction General Examples Organizational Examples Self-fulfillment Self-actualization Challenging Job Status Esteem Job Title Friendship Belonging Friends Stability Safety Retirement Plan Shelter Physiological Wages Based on needs satisfaction

Douglas McGregor Theory X & Y Theory Y People are lazy People lack ambition Dislike responsibility People are self-centered People don’t like change People are energetic People want to make contributions People do have ambition People will seek responsibility

Behavioral Sciences Approach Develops theories about human behavior based on scientific methods & study Sub-field of the Humanistic Perspective Applies social science in an organizational context in understanding employees draws from economics, psychology, sociology and other disciplines

Management Science Perspective Emerged after WW II Distinguished for its application of mathematics, statistics to problem solving Operations Research emerged Operations Management emerged Information Technology

Three Contemporary Trends Systems Theory Contingency View Total Quality Management (TQM) Managers need certain core skills and basic understanding of management and leadership if they plan to operate within a TQM System. This site has several core modules.

Systems View

Contingency View

Elements of a Learning Organization Team-Based Structure Learning Organization Empowered Employees Open Information

Types of E-Commerce Business-to-Consumer B2C Selling Products and Services Online Consumer-to-Consumer C2C Electronic Markets Created by Web-Based Intermediaries Business-to-Business B2B Transactions Between Organizations