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Environmental Factors Influencing Management Thought

Economic

Influences

The availability, production, and distribution of resources within a society.

Social

Influences Influences

The aspects of a culture that influence interpersonal relationships.

Political

The impact of political institutions on individuals and organizations.

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Contd..
Technological Influences The advances and refinements in any of the devices that are used in conjunction with conducting business. Global Influences The pressures to improve quality, productivity, and costs as organizations attempt to compete in the worldwide marketplace.

Figure 2.1 Chronological Development of Management Perspectives

Figure 2.2 Subfields of the Classical Perspective on Management

Focuses on the individual workers productivity

Focuses on the functions of management

Focuses on the overall organizational system

Scientific Management: Taylor

Frederick W. Taylor (1856-1915) Father of Scientific Management

attempted

to define the one best way to perform every task through systematic study and other scientific methods. that improved management practices lead to improved productivity. Performance

believed

Three areas of focus:

Task Supervision Motivation
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Task Performance
Scientific

management incorporates basic expectations of management, including:

Development of work standards Selection of workers Training of workers Support of workers

Supervision
Taylor

felt that a single supervisor could not be an expert at all tasks.

As a result, each first-level supervisor should be responsible only for the workers who perform a common function familiar to the supervisor. This came to be known as Functional Foremanship.
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Motivation

Taylor believed money was the way to motivate workers to their fullest capabilities. He advocated a piecework system in which workers pay was tied to their output.
Workers

who met a standard level of production were paid a standard wage rate. whose production exceeded the standard were paid at a higher rate for all of their production output.
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Workers

Scientific Management: The Gilbreths

Frank Gilbreth Specialized in time and motion studies to determine the most efficient way to perform tasks. Used motion pictures of bricklayers to identify work elements such as lifting and grasping.

10

Contd..

Lillian Gilbreth A strong proponent of better working conditions as a means of improving efficiency and productivity. Favored standard days with scheduled lunch breaks and rest periods for workers. Strived for removal of unsafe working conditions and the abolition of child labor.
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Administrative Management: Fayol

Henri Fayol (18411925)

First recognized that successful managers had to understand the basic managerial functions. Developed a set of 14 general principles of management.
Fayols managerial functions of planning, leading, organizing and controlling are routinely used in modern organizations. 12

Table 2.1 Fayols General Principles of Management

1.

2.
3. 4.

5.
6. 7.

Division of work Authority and responsibility Discipline Unity of command Unity of direction Subordination of individual interest to the common good Remuneration of personnel

8. 9.

Centralization Scalar chain

13

Contd..
8.

9.
10. 11. 12.

Order Equity Stability Initiative Esprit de corps

14

Bureaucratic Management
Focuses

system. Bureaucratic management is based upon:

Firm rules Policies and procedures A fixed hierarchy A clear division of labor
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on the overall organizational

Bureaucratic Management: Weber

Max Weber (18641920) A German sociologist and historian who envisioned a system of management that would be based upon impersonal and rational behaviorthe approach to management now referred to as bureaucracy. Division of labor Hierarchy of authority Rules and procedures Impersonality Employee selection and promotion 16

Figure 2.3 Bureaucratic Hierarchical Power Structure

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Classical versus Behavioral Perspective

vs.

Classical Perspective
Focused on rational behavior

Behavioral Perspective
Acknowledged the importance of human behavior
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Mary Parker Follett

Concluded

that a key to effective management was coordination. Felt that managers needed to coordinate and harmonize group effort rather than force and coerce people. Believed that management is a continuous, dynamic process. Felt that the best decisions would be made by people who were closest to the situation.
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Follett on Effective Work Groups

Four

principles of coordination to promote effective work groups:

1. Coordination requires that people be in direct contact with one another. 2. Coordination is essential during the initial stages of any endeavor. 3. Coordination must address all factors and phases of any endeavor. 4. Coordination is a continuous, ongoing 20 process.

Elton Mayo
Conducted the famous Hawthorne Experiments. Hawthorne Effect Productivity increased because attention was paid to the workers in the experiment. Phenomenon whereby individual or group performance is influenced by human behavior factors. His work represents the transition from scientific management to the early human relations movement. 21

Figure 2.4 Basic Structure of Systems

22

Systems Perspective
An

approach to problem solving based on an understanding of the basic structure of systems.

Environmental interaction
Open

systems must interact with the external environment to survive. systems do not interact with the environment.

Closed

Synergy: when all subsystems work together making the whole greater than the sum of its parts.
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The Contingency Perspective

A

view that proposes that there is no one best approach to management for all situations.
Asserts that managers are responsible for determining which managerial approach is likely to be most effective in a given situation.

This requires managers to identify the key contingencies in a given situation.

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Figure 2.5 Blending Components into a Contingency Perspective

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Information Technology and Management Style

Information

technology can facilitate the use of a particular management style.

Classical Perspective
Facilitated by communications equipment

Quantitative/ Systems Perspectives

Facilitated by advanced computers

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