MANAGEMENT A PACIFIC RIM FOCUS

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MANAGEMENTA PACIFIC RIM FOCUS

• Lecture 2
• 4 August, 2004
• PIONEERING IDEAS IN MANAGEMENT

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Last Week THE CHALLENGE OF MANAGEMENT

• Overview of management
• What is management? (POLC)
• The management process
• What managers actually do (Mintzberg) -
  Interpersonal, informational, decisional,
  negotiator)
• Work methods, roles, work agendas

• Managerial knowledge, skills, performance
• Management job types
• Vertical differences in management roles
• Horizontal differences in management roles,
  entrepreneurial managers
• The nature of 21st century management
• Change innovation
• Diversity
• Globalisation
• Quality and organisational improvement

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This week -

• Preclassical contributors to management theory
• Classical theorists
• Scientific management
• Bureaucratic management
• Administrative management
• Behavioural theorists
• Early theorists
• The Hawthorne studies
• The Human relations movement
• Behavioural science

• Quantitative management
• Management science
• Operations management
• Management information systems
• Contemporary ideas
• Systems theory
• Contingency theory
• Theory Z
• Total quality
• Implications for managing innovation

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The Birth of Management Ideas

• Growth of factories during the industrial
  revolution (1800s)
• Need for effective ways to co-ordinate a large
  number of people
• Need for efficiency in producing goods
• A number of individuals starting looking for
  solutions to particular problems
• Robert Owen
• Charles Babbage
• Henry R. Towne

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PRECLASSICAL CONTRIBUTORS TO MANAGEMENT THEORY

• Robert Owen - concern for working conditions
• Charles Babbage - specialisation of labour,
  incentive payments
• Henry R Towne - the professionalisation of
  management

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Robert Owen

• A successful British entrepreneur (1771-1858), he
  was running a cotton mill in Lanark, Scotland.
• Was interested in his employees working and
  living conditions
• Worked to improve employees living conditions by
  upgrading streets, houses, sanitation, and the
  educational system.
• He was ahead of his time, his ideas laid
  groundwork to the human relations movement

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Charles Babbage

• An English mathematician (1792-1871) - is known
  as the father of modern computing.
• Difficulties in managing his various projects,
  however, led him to look at new ways of doing
  things.
• He was excited by work specialisation and the
  degree work is divided into jobs.
• He recognised that both physical work and mental
  work could be specialised.
• Developed a profit-sharing plan

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Henry R. Towne

• Henry R. Towne (1844-1924) was was a mechanical
  engineer, president of Yale and Towne
  Manufacturing Company.
• He explained the need to view management as a
  separate field on a par with engineering.
• In 1886 he delivered the paper The engineer as
  an economist to the American Society of
  Mechanical Engineers in Chicago.
• He observed that although good engineering skills
  and good business skills were rarely combined in
  one person, both are needed to effectively run an
  organisation.
• Called for the establishment of the science of
  management and the development of management
  principles.

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Classical Viewpoint

• Henry R. Townes call to establish management as
  a separate field generated a major approach
  called the Classical Viewpoint.
• It comprised three different management
  approaches
• Scientific Management
• Bureaucratic Management
• Administrative Management
• This Viewpoint includes early work and
  contributions making up the core of the field of
  management
• Frederick Taylor attended Henrys paper
  presentation

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CLASSICAL THEORISTS - SCIENTIFIC MANAGEMENT

• Frederick Taylor
• Select and train the best
• One best way to do work/Time and motion study
• Co-operate with workers for success
• Divide work and responsibility, workers/managers
• Frank (1868-1924) Lillian (1878-1972) Gilbreth
  - time and motion pioneers
• Henry Gantt (1861-1919) - pay incentives, Gantt
  chart.

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Frederick Taylor

• Frederick Taylor (1856-1915), called the father
  of scientific management.
• Was an apprentice pattern maker and machinist at
  a local firm
• Moved to Midvale Steel, rising from labourer to
  chief engineer in six years allowed him to tackle
  a serious problem he saw,
• Workers were working at rate less than full
  capacity, Frederick believed the reason was
• Workers feared that increased productivity would
  cause loss of jobs
• Management wage system encouraged workers to
  operate slowly
• General methods of working and rules of thumb
  were often inefficient

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CLASSICAL THEORISTS - BUREAUCRATIC MANAGEMENT
Advancement on merit
Hierarchy of positions
Specialisation of labour
Max Weber (1864-1920)
Formal rules and procedures
Impersonality of processes
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CLASSICAL THEORISTS - ADMINISTRATIVE MANAGEMENT
Organising
Planning
Commanding
Henri Fayol (1841-1925)
Co-ordinating
Controlling
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BEHAVIOURAL THEORISTS

• Early theorists
• Hugo Munsterberg (1863-1916)
• Selection,
• Creating optimal psychological conditions,
  behaviour shaping
• Mary Parker Follett (1836-1933)
• Importance of group functioning

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BEHAVIOURAL THEORISTS - CONT.

• The Hawthorne studies (1924-1933)
• Supervisory style/Social Interaction
• Human relations movement
• Abraham Maslow (1908-1970)
• Hierarchy of needs
• Douglas McGregor (1906-1964)
• Theory X Y

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MASLOWS HIERARCHY OF NEEDS
Self-actualisation
Esteem
Social
Safety
Physiological
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McGREGORS THEORY X Y
Theory X
Theory Y
Work is natural
Work avoiding
Capable of self-direction
Need to control
Seek responsibility
Avoid responsibility
Can make good decisions
Workers seek security
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BEHAVIOURAL THEORISTS - CONT.

• Behavioural science
• Scientific study of human behaviour in
  organisations
• Quantitative management
• Management science - mathematical and statistical
  methods modelling
• Operations management - control of inventory,
  scheduling, planning

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CONTEMPORARY THEORIES

• Systems theory
• Inputs, transformation, outputs, feedback.
• Open closed systems
• Contingency theory
• Few universal rules exist

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Resources Human Materials Equipment Financial Inf
ormation
managerial Planning Organisation Leading Controll
ing Technology
Outcomes Products services Profit
loss employees growth satisfaction
Inputs
Transformation Process
Outputs
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CONTEMPORARY THEORIES - CONT.

• Theory Z
• The best of Japanese and American practice
• Total quality approaches
• J Edward Deming

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IMPLICATIONS FOR MANAGING INNOVATION

• Classical scientific approach
• Behavioural people, not machines
• Quantitative tools for decision-making
• Contemporary
• Systems
• Contingency

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My own experience over 35 years

• Then
• Autocratic, strong discipline
• Strict line of command
• Manager, superintendent, foreman, leading hand
• Male dominated
• Discrimination discouraged
• Management/union confrontation
• Manual work
• Labour intensive high number of female
  employees

• Now
• More consultative/participative
• Fewer levels of management
• Self-managed groups with stated objectives,
  Consultative Committees
• Females present at most levels
• Discrimination illegal diversity welcomed
• Greater co-operation, enterprise bargaining
• Automation
• Reduction in jobs, changes in skill requirements

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My own experience over 35 years (contd)

• Then
• Piece-rate incentives
• No white-collar staff incentives
• Quality Control
• Efficiency initiatives by management and
  engineers
• Minimal customer awareness
• Workplace safety desirable
• Fulltime/permanent
• Rigid work arrangements

• Now
• Broader-based incentives
• All covered by incentives part of salary at
  risk
• Total Quality Management
• Continuous improvement by all in the workforce
• Customer-driven internal and external customer
• OHS top priority
• Contracted/casual
• Flexible work arrangements

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SUMMARY OF PIONEERING IDEAS IN MANAGEMENT
Preclassical contributors - Owen, Babbage, Towne
Classical theorists Scientific management -
Taylor, Gilbreths, Gantt Bureaucratic management
- Weber Administrative management -
Fayol Behavioural theorists Early theorists -
Munsterberg, Follett The Hawthorne studies -
Supervisory style The Human relations movement -
Maslow, McGregor Behavioural science
Quantitative management Management
science Operations management Management
information systems Contemporary ideas Systems
theory - Open closed Contingency theory Theory
Z - Bridging Japanese and US approaches Total
quality - J Edward Deming Implications for
managing innovation Some recent experience
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Thank you for your attention