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Chapter 02 The Historical Roots of Management

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  1. Chapter 02 The Historical Roots of Management If you don’t know yesterday of management,you also don’t know today of management.

  2. Division of phases: Classical managerial theories contemporary managerial New eyeshot Behavior managerial theories Modern managerial theories 1900-1930 1930-1950 1980-present 1950-1980 Enterprise strategy theory Fredrick Taylor泰罗 Management Science school George Elton Mayo梅奥 General quality control Henri Fayol法约尔 System management school Enterprise reforger(再造) Behavior Scientists Organization of study model Max Weber 韦伯) contingency theory school Enterprise Culture

  3. 一、Classical managerial theories • (一)Taylor’s Science Management theories • 1、 Taylor and so on • founder of Science Management theories, • “father of Science Management theories”。 contribution:to change the experience management to Science Management Magnum opus(代表作):《principle of Science Management 》(1911)

  4. 2、Main viewpoints: • (1)The central problem of management is to improve efficiency. Labor and capital carry through “a spirit revolution”. Notice should be changed from surplus distribute to increasing quantity of surplus.

  5. (2)All issues carry out science. • To use scientific way instead of experience evaluation way. • To set up all kinds of standard system.

  6. (3)To carry through different price rate(计件工资)and stimulate workers’ positivity(积极性)in money. “the stick and the carrot大棒加胡萝卜” hypothesis of “ economic person ”经济人假设

  7. (4)Function organization theoryManagement function and busywork function can be separated.Management function can be resegmented;carry out function system.职能制 • function system: Factory director Technology department Equipment department Production department Material department workshop

  8. How to judge of Taylor’s Science Management theory? • What is its contribution? • What is its localization局限性? Its localization:hypothesis of “ economic person ”.“经济人”----它假设人的行为动机就是为了满足自己的私利,工作是为了得到经济报酬。相应的管理方式---采取“任务管理”措施泰勒制就是经济人观点的典型代表,“任务管理”的主张就是在人的“科学管理“的理论指导下提出来的。“经济人”理论代表早期资本主义企业管理的方式。 It can’t see persons’ factors of social psychology.

  9. (二)Henri Fayol’s法约尔general management theory contribution: He concluded general principles,elements and set up theory frame in theory and made management bring important influence not only in industry and commerce but also in other field. • To study management issues of whole organization in the senior’s point of view.

  10. Main points: • 1、To confirm managerial concepts and functions He divided operating activity of industry into six kinds of activities: Technology;commerce; finance;accounting; safety;management. plan organization command correspond control

  11. 2、14 items of principles in management: • 1)division of work • 2)authority and responsibility • 3)discipline • 4)unified command • 5)unified lead

  12. 14 items of principles in management: A • 6)The individual benefit must obey the whole benefit. • 7)reasonable reward • 8)centralization of state power集权 • 9)grade chain B C D E F G H I

  13. 14 items of principles in management: • 10)order秩序 • 11)equity公平 • 12)to keep personnel stabilization • 13)originated spirits • 14)personnel solidification.

  14. (三) Max Weber’s韦伯administration organization theory Contribution: “ideal administration organization theory”; “father of organization management ”. “ideal administration organization”should be on the base of organization in reasonable and legal right,not on the base of descendent and individual right ”.

  15. Characteristics of Max Weber’s administration organization theory: • 1)definite division of work;clear authority and responsibility. • 2)All people follow the common law system. • 3)impersonalization relationship between members of organization. • 4)strict standard of using personnel.

  16. (四) Common Characteristics and disadvantages of Classical managerial theories • 1、 Common Characteristics : • (1)To break through traditional management,to focus on the scientific management. • (2)To pay attention to the factors of the substance such as: the organization structure,formal relationship of right, rules and economic benefit and so on .(3)To claim the management of logos理性化and standardization.

  17. 2、 Common disadvantages: • To regard the persons in the organization as machines. • Don’t see the relationship outside the organization; only internal relationship.So it is a kind of management to block out.

  18. 二、 Behavior managerial theories • Human Relations Theories was founded in1930 and Behavior managerial theories was produced in 1950. Both come down in one continuous line(两者一脉相承)and belong to the same school. • To make the centre of management change from substance to person.

  19. Hawthorne Studies(柯桑实验) started in 1924 at Western Electric Company began with illumination studies intensity of illumination not related to productivity Elton Mayo(埃尔顿 梅奥) studies of job design revealed the importance of social norms as determinants of individual work behavior changed the dominant view that employees were no different from any other machines 1.Organizational Behavior (cont.) © Prentice Hall, 2002 2-19

  20. 2、 Main points of Elton Mayo’s Human Relations • (1)The worker is the social person,not the economy person; • (2)The key factor to decide produce efficiency is employee’s morale,not the condition of substance; • (3)The enterprise exists the informal organization.

  21. 3、Estimation: • Contribution:to cut a new field of development of managerial thought. • Localization:much more emphasize the function of feeling and spirits and deny economy function of the reward and substance; • much more emphasize the function of informal organization and ignore the research of the formal organization.

  22. (二) Behavior science school 1、Main points: • 马斯洛的需要层次论 • 赫兹伯格的双因素论 • 麦克利兰的成就需要论

  23. 麦格雷戈的x-y理论 • 弗鲁姆的期望理论 • 斯金纳的强化论 • 亚当斯的公平论等

  24. 2、 Characteristics of Behavior science school • 1)To study the managerial issues in the centre of the person.The key of management is to cut(开辟) human resource. • 2)To deny the view of economy person and emphasize person’s sociality and complexity. • 3)To attach importance to person’s go-aheadism,creativity and claim the management of democratic participation and satisfy with person’s need from work itself.

  25. 三、Modern managerial theories • 1、Background of Managerial science school( The quantitative Management Science) • It came from the World War Two. • It had a connection with the development of the science and technology.

  26. 2、Characteristics of Managerial science school • mathematical models, trend analysis, linear programs etc; • simulations - especial computer spreadsheets(电子数据表); • algorithms(运算法则) & critical path analysis.

  27. (二)System management school • F.E.Kast卡斯特和J.E.Rosenzweig罗森茨韦克

  28. Systems Theory Previous theories addressed individual aspect of organisations. Systems theorists paid attention to whole organisation. Distinguished between closed and open systems • Closed systems (linear systems) • relatively unaffected by environment because environment is stable and predictable • actions needed to achieve • a goal are clear • early theorists tended to believe organisations were closed transformation process arranged by managers Inputs value x Outputs value x + y

  29. Open systems interact with an environment via feedback loops(反馈环) information is a key input some outputs intangible eg worker satisfaction The Environment Supply Side Demand Side New Technology Local Community Pressure Groups Shareholders Outputs profit (loss) employee satisfaction contributions to local & wider communities Lenders Consumer tastes Inputs: money materials men &women information Transformation process arranged by managers Markets Employees New Competitors Suppliers Government regulations Economic Climate

  30. Technological Change Systems Theory Because they have multiple feedback loops, open systems are much less predictable Decide Detect Respond Government Decide Detect Respond Competitor Decide Detect Respond Organisation A

  31. Systems Theory • Feedback • Entropy(化学及热力学中所指的熵,是一种测量在动力学方面不能做功的能量总数。熵亦被用于计算一个系统中的失序现象)。 • the tendency of a system to run down, decay and become chaotic混乱的 • Synergy(协作作用) • the extra value produced when several parts of a system interact • Subsystems(子系统) • discreet(小的)parts of a system. Frequently called functions or departments eg operations, sales, HR 人力资源and finance Major concepts in Systems Theory

  32. (三)Contingency Theory权变理论学派 Since organisations are open to the environment we need to know the (contingent) factors in the environment which influence organisations • Contingency theory has its roots in research on leadership • organisations wanted to foster leadership and encouraged research • different studies produced different lists of leadership characteristics (however later research indicates there are specific characteristics such as intelligence, stability, conscientiousness and assertiveness) • Researchers such as Fiedler tried to match leadership style with the situation which a leader was facing

  33. Contingency Theory 2 Fiedler’s study of leadership style Group Relationships Good Good Good Poor Poor Poor Good Poor Task structure High Low Low High High Low Low High High High High High Low Low Low Low Position Power Situational Control High Control Low Control Moderate Control Appropriate leader style Relationship Oriented Style Task Oriented Style Task Oriented Style导向型

  34. Contingency Theory 3 Woodward’s study of 3 production systems • 50 UK firms using different production systems • continuous production(流水生产) • unit production单位生产 • mass production规模生产 • many variables such as ‘ Span of Control’ were contingent upon production system 50 40 Average Span of Control 30 20 10 Mass Continuous Unit

  35. Logic clue of development of managerial thought: Tayla’s scientific managerial theory management science school system management school Contingency Theory school human resource school behavior science school

  36. 四、 New eyeshot of contemporary managerial • (一)Enterprise strategy theory Enterprise strategy rose at 1860s and had a new development at 1980s Why to pay attention to this theory? What did this theories put forward?

  37. Background to lodge Enterprise strategy theory • Because of diversification operation in the enterprise,size increased step by step.It needed a kind of theory and method to help senior leader to plan as a whole and control operating activities of subsidiary company.

  38. Three phases of development: • 1:Stage of Sutra(经典)strategy theory: • To confirm concepts and frame of strategy theory,representational theory: • TOWS matrix矩阵(道斯矩阵) • Boston matrix矩阵(资产组合技术)

  39. 2:Michael Porter迈克尔 波特 started the analysis stage of industry structure. • Main points: • 1、5 kinds of analysis of action power to form industry structure(); • 2、3 kinds of basic strategy of competition(cost lead成本领先、difference and concentration); • 3、 analysis of strategy of aggression and recovery 防御性.

  40. 3:Enterprise core competition • The key of enterprise strategy management is to breed and develop enterprise core competition • The core competition is a better amalgamation融合of all kinds of skills,resource and operation mechanism to form the basis of enterprise competition and advantage.

  41. (二) Total quality management • From 1980s to 1990s, developed countries experienced quality revolution.It is called Total quality management (TQM)。

  42. TQM stood for a contrary view with managerial theorist in the early period. • Traditional view think low cost is only way to improve productivity. (for example: automobile industry in USA; It paid attention to decreasing cost. But in Japan, the truth prove: the highest quality manufacturer is the lowest cost producer.

  43. The basic spirits of total quality management • Employee participation • Customer guide • Surveyor’s pole management标杆管理 • Continuance improvement。

  44. (三) Enterprise reforger 1、The background The enterprise meet a great challenge since 1960s for technology revolution had made operational environment happen a large change.So enterprise have to reform and innovate to strengthen the competition.

  45. 2、Meaning of enterprise reforger Enterprise reforger is in the centre of work flow(工作流程) and renew design the enterprise operation management and operation mode.

  46. (四)Organization of study model • 1,Main points: Under the background of new economy, the enterprise wants to develop,it must increase enterprise whole ability and whole diathesis(因素).The enterprise in the future will be these organizations of study model that can make all levels personnel devote the organization of study model.

  47. 2、Concept: • Organization of study model is an organic organization,highest flexibility,flat,humanistic and lasting development by training learning atmosphere of organization and bringing into play(发挥)employee creative ideation.

  48. (五)Enterprise culture and multi-culture management • 1、The background: • The USA reviewed and reconsidered to Japan at the beginning of 1980s. • 2、威廉·大内 published《Z Theory》in 1981 • The core is to trust and care employee. • 3、The managerial problem of multi-culture.

  49. 谢谢!