Chapter 2 Management Yesterday and Today

1
Chapter 2 Management Yesterday and Today

• Learning Objectives
• Understand the evolutions in the philosophies of
  management
• Comprehend the main points of the early classical
  approaches to management
• Comprehend some of the recent ideas in management
  thought

2-1
2
Development of Major Management Theories
Management Theories
Quantitative Approach (1950s)
Behavior Approach (1930s)
Classical Theories (Early 1900s)
Historical Background
Hawthorn Studies
Early Examples
Administrative Theories
Scientific Management
Early Motivation Theories
Adam Smith
Early Leadership Theories
Industrial Revolution
3
Classical Management Philosophies (I)

• Scientific Management Approach that tries to
  scientifically analyze the job tasks to find a
  more efficient method of doing it
• Frederic Taylors Four Principles
• Develop a scientific way to do each element of a
  job
• Scientifically select, train and develop each
  worker for a specific job
• Work closely with the workers to monitor
• Divide the work and responsibilities equally
  among management and workers
• Think about this How are Taylors four
  principles used in todays business? Are they
  still valid given the changes we are experiencing?

2-2
4
Classical Management Philosophies (II)

• Administrative Management Concentrates on how to
  organize the whole firm.
• Max Webers bureaucracy
• Rules and regulations
• Clear hierarchy
• Specialization and division of labor
• Henry Fayors Principles
• Unit of command Each subordinate receives orders
  from one and only one superior
• Division of work
• Scalar chain A chain of authority extends from
  the top to the bottom of the organization
• Think about this Why did Weber say bureaucracy
  is the most efficient and effective
  organization?Are these principles still valid
  today?

2-3
5
Management Science

• Applications of statistics, optimization models,
  and computer simulations into management practice
  to improve decision making
• Determine optimum inventory level
• Work scheduling
• Other OM decisions

2-5
6
The Behavioral School of Management

• The Hawthorne Studies Found that productivity
  can be increased through more humane treatment of
  workers
• Mary Parker Follett
• Managers need to encourage group interacting to
  generate better problem solving ideas
• The integrative way to solve conflicts
• Chester Barnard
• Emphasizes getting employees involved and
  cooperating with management to achieve
  organizational goals
• Stresses communication

2-4
7
Recent Development in Motivation Theory

• Maslows Need Theory
• Theory X vs. Theory Y

2-6
8
Early Theories of Leadership

• Trait Theory
• Behavior Theory

2-7
9
Current Trends and Issues

• Diversity
• Empowerment
• Globalization
• Dismantaling the hierarchy
• Downsizing
• Delayering
• Learning Organization
• Ethics

2-8