EVOLUTION OF MODERN MANAGEMENT

U.S. INDUSTRIAL REVOLUTION

POWER GENERATION
TRANSPORTATION
COMMUNICATION

SCIENTIFIC MANAGEMENT

FREDERICK TAYLOR
HENRY GANTT
FRANK & LILLIAN GILBRETH

FREDERICK TAYLOR
TIME STUDY
STANDARDS FOR WORK
JOB SPECIALIZATION
MANAGERIAL PLANNING & CONTROL OF WORK
WORKER SELECTION & TRAINING
INCENTIVES
HENRY GANTT
GANTT CHARTS
MODIFIED INCENTIVES
INCENTIVES FOR FOREMEN
FRANK & LILLIAN GILBRETH
MOTION STUDIES (Therbligs)
FATIGUE REDUCTION
SUGGESTION SYSTEMS

SCIENTIFIC MANAGEMENT
ASSUMPTIONS
Productivity is a workplace problem
Managers should plan and direct the work of others
Individuals are economically motivated
CONTRIBUTIONS
Scientific study of work (Time & Motion)
Setting of work standards
Use of incentives
Careful selection & training of workers
Division of labor---managers & workers
Productivity & efficiency increased
LIMITATIONS
Social needs of workers overlooked
Many studies werent very scientific
Loss of self-control alienated workers
Group dynamics were ignored

MANAGEMENT
A FORM OF WORK THAT INVOLVES COORDINATING AN
ORGANIZATIONS RESOURCES TOWARD ACCOMPLISHING
ORGANIZATIONAL OBJECTIVES

MANAGEMENT FUNCTIONS

(H FAYOL)

PLANNING
ORGANIZING
COMMANDING
COORDINATING
CONTROLLING

MANAGEMENT PRINCIPLES
DIVISION OF LABOR (Specialization)
UNITY OF COMMAND (Only one boss)
SCALAR CHAIN OF COMMAND (Hierarchy of Authority)
SPAN OF CONTROL (Number of subordinates supervised)

WEBERS BUREAUCRACY

DIVISION OF LABOR
HORIZONTAL SPECIALIZATION

HIRARCHY OF AUTHORITY
VERTICAL SPECIALIZATION

FORMAL RULES & PROCEDURES

ENFORCED, DOCUMENTED

TECHNICAL COMPETENCE
SELECTION & PROMOTION CRITERIA

IMPERSONAL TREATMENT
NO FAVORITISM

CENTRALIZED DECISION-MAKING
UNIFORM CONTROL

ADMINISTRATIVE THEORY
ASSUMPTIONS
THERE IS AN IDEAL WAY TO STRUCTURE THE ORGANIZATION AND
TO ADMINISTER THE MANAGEMENT PROCESSES NECESSARY FOR
ORGANIZATIONAL SUCCESS
MANAGEMENT SKILLS ARE GENERALIZABLE
CONTRIBUTIONS
FUNCTIONS & PRINCIPLES OF MANAGEMENT
THE IDEAL BUREAUCRACY
RAISED AWARENESS OF BASIC PROBLEMS LIKELY TO BE FOUND IN
ANY ORGANIZATION
LIMITATIONS
STRESSED A ONE-BEST-WAY OF MGMT & ORGANIZATION
THEORIES BASED ON OBSERVATION & INTUITION RATHER THAN
EMPIRICAL INVESTIGATION
PRINCIPLES NOT APPLICABLE TO ORGANIZATIONS WHICH EXIST
IN TURBULENT ENVIRONMENTS

HAWTHORNE PLANT AT
WESTERN ELECTRIC
MAYO & ROETHLISBERGER
ILLUMINATION EXPERIMENTS
RELAY ASSEMBLY TESTS
INTERVIEWING
MICA SPLITTING
BANK WIRING ROOM
DISCOVERIES
HAWTHORNE EFFECT
CATHARSIS
INFORMAL GROUP POWER

HUMAN RELATIONS MANAGEMENT

ASSUMPTIONS

WORKERS ARE MOTIVATED BY SOCIAL NEEDS

SATISFIED WORKERS ARE PRODUCTIVE WORKERS

CONTRIBUTIONS

EMPHASIS ON WORKER NEEDS AND MOTIVATION

HAWTHORNE EFFECT.ATTENTION GIVEN TO WORKERS HAS AN IMPACT
ON THEIR BEHAVIOR
INFLUENCE OF THE INFORMAL GROUP
MANAGERS NEED STRONG SOCIAL SKILLS

LIMITATIONS

HAPPY, SATISFIED WORKERS ARENT NECESSARILY PRODUCTIVE

ECONOMIC ISSUES DO AFFECT WORKER PRODUCTIVITY
BORING WORK ISNT LESS SO WITH A FRIENDLY SUPERVISOR
MOTIVATION IS STILL A PROBLEM
WORKERS FEEL SUPERVISOR INTEREST IN THEM ISNT GENUINETHEYRE
BEING MANIPULATED!
SHOULD BUSINESS BE RESPONSIBLE FOR MEETING ALL HUMAN NEEDS ON
THE JOB?

TRANSITION TO HUMAN RESOURCES

DOUGLAS MCGREGOR

THEORY X
THEORY Y

FREDERICK HERZBERG
TWO-FACTOR MOTIVATION THEORY

HYGIENES
MOTIVATORS

JOB ENRICHMENT

THEORY X
THE AVERAGE HUMAN BEING:

DISLIKES WORK AND WILL AVOID IT

MUST BE COERCED/CONTROLLED TO ACHIEVE OBJECTIVES
PREFERS DIRECTION
WISHES TO AVOID RESPONSIBILITY
HAS LITTLE AMBITION
WANTS SECURITY ABOVE ALL

THEORY Y
THE AVERAGE HUMAN BEING:

BELIEVES WORK IS AS NATURAL AS PLAY

PREFERS SELF-DIRECTION/CONTROL TO ACHIEVE OBJECTIVES
WILL ACCEPT AND SEEK OUT RESPONSIBILITY
PREFERS TO EXPAND IMAGINATION/CREATIVITY IN WORKPLACE
SOLUTIONS

HUMAN RESOURCES MANAGEMENT

ASSUMPTIONS

INTERESTING WORK MOTIVATES INTRINSICALLY

WORKERS ARE TRUSTWORTHYGIVE THEM RESPONSIBILITY
THE MANAGERS JOB IS TO CHALLENGE WORKERS & TO DEVELOP
THEIR TALENTS

CONTRIBUTIONS

THEORY X AND THEORY Y

PARTICIPATIVE DECISION-MAKING AND MANAGEMENT
JOB REDESIGN AND JOB ENRICHMENT
MANAGEMENT BY OBJECTIVES
MORE RIGOROUSLY-TESTED THEORIES

LIMITATIONS

NOT EVERYONE WANTS A CHALLENGING JOB

BEHAVIOR IS COMPLEXTHEORIES HAVE MANY EXCEPTIONS
ELEGANT THEORIES MAKE LITTLE SENSE TO MANAGERSA
LACK OF ACCEPTANCE PROBLEM

QUANTITATIVE MANAGEMENT APPROACHES

MANAGEMENT SCIENCE
DuPONT (CPM) Critical Path Method
US NAVY (PERT) Program Evaluation and Review Technique
OPERATIONS RESEARCH
WORLD WAR II -- England
QUALITY ASSURANCE
STATISTICS
Stresses the use of mathematical models to aid in managerial decisionmaking

SYSTEMS VIEWS

SEES THE BIG PICTURE IN ORGANIZATIONS

STRESSES EXTERNAL ENVIRONMENT INFLUENCES
HOW THE PARTS RELATE TO EACH OTHER TO CREATE THE
WHOLE
HOW TO LINK UNITS TOGETHER HARMONIOUSLY SO THAT
AN EFFICIENT SYSTEM EMERGES (INTEGRATION)
INPUTS TRANSFORMATION PROCESSES OUTPUTS
FEEDBACK

CLOSED vs OPEN SYSTEMS

SUBSYSTEMS

** DONT MAKE ORGANIZATIONAL DECISIONS UNTIL YOU

UNDERSTAND THE WHOLE SYSTEM

CONTINGENCY VIEWS
THERE IS NO ONE BEST WAY TO MANAGE
THERE ARE NO UNIVERSAL PRINCIPLES OF MANAGEMENT

ANALYZE THE SPECIFIC SETTING & CIRCUMSTANCES

CAREFULLY STUDY THE SITUATIONKEEP YOUR EYES OPEN

FIND THE APPROACH THAT BEST FITS THE SITUATION

DONT FOLLOW FADSIT ALL DEPENDS

EMPHASIZE DIAGNOSIS AND FLEXIBILITY

MANAGERS MUST LEARN TO BE FLEXIBLE

TYPE A, J, and Z ORGANIZATIONS

OUCHI (80)

TYPE A ORGANIZATION

(American)

SHORT-TERM EMPLOYMENT
RAPID EVALUATION & PROMOTION
HIGHLY SPECIALIZED CAREERS
INDIVIDUAL DECISION-MAKING AND INDIVIDUAL RESPONSIBILITY
EXPLICIT, FORMAL CONTROLS, SEGMENTED CONCERN

TYPE J ORGANIZATION

(Japanese)

LIFETIME EMPLOYMENT
SLOW EVALUATION & PROMOTION
NONSPECIALIZED CAREER PATH
CONSENSUAL DECISION=MAKING, COLLECTIVE RESPONSIBILITY
IMPLICIT, INFORMAL CONTROLS, HOLISTIC CONCERN

TYPE Z ORGANIZATION

(Modified American)

LONG-TERM EMPLOYMENT
SLOW EVALUATION & PROMOTION
MODERATELY SPECIALIZED CAREERS
CONSENSUAL DECISION-MAKING, INDIVIDUAL RESPONSIBILITY
IMPLICIT, INFORMAL CONTROLS, HOLISTIC CONCERN
A CLEAR ORGANIZATIONAL PHILOSOPHY

JAPANESE MANAGEMENT MODELS

HATVANY & PUCIK (81)

STRATEGIES
1.
2.
3.

DEVELOPMENT OF AN INTERNAL (CLOSED) LABOR MARKET

EMPLOYEE-ORIENTED, COOPERATIVE COMPANY PHILOSOPHY
CAREFUL SOCIALIZATION & DEVELOPMENT OF PERSONNEL

SPECIFIC TECHNIQUES USED

JOB ROTATION
SLOW EVALUATION & PROMOTION
GROUP & TEAM EMPHASIS
OPEN, FACE-TO-FACE COMMUNICATIONS
CONSULTATIVE DECISION-MAKING
INTIMATE EMPLOYEE CONCERN

KEYS TO SUCCESSFUL APPLICATION

1.
2.
3.
4.

ARTICULATE A COMPANY PHILOSOPHY

PROVIDE LONG TENURE
PRACTICE JOB ROTATION
PRACTICE CONSULTATIVE DECISION-MAKING

IN SEARCH OF EXCELLENCE
PETERS & WATERMAN (82)

A BIAS TOWARD ACTION

JUST DO IT.KILL THE SNAKE, DONT STUDY IT TO DEATH!

CLOSENESS TO THE CUSTOMER

CUSTOMER DRIVEN DECISION-MAKING

AUTONOMY & ENTREPRENEURSHIP

STRUCTURED TO ENCOURAGE INNOVATION & CHANGE

PRODUCTIVITY THROUGH PEOPLE

PARTICIPATION AND CONSENSUS STRESSED

HANDS ON, VALUE DRIVEN

THE VISION & MISSION OF THE ORGANIZATION ARE CLEAR AND KNOWN
TO EVERYONE WITHIN THE FIRM. LEADERS/MANAGERS ARE WILLING TO
GET INVOLVED IN PROBLEMS AT ALL LEVELS.

STICKING TO THE KNITTING

STAY FOCUSED ON WHAT YOU DO BEST

SIMPLE FORM, LEAN STAFF

KEEP STRUCTURES SIMPLE AND LEAN

SIMULTANEOUS LOOSE-TIGHT PROPERTIES

KEEP TIGHT CONTROL ON THE FIRMS CORE VALUES
STAY FLEXIBLE ELSEWHERE

TOTAL QUALITY MANAGEMENT (TQM)

1.

Focuses on managing the total organization to deliver quality to

customers.
Requires a shift from an inspection-oriented approach to employee
involvement in the prevention of quality problems.
EMPLOYEE INVOLVEMENT
TRAIN, INVOLVE, EMPOWER WORKERS

2.

FOCUS ON THE CUSTOMER

FIND OUT WHAT THE CUSTOMER WANTS

3.

BENCHMARKING
COMPARE PRODUCTS/SERVICES WITH COMPETITORS

4.

CONTINUOUS IMPROVEMENT
SMALL, INCREMENTAL IMPROVEMENTS ALL THE TIME

CONTEMPORARY ORGANIZATIONAL
BEHAVIOR
INTERDISCIPLINARY FOCUS
PSYCHOLOGY
SOCIOLOGY
POLITICAL SCIENCE

MOSTLY DESCRIPTIVE OF RELATIONSHIPS BETWEEN

VARIABLES
IMMATURITY OF THE FIELD
COMPLEXITY OF STUDYING BEHAVIOR
LACK OF VALID, RELIABLE MEASURES

SYSTEMS ARE STRESSED

ORGANIZATIONS ARE A SET OF INTERRELATED ELEMENTS THAT FUNCTION
AS A WHOLE

CONTINGENCY PERSPECTIVE
THERE ARE NO UNIVERSAL PRINCIPLES
WE MUST STUDY THE SITUATION / SETTING TO FIND THE BEST SOLUTION

MANAGEMENT CHALLENGES TODAY

PARADIGM SHIFTS
CHANGING PRODUCTS & TECHNOLOGIES
SHIFTS IN WAYS OF THINKING AND MANAGING

CHAOS THEORY
THE ENVIRONMENT IS NOT PREDICTABLE
LEARN TO BE FLEXIBLE AND ADAPTABLE

WORKPLACE DIVERSITY
CHANGING LABOR FORCE

GLOBALIZATION
INTERNATIONAL COMPETITION

THE NEW (LEARNING) ORGANIZATION

STRONG ON VISION AND CULTURAL VALUES
EMPOWERED WORKERS
NEW STRUCTURES
NEW CAREER PATHS