Chapter

21Science and

Systems in

Management Based on The History of Management Thought, 5th

edition, 2005 by Daniel A. Wren Daniel A. Wren (The Author )

• The Quest For Science in Management

• Operations Research• Production Management In

Transition• Old Lessons Learned• System and Information• From the Computer Age to

the Information Age• Conclusion

Outline

This note board

belongs to :

Renni

Rengganis

29011025

Quest for Science in

ManagementIn the modern era, rose new idea in

management using scientific method –

roots in Aristotle, Descartes, Babbage, and Scientific

Management.In the 1930’s, scientific management declined in emphasis as society had to cope with problems beyond the production of goods.

From that phenomenon, rose an idea about the need of informal relation in formal organization called social person era.

Scientific era

Social era

Modern era

Quest for

Science in

ManagementWorld War II (1939-1945)

and the renewed growth

large-scale enterprise, however,

created a new environment for management.

the jump in postwar

births, known as the

"baby boom,"

increased the number of

consumers

Source : The Post War

Economy: 1945-1960

From U.S. Department of

Statehttp://

economics.about.com/od/useconomichistory/a/

post_war.htm

Strong economic growth in the post world war II period , The nation's gross national product rose from about

in 1940 $200,000 m in 1950 $300,000 m in 1960 >$500,000 m

Impact

Patrick Maynard

Stuart Blackett (1897-1974)

Operations research

applications after the war were

primarily in the area of production

management.

Attempted to apply the scientific

method and to quantify complex

problems.

Arthur D. Little, Inc. recognize that

methods of operation research were applicable to

industrial.

Operations Research

Modern science management inverted from scientific management.

The search was for a use of science in management, not a science of management

Operations Research

Tools of mathematic

and science used to

help solve the old-

management problem

of the optimum

allocation of scarce

resources toward a

given goal

Scientific Management

Operation Research

“One Best Way” “Optimal”

Production Management in Transition

Gordon and Howell’s 1959 remark recommended more mathematics for business school students.

Production management and operations research

merged into production/operations management.

Statistics and mathematics

are used to solving problem,

specific techniques for

quantifying variables and

relationship. For the purposes

of prediction and control.

• Linear programming

• Game theory

• Decisions trees

• Monte Carlo method, etc

• The Gantt Chart concept was extended with newer variations for planning and controlling, PERT and CPM (Critical Planning Method)

• PERT and CPM together plan a network of activities, their relationships, and their interaction along a path to a given completion point.

The Application of the scientific method and the use of mathematics in managerial problems could provide better information for decision makers.

Old Lessons

Relearned

Product quality was important historically – the hallmark concept.

Wickham Skinner – incorporating manufacturing into overall corporate strategy.

Richard Schonberger – integrating the firm around a “chain of customers.”

Statistical quality control was pioneered at Western Electric by Walter Shewhart (1891-1967).

Edwards Deming (1900-1993) revived Shewhart’s ideas and took them to Japan.

Quality Management began the top of the organization, the goal was the reduction of variation through continuous improvement (KAIZEN)

Inventory Management

Materials Requirements Planning (MRP) developed.

Taiichi Ohno and “just-in time” planning for materials delivery

Systems and Information

“Systems” – an ancient concept found new meaning in General Systems Theory (GST)

GST – a product of Ludwig von Bertalanffy, was a Gestalt concept. The GST view was:

– Study of the whole organism– Organisms sought equilibrium– All systems were open

Ludwig von

Bertalanffy

In modern systems there are number of characteristics :

1. A goal for the organization, some reason for its existence

2. Some input of materials, equipment, and human effort.3. Transform these inputs into useful products/services to meet the goal of

organization4. A need to measure,

control, acquire the information about performance

Computer Age to the Information

Age – Death to the Slide Rule

The first Computers were monster mainframe, can handle U.S census, scientific calculation, accounting, payroll and inventory problem.

Originally called “microcomputers” powered by Intel-made chip.

In 1975 Bill Gates

and Paul Allen

founded Microsoft

In 1977, 72% of

microcomputer

market held by

Apple, Commodore, and

Tandy.

In 1980, IBM decided to enter the Market, and microcomputer began its evolution to personal computers even laptop or Tablet PC

So last year

Fiber optics would

have a dramatic

impact on the

telecommunications

industry.

Internet, founded by The Department of Defense in 1960 provide worldwide network for messages

Satellite would enable wireless messages across geographic

Those technology influenced the way of managed. Technology is the handmaiden of management theory and practice.

Information has always been necessary for managerial decision making. For information system, applying the appropriate computer hardware and software that will position the firm in stronger competitive position.

Conclusion

3). The development of computers and micro circuitry led to new methods to assist managerial decision making.

1). The chapter traced the search for order through science and systems in management.

2). Operations research was viewed as a modern version of early scientific approaches to problem solving.

3). Others outstripped U.S. industrial productivity gains as they learned production lessons overlooked in the U.S.

Always think positively

MESTAKUNG