ppt_ch02

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*

CHAPTER 2

PIONEERING IDEAS IN MANAGEMENT

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*LECTURE OUTLINEEarly management ideasClassical theoristsBehavioural theoristsQuantitative approachContemporary ideasInnovation & management theory


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*EARLY MANAGEMENT IDEAS Robert Owen (17711858)Identified the importance of working and social conditions for employees.

Charles Babbage (17921871)Ideas on work specialisation, production efficiency, incentive and profit-sharing plans.

Henry R. Towne (18441924)Called for a management science that would establish principles of management.


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*EARLY MANAGEMENT IDEASAssessing the early contributions:Uncoordinated efforts.Contributions tended to relate to specific problems.Did not see management as a separate field or skill (until Towne).


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*CLASSICAL THEORISTSThis viewpoint emphasises efficiently managing work and organisations.It comprises three different management approaches: scientific, administrative and bureaucratic.


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*CLASSICAL THEORISTSScientific managementF. W. Taylor, F. & L. Gilbreth, H. Gantt

Bureaucratic managementM. Weber

Administrative managementH. Fayol, C. Barnard


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*SCIENTIFIC MANAGEMENT Scientific management is an approach in classical management theory focusing on the scientific study of work methods to improve worker efficiency.


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*SCIENTIFIC MANAGEMENTFrederick W. TaylorFour principles of scientific management:Select and train the best.

Determine the most efficient work methods.

Co-operate with workers to ensure best method is used.

Divide work/responsibility between workers and managers.


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*SCIENTIFIC MANAGEMENTFrank & Lillian GilbrethTime and motion studiesHuman implications of Scientific Management

Henry GanttPay incentivesGantt chart


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*BUREAUCRATIC MANAGEMENT An Approach which saw the need of an organisation to operate rationally rather than relying on the arbitrary whims of owners and managers.


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*BUREAUCRATIC MANAGEMENTWebers Ideal BureaucracySpecialisation of labourFormal rules & proceduresImpersonalityWell-defined hierarchyAdvancement on merit


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*BUREAUCRATIC MANAGEMENTMax WeberFormal rules & proceduresSpecialisation of labourHierarchy of positionsAdvancement on merit


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*ADMINISTRATIVE MANAGEMENT Approach focused on principles for managers to co-ordinate organisations internal activities.


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*ADMINISTRATIVE MANAGEMENT Henri Fayols Principles of ManagementDivision of workAuthorityDisciplineUnity of command/directionPrimacy of general interestRemunerationEsprit de corps


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*ADMINISTRATIVE MANAGEMENT Henri Fayols Principles of Management (cont.)CentralisationScalar chainOrderEquityLow turnoverInitiative


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*ADMINISTRATIVE MANAGEMENTHenri FayolCo-ordinatingCommandingControllingPlanningOrganising


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*BEHAVIOURAL THEORISTS Perspective on management emphasising the need to understand the effect of different factors on human behaviour in organisations.


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*BEHAVIOURAL THEORISTSEarly theorists:

Hugo Munsterberg Creating optimal psychological conditions, behaviour shaping

Mary Parker Follett Importance of group functioning

Hawthorne studies Importance of supervisory style


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*BEHAVIOURAL THEORISTSHuman relations movement

Abraham MaslowHierarchy of needs

Douglas McGregorTheory X & Y


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*McGREGORS THEORY X & YTHEORY XWork is naturalCapable of self-directionSeek responsibilityCan make good decisionsWork avoiding Need to controlAvoid responsibilityWorkers seek securityTHEORY Y


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*QUANTITATIVE MANAGEMENT VIEWPOINT Focused on mathematics, statistics and information aids supporting managerial decision making and organisational effectiveness.


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*QUANTITATIVE MANAGEMENT VIEWPOINTManagement scienceApproach aimed at increasing decision effectiveness through use of sophisticated mathematical models and statistical methods.Operations managementFunction or field of expertise primarily responsible for managing production and delivery of an organisations products and services.Management information systemsField of management focused on designing and implementing computer-based information systems for use by management.


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*CONTEMPORARY VIEWPOINTSSystems theoryApproach based on the idea that organisations can be visualised as systems.

Contingency theoryViewpoint arguing that appropriate managerial action depends on the particular parameters of the situation.


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*CONTEMPORARY VIEWPOINTSTheory ZConcept combining positive aspects of American and Japanese management into a modified approach aimed at increasing managerial effectiveness while remaining compatible with the norms and values of American society and culture.


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*CONTEMPORARY VIEWPOINTSTotal Quality Management (TQM)Approach highlighting collective responsibility for product and service quality, and encouraging individuals to work together to improve quality.


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*PROMOTING INNOVATIONEach management viewpoint provides a contribution to managing innovation:ClassicalBehaviouralQuantitativeContemporary


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*PROMOTING INNOVATIONCASE: Web on menu at McDonaldsThe McDonalds restaurant in Dunedin, New Zealand, took the innovative step of introducing a Cyber Caf into their restaurant.What type of management approach best describes their innovative action?


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*LECTURE SUMMARYEarly management ideasGeneration of ideas leading to identification of management as a significant field of inquiry.

Classical theoristsEmphasised finding ways to more efficiently manage work and organisations.


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*LECTURE SUMMARYBehavioural theoristsEmphasised the importance of trying to understand factors affecting human behaviour in organisations.Quantitative approachFocuses on mathematics, statistics and information aids supporting managerial decision making and effectiveness.


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*LECTURE SUMMARYContemporary ideasViews of organisations as systems, importance of contingency factors & amalgamating Japanese & American management practices.


Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin2*LECTURE SUMMARYInnovation & management theoryEach approach provides insights, knowledge & practice regarding the management of innovation in organisations.


*Examples of management practice can be found across several thousand yearsthe Assyrians, Egyptians, Romans and other early civilisations. But as a field of knowledge management has only developed recently, primarily as a result of the demands emanating from the industrial revolution.Ideas about running factories more effectively provided pre-classical contributions.The development of broad principles and theories forming managerial viewpoints followed, providing the classical, behavioural, quantitative and contemporary contributions.Further discussion can be found on pages 32-33.

*Page 33.*Early theorists concentrated on specific solutions to specific problems and were uncoordinated. These included increased productive efficiency and mechanisation and the call for the development of management principles.Further discussion can be found on pages 32-34.*Classical theorists emphasised the efficient management of work and organisations. It is called classical because it includes early works and contributions comprising the core of the management field.Early theorists concentrated on specific solutions to specific problems and were uncoordinated. These included increased productive efficiency and mechanisation and the call for the development of management principles.Further discussion can be found on page 34.

*Pages 34-39*F.W.Taylor developed his theory of Scientific Management to tackle what he considered to be a major problemsoldiering. Soldiering is when a worker deliberately works below full capacity. He believed that soldiering occurred because workers feared that increased production meant lost jobs, wage systems encouraged low production and because work methods were often inefficient.Early theorists concentrated on specific solutions to specific problems and were uncoordinated. These included increased productive efficiency and mechanisation and the call for the development of management principles.Further discussion can be found on pages 34-36.

*Page 35*These three people were advocates of Scientific Management contemporary to Taylor. Frank Gilbreth developed detailed work methods while his academic wife Lillian developed the theoretical aspects of these approaches. Henry Gantt was a close associate of Taylor and contributed the graphic aid for planning, scheduling and control known as the Gantt chart, along with unique pay incentive approaches to encourage efficiency and productivity in workers.Further discussion can be found on page 36.

*Page 36*Weber believed that the irrational behaviour of owners, managers and administrators (such as nepotism and class bias) impeded the effective functioning of organisations. His idea of a rational approach to management outlined how an organisation might function effectively. N.B. the term bureaucracy has come to describe the negative aspects of large, rule-based organisations, but this was not the sense in which Weber used the term.Further discussion can be found on pages 36-38.

*Page 37*The work of the Administrative Management branch of Classical Management theorists laid the foundation for the concept of management as a professional field.Further discussion can be found on pages 38-39.

*Fayol believed management theories could be developed and then taught to administrators. His four functions of management are still used today.Further discussion can be found on pages 38-39.

*Page 39*Page 39*While Classical theorists saw people as productive mechanisms to be used efficiently, the Behavioural theorists saw understanding and incorporating the social and psychological functioning of workers as integral to effective management performance.Further discussion can be found on page 39.

*The Behavioural approach marks the onset of non-engineering contributions to management, e.g. psychologist Munsterberg and political scientist Follett. The Hawthorne studies led to a change in focus for management studies since it indicated the significant effect that a jobs social aspects could have on productivity.Further discussion can be found on pages 40-43.

*The Human Relations movement within the Behavioural approach to management suggested that the key to productivity was for managers to show a greater concern for the degree of personal satisfaction that workers had in their jobs and the creation of more collaborative/co-operative relationships between supervisor and worker.Further discussion can be found on pages 43-44.

*Page 43*Pages 43-44*The Quantitative Management viewpoint emerged during the Second World War and was a response to the logistical problems encountered from the sheer size of logistical problems encountered in coordinating and controlling the resources of the allied countries. It is a technical and rational approach that focuses on the use of mathematics, statistics and information as aids to supporting managerial decision making.Further discussion can be found on page 45.

*Pages 45-46*Contemporary approaches may be viewed as additional to the Classical, Behavioural and Quantitative approaches although they have not yet attained the status of enduring viewpoints. They are regarded as contemporary innovations in thinking.Further discussion can be found on pages 46-48.

*Page 48*Pages 48-50*Each major viewpoint has contributed to current management knowledge and changed managers thoughts about organisations and behaviour within them. It is a mistake to regard the various management viewpoints as historical, each replacing the previous. Rather, they should be regarded as additions, each furthering and deepening our understanding of the field of management. Each approach brings something useful and necessary to management and highlights an aspect of managing. The reality of management is that many of these ideas and approaches are utilised in organisations alongside each other or in specific instances.Further discussion can be found on page 52.

*Pages 51-52*Page 56*Page 56

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