History of Management

1. History of Management The Evolution of Management Thought

2. History of Management Ancient examples of good management Medieval Example of assembly line Industrial Revolution prompts study of Management and writings concerning how to manage effectively and efficiently

3. (Trans. 6) The Practice of Management has gone on through history but formal study and writing has mainly taken place in the last 100 years. • Information overload is where we’re at now • Interdisciplinary • No universally accepted approach

4. An early approach to Management is the The Universal Process Approach or Administrative Management Approach • Henri Fayol’s Universal Management Process • Development of principles of Management • Lessons from the Universal Process Approach

5. THE UNIVERSAL PROCESS APPROACH – Administrative Management Approach Universal process approach: The administration of all organizations, public or private or large or small, requires the same rational process.

6. Universal Functions Henri Fayol’s Five Universal Functions (also called processes ) of Management--POC3 • Planning • Organizing • Command • Coordination • Control

7. Administrative Approach Henri Fayol’s Five Universal Functions of Management--POC3 • Look at book’s functions of management - they are similar to the universal functions of Fayol’s • Functions can be used by all managers non-profit, government, profit making

8. Fayol summarized Principles of Management in 1916. • Can you come up with them on your own? • How many individuals should directly manage one worker? • How much authority should you give individuals relative to their responsibility? Should lower level workers directly interact with individuals in different functional areas?

9. II. Scientific Approach • Started in late 1800’s and early 1900’s. • Frederic Taylor and scientific management • Early followers of Taylor • Later followers are from Quality movement

10. FREDERICK W. TAYLOR’S SCIENTIFIC MANAGEMENT(An Operational Approach) Scientific management: “that kind of management which conducts a business or affairs by standards established by facts or truths gained through systematic observation, experiment, or reasoning.”

11. FREDERICK W. TAYLOR’S SCIENTIFIC MANAGEMENT (continued) Taylor’s Scientific Management Contributions • Standardization (work methods, machine settings • Time and task study (Science of Shoveling) • Systematic selection and training (pretty rudimentary but somewhat unusual at time) • Pay incentives (piece rate)

12. Early followers of Fred Taylor • Frank and Lillian Gilbreth (12 children) came up with time and motion studies (therbligs). • Henry Gantt (Gantt chart and work scheduling) also supported a minimum wage with bonuses.

13. Scientific approach followed LATER by QUALITY ADVOCATES • W. Edwards Deming -- American behind Japan’s quality revolution based on statistical quality control, employee participation, and continuous improvement • Joseph M. Juran -- quality improvement through teamwork, partnerships with suppliers, brainstorming, and Pareto analysis (80/20 principle)

14. QUALITY ADVOCATES (continued) • Armand V. Feigenbaum -- total quality control; customer determines quality • Philip B. Crosby -- zero defects; “do it right the first time” • Demonstrated how much defects cost. • Lost customers, wasted materials and labor, greater costs of servicing items produced

15. III. The Human Resources Approach • Focuses in on organized activity that is related to how people behave as individuals and work groups. (soc, psch, soc-psy, mgmt) • Human Relations Movement - developed to make working better for workers - less destructive, more motivating, and more satisfying

16. Justification for Human Resources’ Movement and Behavioral Approach • Threats of Unions • Industrial Humanism • Mary Parker Follett (need to see employees as having emotions, attitudes, beliefs, habits, feelings-- need to motivate workers. • Hawthorne Experiment (1930’s) • Elton Mayo (1949)

17. McGREGOR’S THEORY Y • 1960 - Human side of enterprise

18. Behavioral Approach ContinuedMcGREGOR’S THEORY Y Some Modern Assumptions about People 1. Work is a natural activity, like play or rest. 2. People are capable of self-direction and self-control if they are committed to objectives. 3. People will become committed to organizational objectives if they are rewarded for doing so.

19. McGREGOR’S THEORY Y(continued) 4. The average person can learn to both accept and seek responsibility. 5. Many people in the general population have imagination, ingenuity, and creativity.

20. IV. THE SYSTEMS APPROACH System:a collection of parts operating interdependently to achieve a common purpose. General systems theory: an interdisciplinary area of study based on the assumption that everything is part of a larger, interdependent arrangement.

21. IV. Systems Approach • Chester I. Barnard’s Early Systems Perspective (Book Fcts. Of Executive. • General Systems Theory • New Directions: Organizational Learning and Chaos Theory • Lessons from the Systems Approach use of open versus closed systems, exchange theory

22. THE SYSTEMS APPROACH(continued) “Functions of Executive” --- This 1938 book stated that all organizations are cooperative systems whose elements must have a willingness to serve, have a common purpose, and must communicate to work together

23. THE SYSTEMS APPROACH(continued) Closed system:a self-sufficient entity. Open system: an entity that depends on the surrounding environment for survival. Exchange Theory:

24. THE SYSTEMS APPROACH (continued) For Discussion: 1. What role does open-system thinking play in your life? 2. Why should managers view modern organization as open systems?

25. V. Contingency Approach” • Contingency approach is similar to systems approach except management scholars realized it is impossible to understand everything in system so they propose to just study major contingencies of system. Trans 9

26. V. Contingency Approach • Contingency approach is an effort to determine through research which managerial practices and techniques are appropriate in what situation.

27. Excellence Approach Attributes of Excellence: A Modern Unconventional Approach • Eight Attributes of Excellence in large companies studied • A Critical Appraisal of the Excellence Approach • Lessons from the Excellence Approach • Peters and Waterman is unconventional Approach

28. PETERS AND WATERMAN’S EIGHT ATTRIBUTES OF EXCELLENCE 1. A bias for action 2. Close to the customer 3. Autonomy and entrepreneurship 4. Productivity through people

29. PETERS AND WATERMAN’S EIGHT ATTRIBUTES OF EXCELLENCE(continued) 5. Hands-on, value driven 6. Stick to the knitting 7. Simple form, lean staff 8. Simultaneous loose-tight properties

30. Excellence approachmay be MBBS Joke about book “One Minute Manager” asks what do you do the other 59 minutes. MBBS syndrome - Management By Best Seller-- Companies using MBBS approach may be unfocused and have: • Weak culture • Insecure incompetent • Strong top down control • Consultants inexperienced • Unwillingness to expend long-term effort

31. HOW TO AVOID THE QUICK-FIX MENTALITY IN MANAGEMENT 1. Remain current. 2. Look for scientific support. 3. Experiment with new concepts. 4. Be skeptical and analyze apparently simple solutions. 5. Study linkages between current action and future results.