EVOLUTION OF MODERN MANAGEMENT

1. EVOLUTION OF MODERN MANAGEMENT U.S. INDUSTRIAL REVOLUTION • POWER GENERATION • TRANSPORTATION • COMMUNICATION SCIENTIFIC MANAGEMENT • FREDERICK TAYLOR • HENRY GANTT • FRANK & LILLIAN GILBRETH

2. FREDERICK TAYLOR • TIME STUDY • STANDARDS FOR WORK • JOB SPECIALIZATION • MANAGERIAL PLANNING & CONTROL OF WORK • WORKER SELECTION & TRAINING • INCENTIVES HENRY GANTT • GANTT CHARTS • MODIFIED INCENTIVES • INCENTIVES FOR FOREMEN FRANK & LILLIAN GILBRETH • MOTION STUDIES (Therbligs) • FATIGUE REDUCTION • SUGGESTION SYSTEMS

3. SCIENTIFIC MANAGEMENT ASSUMPTIONS • Productivity is a workplace problem • Managers should plan and direct the work of others • Individuals are economically motivated CONTRIBUTIONS • “Scientific” study of work (Time & Motion) • Setting of work standards • Use of incentives • Careful selection & training of workers • Division of labor---managers & workers • Productivity & efficiency increased LIMITATIONS • Social “needs” of workers overlooked • Many studies weren’t very scientific • Loss of self-control alienated workers • Group dynamics were ignored

4. MANAGEMENTA FORM OF WORK THAT INVOLVES COORDINATING AN ORGANIZATION’S RESOURCES TOWARD ACCOMPLISHING ORGANIZATIONAL OBJECTIVES MANAGEMENT FUNCTIONS(H FAYOL) PLANNING ORGANIZING COMMANDING COORDINATING CONTROLLING MANAGEMENT PRINCIPLES DIVISION OF LABOR (Specialization) UNITY OF COMMAND (Only one boss) SCALAR CHAIN OF COMMAND (Hierarchy of Authority) SPAN OF CONTROL (Number of subordinates supervised)

5. WEBER’S BUREAUCRACY • DIVISION OF LABOR HORIZONTAL SPECIALIZATION • HIRARCHY OF AUTHORITY VERTICAL SPECIALIZATION • FORMAL RULES & PROCEDURES ENFORCED, DOCUMENTED • TECHNICAL COMPETENCE SELECTION & PROMOTION CRITERIA • IMPERSONAL TREATMENT NO FAVORITISM • CENTRALIZED DECISION-MAKING UNIFORM CONTROL

6. ADMINISTRATIVE THEORY ASSUMPTIONS • THERE IS AN IDEAL WAY TO STRUCTURE THE ORGANIZATION AND TO ADMINISTER THE MANAGEMENT PROCESSES NECESSARY FOR ORGANIZATIONAL SUCCESS • MANAGEMENT SKILLS ARE GENERALIZABLE CONTRIBUTIONS • FUNCTIONS & PRINCIPLES OF MANAGEMENT • THE IDEAL BUREAUCRACY • RAISED AWARENESS OF BASIC PROBLEMS LIKELY TO BE FOUND IN ANY ORGANIZATION LIMITATIONS • STRESSED A “ONE-BEST-WAY” OF MGMT & ORGANIZATION • THEORIES BASED ON OBSERVATION & INTUITION RATHER THAN EMPIRICAL INVESTIGATION • PRINCIPLES NOT APPLICABLE TO ORGANIZATIONS WHICH EXIST IN TURBULENT ENVIRONMENTS

7. HAWTHORNE PLANT AT WESTERN ELECTRIC MAYO & ROETHLISBERGER • ILLUMINATION EXPERIMENTS • RELAY ASSEMBLY TESTS • INTERVIEWING • MICA SPLITTING • BANK WIRING ROOM DISCOVERIES • HAWTHORNE EFFECT • CATHARSIS • INFORMAL GROUP POWER

8. HUMAN RELATIONS MANAGEMENT ASSUMPTIONS • WORKERS ARE MOTIVATED BY SOCIAL NEEDS • SATISFIED WORKERS ARE PRODUCTIVE WORKERS CONTRIBUTIONS • EMPHASIS ON WORKER NEEDS AND MOTIVATION • “HAWTHORNE EFFECT”….ATTENTION GIVEN TO WORKERS HAS AN IMPACT ON THEIR BEHAVIOR • INFLUENCE OF THE INFORMAL GROUP • MANAGERS NEED STRONG SOCIAL SKILLS LIMITATIONS • HAPPY, SATISFIED WORKERS AREN’T NECESSARILY PRODUCTIVE • ECONOMIC ISSUES DO AFFECT WORKER PRODUCTIVITY • BORING WORK ISN’T LESS SO WITH A FRIENDLY SUPERVISOR…MOTIVATION IS STILL A PROBLEM • WORKERS FEEL SUPERVISOR INTEREST IN THEM ISN’T GENUINE…THEY’RE BEING MANIPULATED! • SHOULD BUSINESS BE RESPONSIBLE FOR MEETING ALL HUMAN NEEDS ON THE JOB?

9. TRANSITION TO HUMAN RESOURCES DOUGLAS MCGREGOR • THEORY X • THEORY Y FREDERICK HERZBERG TWO-FACTOR MOTIVATION THEORY • HYGIENES • MOTIVATORS JOB ENRICHMENT

10. THEORY X THE AVERAGE HUMAN BEING: • DISLIKES WORK AND WILL AVOID IT • MUST BE COERCED/CONTROLLED TO ACHIEVE OBJECTIVES • PREFERS DIRECTION • WISHES TO AVOID RESPONSIBILITY • HAS LITTLE AMBITION • WANTS SECURITY ABOVE ALL THEORY Y THE AVERAGE HUMAN BEING: • BELIEVES WORK IS AS NATURAL AS PLAY • PREFERS SELF-DIRECTION/CONTROL TO ACHIEVE OBJECTIVES • WILL ACCEPT AND SEEK OUT RESPONSIBILITY • PREFERS TO EXPAND IMAGINATION/CREATIVITY IN WORKPLACE SOLUTIONS

11. HUMAN RESOURCES MANAGEMENT ASSUMPTIONS • INTERESTING WORK MOTIVATES INTRINSICALLY • WORKERS ARE TRUSTWORTHY…GIVE THEM RESPONSIBILITY • THE MANAGER’S JOB IS TO CHALLENGE WORKERS & TO DEVELOP THEIR TALENTS CONTRIBUTIONS • THEORY X AND THEORY Y • PARTICIPATIVE DECISION-MAKING AND MANAGEMENT • JOB REDESIGN AND JOB ENRICHMENT • MANAGEMENT BY OBJECTIVES • MORE RIGOROUSLY-TESTED THEORIES LIMITATIONS • NOT EVERYONE WANTS A CHALLENGING JOB • BEHAVIOR IS COMPLEX…THEORIES HAVE MANY EXCEPTIONS • ELEGANT THEORIES MAKE LITTLE SENSE TO MANAGERS…A LACK OF ACCEPTANCE PROBLEM

12. QUANTITATIVE MANAGEMENT APPROACHES MANAGEMENT SCIENCE DuPONT (CPM) Critical Path Method US NAVY (PERT) Program Evaluation and Review Technique OPERATIONS RESEARCH WORLD WAR II -- England QUALITY ASSURANCE STATISTICS Stresses the use of mathematical models to aid in managerial decision-making

13. SYSTEMS VIEWS • SEES THE “BIG PICTURE” IN ORGANIZATIONS • STRESSES EXTERNAL ENVIRONMENT INFLUENCES • HOW THE PARTS RELATE TO EACH OTHER TO CREATE THE WHOLE • HOW TO LINK UNITS TOGETHER HARMONIOUSLY SO THAT AN EFFICIENT SYSTEM EMERGES (INTEGRATION) INPUTS  TRANSFORMATION PROCESSES  OUTPUTS  FEEDBACK CLOSED vs OPEN SYSTEMS • SUBSYSTEMS ** DON’T MAKE ORGANIZATIONAL DECISIONS UNTIL YOU UNDERSTAND THE WHOLE SYSTEM

14. CONTINGENCY VIEWS THERE IS NO “ONE BEST WAY” TO MANAGE THERE ARE NO UNIVERSAL PRINCIPLES OF MANAGEMENT ANALYZE THE SPECIFIC SETTING & CIRCUMSTANCES CAREFULLY STUDY THE SITUATION…KEEP YOUR EYES OPEN FIND THE APPROACH THAT BEST FITS THE SITUATION DON’T FOLLOW “FADS”…IT ALL DEPENDS… EMPHASIZE DIAGNOSIS AND FLEXIBILITY MANAGERS MUST LEARN TO BE FLEXIBLE

15. TYPE A, J, and Z ORGANIZATIONSOUCHI (80) TYPE A ORGANIZATION(American) SHORT-TERM EMPLOYMENT RAPID EVALUATION & PROMOTION HIGHLY SPECIALIZED CAREERS INDIVIDUAL DECISION-MAKING AND INDIVIDUAL RESPONSIBILITY EXPLICIT, FORMAL CONTROLS, SEGMENTED CONCERN TYPE J ORGANIZATION (Japanese) LIFETIME EMPLOYMENT SLOW EVALUATION & PROMOTION NONSPECIALIZED CAREER PATH CONSENSUAL DECISION=MAKING, COLLECTIVE RESPONSIBILITY IMPLICIT, INFORMAL CONTROLS, HOLISTIC CONCERN TYPE Z ORGANIZATION (Modified American) LONG-TERM EMPLOYMENT SLOW EVALUATION & PROMOTION MODERATELY SPECIALIZED CAREERS CONSENSUAL DECISION-MAKING, INDIVIDUAL RESPONSIBILITY IMPLICIT, INFORMAL CONTROLS, HOLISTIC CONCERN A CLEAR ORGANIZATIONAL PHILOSOPHY

16. JAPANESE MANAGEMENT MODELSHATVANY & PUCIK (81) STRATEGIES 1. DEVELOPMENT OF AN INTERNAL (CLOSED) LABOR MARKET 2. EMPLOYEE-ORIENTED, COOPERATIVE COMPANY PHILOSOPHY 3. CAREFUL SOCIALIZATION & DEVELOPMENT OF PERSONNEL SPECIFIC TECHNIQUES USED JOB ROTATION SLOW EVALUATION & PROMOTION GROUP & TEAM EMPHASIS OPEN, FACE-TO-FACE COMMUNICATIONS CONSULTATIVE DECISION-MAKING INTIMATE EMPLOYEE CONCERN KEYS TO SUCCESSFUL APPLICATION 1. ARTICULATE A COMPANY PHILOSOPHY 2. PROVIDE LONG TENURE 3. PRACTICE JOB ROTATION 4. PRACTICE CONSULTATIVE DECISION-MAKING

17. IN SEARCH OF EXCELLENCEPETERS & WATERMAN (82) A BIAS TOWARD ACTION JUST “DO IT”….KILL THE SNAKE, DON’T STUDY IT TO DEATH! CLOSENESS TO THE CUSTOMER CUSTOMER DRIVEN DECISION-MAKING AUTONOMY & ENTREPRENEURSHIP STRUCTURED TO ENCOURAGE INNOVATION & CHANGE PRODUCTIVITY THROUGH PEOPLE PARTICIPATION AND CONSENSUS STRESSED HANDS ON, VALUE DRIVEN THE VISION & MISSION OF THE ORGANIZATION ARE CLEAR AND KNOWN TO EVERYONE WITHIN THE FIRM. LEADERS/MANAGERS ARE WILLING TO “GET INVOLVED” IN PROBLEMS AT ALL LEVELS. STICKING TO THE KNITTING STAY FOCUSED ON WHAT YOU DO BEST SIMPLE FORM, LEAN STAFF KEEP STRUCTURES SIMPLE AND LEAN SIMULTANEOUS LOOSE-TIGHT PROPERTIES KEEP TIGHT CONTROL ON THE FIRM’S CORE VALUES STAY FLEXIBLE ELSEWHERE

18. TOTAL QUALITY MANAGEMENT (TQM) • Focuses on managing the total organization to deliver quality to customers. • Requires a shift from an inspection-oriented approach to employee involvement in the prevention of quality problems. • EMPLOYEE INVOLVEMENT TRAIN, INVOLVE, EMPOWER WORKERS • FOCUS ON THE CUSTOMER FIND OUT WHAT THE CUSTOMER WANTS • BENCHMARKING COMPARE PRODUCTS/SERVICES WITH COMPETITORS • CONTINUOUS IMPROVEMENT SMALL, INCREMENTAL IMPROVEMENTS ALL THE TIME

19. CONTEMPORARY ORGANIZATIONAL BEHAVIOR INTERDISCIPLINARY FOCUS PSYCHOLOGY SOCIOLOGY POLITICAL SCIENCE MOSTLY DESCRIPTIVE OF RELATIONSHIPS BETWEEN VARIABLES IMMATURITY OF THE FIELD COMPLEXITY OF STUDYING BEHAVIOR LACK OF VALID, RELIABLE MEASURES SYSTEMS ARE STRESSED ORGANIZATIONS ARE A SET OF INTERRELATED ELEMENTS THAT FUNCTION AS A WHOLE CONTINGENCY PERSPECTIVE THERE ARE NO UNIVERSAL PRINCIPLES WE MUST STUDY THE SITUATION / SETTING TO FIND THE BEST SOLUTION

20. MANAGEMENT CHALLENGES TODAY PARADIGM SHIFTS CHANGING PRODUCTS & TECHNOLOGIES SHIFTS IN WAYS OF THINKING AND MANAGING CHAOS THEORY THE ENVIRONMENT IS NOT PREDICTABLE LEARN TO BE FLEXIBLE AND ADAPTABLE WORKPLACE DIVERSITY CHANGING LABOR FORCE GLOBALIZATION INTERNATIONAL COMPETITION THE NEW (LEARNING) ORGANIZATION STRONG ON VISION AND CULTURAL VALUES EMPOWERED WORKERS NEW STRUCTURES NEW CAREER PATHS