The Evolution of Management Thought By Daniel A Wren

Khusus Mbak Mey 1/36

The Evolution of Management ThoughtBy Daniel A Wren

BAB SATU


Decide the purpose and mission of the organization

Make work productiveManage social impacts and responsibilities

Major Tasks of Management:

Khusus Mbak Mey 3/36Copyright Atomic Dog Publishing, 2002 3/36

Management Has Different Meanings

Primary views of management state that management is a:Process

DisciplineHuman activity

Career


Implies that management:Is some type of work or set of activitiesActivities are performed well or not wellInvolves certain functions and activities

Management Is a Process


Implies that management:Is an accumulated, “learnable” body of

knowledgeIs a subject with principles, concepts,

and theoriesHas a purpose of learning how to apply

principles, concepts, and theories at the right time and under the right circumstances to produce desired results

Management Is a Discipline


Implies that management:Refers to people in the management

processRefers to and emphasizes employees’

importance

Management Is a Human Activity


Implies that management:Is a progression through a sequence of

activities, jobs, organizations, and challenges

Requires constant learning of new skills and updating information on business and its industry

Management Is a Career


The Functions of Management

Leading Planning

Organizing Controlling


Integrates everything a manager doesLeader has:

Ability to influence othersVision or missionCourage and commitment

Management Function—Leading


Capstone activity of managementAll managers plan at all levels Determine an organization’s goals in order

to be successfulEstablish strategies to achieve goals

Management Function—Planning


Turn plans into actionsCreate a structure of task and authority

relationships to achieve goalsAssign tasks to individuals and groups

Management Function—Organizing


Ensure that actual performance conforms to planned performance requiring management to:Establish standards of performanceLocate deviations between actual and

planned standardsCorrect performance not meeting standards

Management Function—Controlling


History of Management Thought


ClassicalBehavioralManagement Science

Management Thought Has Been Grouped Into Three Approaches:


Classical Approach


Late 19th century effort to understand work and how workers can be more productive and efficient

Two perspectives:Scientific managementClassical organization theory

Classical Approach


Focus is on the management of work Focus on the physical environmentConcentrate on the problems of lower-level

managers dealing with the everyday problems of the work force

Study work processes to make them more efficient in order to better use labor at that time—unskilled, no formal education, largely immigrant

Primary contributors—engineers

Scientific Management


Frederick W. Taylor, “father of scientific management,” developed 4 principles based on his beliefs that the interests of both management & labor can be combined: 1 best way to do a jobOptimum work paceTrain people to do a jobReward using incentive pay system

Frank & Lillian Gilbreth, “time & motion studies,” break down job motions into elementary parts and find better ways to perform each part

Scientific Management—Contributors


Focus is on the management of organizationsConcentrate on the problems top-level

managers face in managing the organization as a whole

Two major purposes:Develop basic principles to create, and

maintain large organizationsIdentify basic functions of managing

organizationsPrimary contributors—practicing executives

Classical Organization Theory


Max Weber, “theory of bureaucracy,” thought an organization should be based on 5 principles:Formal authority of managersJobs based on qualificationsAuthority and responsibility clearly definedHierarchical positionsRules and SOPs control organization

Modern ideas based on Weber: TQM, process specialization, competency testing

Classical Organization Theory—Contributors


Classical Organization Theory—Contributors (cont)

1. Division of labor

2. Management authority and responsibility

3. Unity of command 4. Line of Authority

5. Centralization 6. Unity of direction 7. Equity

8. Order 9. Initiative10. Discipline11. Remuneration12. Tenure Stability13. Common Interest14. Esprit De Corps

Henri Fayol developed 14 principles essential to effective management:


Classical Approach—Pros & Cons

Contributions Identify management as an

important element of organized society

Basis for training new managers

Acknowledge importance of managers

Many current techniques are direct outgrowths

LimitationsToo simplistic for today’s

complex organizationsMore appropriate for

stable & predictable environments

Shallow understanding of human nature and how people interact


Behavioral Approach


Developed because (a) classical approach didn’t achieve total efficiency and workplace harmony and (b) managers still encountered problems because workers didn’t always behave as they were supposed to

Two branches:Human Relations ApproachBehavioral Sciences Approach

Behavioral Approach


Focus on the social environment of a jobRefers to the manner in which managers

interact with subordinatesManagers must know why subordinates

behave as they doImportance of individuals in success or

failure of an organization

Human Relations Approach


Management should recognize employees’ need for recognition and social acceptance

Management should look on work group as a positive force

Managers should be trained in human relations skills as well as in technical skills

Human Relations Approach—(cont.)


Focus is on the nature of work itselfIndividuals are motivated to work for

reasons other than money and social relationships— recognition, societal contributions, personal fulfillment

Behavioral Sciences Approach


Mary Parker Follett viewed organizations from the perspective of individual or group behavior, i.e., people-centered view. Managers’ job is to harmonize and coordinate group efforts

Hawthorne Studies varied lighting levels at the Western Electric Company; productivity increased regardless of the illumination level

Elton Mayo replicated Hawthorne Studies and the results; workers enjoyed the attention and produced the results they believed researchers wanted

Behavioral Sciences Approach—Contributors


Behavioral Sciences Approach—Pros & ConsContributionsContribute to people—

managing aspect of management

Use of teamsFocus on training &

developmentUse of reward & incentive

systems

LimitationsDoesn’t always help

managers in problem situations

Difficulty in translating technical findings into useful tools and policies

Variety of viewpoints complicates the problem


Management Science Approach


Developed to solve complex military problems in World War II, American business firms began to use a similar approach to deal with operating issues

Formerly called operations research, this approach uses mathematics and statistics to aid in resolving production and operations problems

Solve technical rather than human behavior problems; analyze the problem and often develop a mathematical representation of it

Provide management with quantitative bases for decisions

Management Science Approach


Management Science Approach—Pros & Cons

ContributionsTechniques that help

with production management—scheduling, budgeting, inventory

Techniques that help with operations management— development programs, aircraft scheduling

LimitationsNot a substitute for

managementDoesn’t deal with the

people aspect of a organization


Integrating the 3 Approaches— Classical,

Behavioral, and Management Science

Systems Approach Contingency Approach


Views an organization as interrelated parts with a unified purpose: surviving and ideally thriving in its environment

Management should focus on efficiency and effectiveness in each part of the organization

Elements of an organization are interconnected

Organization is linked to its environmentOpen Systems vs. Closed Systems

Systems Approach


Helps in better understanding the interactions of an organization’s components. Views an organization as interrelated parts with a unified purpose: surviving and ideally thriving in its environment

Workplace situations are too complex to analyze and control; thus, instead of focusing on trying to find the one best way to arrange workplace variables, managers focus on adapting their behavior to match the demands of the situation

Contingency Approach


End of Chapter 1

The Evolution of Management Thought By Daniel A Wren

Documents

Transcript of The Evolution of Management Thought By Daniel A Wren