1. Management Yesterday and Today
Chapter two
Management Yesterday and Today

2. Requirements for this chapter
Learn about the evolvement of main management theories
Understand and master the main management theories and their background
Form your own understanding of management
Describe the current trends and issues facing managers

3. Content of the chapter ★ evolvement of the Western management theories
★ current trends and issues of management

4. Development of management practice
The Egyptian pyramids and great wall are good examples of early management practice
Assembly line and accounting systems are other examples of management practice which is also common for today’s organization
The industrial revolution can be thought of the most important pre-twentieth-century influence on management

5. Evolvement of the Western management theories
Frederick W. Taylor
The four principles of management:
Develop a science for each element of an individual’s work, which will replace the old rule-of-thumb method.
Scientifically select and then train, teach, and develop the worker.
Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed.
Divide work and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers.

6. Evolvement of the Western management theories
Evaluation of scientific management theory
this theory provides many ways for managers to improve working efficiency
over emphasis on finding out the best way to do work makes the work intolerant

7. Evolvement of the Western management theories
Henri Fayol
The 14 principles of management:
Division of work.
Discipline.
Unity of direction.
Remuneration.
Scalar chain.
Equity.
Initiative.
Authority.
Unity of command.
Subordination of individual interests to the general interest.
Centralization.
Order.
Stability.
Esprit de corps.

8. Evolvement of the Western management theories
Jobs broken down into simple, routine, and well-defined tasks
Max Weber
Positions organized in a hierarchy with a clear chain of command
Managers career professionals, not owners of units they manage
Division of labor
Authority hierarchy
Career orientation
A bureaucracy should have
Impersonality
Formal selection
Formal rules and regulations
Uniform application of rules and controls, not according to personalities
People selected for jobs based on technical qualifications
System of written rules and standard operating procedures

9. Evolvement of the Western management theories
Evaluation of general administrative theory
provide a general understanding of organization and management
emphasis on strict division of labor, adherence to formal rules and regulations, impersonal application of rules and controls may take away employees’ creativity and the organization’s ability to respond to dynamic environment

10. Evolvement of the Western management theories
Organizational behavior theories
Early advocates of OB
Robert Owen
Late 1700s
Chester Barnard 1930s
Hugo Munsterberg Early 1900s
Mary Parker Follett Early s
Created field of industrial psychology—scientific study of people at work
suggested using psychological tests for employee selection, learning theory concepts for employee training , and study of human behavior for employee motivation
Concerned about deplorable working conditions
proposed idealistic workplace
argued that money spent improving labor was smart investment
One of the first to recognize that organizations could be viewed from perspective of individual and group behavior
Proposed more people-oriented ideas than scientific management followers
Thought organizations should be based on group ethic
Actual manger who thought organizations were social systems that required cooperation
Believed manager’s job was tp communicate and stimulate employees’ high levels of effort
First to argue that organizations were open systems

11. Evolvement of the Western management theories
The Hawthorne studies
( Elton Mayo Western Electric Company, Cicero, Illinois)
Main points of the theory:
employees are “social human beings”
there exist informal organization within the formal organization
the new leading way: improving employees’ satisfaction

12. Evolvement of the Western management theories
Evaluation of organizational behavior theory
it believes people are the most important asset for an organization
it has fundamental influence on the later development of management theories

13. Evolvement of the Western management theories
Quantitative approach
It involves the use of quantitative techniques to improve decision-making.
At the beginning quantitative approach was used to solve military problems in World War Two.
It contributes directly to management decision making in the areas of planning and controlling.

14. Evolvement of the Western management theories
System approach
It is a set of interrelated and interdependent parts arranged in a manner that produces a unified whole.
As manager, you need to coordinate the work activities of the various parts of the organization and ensure that all the interdependent parts of the organization are working together so that the organizational goals can be achieved.

15. Evolvement of the Western management theories
Contingency approach
An approach that says that organizations are different, face different situations (contingencies), and require different ways of managing.
Popular contingency variables
Organization size
Routineness of task technology
Environmental uncertainty
Individual differences

16. Current trends and issues of management
Globalization
Workforce diversity
Ethics
Customer orientation
Innovation
Entrepreneurship
E-business

17. Current trends and issues of management
Knowledge management and learning organizations
Learning organization: an organization that has developed the capacity to continuously learn, adapt, and change.
Knowledge management: cultivating a learning culture where organizational members systematically gather knowledge and share it with others in the organization so as to achieve better performance.

18. Current trends and issues of management
Traditional organization
Learning organization
Attitude toward change
If it’s working, don’t change it.
If you aren’t changing it won’t be working for long.
Attitude toward new ideas
If it wasn’t invented here, reject it.
If it was invented or reinvented here, reject it.
Who’s responsible for innovation?
Traditional areas such as R & D
Everyone in organization
Main fear
Making mistakes
Not learning; not adapting
Competitive advantage
Products and service
Ability to learn, knowledge and expertise
Manger’s job
Control others
Enable others

19. Current trends and issues of management
Quality management
A philosophy of management that is driven by continual improvement and responding to customer needs and expectations.
Quality management is a departure form earlier management theories that were based on the belief that low costs were the only road to increased productivity.

20. Current trends and issues of management
Intense focus on the customer.
The customer includes not only outsiders who buy the organization’s products or services but also internal customers who interact with and serve others in the organization.
Concern for continual improvement.
Quality management is a commitment to never being satisfied. “Very good” is not good enough. Quality can always be improved.
Process-focused.
Quality management focuses work processes as the quality of goods and services is continually improved.

21. Current trends and issues of management
Improvement in the quality of everything the organization does .
Quality management uses a very broad definition of quality. It relates not only to the final product but also to how the organization handles deliveries, how rapidly it responds to complaints, how politely the phones are answered, and the like.
Accurate measurement.
Quality management uses statistical techniques to measure every critical variable in the organization’s operations. These are compared against standards or benchmarks to identify problems, trace them to their roots, and eliminate their causes.

22. Current trends and issues of management
Empowerment of employees.
Quality management involves the people on the line in the improvement process. Teams are widely used in quality management programs as empowerment vehicles for finding and solving problems.

23. Case Application

24. Management history Father of scientific management Frederick W. Taylor

25. Management history

26. Management history
Henri Fayol
Max Web

27. Management history Quantitative method Information models Computer
Statistics
Optimization methods
Information models
Computer
simulation