May 5, 2011

Ancient Management
Egypt (pyramids) and China (Great Wall) Venetians (floating warship assembly lines)

Adam Smith
Published The Wealth of Nations in 1776
x Advocated the division of labor (job specialization) to increase the productivity of workers

Industrial Revolution
Substituted machine power for human labor Created large organizations in need of management

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Scientific Management General Administrative Theory Quantitative Management Organizational Behavior Systems Approach Contingency Approach

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classical management theory.

quantitative management perspective

Behavioral management Perspective

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Includes both 1) Scientific management Published Principles of Scientific

Management (1911)

x Using scientific methods to define the one best way for a job to be done x Putting the right person on the job with the correct tools and equipment x Having a standardized method of doing the job x Providing an economic incentive to the worker
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1)Administrative Management A theory that focus on managing the organization

Frederick Taylor 1856-1915 Father of scientific management Believed in selecting,training,teaching and developing workers Used time study, standards planning, execution rule of management, instruction cards, incentives, etc

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Scientifically study each part of a task and develop the best method of performing the task. Carefully select workers and train them to perform the task by using the scientifically development method. Cooperate fully with workers to ensure that they use proper method. Divide work and responsibility so that management is responsible for planning and workers are responsible for execution.

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Frank and Lillian Gilbreth Time and Motion Study Focused on increasing worker productivity through the reduction of wasted motion Developed the micro chronometer to time worker motions and optimize performance. How Do Todays Managers Use Scientific Management? Use time and motion studies to increase productivity Hire the best qualified employees Design incentive systems based on output

Administrative Management Theory Focus on managing the organization as a whole Henri Fayol 1841-1925 Helped to systematize the practice of management. Developed fourteen principles of management that applied to all organizational situations First to describe management as planning organization, leading and controlling

Division of labour Authority Division of Work

Remuneration Centralization Scalar chain

Unity of command Discipline Subordination of individual interest to the general interest Unity of direction Remuneration

Order Equity Stability Initiative Esprit de corps

Division of labor Reliance on rules and regulations Hierarchy of authority Employment based on expertise Impersonal Inflexible Rigid

Specialization of labor Formal rules and procedures Impersonality well-defined hierarchy Career advancement based on merit

   

Uses quantitative methods and models to manage decisions. Application of statistics,optimization models,Informaion models and computer simulation Evolved from mathematical and statistical methods developed to solve WWII military logistics and quality control problems

Management Sciences Focus on the development of methematical models to assist with decisions Operations Management Practical application of management sciences to efficetly managethe production and distribution of products and services.

Contributions
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Developd quantitative techniques to assist in decision making Application of models has increased awarness and understanding of complex process and situation Has been useful in the planning and conntrolling processes. Can not fully explain or predict behaviour. Mathematical sophistication may come at the expense of other skills. Models may requires unreralistic or unfounded assumptions.

Limitations
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Emphasizes individual attitudes and behaviors and group process The study of the actions of people at work; people are the most important asset of an organization Recognizes the importance of behavioral process in the workplace

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The Hawthorne Studies

Conducted by Elton Mayo and associates at Western Electric (1927-1935) Illumination study Group study-the effects of piecework incentive plan on production workers. Behavioral approach today Theories of motivation,leadership,group behavior and development.

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Human Relation Movement

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Perspective that workers respond primarly to the social context of work Peoples behaviour and attitude are closely related.

A contemporary field focusing on behavioral perspectives on management Organizational behaviour research Job atisfaction Job stress Motivation and leadership Group dynamics and organizational politics Interpersonal confiltc Design of organizations

Contributions

Provide important insights into group dynamics, and other interpersonal processes. Focused managerail attention on these critical process Challenged the view that employees are tools and furthered the belief that employess are valuable resources.

Limitations

Complexity of individuals behaviour difficult to perdict Many concept are not in use becasue managers are reluctant to adopt them Contemporary research findings are not often communicated to practicing managers in an understable form.

System Defined
A set of interrelated and interdependent parts arranged in a manner that produces a unified whole.

Basic Types of Systems

Closed systems
x Are not influenced by and do not interact with their environment (all system input and output is internal)

Open systems
x Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments

Coordination of the organizations parts is essential for proper functioning of the entire organization. Decisions and actions taken in one area of the organization will have an effect in other areas of the organization. Organizations are not self-contained and, therefore, must adapt to changes in their external environment.

Contingency Approach Defined

Also sometimes called the situational approach. There is no one universal rules for managers to follow. Organizations are individually different, face different situations (contingency variables), and require different ways of managing. Size of organization,technology,environmental uncertainty, individual differences.(variables)

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Globalization Ethics Workforce Diversity Entrepreneurship E-business Knowledge Management Learning Organizations Quality Management

Globalization
Management in international organizations Political and cultural challenges of operating in a global market

Ethics
Increased emphasis on ethics education in college curriculums Increased creation and use of codes of ethics by businesses

Workforce Diversity
Increasing heterogeneity in the workforce
x More gender, minority, ethnic, and other forms of diversity in employees

E-Business (Electronic Business)

The work preformed by an organization using electronic linkages to its key constituencies E-commerce: the sales and marketing component of an e-business

Knowledge Management
The cultivation of a learning culture where organizational members systematically gather and share knowledge with others in order to achieve better performance.

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Learning Organization
Learning Organization are organizations where people continuously expand their capacity to create the result their truly desire An organization that has developed the capacity to continuously learn, adapt, and change.

Quality Management

A philosophy of management driven by continual improvement in the quality of work processes and responding to customer needs and expectations Customer focused Concern for continual improvement Process focused Improvement in the quality of every thing Accurate measurement Empowerment of employees