Chapter 2: The Evolution of Management POWERPOINT

Scientific Management

"ONE BEST WAY"

COLLINS

"five great leaders" - Good to Great

Fayol identified ____________ functions and _____________________ principles of management.

- 5, 14

Systems theory

- A theory stating that an organization is a managed system that changes inputs into outputs - MATERIALS/ RESOURCE ---- TRANSFORMATION PROCESS ----- PRODUCT OR SERVICE

Fayol's FUNCTIONS of management

- Planning - Organizing - Commanding - Coordinating - Controlling

What was Follett's two key contributions?

- The notion that managers desire flexibility - The differences between motivating groups and individuals

What are Taylor's Four Functions of Scientific Management?

- develop a precise SCIENTIFIC APPROACH for EACH element of one's work - SCIENTIFICALLY select, train, teach, and develop each worker (sttd). - should cooperate with workers. - ensure an appropriate DIVISION of WORK and RESPONSIBILITY.

What are the FIVE characteristics of an EFFECTIVE bureaucracy?

- division of labor - authority - qualifications - ownership - rules

According to Barnard, a senior executive:

- formulates the purpose of the organization. - hires key individuals - maintains organizational communications

HAMEL

- management innovation - ranked as the "world's most influential business thinker"

DRUCKER

- need for organizations to set clear objectives - MBO - decentralization - humans as assets and knowledge workers

Around 4000 BC, the Egyptians used __________________________________________________ to build their great pyramids.

- planning, organizing, leading, and controlling - the four functions of management.

Modern Contributors to management

- porter - hamel - drucker - senge - covey - collins

What are the contemporary approaches to management?

- sociotechnical systems - quantitative - organizational behavior - systems theory

What are the classical approaches to management?

- systematic - scientific - bureaucracy - administrative - human relations

Fayol's 14 PRINCIPLES of management

1) Division of Work 2) Authority 3) Discipline 4) Unity of Command 5) Unity of Direction 6) Subordination of individual interests to the general interest 7) Remuneration 8) Centralization 9) Scalar Chain 10) Order 11) Equity 12) Stability of tenure of personnel 13) Initiative 14) Esprit de corps

What are the 5 levels of needs according to Maslow? (in ascending order)

1) physiological 2) safety 3) social 4) ego 5) self-actualization

authority

A CHAIN OF COMMAND or HIERARCHY is well established.

In 1776, __________________________ discussed control and the principle of SPECIALIZATION with regard to manufacturing workers.

Adam Smith

Sociotechnical Systems Theory

An approach to job design that attempts to redesign tasks to optimize operation of a NEW TECHNOLOGY while preserving employees' interpersonal RELATIONSHIPS and other human aspects of the work.

Classical Approaches Before 1890: Systematic management 1900 to 1910: Scientific management 1910s: Bureaucracy 1920s: Administrative management 1930s: Human relations

Contemporary Approaches 1940s: Sociotechnical systems 1950s: Quantitative management 1960s: Organizational behavior 1960s to 1970s: Systems theory 1980 through the present: Modern contributions to current and future revolutions

Origins of management

Egyptians, Chinese, Sun Tzu, Ancient Greeks, Venetians

qualifications

Employees are selected and promoted based on MERIT.

Who introduced scientific management?

Frederick Taylor

rules

IMPERSONAL rules should be applied consistently and fairly.

ownership

Managers, NOT OWNERS, should run the organization

Mary Parker Follett emphasized the continually CHANGING situations that managers face.

Mary Parker Follett emphasized the continually CHANGING situations that managers face.

Modern contributors to management

Porter, Hamel, Drucker, Senge, Covey, Collins PHDSCC

Four contemporary approaches to management

Sociotechnical systems, Quantitative management, Organizational behavior, Systems theory

Five classical approaches to management

Systematic management, Scientific management, Bureaucracy, Administrative management, Human relations

division of labor

Tasks, assignments, and authority are SPECIFIED

In 500 BC, Sun Tzu discussed the importance of PLANNING and LEADING in his book __________________________________________.

The Art of War.

Chester Barnard published _______________________________________________.

The Functions of the Executive in 1938, which outlined the role of the senior executive

Henri Fayol advocated for _____________________________ management.

administrative

Scientific Management (Classical)

applied scientific methods to analyze and determine the "one best way" to complete production tasks.

Bureaucracy (Classical Approach)

approach emphasizing a structure, formal network of relationships among specialized positions in the organization.

administrative management

approach that attempted to identify MAJOR PRINCIPLES and FUNCTIONS that managers could use to achieve superior organizational performance.

Quantitative management

approach that emphasizes the application of quantitative analysis to managerial decisions and problems.

Around AD 1436, the Venetians STANDARDIZED production through the use of an _______________________________.

assembly line.

Human Relations (classical)

attempted to understand and explain how human PSYCHOLOGICAL and SOCIAL processes interact with the formal aspects of the work situation to influence performance.

Max Weber advocated ________________________________.

bureaucracy

PORTER

competitive strategy

Authority

delegate authority along with responsibility

centralization

determine the relative importance of superior and subordinate roles

Division of Work

divide work into specialized tasks and assign responsibilities to specific individuals

unity of direction

employees' efforts should be focused on achieving organizational objectives

Initiative

encourage employees to act on their own IN SUPPORT of the organization's direction

equity

fair discipline and order enhance employee commitment

Gantt Charts

helps employees and managers plan projects by task and time to complete those tasks.

Organizational behavior

identifies management activities that promote employee effectiveness by examining the complex and dynamic nature of individual, group, and organizational processes.

The _____________________________ promoted a more STRUCTURED approach to work .

industrial revolution

scalar chain

keep communications within the chain of command

COVEY

leader's success

SENGE

learning organization

Discipline

make expectations clear and punish violators

Systematic Management (Classical)

management that built in specific procedures and processes that would ensure coordination of effort to achieve established goals and plans.

As early as 1100 BC, the Chinese applied the ___________________________________ of delegation, cooperation, efficiency, organization, and control.

managerial concepts

Contigency perspective

managerial strategies, structures, and processes that result in high performance depend on the characteristics, or important contingencies, or the situation in which they are applied.

Gantt suggested that frontline managers should receive a BONUS for each of their workers who completed their assigned daily tasks.

more output...higher wage/bonus

While, as a formal area of study, the field of management is relatively ______________, evidence of formalized management practices have been found dating back to _______________________.

new, 5000 BC.

order

order jobs and materials so they support the organizations direction

Hawthorne Effect (Observation Bias)

people's reactions to being observed or studied resulting in SUPERFICIAL rather than meaningful changes in behavior

Gantt expanded the _____________________ system.

piecerate

Esprit de Corps

promote a UNITY OF INTEREST between employees and management

Stability and tenure of personnel

promote employee loyalty and longevity

Around 400-350 BC, the Greeks recognized management as a SEPARATE art and advocated a ___________________________________________ to work.

scientific approach

Renumeration

systematically reward efforts that support an organization's direction

Subordination of the individual interest to the general interest

the general interest must predominate

unity of command

the management principle that each person should report to only one supervisor

Abraham Maslow suggested that humans have 5 levels of needs and are motivated to satisfy _________________________________.

unmet needs.

Frank and Lillian Gilbreth

used "MOTION STUDIES" to identify and remove wasteful movements so workers could be more efficient and productive.