2.as Mpp Management Yesterday,Today,Tomorrow

8/6/2019 2.as Mpp Management Yesterday,Today,Tomorrow

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Management Principles & PracticesManagement Principles & Practices

MANAGEMENT YESTERDAY, TODAY & TOMORROWMANAGEMENT YESTERDAY, TODAY & TOMORROW


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Historical Background of ManagementHistorical Background of Management

Ancient ManagementAncient Management

Egypt (pyramids) and China (Great Wall)Egypt (pyramids) and China (Great Wall)

Venetians (floating warship assembly lines)Venetians (floating warship assembly lines)

Adam SmithAdam Smith

PublishedPublished The Wealth of NationsThe Wealth of Nationsin 1776in 1776

Advocated the division of labor (jobAdvocated the division of labor (jobspecialization) to increase the productivity ofspecialization) to increase the productivity ofworkersworkers

Industrial RevolutionIndustrial Revolution Substituted machine power for human laborSubstituted machine power for human labor

Created large organizations in need ofCreated large organizations in need ofmanagementmanagement


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Exhibit 2.1Exhibit 2.1

Development of MajorDevelopment of Major

Management TheoriesManagement Theories


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Major Approaches toMajor Approaches to

ManagementManagement Scientific ManagementScientific Management

General Administrative TheoryGeneral Administrative Theory

Quantitative ManagementQuantitative Management Organizational BehaviorOrganizational Behavior

Systems ApproachSystems Approach

Contingency ApproachContingency Approach


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Scientific ManagementScientific Management

Fredrick Winslow TaylorFredrick Winslow Taylor The father of scientific managementThe father of scientific management

PublishedPublished Principles of ScientificPrinciples of Scientific

ManagementManagement(1911)(1911) The theory of scientific managementThe theory of scientific management

Using scientific methods to define the one bestUsing scientific methods to define the one bestway for a job to be done:way for a job to be done:

Putting the right person on the job with thePutting the right person on the job with thecorrect tools and equipment.correct tools and equipment.

Having a standardized method of doing theHaving a standardized method of doing thejob.job.

Providing an economic incentive to theProviding an economic incentive to the

worker.worker.


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Taylors Five Principles ofTaylors Five Principles of

ManagementManagement1.Develop a science for each element of an

individuals work, which will replace the old

rule-of-thumb method.

2.Scientifically select and then train, teach, and

develop the worker.

3.Heartily cooperate with the workers so as toensure that all work is done in accordance withthe principles of the science that has beendeveloped.

4.Divide work and responsibility almost equallybetween management and workers.

5.Management takes over all work for which it isbetter fitted than the workers.


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Scientific Management (contd)Scientific Management (contd) Frank and Lillian GilbrethFrank and Lillian Gilbreth

Focused on increasing worker productivityFocused on increasing worker productivitythrough the reduction of wasted motionthrough the reduction of wasted motion

Developed the microchronometer to timeDeveloped the microchronometer to time

worker motions and optimize performanceworker motions and optimize performance How Do Todays Managers Use ScientificHow Do Todays Managers Use Scientific

Management?Management?

Use time and motion studies to increaseUse time and motion studies to increase

productivityproductivity Hire the best qualified employeesHire the best qualified employees

Design incentive systems based on outputDesign incentive systems based on output


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General Administrative TheoristsGeneral Administrative Theorists

HenriFayolHenriFayol

Believed that the practice of management wasBelieved that the practice of management wasdistinct from other organizational functionsdistinct from other organizational functions

Developed fourteen principles of management thatDeveloped fourteen principles of management thatapplied to all organizational situationsapplied to all organizational situations

Max WeberMax Weber

Developed a theory of authority based on an idealDeveloped a theory of authority based on an idealtype of organization (bureaucracy)type of organization (bureaucracy)

Emphasized rationality, predictability,Emphasized rationality, predictability,

impersonality, technical competence, andimpersonality, technical competence, andauthoritarianismauthoritarianism


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Fayols 14 Principles ofFayols 14 Principles of

ManagementManagement

1. Division of work.

2. Authority.

3. Discipline.

4. Unity of command.

5. Unity of direction.

6. Subordination ofindividual interest

to the interests of

the organization.

7. Remuneration.

8. Centralization.

9. Scalar chain.

10. Order.

11. Equity.

12. Stability of tenure

of personnel.

13. Initiative.

14. Esprit de corps.


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Webers Ideal BureaucracyWebers Ideal Bureaucracy


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Quantitative Approach toQuantitative Approach to

ManagementManagement Quantitative ApproachQuantitative Approach

Also calledAlso called operations researchoperations research orormanagement sciencemanagement science

Evolved from mathematical andEvolved from mathematical andstatistical methods developed to solvestatistical methods developed to solveWWII military logistics and qualityWWII military logistics and quality

control problemscontrol problems Focuses on improving managerialFocuses on improving managerial

decision making by applying:decision making by applying:

Statistics, optimization models, informationStatistics, optimization models, information

models, and computer simulationsmodels, and computer simulations


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Understanding OrganizationalUnderstanding Organizational

BehaviorBehavior Organizational Behavior (OB)Organizational Behavior (OB)

The study of the actions of people atThe study of the actions of people at

work; people are the most importantwork; people are the most importantasset of an organizationasset of an organization

Early OB AdvocatesEarly OB Advocates

Robert OwenRobert Owen

Hugo MunsterbergHugo Munsterberg

Mary Parker FollettMary Parker Follett

Chester BarnardChester Barnard


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The Hawthorne StudiesThe Hawthorne Studies

A series of productivity experiments conducted atA series of productivity experiments conducted atWestern Electric from 1927 to 1932.Western Electric from 1927 to 1932.

Experimental findingsExperimental findings

Productivity unexpectedly increased underProductivity unexpectedly increased underimposed adverse working conditions.imposed adverse working conditions.

The effect of incentive plans was less thanThe effect of incentive plans was less thanexpected.expected.

Research conclusionResearch conclusion

Social norms, group standards and attitudesSocial norms, group standards and attitudesmore strongly influence individual output andmore strongly influence individual output andwork behavior than do monetary incentives.work behavior than do monetary incentives.


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Early Advocates of OBEarly Advocates of OB


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The Systems ApproachThe Systems Approach

System DefinedSystem Defined A set of interrelated and interdependent partsA set of interrelated and interdependent parts

arranged in a manner that produces a unifiedarranged in a manner that produces a unifiedwhole.whole.

Basic Types of SystemsBasic Types of Systems

Closed systemsClosed systems

Are not influenced by and do not interact withAre not influenced by and do not interact withtheir environment (all system input and outputtheir environment (all system input and outputis internal).is internal).

Open systemsOpen systems Dynamically interact to their environments byDynamically interact to their environments by

taking in inputs and transforming them intotaking in inputs and transforming them intooutputs that are distributed into theiroutputs that are distributed into theirenvironments.environments.


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The Organization as an OpenThe Organization as an Open

SystemSystem


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Implications of the SystemsImplications of the Systems

ApproachApproach Coordination of the organizations parts isCoordination of the organizations parts is

essential for proper functioning of theessential for proper functioning of theentire organization.entire organization.

Decisions and actions taken in one area ofDecisions and actions taken in one area ofthe organization will have an effect inthe organization will have an effect inother areas of the organization.other areas of the organization.

Organizations are not selfOrganizations are not self--contained and,contained and,therefore, must adapt to changes in theirtherefore, must adapt to changes in theirexternal environment.external environment.


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Popular Contingency VariablesPopular Contingency Variables

Organization size

Routineness of task technology

Environmental uncertainty

Individual differences


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Current Trends and IssuesCurrent Trends and Issues

(contd)(contd) GlobalizationGlobalization

Management in internationalManagement in internationalorganizationsorganizations

Political and cultural challenges ofPolitical and cultural challenges ofoperating in a global marketoperating in a global market

EthicsEthics

Increased emphasis on ethics educationIncreased emphasis on ethics educationin college curriculumsin college curriculums

Increased creation and use of codes ofIncreased creation and use of codes ofethics by businessesethics by businesses


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A Process for Addressing EthicalA Process for Addressing Ethical

DilemmasDilemmas

Step 1: What is the ethical dilemma?

Step 2: Who are the affected stakeholders?

Step 3: What personal, organizational, andexternal factors are important to

my decision?

Step 4: What are possible alternatives?

Step 5: Make a decision and act on it.


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Current Trends and Issues (contd)Current Trends and Issues (contd)

Workforce DiversityWorkforce Diversity Increasing heterogeneity in theIncreasing heterogeneity in the

workforceworkforce

More gender, minority, ethnic, and otherMore gender, minority, ethnic, and other

forms of diversity in employeesforms of diversity in employees

Aging workforceAging workforce

Older employees who work longer and doOlder employees who work longer and donot retirenot retire

The increased costs of public and privateThe increased costs of public and privatebenefits for older workersbenefits for older workers

An increasing demand for products andAn increasing demand for products andservices related to aging.services related to aging.


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Entrepreneurship DefinedEntrepreneurship Defined

The process whereby an individual or group ofThe process whereby an individual or group ofindividuals use organized efforts to createindividuals use organized efforts to createvalue and grow by fulfilling wants and needsvalue and grow by fulfilling wants and needs

through innovation and uniqueness.through innovation and uniqueness. Entrepreneurship processEntrepreneurship process

Pursuit of opportunitiesPursuit of opportunities

Innovation in products, services, or businessInnovation in products, services, or business

methodsmethods

Desire for continual growth of the organizationDesire for continual growth of the organization


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EE--Business (Electronic Business)Business (Electronic Business) The work preformed by an organizationThe work preformed by an organization

using electronic linkages to its keyusing electronic linkages to its key

constituenciesconstituencies EE--commerce: the sales and marketingcommerce: the sales and marketing

component of an ecomponent of an e--businessbusiness

Categories of ECategories of E--BusinessesBusinesses EE--business enhanced organizationbusiness enhanced organization

EE--business enabled organizationbusiness enabled organization

Total eTotal e--business organizationbusiness organization


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Categories ofECategories ofE--BusinessBusiness

InvolvementInvolvement


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(contd)(contd) Knowledge ManagementKnowledge Management

The cultivation of a learning cultureThe cultivation of a learning culturewhere organizational memberswhere organizational memberssystematically gather and sharesystematically gather and shareknowledge with others in order toknowledge with others in order toachieve better performance.achieve better performance.

Learning OrganizationLearning Organization An organization that has developed theAn organization that has developed the

capacity to continuously learn, adapt,capacity to continuously learn, adapt,and change.and change.


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Learning Organization versusLearning Organization versus

Traditional OrganizationTraditional Organization


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(contd)(contd) Quality ManagementQuality Management

A philosophy of management driven byA philosophy of management driven bycontinual improvement in the quality ofcontinual improvement in the quality ofwork processes and responding towork processes and responding tocustomer needs and expectationscustomer needs and expectations

Inspired by the total qualityInspired by the total quality

management (TQM) ideas of Demingmanagement (TQM) ideas of Demingand Juranand Juran

Quality is not directly related to costQuality is not directly related to cost


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What is Management Quality?What is Management Quality?

Intense focus on the customer

Concern forcontinual improvement

Process-focused

Improvement in the quality of everything

Accurate measurementEmpowerment of employees

2.as Mpp Management Yesterday,Today,Tomorrow

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