MGT420 Chapter 2

8/2/2019 MGT420 Chapter 2

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Chapter 2 :Evolution ofManagement Thought

Nur zalika akma binti mohd zinShara nor atikah binti shamsuddinNur hainisaNur sheeda


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1 .Describe the major influences on the

development of management thought .

Economical Influences

-the availability ,production and distribution ofresources within a society

Social Influences-the aspects of a culture that influence

interpersonal relationships .

Political Influences-the impact of political institutions on individuals

and organizations .


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2 .Identify the five major perspective of

management thought that have envolved over

the years .1. Classical Perspective

Scientific management

-a perspective on management that focuses on theproductivity of the individual worker .

-It is focuses on :-

Task performance

-scientific management incorporates basic expectations ofmanagement ,including development of workersstandards ,selection of workers ,training of workers andsupport of workers .


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Supervision

-means that a single supervisor could not be an expert at all task .

-as a result ,each first-level supervisor should be responsible only

workers who perform a common function familiar to the

supervisor .

Motivation

-means that money was the best way to motivate workers to their

fullest capabilities .

-workers who met a standard level of production were paid a

standard wage rate .

-workers whose productions exceeded the standard were paid at a

higher rate for all of their productions output .


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Administrative management

-a perspective on management that focuses on managers and the functions theyperform .

Focus on general principles of management :

-division of work

-authority and responsibilities

-discipline

-stability

-centrallization

Bereaucratic management

-a perspective on management that focuses on the overall organizational system .

Webers forms of authority

Traditional authoritySubordinates comply with a leader because a custom or tradition .

Charismatic authority

Subordinates voluntarily comply with a leader because oh his or her specialpersonal qualities or abilities .


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Rational-legal authority

Subordinates comply with a leader because of a set of impersonalrules and regulations that apply to all employees .

2. Behavioral Perspective

-followed the classical perspective in the development of managementthought .

-acknowledgement the importance of human behavior in shaping

management systems .Mary Parker Follett .

Concluded that a key to effective management was coordination.

Felt that managers needed to coordinate and harmonize groupeffort rather than force and coerce people.

Believed that management is a continuous, dynamic process.

Felt that the best decisions would be made by people who wereclosest to the situation.


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The Quantitative Perspective Characterized by its use of mathematics, statistics, and other quantitative

techniques for management decision making and problem solving. This approach has four basic characteristics:

1. A decision-making focus

2. Development of measurable criteria

3. Formulation of a quantitative model

4. The use of computers

Decision-Making Focus

The primary focus of the quantitative approach is on problems or

situations that require direct action, or a decision, on the part of

management. Measurable Criteria

The decision-making process requires that the decision maker select

some alternative course of action.

The alternatives must be compared on the basis of measurable

criteria.


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Systems Perspective

An approach to problem solving based on an understanding of the basic

structure of systems. Environmental interaction

Open systems must interact with the external environment to

survive.

Closed systems do not interact with the environment. Synergy: when all subsystems work together making the whole greater

than the sum of its parts.

Entropy: the tendency for systems to decay over time


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The Contingency Perspective A view that proposes that there is no one best approach to

management for all situations.

Asserts that managers are responsible for determining whichmanagerial approach is likely to be most effective in a givensituation.

This requires managers to identify the key contingencies in a

given situation. An Example of the Contingency PerspectiveJoan WoodwardsResearch

Discovered that a particular management style is affected by theorganizations technology.

Identified and described three different types of technology:

Small-batch technology

Mass-production technology

Continuous-process technology


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3.Different subfields that exist in the classical

perspective of management and discuss the central

focus eachScientific Management: Taylor

Frederick W. Taylor (1856-1915)

Father of Scientific Management.

attempted to define the one best way to perform every taskthrough systematic study and other scientific methods.

believed that improved management practices lead to improved

productivity.

Three areas of focus:

Task Performance

Supervision

Motivation


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Task Performance Scientific management incorporates basic expectations of

management, including:

Development of work standards

Selection of workers

Training of workers

Support of workers

Supervision

Taylor felt that a single supervisor could not be an expert at alltasks.

As a result, each first-level supervisor should be responsible onlyworkers who perform a common function familiar to thesupervisor.

This became known as Functional Foremanship


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Motivation Taylor believed money was the way to motivate workers to their fullest capabilities.

He advocated a piecework system in which workers pay was tied to their output.

Workers who met a standard level of production were paid a standard wage rate.

Workers whose production exceeded the standard were paid at a higher rate for all

of their production output.

Scientific Management: The Gilbreths

Frank Gilbreth

Specialized in time and motion studies to determine the most efficient way to performtasks.

Used motion pictures of bricklayers to identified work elements (therbligs) such as liftingand grasping.

Lillian Gilbreth

A strong proponent of better working conditions as a means of improving efficiency and

productivity. Favored standard days with scheduled lunch breaks and rest periods for workers.

Strived for removal of unsafe working conditions and the abolition of child labor.


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Administrative Management: Fayol

Henri Fayol (18411925)

First recognized that successful managers had to

understand the basic managerial functions.

Developed a set of 14 general principles ofmanagement.

Fayols managerial functions of planning, leading,

organizing and controlling are routinely used in

modern organizations.


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Fayols General Principles of

Management

1. Division of work

2. Authority and

responsibility3. Discipline

4. Unity of command

5. Unity of direction

6. Subordination of individualinterest to the commongood

7. Remuneration of personnel

8. Centralization

9. Scalar chain

10. Order

11. Equity

12. Stability

13. Initiative

14. Esprit de corps


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Bureaucratic Management Focuses on the overall organizational system.

Bureaucratic management is based upon: Firm rules

Policies and procedures

A fixed hierarchy

A clear division of labor

Bureaucratic Management: Weber

Max Weber (18641920)

A German sociologist and historian who envisioned a system of management

that would be based upon impersonal and rational behaviorthe approach tomanagement now referred to as bureaucracy.

Division of labor

Hierarchy of authority

Rules and procedures

Impersonality Employee selection and promotion


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Webers Forms of Authority

Traditional authority

Subordinate obedience based upon custom ortradition (e.g., kings, queens, chiefs).

Charismatic authority

Subordinates voluntarily comply with a leaderbecause of his or her special personal qualities orabilities (e.g., Martin Luther King, Gandhi).

Rational-legal authority

Subordinate obedience based upon the positionheld by superiors within the organization (e.g.,police officers, executives, supervisors).


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Webers Three Types of Authority Type Description

Traditional Subordinate obedience based uponcustom or tradition

Charismatic Subordinate obedience based uponspecial personal qualities associated

with certain social reformers, politicalleaders, religious leaders, ororganizational leaders

Rationallegal Subordinate obedience based uponthe position held by superiorswithin the organization


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Bureaucratic Hierarchical Power Structure


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4.Theories of the major contributors to the behavioral

perspective of management .

Mary Parker Follett

Concluded that a key to effective management was

coordination.

Felt that managers needed to coordinate and

harmonize group effort rather than force and coercepeople.

Believed that management is a continuous, dynamic

process.

Felt that the best decisions would be made by people

who were closest to the situation.


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Follett on Effective Work Groups

Four principles of coordination to promote

effective work groups:

1. Coordination requires that people be in direct

contact with one another.

2. Coordination is essential during the initial stages

of any endeavor.

3. Coordination must address all factors and phases

of any endeavor.

4. Coordination is a continuous, ongoing process.


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Elton Mayo

Conducted the famous Hawthorne

Experiments. Hawthorne Effect

Productivity increased because attention was paid to

the workers in the experiment.

Phenomenon whereby individual or group performance

is influenced by human behavior factors.

His work represents the transition from

scientific management to the early humanrelations movement.


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Douglas McGregor

Proposed the Theory X and Theory Y styles of

management.

Theory X managers perceive that their

subordinates have an inherent dislike of work and

will avoid it if at all possible.

Theory Y managers perceive that their

subordinates enjoy work and that they will gain

satisfaction from performing their jobs.


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Comparison of Theory X and Theory YAssumptions

Factor Theory X Assumptions Theory Y Assumptions

Employee attitude Employees dislike work and. Employees enjoy work andtoward work will avoid it if at all possible. will actively seek it.

Management view Employees must be directed,Employees are self-motivated

of direction coerced, controlled, or threatened and self-directed toward achievingto get them to put forth adequate effort. organizational goals.

Employee view Employees wish to avoid responsibility; Employees seek responsibility;ofdirection they prefer to be directed and told what they wish to use their creativity,

to do and how to do it. imagination, and ingenuity inperforming their jobs.

Management style Authoritarian style of managementParticipatory style of management


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Chester Barnard

Felt that executives serve two primary functions:

Must establish and maintain a communications

system among employees.

Must establish the objectives of the organization and

motivate employees.

Developed an acceptance theory of authority: Authority of a manager flows from the ability of

subordinates to accept or reject an order from the

manager once they:

Comprehend what the order requires of them.

Review the orders consistency with organization goals.

Perceive a personal benefit in obeying the order.


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5.Characteristic of the quantitative

perspective .

Characterized by its use of mathematics,statistics, and other quantitative techniques formanagement decision making and problem

solving. This approach has four basic characteristics:

1. A decision-making focus

2. Development of measurable criteria

3. Formulation of a quantitative model

4. The use of computers


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Decision-Making Focus The primary focus of the quantitative approach is on

problems or situations that require direct action, or a

decision, on the part of management. Measurable Criteria

The decision-making process requires that the decisionmaker select some alternative course of action.

The alternatives must be compared on the basis ofmeasurable criteria.

Quantitative Model To assess the likely impact of each alternative on the

stated criteria, a quantitative model of the decision

situation must be formulated.

Computers Computers are quite useful in the problem-solving

process.

6 Describe the systems perspective building


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6.Describe the systems perspective building

blocks and their interactions .

An approach to problem solving based on an

understanding of the basic structure of systems.

Environmental interaction

Open systems must interact with the external environment

to survive. Closed systems do not interact with the environment.

Synergy: when all subsystems work together making

the whole greater than the sum of its parts.

Entropy: the tendency for systems to decay over time.


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7.Nature of the contingency perspective

management

A view that proposes that there is no one best

approach to management for all situations.

Asserts that managers are responsible for

determining which managerial approach is likely

to be most effective in a given situation.

This requires managers to identify the key

contingencies in a given situation.


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An Example of the Contingency

Perspective

Joan Woodwards Research

Discovered that a particular management style is

affected by the organizations technology.

Identified and described three different types oftechnology:

Small-batch technology

Mass-production technology

Continuous-process technology


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8.Future issues that will affect the further

development of management thought .

Heightened concern for diversity initiatives

within the workplace and within management

Adoption of the concept of workers as

decision makers, problem solvers, and team

players

Creation of a focus on and commitment to the

concept of quality.

MGT420 Chapter 2

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