Chapter 2Management, 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 confu

cianism• 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

Quantitative approach

Organizational behavior

Early advocates

Hawthorne studies

System approach

Contingency approach

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 comman

d, 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 mod

els, 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 stan

dards, group attitudes, and security. • Lead to new emphasis on the human behavior factorin th

e 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 i

nteract with their enviroment.

• open system– Systems that interact with their environment.

Inputs

Raw materials

Human resources

Capital

Technology

Information

Transformation process

Employee’s work activities

Management activities

Technology and operation methods

Output

Products and services

Financial results

Information

Human results

system

feedback

environment

environment

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 la

bor– 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 organizationTraditional 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 org

anization does.• Accurate measurement. • Empowerment of employees.

• To be perfect. • Examples, KFC, TOYOTA, APPLE.