Mp Ob Session 2_history

7/31/2019 Mp Ob Session 2_history

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The case we have just discussed , illustrates

many different comprehensive management

skill challenges that management at Burger

King to be successful, management mustcollectively apply insights from the classical,

behavioral, management science,

contingency, systems and learningorganisations.


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THE PRE-MODERN ERA

Ancient massive construction projects

Egyptian pyramids

Great Wall of China

Michelangelo the manager


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ADAM SMITHS CONTRIBUTION TO THE FIELD

OF MANAGEMENT

Wrote the Wealth of Nations(1776)

Advocated the economic advantages that

organizations and society would reap fromthe division of labor:

Increased productivity by increasing each

workers skill and dexterity.

Time saved that is commonly lost in changingtasks.

The creation of labor-saving inventions and

machinery.


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THE INDUSTRIAL REVOLUTIONS INFLUENCE

ON MANAGEMENT PRACTICES

Industrial revolution

Machine power began to substitute for

human powerLead to mass production of economical goods

Improved and less costly transportation

systems became available

Created larger markets for goods.

Larger organizations developed to serve

larger markets

Created the need for formalized management


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CLASSICAL CONTRIBUTIONS

Classical approach

The term used to describe the hypotheses of the

scientific management theorists and the general

administrative theorists.Scientific management theorists

Fredrick W. Taylor, Frank and Lillian Gilbreth, and Henry

Gantt

General administrative theorists Henri Fayol and Max Weber


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SCIENTIFIC MANAGEMENT

Frederick W. Taylor

The Principles of Scientific Management (1911)

Advocated the use of the scientific method to define

the one best way for a job to be done

Believed that increased efficiency could be

achieved by selecting the right people for the job

and training them to do it precisely in the one

best way.

To motivate workers, he favored incentive wage

plans.

Separated managerial work from operative work.


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TAYLORS FOUR PRINCIPLES OF MANAGEMENT

Develop a science for each element of an individuals work, which

replaces the old rule-of-thumb method.

Scientifically select and then train, teach, and develop the worker.

(Previously, workers chose their own work and trained themselves as

best they could.)

Heartily cooperate with the workers so as to ensure that all work is done

in accordance with the principles of the science that has been

developed.

Divide work and responsibility almost equally between management andworkers. Management takes over all work for which it is better fitted than

the workers. (Previously, almost all the work and the greater part of the

responsibility were thrown upon the workers).

EXHIBIT HM1


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SCIENTIFIC MANAGEMENT CONTRIBUTORS

Frank and Lillian Gilbreth

Bricklaying efficiency improvements

Time and motion studies

Henry Gantt

Incentive compensation systems

Gantt chart for scheduling work operations


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FAYOLS FOURTEEN PRINCIPLES OF MANAGEMENT

Division of work

Authority

Discipline

Unity of command

Unity of direction

Subordination of the

individual

Remuneration

Centralization

Scalar chain

Order

Equity

Stability of tenure ofpersonnel

Initiative

Esprit de corps

EXHIBIT HM2


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WEBERS IDEAL BUREAUCRACY

Division of Labor

Authority Hierarchy

Formal Selection Formal Rules and Regulations

Career Orientation

EXHIBIT HM3


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HUMAN RESOURCES APPROACH

Robert Owen

Claimed that a concern for employees was

profitable for management and would relieve

human misery.

Hugo Munsterberg

Created the field of industrial psychologythe

scientific study of individuals at work to maximizetheir productivity and adjustment.


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HUMAN RESOURCES APPROACH

Mary Parker Follett

Recognized that organizations could be viewed

from the perspective of individual and group

behavior.

Chester Barnard

Saw organizations as social systems that require

human cooperation.Expressed his views in his book The Functions

of the Executive(1938).


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HUMAN RELATIONS MOVEMENT

Based on a belief in the importance of

employee satisfactiona satisfied worker

was believed to be a productive worker.

Advocates were concerned with making

management practices more humane.

Dale Carnegie

Abraham Maslow

Douglas McGregor


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THE PROCESS APPROACH

Management theory jungle (Harold Koontz)

The diversity of approaches to the study of

managementfunctions, quantitative emphasis,

human relations approacheseach offersomething to management theory, but many are

only managerial tools.

Planning, leading, and controlling activitiesare circular and continuous functions of

management.


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THE SYSTEMS APPROACH

Defines a system as a set of interrelated and

interdependent parts arranged in a manner

that produces a unified whole

Closed system : a system that is not influencedby and does not interact with its environment

Open system: a system that dynamically

interacts with its environmentStakeholders: any group that is affected by

organizational decisions and policies


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THE ORGANIZATION AND

ITS ENVIRONMENT

EXHIBIT HM4


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THE CONTINGENCY APPROACH

The situational approach to management

that replaces more simplistic systems and

integrates much of management theory

Four popular contingency variables

Organization size

Routineness of task technology

Environmental uncertainty

Individual differences


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Henri Fayol

(1841 - 1925)


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Henri Fayols Background

* Graduated from the National School of Mines in Saint

Etrenne in 1860

* After graduation he went to work and spent his entire

career at Commentry-Fourchamboult-Decazeville. He was

named managing director in 1888 and maintained that

position until he retired in 1918.

* He is credited with saving the company from bankruptcy

* During his career he lectured at Ecole Superievre de laGuerre

* In his retirement he established the Center of

Administrative Studies


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Fayols Big Contributions to Management

1) Universality of management: The same skillsare needed to manage a coal mine that are needed to

manage a hospital, post office, university, etc..

2) Management is a field in and of itself: There

were no schools of management prior to Henri Fayol!!!


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Fayols Principles of Management

Division of Labor Fayol Encouraged job specialization

while realizing that too narrow a focus lead to boredom and

falling production

Authority & Responsibility This is more than giving

and having orders followed. Fayol thought that authority

should derive from expertise, leadership skill, knowledge,

etc., and lead to a sincere commitment from subordinates


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Centralization Fayol preferred a less centralized

management hierarchy. He didnt want decisions made

too far away from the problem

Unity of Direction Today we would call this

singleness of purpose

Initiative Employees should be able to act on their own

which spurs creativity and innovation


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Equity employees should be treated fairly.

For personnel to be encouraged to carry out their

duties with all the devotion and loyalty of which theyare capable, they must be treated with respect for their

own sense of integrity, and equality results from the

combination of respect and justice

Order The arrangement of positions in the organization

should maximize efficiency and provide employees with career

opportunities


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Discipline Managers need to enforce rules to

achieve company goals.

Remuneration of Personnel Fayol was an early supporter

of bonuses and profit sharing plans

Stability and tenure of employees Long-term

employees lead to better producing companies.


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Subordination of Individual Interests to the

common interest Employees need to understand

how their performance affects the entire organization

Esprit de Corp Managers should develop a shared

feeling of devotion to a common cause


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PLANNING

LEADING

CONTROLLING ORGANIZING

Fayols Functions of Management


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SCIENTIFIC MANAGEMENT

Frederick W. Taylor

The Principles of Scientific Management (1911)

Advocated the use of the scientific method to define the one best

way for a job to be done

Believed that increased efficiency could be achieved by

selecting the right people for the job and training them to

do it precisely in the one best way.

To motivate workers, he favored incentive wage plans.

Separated managerial work from operative work.

.


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1. Develop a science for each element of anindividuals work, which replaces the old rule-of-thumb method.

2. Scientifically select and then train, teach, and

develop the worker. (Previously, workers chose theirown work and trained themselves as best theycould.)

.


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3. Heartily cooperate with the workers so as to ensure thatall work is done in accordance with the principles of thescience that has been developed.

4. Divide work and responsibility almost equally betweenmanagement and workers. Management takes over all

work for which it is better fitted than the workers.(Previously, almost all the work and the greater part ofthe responsibility were thrown upon the workers.)


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Common Criticisms of Henri Fayol

Taylors argument: Taylor thought that specialization was

the best form of management. He thought that each worker

did eight different things and that for each thing there should

be a supervisor. Fayol thought that each person should only

have one supervisor. Further, Fayol liked having teams dowork together and making their own decisions rather than

having a specialist do every little thing.


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Common Criticisms of Fayol

Modern Criticism: Fayol refused to purchase stock in his

own company because he felt it compromised his position

as the firms managing director. Today, managers are

expected to have their pay tied to stock because it is seen as

their job to increase shareholder wealth.

Fayol, also, wanted to board of directors and shareholders

to have limited power because he felt they were

incompetent. This is criticized by those today who demand

shareholder rights be increased.

Mp Ob Session 2_history

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