Lecture Management (2nd edition) – Chapter 2: The evolution of management

This chapter’s objectives are to: Describe the historical foundation of management, explain the beginnings of modern management theory and education, outline the progression of the quantitative approach to management, outline the progression of the humanistic approach to management, interpret the factors that led to a balanced approach to management.

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MANAGEMEN I

SECOND EDITION

Chapter 2

The Evolution of

Management

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Learning Objectives

‘ Describe the historical foundation of management

Explain the beginnings of modern management

theory and education

Outline the progression of the quantitative approach

to management

Outline the progression of the humanistic approach to

management

Interpret the factors that led to a balanced approach to

management

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The Historical Foundations of

Management (p 32)

“Wealth of a Nation” — Adam Smith (p 33)

* Division of labor — workers specialize on a task

Corporation

* Legal entity formed and structured to achieve

goals with special protections for owners

* Dartmouth College vy Woodward

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Discovering and Teaching

Management Theory (p 33)

Bureaucratic management — Max Weber (p

34)

* Bureaucracy — an organization marked by:

Division of labor

Managerial hierarchy

Formal selection

* Career orientation

" Formal rules and controls

" Impersonality

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Discovering and Teaching

Management Theory (cont.)

Administrative management — Henri Fayol (p

35)

* Administrative theory

" Identifies the functions of management

" Successful management linked to satisfied and motivated employees

* “Provided the basis for management education

" Principles of management

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The Quantitative Approach (p 37)

Soldiering

* Workers tested management by performing as slowly as possible, while creating the impression that they were working fast

' Natural soldiering ' Systemic soldiering

Quantitative approach

* Applying objective methods to enhance decision making

Management science

- Using statistics, mathematics, and other quantitative methods to improve efficiencies

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The Quantifative Approach (cont.)

Scientific management — Frederick Taylor (p 37)

* Classical perspective — make organizations and workers operate as efficiently as possible

* Used quantitative approach to analyze and synthesize the flow of work to maximize productivity

* Task-management system — combination of setting performance standards, selecting the best worker for the job, and building good relations between managers and employees (p 38)

‘ Harrington Emerson — principles of efficiency

" Blueprint for the art and science of management

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Motion studies — Frank B Gilbreth (p 39)

* Motion picture cameras captured the step-by-step movements taken to complete a task

* Sought efficiencies by orchestrating the maximum results for the least worker effort

Scientific management and the mind — Lillian Gilbreth (p 40)

* Studied how managerial perceptions, emotions, and thoughts affected work and employees

* Three historical types of management

' Traditional ' Transitory

" Scientific

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Visualizing management — Henry Gantt (p 40)

* Habits of industry

* Training converted invisible internal forces into visible behaviors such as industriousness and cooperation

* Developed methods for visualizing performance standards

* Importance of time

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Quality movement (p 42)

* Ford Motor Company

‘ Assembly line — parts added sequentially to manufacture a product more quickly

" Interchangeable parts

* Operations research — established a quantitative rationale for decisions that lead to goal attainment

* Edwards Deming

Continuous improvement (p 43)

" Quality circles

" Lean manufacturing ' Total quality management ' Six sigma

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The Humanistic Approach (p 43)

Focused on the human side of management

Hawthorne studies (p 44)

* Employees motivated by more than money

* Group dynamics have an impact on worker morale and performance

* Jilumination study — performance increased when lighting

increased or decreased

‘ Relay assembly test room — productivity increased following various changes in work conditions

‘ Interviewing program — non-directive interviewing (p 45)

* Managers encouraged to treat workers as people

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The Humanistic Approach (cont.)

Conflict: Mary Parker Follett (p 45)

* Constructive conflict — positive outcomes from group conflict emerge when individual ideals remain intact and become part of a “single whole” (p 46)

Group Submission A Ce) KP es

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The Humanistic Approach (cont.)

Conflict: Mary Parker Follett (cont.)

- “Power with people,” not “power over people” (p 47)

Motivation: Douglas McGregor

* Theory X — negative assumptions about worker motivation

* People do not like work; must be coerced or intimidated

* Theory Y — positive view about worker motivation

* People enjoy the mental and physical purpose of work; try to expand their personal contributions

* Behavioral management — relies on understanding individual

behaviors, decisions, and attitudes to motivate employees

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The Balanced Approach (p 48)

Contingency (situational) theory

* Different organizations, situations, and contexts require different approaches

Cooperation: Chester I Barnard (p 49)

* Entropy — inefficient organizations lose social and market-based energy leading to the decline of the system

* Negative entropy — social and market-based energy that builds or maintains a system

* Managers must maintain an equilibrium of internal and external forces and their relationship to the organization

Cooperative system — managers of effective and efficient organizations control and influence people’s behavior by modifying their motives

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