Management Theories. Chapter 2 Lesson 1 Overview Know the history of management before the modern...

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Management Theories

Transcript of Management Theories. Chapter 2 Lesson 1 Overview Know the history of management before the modern...

Page 1: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Management Theories

Page 2: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

Overview

Know the history of management before the modern era

Know the classical contributions to modern management

Late 1800’s Weaving Shed

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Page 3: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

Quick Write

Do you know someone who isn’t called a manager but who works like one? Explain.

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Page 4: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

History of Management Before the Modern Era

Frederick Taylor

MichelangeloCourtesy of Clipart.comAdapted from Fundamentals of Management, 5th Ed.By Robbins/DeCenzo, p. .17Pearson Prentice Hall, 2005

Page 5: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

Adam Smith

Division of labor—the breakdown of jobs into narrow, repetitive tasks

Workers become very skilled at the one task they are doing

Saves time because workers are not moving from one task to the next

Helped pave the way for mechanization of work

Led to automation and computerization

Page 6: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

The Industrial Revolution

The advent of machine power, mass production, and efficient transportation, which began in Britain in the late eighteenth century

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Watt Steam Engine

Page 7: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

The Industrial Revolution

Machine Power

Mass Production

Relatively Cheap Transportation

Lack of Governmental Regulation

Large Organizations

Page 8: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

The Industrial Revolution

John D. Rockefeller – Standard Oil

Andrew Carnegie – Carnegie Steel

Taken from Wikipedia.com

Page 9: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

The Industrial Revolution

Large Labor Forces

New-Style Corporations

Formal Structures

Formal Management Practices

Page 10: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

What Do You Think?

What are some examples of large, modern corporations?

How are these organizations organized?

What kind of departments do these organizations have?

How does this relate to Adam Smith’s theory of the division of labor?

Page 11: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

Classical Contributions to Modern Management

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Page 12: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

Frederick Taylor

Published The Principles of Scientific Management in 1911

Used the scientific method to determine the “one best way” to do a job, and to train workers to do it that way

Demonstrated to workers and managers that both would benefit by improved production efficiency

Page 13: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

Frank & Lillian Gilbreth

Students of Frederick Taylor

Studied work arrangements to eliminate wasteful hand and body motions

Examined the design and use of tools and equipment to determine how these could contribute to work performance

Page 14: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

Henry Gantt

Devised a bonus system that gave workers extra money if they finished their work in less time than the standard

Studied the efficiency of managers and workers

Created the Gantt chart ~ a graphic device managers use to plan and control work

Page 15: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

A Gantt Chart

1 2 3 4Copy/edit manuscript

Design sample pages

Draw Artwork

Print Galley Proofs

Print Page Proofs

Design Cover

Adapted from Fundamentals of Management, 5th Ed.By Robbins/DeCenzo, p. 474Pearson Prentice Hall, 2005

Page 16: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

Why Scientific Management?

Productivity was low in the world of work in the early twentieth century

Better productivity by manual laborers could make a real difference

Page 17: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

Henri Fayol

Designated management as a universal set of activities

Looked at the activities of all kinds of managers

Wrote from personal experience as a manager

Stated 14 principles of management—fundamental or universal truths of management practice

Page 18: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

Fayol’s 14 Principles

Divison of workAuthority of managers to give ordersDiscipline of employeesUnity of commandUnity of directionSubordination of individual interests to the

general interest

Page 19: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

Fayol’s 14 Principles

Remuneration of workersCentralization of decision-makingScalar Chain ~ authority from top to bottomOrder of people and materialsEquity of treatmentStability of tenure of personnelInitiative of employees encouragedEsprit de Corps

Page 20: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

Max Weber

Described bureaucracy ~ an ideal type of organization with a division of labor, clearly defined hierarchy, detailed rules and regulations, and impersonal relationships

Model of the way work could be done in large groups

Model used in many large organizations today

Page 21: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

Today’s Applications

Matching people to jobs and training workers to be more effective are ideas Taylor introduced

Industrial engineering, which is all about the details of processes, is a field with its roots in scientific management

Page 22: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

Today’s Applications

Football coach who shows his team the tapes of last week’s game to get them to do better next week is picking up on an idea the Gilbreths introduced

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Page 23: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

What Do You Think?

What are some examples of the division of labor, scientific management, or bureaucracy that we see at work in the Air Force or in our Air Force JROTC unit?

Page 24: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

Review

Adam Smith introduced the concept of division of labor—the breakdown of jobs into narrow, repetitive tasks

One of the most important developments influencing management practice before the twentieth century was the Industrial Revolution—the advent of machine power, mass production, and efficient transportation, which began in Britain in the late eighteenth century

Modern management theory began with a group of managers and writers who tried to come up with some basic principles for companies to follow to work more efficiently

Page 25: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

Review

The classical approach to management introduced the ideas of the scientific management theorists and the general administrative theorists

General administrative theorists—writers who developed general theories of what managers do and what good management practice is—were concerned with the overall organization and how to make it more effective

Frederick Taylor described the theory of scientific management—the use of the scientific method to determine the “one best way” to do a job, and to train workers to do it that way

Page 26: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

Review

Frank and Lillian Gilbreth studied work arrangements to eliminate wasteful hand and body motions and the design and use of tools and equipment to determine how these could contribute to work performance

Henry L. Gantt devised a bonus system that gave workers extra money if they finished their work in less time than the standard

Scientific theory got so much attention because productivity was low in the world of work in the early twentieth century and better productivity could make a real economic difference

Page 27: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

Review

Henri Fayol stated 14 principles of management—fundamental or universal truths of management practice

Max Weber described what he called a bureaucracy—an ideal type of organization with a division of labor, clearly defined hierarchy, detailed rules and regulations, and impersonal relationships

The football coach who shows his team the tapes of last week’s game to get them to do better next week is picking up on an idea introduced by the classical approach to management

Page 28: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

Summary

Management before the modern era

Classical contributions to modern management

Page 29: Management Theories. Chapter 2 Lesson 1 Overview  Know the history of management before the modern era  Know the classical contributions to modern management.

Chapter 2 Lesson 1

What’s Next…

Management Approaches

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