The Evolution of Management Thought By Daniel A Wren
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Transcript of The Evolution of Management Thought By Daniel A Wren
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The Evolution of Management ThoughtBy Daniel A Wren
BAB SATU
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Decide the purpose and mission of the organization
Make work productiveManage social impacts and responsibilities
Major Tasks of Management:
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Khusus Mbak Mey 3/36Copyright Atomic Dog Publishing, 2002 3/36
Management Has Different Meanings
Primary views of management state that management is a:Process
DisciplineHuman activity
Career
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Implies that management:Is some type of work or set of activitiesActivities are performed well or not wellInvolves certain functions and activities
Management Is a Process
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Implies that management:Is an accumulated, “learnable” body of
knowledgeIs a subject with principles, concepts,
and theoriesHas a purpose of learning how to apply
principles, concepts, and theories at the right time and under the right circumstances to produce desired results
Management Is a Discipline
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Implies that management:Refers to people in the management
processRefers to and emphasizes employees’
importance
Management Is a Human Activity
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Implies that management:Is a progression through a sequence of
activities, jobs, organizations, and challenges
Requires constant learning of new skills and updating information on business and its industry
Management Is a Career
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Khusus Mbak Mey 8/36Copyright Atomic Dog Publishing, 2002 8/36
The Functions of Management
Leading Planning
Organizing Controlling
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Integrates everything a manager doesLeader has:
Ability to influence othersVision or missionCourage and commitment
Management Function—Leading
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Capstone activity of managementAll managers plan at all levels Determine an organization’s goals in order
to be successfulEstablish strategies to achieve goals
Management Function—Planning
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Turn plans into actionsCreate a structure of task and authority
relationships to achieve goalsAssign tasks to individuals and groups
Management Function—Organizing
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Ensure that actual performance conforms to planned performance requiring management to:Establish standards of performanceLocate deviations between actual and
planned standardsCorrect performance not meeting standards
Management Function—Controlling
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Khusus Mbak Mey 13/36Copyright Atomic Dog Publishing, 2002 13/36
History of Management Thought
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ClassicalBehavioralManagement Science
Management Thought Has Been Grouped Into Three Approaches:
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Khusus Mbak Mey 15/36Copyright Atomic Dog Publishing, 2002 15/36
Classical Approach
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Late 19th century effort to understand work and how workers can be more productive and efficient
Two perspectives:Scientific managementClassical organization theory
Classical Approach
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Focus is on the management of work Focus on the physical environmentConcentrate on the problems of lower-level
managers dealing with the everyday problems of the work force
Study work processes to make them more efficient in order to better use labor at that time—unskilled, no formal education, largely immigrant
Primary contributors—engineers
Scientific Management
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Frederick W. Taylor, “father of scientific management,” developed 4 principles based on his beliefs that the interests of both management & labor can be combined: 1 best way to do a jobOptimum work paceTrain people to do a jobReward using incentive pay system
Frank & Lillian Gilbreth, “time & motion studies,” break down job motions into elementary parts and find better ways to perform each part
Scientific Management—Contributors
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Focus is on the management of organizationsConcentrate on the problems top-level
managers face in managing the organization as a whole
Two major purposes:Develop basic principles to create, and
maintain large organizationsIdentify basic functions of managing
organizationsPrimary contributors—practicing executives
Classical Organization Theory
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Max Weber, “theory of bureaucracy,” thought an organization should be based on 5 principles:Formal authority of managersJobs based on qualificationsAuthority and responsibility clearly definedHierarchical positionsRules and SOPs control organization
Modern ideas based on Weber: TQM, process specialization, competency testing
Classical Organization Theory—Contributors
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Classical Organization Theory—Contributors (cont)
1. Division of labor
2. Management authority and responsibility
3. Unity of command 4. Line of Authority
5. Centralization 6. Unity of direction 7. Equity
8. Order 9. Initiative10. Discipline11. Remuneration12. Tenure Stability13. Common Interest14. Esprit De Corps
Henri Fayol developed 14 principles essential to effective management:
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Classical Approach—Pros & Cons
Contributions Identify management as an
important element of organized society
Basis for training new managers
Acknowledge importance of managers
Many current techniques are direct outgrowths
LimitationsToo simplistic for today’s
complex organizationsMore appropriate for
stable & predictable environments
Shallow understanding of human nature and how people interact
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Khusus Mbak Mey 23/36Copyright Atomic Dog Publishing, 2002 23/36
Behavioral Approach
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Developed because (a) classical approach didn’t achieve total efficiency and workplace harmony and (b) managers still encountered problems because workers didn’t always behave as they were supposed to
Two branches:Human Relations ApproachBehavioral Sciences Approach
Behavioral Approach
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Focus on the social environment of a jobRefers to the manner in which managers
interact with subordinatesManagers must know why subordinates
behave as they doImportance of individuals in success or
failure of an organization
Human Relations Approach
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Management should recognize employees’ need for recognition and social acceptance
Management should look on work group as a positive force
Managers should be trained in human relations skills as well as in technical skills
Human Relations Approach—(cont.)
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Focus is on the nature of work itselfIndividuals are motivated to work for
reasons other than money and social relationships— recognition, societal contributions, personal fulfillment
Behavioral Sciences Approach
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Mary Parker Follett viewed organizations from the perspective of individual or group behavior, i.e., people-centered view. Managers’ job is to harmonize and coordinate group efforts
Hawthorne Studies varied lighting levels at the Western Electric Company; productivity increased regardless of the illumination level
Elton Mayo replicated Hawthorne Studies and the results; workers enjoyed the attention and produced the results they believed researchers wanted
Behavioral Sciences Approach—Contributors
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Behavioral Sciences Approach—Pros & ConsContributionsContribute to people—
managing aspect of management
Use of teamsFocus on training &
developmentUse of reward & incentive
systems
LimitationsDoesn’t always help
managers in problem situations
Difficulty in translating technical findings into useful tools and policies
Variety of viewpoints complicates the problem
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Khusus Mbak Mey 30/36Copyright Atomic Dog Publishing, 2002 30/36
Management Science Approach
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Developed to solve complex military problems in World War II, American business firms began to use a similar approach to deal with operating issues
Formerly called operations research, this approach uses mathematics and statistics to aid in resolving production and operations problems
Solve technical rather than human behavior problems; analyze the problem and often develop a mathematical representation of it
Provide management with quantitative bases for decisions
Management Science Approach
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Management Science Approach—Pros & Cons
ContributionsTechniques that help
with production management—scheduling, budgeting, inventory
Techniques that help with operations management— development programs, aircraft scheduling
LimitationsNot a substitute for
managementDoesn’t deal with the
people aspect of a organization
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Integrating the 3 Approaches— Classical,
Behavioral, and Management Science
Systems Approach Contingency Approach
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Views an organization as interrelated parts with a unified purpose: surviving and ideally thriving in its environment
Management should focus on efficiency and effectiveness in each part of the organization
Elements of an organization are interconnected
Organization is linked to its environmentOpen Systems vs. Closed Systems
Systems Approach
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Helps in better understanding the interactions of an organization’s components. Views an organization as interrelated parts with a unified purpose: surviving and ideally thriving in its environment
Workplace situations are too complex to analyze and control; thus, instead of focusing on trying to find the one best way to arrange workplace variables, managers focus on adapting their behavior to match the demands of the situation
Contingency Approach
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Khusus Mbak Mey 36/36Copyright Atomic Dog Publishing, 2002 36/36
End of Chapter 1