Chapter 2
Management, Yesterday and
Today
Historical background of
management
•
•
•
•
•
Are there any management in the history?
Pyramid and the Great Wall
The Wealth of Nation by Adam Smith
Industrial revolution
Chinese traditional government and
confucianism
• Politics is also a kind of management.
• Modernization and rationalization
Management theories
Historical
background
Early
examples
Adam
Smith
Industrial
revelution
Scientific
management
General
administrative
theory
System
approach
Contingency
approach
Quantitative
approach
Organizational
behavior
Early
advocates
Hawthorne
studies
Scientific management
• Frederick W. Taylor (1856-1915), the father of
scientific management.
• Taylor’s four principles
– Develop a science for each element of an individual’s
work, replacing the old rule-of-thumb method.
– Scientifically select and then train, and develop the
workers.
– Heartily cooperation between manager and employee.
– Divide work and responsibility equally.
• Significance and critics.
• Can you find some scientific management now?
Taylorism and Fordism
• Mass production.
• Machine controls people.
• Modernization.
Frank and Lillian Gilbreth
•
•
•
•
Construction contractor and psychologist.
Optimizing work performance.
Microchronometer and motion research.
Cheaper by the Dozen.
• Time is money, efficience is life. Compare
their time and today.
General administrative theory
• Henri Fayol (1841-1925).
• Five functions of manager
– Planning, organizing, commanding, coordinating, and
controlling.
• 14 principles of management
– Division of work, authority, discipline, unity of
command, unity of direction, subordination of
individual interests to general interest, remuneration,
centralization, scalar chain, order, equity, stability of
tenure of personnel, initiative, esprit de corps.
Max Weber (1864-1920)
• Sociologist and religious.
• Burearcracy, today’s formal organization
–
–
–
–
–
–
Division of labor
Authority hierarchy
Formal selection
Format rules and regulations
Impersonality
Career orientation
• Other type of organization
– Chrisma
– traditional
• Organization in the future.
Quantitative approach
• Operations research or management science.
• Statistics, optimization models, information
models, computer simulations, linear
programming, etc.
• Example.
• Queuing, ticket saling, classroom allocation.
• Centralized transportation.
• Restriction: local, micro issue.
Organizational behavior
• Early advocates
– Robert Owen, late 1700s
– Hugo Munsterberg, early 1900s
– Mary Parker Follett, Early 1900s
– Chester Barnard, 1930
Hawthorne Studies
• Elton Mayo
• Experiment on the effect of light intensity on output.
–
–
–
–
Redesign fo jobs
Changes in workday and workweed length
Introduction of rest period
Individual vs. group wage plans
• Conclusion
–
–
–
–
People’s behavior and attitudes are closely related;
Group factors significantly affect individual behavior;
Group standards establish individual worker output;
Money is less a factor in determining output than are group
standards, group attitudes, and security.
• Lead to new emphasis on the human behavior factorin
the management of organizations.
Behavior approach in today
•
•
•
•
•
•
Design jobs
Teams
Open communication
Motivation
Leadership
Group behavior and development
Systems approach
• System
– A set of interrelated and interdependent parts
arranged in a manner that produces a unified
whole.
• close system
– System that are not influenced by and do not
interact with their enviroment.
• open system
– Systems that interact with their environment.
environment
system
Inputs
Raw materials
Human
resources
Capital
Technology
Information
Transformation
process
Employee’s
work activities
Management
activities
Technology and
operation
methods
feedback
environment
Output
Products and
services
Financial
results
Information
Human results
Contingency approach
• Management approach that says that
organizations are different, face different
situations (contigencies), and require
different ways of managing.
Current trends and issues
• Globalization
– Working with people from different cultures
– Coping with anticapitalist backlash
– Movement of jobs to countries with low-cost
labor
– Civilization clash
– Global citizenship and governance
ethics
• Profit and socia responsibility
• Stakeholder vs. shareholder
• Corporation citizenship
• Workforce diversity
– A workforce that is heterogeneous in terms of
gender, race, ethnicity, age, and other
characteristics that reflect differences.
• Entrepreneurship
• E-business
• Knowledge management
Learning organization
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 mistake
Not learning, not
adapting
Competitive advantage
Products and service.
Ability to learn,
knowledge and expertise.
Manager’s job
Control others.
Enable others.
Are there any learning organizations? Can you give some examples?
Total quality management (TQM)
• Interse focus on customer.
• Concern for continual improvement.
• Improvement in the quality of everything the
organization does.
• Accurate measurement.
• Empowerment of employees.
• To be perfect.
• Examples, KFC, TOYOTA, APPLE.