EVOLUTION OF MODERN MANAGEMENT
U.S. INDUSTRIAL REVOLUTION
• POWER GENERATION
• TRANSPORTATION
• COMMUNICATION
SCIENTIFIC MANAGEMENT
• FREDERICK TAYLOR
• HENRY GANTT
• FRANK & LILLIAN GILBRETH
FREDERICK TAYLOR
• TIME STUDY
• STANDARDS FOR WORK
• JOB SPECIALIZATION
• MANAGERIAL PLANNING & CONTROL OF WORK
• WORKER SELECTION & TRAINING
• INCENTIVES
HENRY GANTT
• GANTT CHARTS
• MODIFIED INCENTIVES
• INCENTIVES FOR FOREMEN
FRANK & LILLIAN GILBRETH
• MOTION STUDIES (Therbligs)
• FATIGUE REDUCTION
• SUGGESTION SYSTEMS
SCIENTIFIC MANAGEMENT
ASSUMPTIONS
• Productivity is a workplace problem
• Managers should plan and direct the work of others
• Individuals are economically motivated
CONTRIBUTIONS
• “Scientific” study of work (Time & Motion)
• Setting of work standards
• Use of incentives
• Careful selection & training of workers
• Division of labor---managers & workers
• Productivity & efficiency increased
LIMITATIONS
• Social “needs” of workers overlooked
• Many studies weren’t very scientific
• Loss of self-control alienated workers
• Group dynamics were ignored
MANAGEMENT
A FORM OF WORK THAT INVOLVES COORDINATING AN
ORGANIZATION’S RESOURCES TOWARD ACCOMPLISHING
ORGANIZATIONAL OBJECTIVES
MANAGEMENT FUNCTIONS
(H FAYOL)
PLANNING
ORGANIZING
COMMANDING
COORDINATING
CONTROLLING
MANAGEMENT PRINCIPLES
DIVISION OF LABOR (Specialization)
UNITY OF COMMAND (Only one boss)
SCALAR CHAIN OF COMMAND (Hierarchy of Authority)
SPAN OF CONTROL (Number of subordinates supervised)
WEBER’S BUREAUCRACY
• DIVISION OF LABOR
HORIZONTAL SPECIALIZATION
• HIRARCHY OF AUTHORITY
VERTICAL SPECIALIZATION
• FORMAL RULES & PROCEDURES
ENFORCED, DOCUMENTED
• TECHNICAL COMPETENCE
SELECTION & PROMOTION CRITERIA
• IMPERSONAL TREATMENT
NO FAVORITISM
• CENTRALIZED DECISION-MAKING
UNIFORM CONTROL
ADMINISTRATIVE THEORY
ASSUMPTIONS
• THERE IS AN IDEAL WAY TO STRUCTURE THE ORGANIZATION
AND TO ADMINISTER THE MANAGEMENT PROCESSES NECESSARY
FOR ORGANIZATIONAL SUCCESS
• MANAGEMENT SKILLS ARE GENERALIZABLE
CONTRIBUTIONS
• FUNCTIONS & PRINCIPLES OF MANAGEMENT
• THE IDEAL BUREAUCRACY
• RAISED AWARENESS OF BASIC PROBLEMS LIKELY TO BE FOUND
IN ANY ORGANIZATION
LIMITATIONS
• STRESSED A “ONE-BEST-WAY” OF MGMT & ORGANIZATION
• THEORIES BASED ON OBSERVATION & INTUITION RATHER THAN
EMPIRICAL INVESTIGATION
• PRINCIPLES NOT APPLICABLE TO ORGANIZATIONS WHICH EXIST
IN TURBULENT ENVIRONMENTS
HAWTHORNE PLANT AT
WESTERN ELECTRIC
MAYO & ROETHLISBERGER
• ILLUMINATION EXPERIMENTS
• RELAY ASSEMBLY TESTS
• INTERVIEWING
• MICA SPLITTING
• BANK WIRING ROOM
DISCOVERIES
• HAWTHORNE EFFECT
• CATHARSIS
• INFORMAL GROUP POWER
HUMAN RELATIONS MANAGEMENT
ASSUMPTIONS
•
•
WORKERS ARE MOTIVATED BY SOCIAL NEEDS
SATISFIED WORKERS ARE PRODUCTIVE WORKERS
CONTRIBUTIONS
•
•
•
•
EMPHASIS ON WORKER NEEDS AND MOTIVATION
“HAWTHORNE EFFECT”….ATTENTION GIVEN TO WORKERS HAS AN
IMPACT ON THEIR BEHAVIOR
INFLUENCE OF THE INFORMAL GROUP
MANAGERS NEED STRONG SOCIAL SKILLS
LIMITATIONS
•
•
•
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•
HAPPY, SATISFIED WORKERS AREN’T NECESSARILY PRODUCTIVE
ECONOMIC ISSUES DO AFFECT WORKER PRODUCTIVITY
BORING WORK ISN’T LESS SO WITH A FRIENDLY
SUPERVISOR…MOTIVATION IS STILL A PROBLEM
WORKERS FEEL SUPERVISOR INTEREST IN THEM ISN’T
GENUINE…THEY’RE BEING MANIPULATED!
SHOULD BUSINESS BE RESPONSIBLE FOR MEETING ALL HUMAN NEEDS ON
THE JOB?
TRANSITION TO HUMAN RESOURCES
DOUGLAS MCGREGOR
• THEORY X
• THEORY Y
FREDERICK HERZBERG
TWO-FACTOR MOTIVATION THEORY
• HYGIENES
• MOTIVATORS
JOB ENRICHMENT
THEORY X
THE AVERAGE HUMAN BEING:
•
•
•
•
•
•
DISLIKES WORK AND WILL AVOID IT
MUST BE COERCED/CONTROLLED TO ACHIEVE OBJECTIVES
PREFERS DIRECTION
WISHES TO AVOID RESPONSIBILITY
HAS LITTLE AMBITION
WANTS SECURITY ABOVE ALL
THEORY Y
THE AVERAGE HUMAN BEING:
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•
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BELIEVES WORK IS AS NATURAL AS PLAY
PREFERS SELF-DIRECTION/CONTROL TO ACHIEVE OBJECTIVES
WILL ACCEPT AND SEEK OUT RESPONSIBILITY
PREFERS TO EXPAND IMAGINATION/CREATIVITY IN WORKPLACE
SOLUTIONS
HUMAN RESOURCES MANAGEMENT
ASSUMPTIONS
•
•
•
INTERESTING WORK MOTIVATES INTRINSICALLY
WORKERS ARE TRUSTWORTHY…GIVE THEM RESPONSIBILITY
THE MANAGER’S JOB IS TO CHALLENGE WORKERS & TO DEVELOP
THEIR TALENTS
CONTRIBUTIONS
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THEORY X AND THEORY Y
PARTICIPATIVE DECISION-MAKING AND MANAGEMENT
JOB REDESIGN AND JOB ENRICHMENT
MANAGEMENT BY OBJECTIVES
MORE RIGOROUSLY-TESTED THEORIES
LIMITATIONS
•
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NOT EVERYONE WANTS A CHALLENGING JOB
BEHAVIOR IS COMPLEX…THEORIES HAVE MANY EXCEPTIONS
ELEGANT THEORIES MAKE LITTLE SENSE TO MANAGERS…A
LACK OF ACCEPTANCE PROBLEM
QUANTITATIVE MANAGEMENT
APPROACHES
MANAGEMENT SCIENCE
DuPONT (CPM) Critical Path Method
US NAVY (PERT) Program Evaluation and Review Technique
OPERATIONS RESEARCH
WORLD WAR II -- England
QUALITY ASSURANCE
STATISTICS
Stresses the use of mathematical models to aid in managerial decisionmaking
SYSTEMS VIEWS
• SEES THE “BIG PICTURE” IN ORGANIZATIONS
• STRESSES EXTERNAL ENVIRONMENT INFLUENCES
• HOW THE PARTS RELATE TO EACH OTHER TO CREATE THE
WHOLE
• HOW TO LINK UNITS TOGETHER HARMONIOUSLY SO THAT
AN EFFICIENT SYSTEM EMERGES (INTEGRATION)
INPUTS  TRANSFORMATION PROCESSES  OUTPUTS 
FEEDBACK
CLOSED vs OPEN SYSTEMS
• SUBSYSTEMS
** DON’T MAKE ORGANIZATIONAL DECISIONS UNTIL YOU
UNDERSTAND THE WHOLE SYSTEM
CONTINGENCY VIEWS
THERE IS NO “ONE BEST WAY” TO MANAGE
THERE ARE NO UNIVERSAL PRINCIPLES OF MANAGEMENT
ANALYZE THE SPECIFIC SETTING & CIRCUMSTANCES
CAREFULLY STUDY THE SITUATION…KEEP YOUR EYES OPEN
FIND THE APPROACH THAT BEST FITS THE SITUATION
DON’T FOLLOW “FADS”…IT ALL DEPENDS…
EMPHASIZE DIAGNOSIS AND FLEXIBILITY
MANAGERS MUST LEARN TO BE FLEXIBLE
TYPE A, J, and Z ORGANIZATIONS
OUCHI (80)
TYPE A ORGANIZATION
(American)
SHORT-TERM EMPLOYMENT
RAPID EVALUATION & PROMOTION
HIGHLY SPECIALIZED CAREERS
INDIVIDUAL DECISION-MAKING AND INDIVIDUAL RESPONSIBILITY
EXPLICIT, FORMAL CONTROLS, SEGMENTED CONCERN
TYPE J ORGANIZATION
(Japanese)
LIFETIME EMPLOYMENT
SLOW EVALUATION & PROMOTION
NONSPECIALIZED CAREER PATH
CONSENSUAL DECISION=MAKING, COLLECTIVE RESPONSIBILITY
IMPLICIT, INFORMAL CONTROLS, HOLISTIC CONCERN
TYPE Z ORGANIZATION
(Modified American)
LONG-TERM EMPLOYMENT
SLOW EVALUATION & PROMOTION
MODERATELY SPECIALIZED CAREERS
CONSENSUAL DECISION-MAKING, INDIVIDUAL RESPONSIBILITY
IMPLICIT, INFORMAL CONTROLS, HOLISTIC CONCERN
A CLEAR ORGANIZATIONAL PHILOSOPHY
JAPANESE MANAGEMENT MODELS
HATVANY & PUCIK (81)
STRATEGIES
1.
2.
3.
DEVELOPMENT OF AN INTERNAL (CLOSED) LABOR MARKET
EMPLOYEE-ORIENTED, COOPERATIVE COMPANY PHILOSOPHY
CAREFUL SOCIALIZATION & DEVELOPMENT OF PERSONNEL
SPECIFIC TECHNIQUES USED
JOB ROTATION
SLOW EVALUATION & PROMOTION
GROUP & TEAM EMPHASIS
OPEN, FACE-TO-FACE COMMUNICATIONS
CONSULTATIVE DECISION-MAKING
INTIMATE EMPLOYEE CONCERN
KEYS TO SUCCESSFUL APPLICATION
1.
2.
3.
4.
ARTICULATE A COMPANY PHILOSOPHY
PROVIDE LONG TENURE
PRACTICE JOB ROTATION
PRACTICE CONSULTATIVE DECISION-MAKING
IN SEARCH OF EXCELLENCE
PETERS & WATERMAN (82)
A BIAS TOWARD ACTION
JUST “DO IT”….KILL THE SNAKE, DON’T STUDY IT TO DEATH!
CLOSENESS TO THE CUSTOMER
CUSTOMER DRIVEN DECISION-MAKING
AUTONOMY & ENTREPRENEURSHIP
STRUCTURED TO ENCOURAGE INNOVATION & CHANGE
PRODUCTIVITY THROUGH PEOPLE
PARTICIPATION AND CONSENSUS STRESSED
HANDS ON, VALUE DRIVEN
THE VISION & MISSION OF THE ORGANIZATION ARE CLEAR AND KNOWN
TO EVERYONE WITHIN THE FIRM. LEADERS/MANAGERS ARE WILLING TO
“GET INVOLVED” IN PROBLEMS AT ALL LEVELS.
STICKING TO THE KNITTING
STAY FOCUSED ON WHAT YOU DO BEST
SIMPLE FORM, LEAN STAFF
KEEP STRUCTURES SIMPLE AND LEAN
SIMULTANEOUS LOOSE-TIGHT PROPERTIES
KEEP TIGHT CONTROL ON THE FIRM’S CORE VALUES
STAY FLEXIBLE ELSEWHERE
TOTAL QUALITY MANAGEMENT (TQM)
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•
1.
Focuses on managing the total organization to deliver quality to
customers.
Requires a shift from an inspection-oriented approach to employee
involvement in the prevention of quality problems.
EMPLOYEE INVOLVEMENT
TRAIN, INVOLVE, EMPOWER WORKERS
2.
FOCUS ON THE CUSTOMER
FIND OUT WHAT THE CUSTOMER WANTS
3.
BENCHMARKING
COMPARE PRODUCTS/SERVICES WITH COMPETITORS
4.
CONTINUOUS IMPROVEMENT
SMALL, INCREMENTAL IMPROVEMENTS ALL THE TIME
CONTEMPORARY ORGANIZATIONAL
BEHAVIOR
INTERDISCIPLINARY FOCUS
PSYCHOLOGY
SOCIOLOGY
POLITICAL SCIENCE
MOSTLY DESCRIPTIVE OF RELATIONSHIPS BETWEEN
VARIABLES
IMMATURITY OF THE FIELD
COMPLEXITY OF STUDYING BEHAVIOR
LACK OF VALID, RELIABLE MEASURES
SYSTEMS ARE STRESSED
ORGANIZATIONS ARE A SET OF INTERRELATED ELEMENTS THAT
FUNCTION AS A WHOLE
CONTINGENCY PERSPECTIVE
THERE ARE NO UNIVERSAL PRINCIPLES
WE MUST STUDY THE SITUATION / SETTING TO FIND THE BEST SOLUTION
MANAGEMENT CHALLENGES TODAY
PARADIGM SHIFTS
CHANGING PRODUCTS & TECHNOLOGIES
SHIFTS IN WAYS OF THINKING AND MANAGING
CHAOS THEORY
THE ENVIRONMENT IS NOT PREDICTABLE
LEARN TO BE FLEXIBLE AND ADAPTABLE
WORKPLACE DIVERSITY
CHANGING LABOR FORCE
GLOBALIZATION
INTERNATIONAL COMPETITION
THE NEW (LEARNING) ORGANIZATION
STRONG ON VISION AND CULTURAL VALUES
EMPOWERED WORKERS
NEW STRUCTURES
NEW CAREER PATHS