Management Yesterday and Today

Management Yesterday and Today
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A presentation on the historical background of management, including scientific management and the contributions of Fredrick W. Taylor and Frank and Lillian Gilbreth. Explains why studying management history is important and how modern managers use scientific management.

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PowerPoint presentation about 'Management Yesterday and Today'. This presentation describes the topic on A presentation on the historical background of management, including scientific management and the contributions of Fredrick W. Taylor and Frank and Lillian Gilbreth. Explains why studying management history is important and how modern managers use scientific management.. The key topics included in this slideshow are . Download this presentation absolutely free.

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1. ninth edition ninth edition STEPHEN P. ROBBINS STEPHEN P. ROBBINS PowerPoint Presentation by Charlie Cook The University of West Alabama PowerPoint Presentation by Charlie Cook The University of West Alabama MARY COULTER MARY COULTER © 2007 Prentice Hall, Inc. All rights reserved. © 2007 Prentice Hall, Inc. All rights reserved. Management Yesterday and Today Management Yesterday and Today Chapter 2 Chapter 2

2. © 2007 Prentice Hall, Inc. All rights reserved. 2–2 L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter. L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter. • Historical Background of Management • Historical Background of Management • Explain why studying management history is important. • Explain why studying management history is important. • Describe some early evidences of management practice. • Describe some early evidences of management practice. • Scientific Management • Scientific Management • Describe the important contributions made by Fredrick W. Taylor and Frank and Lillian Gilbreth. • Describe the important contributions made by Fredrick W. Taylor and Frank and Lillian Gilbreth. • Explain how today’s managers use scientific management. • Explain how today’s managers use scientific management.

3. © 2007 Prentice Hall, Inc. All rights reserved. 2–3 L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. • General Administrative Theory • General Administrative Theory • Discuss Fayol’s contributions to management theory. • Discuss Fayol’s contributions to management theory. • Describe Max Weber’s contribution to management theory. • Describe Max Weber’s contribution to management theory. • Explain how today’s managers use general administrative theory. • Explain how today’s managers use general administrative theory. • Quantitative Approach • Quantitative Approach • Explain what the quantitative approach has contributed to the field of management. • Explain what the quantitative approach has contributed to the field of management. • Discuss how today’s managers use the quantitative approach. • Discuss how today’s managers use the quantitative approach.

4. © 2007 Prentice Hall, Inc. All rights reserved. 2–4 L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. • Toward Understanding Organizational Behavior • Toward Understanding Organizational Behavior • Describe the contributions of the early advocates of OB. • Describe the contributions of the early advocates of OB. • Explain the contributions of the Hawthorne Studies to the field of management. • Explain the contributions of the Hawthorne Studies to the field of management. • Discuss how today’s managers use the behavioral approach. • Discuss how today’s managers use the behavioral approach. • The Systems Approach • The Systems Approach • Describe an organization using the systems approach. • Describe an organization using the systems approach. • Discuss how the systems approach helps us management. • Discuss how the systems approach helps us management.

5. © 2007 Prentice Hall, Inc. All rights reserved. 2–5 L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. • The Contingency Approach • The Contingency Approach • Explain how the contingency approach differs from the early theories of management. • Explain how the contingency approach differs from the early theories of management. • Discuss how the contingency approach helps us understand management. • Discuss how the contingency approach helps us understand management. • Current Issues and Trends • Current Issues and Trends • Explain why we need to look at the current trends and issues facing managers. • Explain why we need to look at the current trends and issues facing managers. • Describe the current trends and issues facing managers. • Describe the current trends and issues facing managers.

6. © 2007 Prentice Hall, Inc. All rights reserved. 2–6 Historical Background of Management Historical Background of Management • Ancient Management • Ancient Management  Egypt (pyramids) and China (Great Wall)  Egypt (pyramids) and China (Great Wall)  Venetians (floating warship assembly lines)  Venetians (floating warship assembly lines) • Adam Smith • Adam Smith  Published “The Wealth of Nations” in 1776  Published “The Wealth of Nations” in 1776  Advocated the division of labor (job specialization) to increase the productivity of workers  Advocated the division of labor (job specialization) to increase the productivity of workers • Industrial Revolution • Industrial Revolution  Substituted machine power for human labor  Substituted machine power for human labor  Created large organizations in need of management  Created large organizations in need of management

7. © 2007 Prentice Hall, Inc. All rights reserved. 2–7 Exhibit 2–1 Development of Major Management Theories Exhibit 2–1 Development of Major Management Theories

8. © 2007 Prentice Hall, Inc. All rights reserved. 2–8 Major Approaches to Management Major Approaches to Management • Scientific Management • Scientific Management • General Administrative Theory • General Administrative Theory • Quantitative Management • Quantitative Management • Organizational Behavior • Organizational Behavior • Systems Approach • Systems Approach • Contingency Approach • Contingency Approach

9. © 2007 Prentice Hall, Inc. All rights reserved. 2–9 Scientific Management Scientific Management • Fredrick Winslow Taylor • Fredrick Winslow Taylor  The “father” of scientific management  The “father” of scientific management  Published Principles of Scientific Management (1911)  Published Principles of Scientific Management (1911)  The theory of scientific management  The theory of scientific management – Using scientific methods to define the “one best way” for a job to be done: – Using scientific methods to define the “one best way” for a job to be done: • Putting the right person on the job with the correct tools and equipment. • Putting the right person on the job with the correct tools and equipment. • Having a standardized method of doing the job. • Having a standardized method of doing the job. • Providing an economic incentive to the worker. • Providing an economic incentive to the worker.

10. © 2007 Prentice Hall, Inc. All rights reserved. 2–10 Exhibit 2–2 Taylor’s Four Principles of Management Exhibit 2–2 Taylor’s Four Principles of Management 1. Develop a science for each element of an individual’s work, which will replace the old rule-of-thumb method. 2. Scientifically select and then train, teach, and develop the worker. 3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. 4. Divide work and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers.

11. © 2007 Prentice Hall, Inc. All rights reserved. 2–11 Scientific Management (cont’d) Scientific Management (cont’d) • Frank and Lillian Gilbreth • Frank and Lillian Gilbreth  Focused on increasing worker productivity through the reduction of wasted motion  Focused on increasing worker productivity through the reduction of wasted motion  Developed the microchronometer to time worker motions and optimize work performance  Developed the microchronometer to time worker motions and optimize work performance • How Do Today’s Managers Use Scientific Management? • How Do Today’s Managers Use Scientific Management?  Use time and motion studies to increase productivity  Use time and motion studies to increase productivity  Hire the best qualified employees  Hire the best qualified employees  Design incentive systems based on output  Design incentive systems based on output

12. © 2007 Prentice Hall, Inc. All rights reserved. 2–12 General Administrative Theory General Administrative Theory • Henri Fayol • Henri Fayol  Believed that the practice of management was distinct from other organizational functions  Believed that the practice of management was distinct from other organizational functions  Developed fourteen principles of management that applied to all organizational situations  Developed fourteen principles of management that applied to all organizational situations • Max Weber • Max Weber  Developed a theory of authority based on an ideal type of organization (bureaucracy)  Developed a theory of authority based on an ideal type of organization (bureaucracy)  Emphasized rationality, predictability, impersonality, technical competence, and authoritarianism  Emphasized rationality, predictability, impersonality, technical competence, and authoritarianism

13. © 2007 Prentice Hall, Inc. All rights reserved. 2–13 Exhibit 2–3 Fayol’s 14 Principles of Management Exhibit 2–3 Fayol’s 14 Principles of Management 1. Division of work. 1. Division of work. 2. Authority. 2. Authority. 3. Discipline. 3. Discipline. 4. Unity of command. 4. Unity of command. 5. Unity of direction. 5. Unity of direction. 6. Subordination of individual interests to the general interest. 6. Subordination of individual interests to the general interest. 7. Remuneration. 7. Remuneration. 8. Centralization. 8. Centralization. 9. Scalar chain. 9. Scalar chain. 10. Order. 10. Order. 11. Equity. 11. Equity. 12. Stability of tenure of personnel. 12. Stability of tenure of personnel. 13. Initiative. 13. Initiative. 14. Esprit de corps. 14. Esprit de corps.

14. © 2007 Prentice Hall, Inc. All rights reserved. 2–14 Exhibit 2–4 Weber’s Ideal Bureaucracy Exhibit 2–4 Weber’s Ideal Bureaucracy

15. © 2007 Prentice Hall, Inc. All rights reserved. 2–15 Quantitative Approach to Management Quantitative Approach to Management • Quantitative Approach • Quantitative Approach  Also called operations research or management science  Also called operations research or management science  Evolved from mathematical and statistical methods developed to solve WWII military logistics and quality control problems  Evolved from mathematical and statistical methods developed to solve WWII military logistics and quality control problems  Focuses on improving managerial decision making by applying:  Focuses on improving managerial decision making by applying:  Statistics, optimization models, information models, and computer simulations  Statistics, optimization models, information models, and computer simulations

16. © 2007 Prentice Hall, Inc. All rights reserved. 2–16 Understanding Organizational Behavior Understanding Organizational Behavior • Organizational Behavior (OB) • Organizational Behavior (OB)  The study of the actions of people at work; people are the most important asset of an organization  The study of the actions of people at work; people are the most important asset of an organization • Early OB Advocates • Early OB Advocates  Robert Owen  Robert Owen  Hugo Munsterberg  Hugo Munsterberg  Mary Parker Follett  Mary Parker Follett  Chester Barnard  Chester Barnard

17. © 2007 Prentice Hall, Inc. All rights reserved. 2–17 Exhibit 2–5 Early Advocates of OB Exhibit 2–5 Early Advocates of OB

18. © 2007 Prentice Hall, Inc. All rights reserved. 2–18 • A series of productivity experiments conducted at Western Electric from 1927 to 1932. • A series of productivity experiments conducted at Western Electric from 1927 to 1932. • Experimental findings • Experimental findings  Productivity unexpectedly increased under imposed adverse working conditions.  Productivity unexpectedly increased under imposed adverse working conditions.  The effect of incentive plans was less than expected.  The effect of incentive plans was less than expected. • Research conclusion • Research conclusion  Social norms, group standards and attitudes more strongly influence individual output and work behavior than do monetary incentives.  Social norms, group standards and attitudes more strongly influence individual output and work behavior than do monetary incentives. The Hawthorne Studies The Hawthorne Studies

19. © 2007 Prentice Hall, Inc. All rights reserved. 2–19 The Systems Approach The Systems Approach • System Defined • System Defined  A set of interrelated and interdependent parts arranged in a manner that produces a unified whole.  A set of interrelated and interdependent parts arranged in a manner that produces a unified whole. • Basic Types of Systems • Basic Types of Systems  Closed systems  Closed systems  Are not influenced by and do not interact with their environment (all system input and output is internal).  Are not influenced by and do not interact with their environment (all system input and output is internal).  Open systems  Open systems  Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments.  Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments.

20. © 2007 Prentice Hall, Inc. All rights reserved. 2–20 Exhibit 2–6 The Organization as an Open System Exhibit 2–6 The Organization as an Open System

21. © 2007 Prentice Hall, Inc. All rights reserved. 2–21 Implications of the Systems Approach Implications of the Systems Approach • Coordination of the organization’s parts is essential for proper functioning of the entire organization. • Coordination of the organization’s parts is essential for proper functioning of the entire organization. • Decisions and actions taken in one area of the organization will have an effect in other areas of the organization. • Decisions and actions taken in one area of the organization will have an effect in other areas of the organization. • Organizations are not self-contained and, therefore, must adapt to changes in their external environment. • Organizations are not self-contained and, therefore, must adapt to changes in their external environment.

22. © 2007 Prentice Hall, Inc. All rights reserved. 2–22 The Contingency Approach The Contingency Approach • Contingency Approach Defined • Contingency Approach Defined  Also sometimes called the situational approach.  Also sometimes called the situational approach.  There is no one universally applicable set of management principles (rules) by which to manage organizations.  There is no one universally applicable set of management principles (rules) by which to manage organizations.  Organizations are individually different, face different situations (contingency variables), and require different ways of managing.  Organizations are individually different, face different situations (contingency variables), and require different ways of managing.

23. © 2007 Prentice Hall, Inc. All rights reserved. 2–23 Exhibit 2–7 Popular Contingency Variables Exhibit 2–7 Popular Contingency Variables • Organization size • As size increases, so do the problems of coordination. • Routineness of task technology • Routine technologies require organizational structures, leadership styles, and control systems that differ from those required by customized or nonroutine technologies . • Environmental uncertainty • What works best in a stable and predictable environment may be totally inappropriate in a rapidly changing and unpredictable environment. • Individual differences • Individuals differ in terms of their desire for growth, autonomy, tolerance of ambiguity, and expectations.

24. © 2007 Prentice Hall, Inc. All rights reserved. 2–24 Current Trends and Issues Current Trends and Issues • Globalization • Globalization • Ethics • Ethics • Workforce Diversity • Workforce Diversity • Entrepreneurship • Entrepreneurship • E-business • E-business • Knowledge Management • Knowledge Management • Learning Organizations • Learning Organizations • Quality Management • Quality Management

25. © 2007 Prentice Hall, Inc. All rights reserved. 2–25 Current Trends and Issues (cont’d) Current Trends and Issues (cont’d) • Globalization • Globalization  Management in international organizations  Management in international organizations  Political and cultural challenges of operating in a global market  Political and cultural challenges of operating in a global market  Working with people from different cultures  Working with people from different cultures  Coping with anticapitalist backlash  Coping with anticapitalist backlash  Movement of jobs to countries with low-cost labor  Movement of jobs to countries with low-cost labor • Ethics • Ethics  Increased emphasis on ethics education in college curriculums  Increased emphasis on ethics education in college curriculums  Increased creation and use of codes of ethics by businesses  Increased creation and use of codes of ethics by businesses

26. © 2007 Prentice Hall, Inc. All rights reserved. 2–26 Exhibit 2–8 A Process for Addressing Ethical Dilemmas Exhibit 2–8 A Process for Addressing Ethical Dilemmas Step 1: What is the ethical dilemma ? Step 2: Who are the affected stakeholders ? Step 3: What personal, organizational , and external factors are important to my decision? Step 4: What are possible alternatives ? Step 5: Make a decision and act on it.

27. © 2007 Prentice Hall, Inc. All rights reserved. 2–27 Current Trends and Issues (cont’d) Current Trends and Issues (cont’d) • Workforce Diversity • Workforce Diversity  Increasing heterogeneity in the workforce  Increasing heterogeneity in the workforce  More gender, minority, ethnic, and other forms of diversity in employees  More gender, minority, ethnic, and other forms of diversity in employees  Aging workforce  Aging workforce  Older employees who work longer and do not retire  Older employees who work longer and do not retire  The increased costs of public and private benefits for older workers  The increased costs of public and private benefits for older workers  An increasing demand for products and services related to aging.  An increasing demand for products and services related to aging.

28. © 2007 Prentice Hall, Inc. All rights reserved. 2–28 Current Trends and Issues (cont’d) Current Trends and Issues (cont’d) • Entrepreneurship Defined • Entrepreneurship Defined  The process of starting new businesses, generally in response to opportunities.  The process of starting new businesses, generally in response to opportunities. • Entrepreneurship process • Entrepreneurship process  Pursuit of opportunities  Pursuit of opportunities  Innovation in products, services, or business methods  Innovation in products, services, or business methods  Desire for continual growth of the organization  Desire for continual growth of the organization

29. © 2007 Prentice Hall, Inc. All rights reserved. 2–29 Current Trends and Issues (cont’d) Current Trends and Issues (cont’d) • E-Business (Electronic Business) • E-Business (Electronic Business)  The work preformed by an organization using electronic linkages to its key constituencies  The work preformed by an organization using electronic linkages to its key constituencies  E-commerce: the sales and marketing aspect of an e- business  E-commerce: the sales and marketing aspect of an e- business • Categories of E-Businesses • Categories of E-Businesses  E-business enhanced organization  E-business enhanced organization  E-business enabled organization  E-business enabled organization  Total e-business organization  Total e-business organization

30. © 2007 Prentice Hall, Inc. All rights reserved. 2–30 Exhibit 2–9 Categories of E-Business Involvement Exhibit 2–9 Categories of E-Business Involvement

31. © 2007 Prentice Hall, Inc. All rights reserved. 2–31 Current Trends and Issues (cont’d) Current Trends and Issues (cont’d) • Learning Organization • Learning Organization  An organization that has developed the capacity to continuously learn, adapt, and change.  An organization that has developed the capacity to continuously learn, adapt, and change. • Knowledge Management • Knowledge Management  The cultivation of a learning culture where organizational members systematically gather and share knowledge with others in order to achieve better performance.  The cultivation of a learning culture where organizational members systematically gather and share knowledge with others in order to achieve better performance.

32. © 2007 Prentice Hall, Inc. All rights reserved. 2–32 Exhibit 2–10 Learning Organization versus Traditional Organization Exhibit 2–10 Learning Organization versus Traditional Organization

33. © 2007 Prentice Hall, Inc. All rights reserved. 2–33 Current Trends and Issues (cont’d) Current Trends and Issues (cont’d) • Quality Management • Quality Management  A philosophy of management driven by continual improvement in the quality of work processes and responding to customer needs and expectations  A philosophy of management driven by continual improvement in the quality of work processes and responding to customer needs and expectations  Inspired by the total quality management (TQM) ideas of Deming and Juran  Inspired by the total quality management (TQM) ideas of Deming and Juran  Quality is not directly related to cost  Quality is not directly related to cost  Poor quality results in lower productivity  Poor quality results in lower productivity

34. © 2007 Prentice Hall, Inc. All rights reserved. 2–34 Exhibit 2–11 What is Quality Management? Exhibit 2–11 What is Quality Management? Intense focus on the customer . Concern for continual improvement Process-focused . Improvement in the quality of everything . Accurate measurement . Empowerment of employees .

35. © 2007 Prentice Hall, Inc. All rights reserved. 2–35 Terms to Know Terms to Know • division of labor (or job specialization) • division of labor (or job specialization) • Industrial Revolution • Industrial Revolution • scientific management • scientific management • therbligs • therbligs • general administrative theory • general administrative theory • principles of management • principles of management • bureaucracy • bureaucracy • quantitative approach • quantitative approach • organizational behavior (OB) • organizational behavior (OB) • Hawthorne Studies • Hawthorne Studies • system • system • closed systems • closed systems • open systems • open systems • contingency approach • contingency approach • workforce diversity • workforce diversity • entrepreneurship • entrepreneurship • e-business (electronic business) • e-business (electronic business) • e-commerce (electronic commerce) • e-commerce (electronic commerce) • intranet • intranet • learning organization • learning organization • knowledge management • knowledge management • quality management • quality management