2.as mpp management yesterday,today,tomorrow
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Management Principles & PracticesManagement Principles & Practices
MANAGEMENT YESTERDAY, TODAY & TOMORROWMANAGEMENT YESTERDAY, TODAY & TOMORROW
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Historical Background of ManagementHistorical Background of Management
Ancient ManagementAncient Management
Egypt (pyramids) and China (Great Wall)Egypt (pyramids) and China (Great Wall)
Venetians (floating warship assembly lines)Venetians (floating warship assembly lines)
Adam SmithAdam Smith
PublishedPublished The Wealth of NationsThe Wealth of Nationsin 1776in 1776
Advocated the division of labor (jobAdvocated the division of labor (jobspecialization) to increase the productivity ofspecialization) to increase the productivity ofworkersworkers
Industrial RevolutionIndustrial Revolution Substituted machine power for human laborSubstituted machine power for human labor
Created large organizations in need ofCreated large organizations in need ofmanagementmanagement
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Exhibit 2.1Exhibit 2.1
Development of MajorDevelopment of Major
Management TheoriesManagement Theories
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Major Approaches toMajor Approaches to
ManagementManagement Scientific ManagementScientific Management
General Administrative TheoryGeneral Administrative Theory
Quantitative ManagementQuantitative Management Organizational BehaviorOrganizational Behavior
Systems ApproachSystems Approach
Contingency ApproachContingency Approach
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Scientific ManagementScientific Management
Fredrick Winslow TaylorFredrick Winslow Taylor The father of scientific managementThe father of scientific management
PublishedPublished Principles of ScientificPrinciples of Scientific
ManagementManagement(1911)(1911) The theory of scientific managementThe theory of scientific management
Using scientific methods to define the one bestUsing scientific methods to define the one bestway for a job to be done:way for a job to be done:
Putting the right person on the job with thePutting the right person on the job with thecorrect tools and equipment.correct tools and equipment.
Having a standardized method of doing theHaving a standardized method of doing thejob.job.
Providing an economic incentive to theProviding an economic incentive to the
worker.worker.
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Taylors Five Principles ofTaylors Five Principles of
ManagementManagement1.Develop a science for each element of an
individuals 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 toensure that all work is done in accordance withthe principles of the science that has beendeveloped.
4.Divide work and responsibility almost equallybetween management and workers.
5.Management takes over all work for which it isbetter fitted than the workers.
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Scientific Management (contd)Scientific Management (contd) Frank and Lillian GilbrethFrank and Lillian Gilbreth
Focused on increasing worker productivityFocused on increasing worker productivitythrough the reduction of wasted motionthrough the reduction of wasted motion
Developed the microchronometer to timeDeveloped the microchronometer to time
worker motions and optimize performanceworker motions and optimize performance How Do Todays Managers Use ScientificHow Do Todays Managers Use Scientific
Management?Management?
Use time and motion studies to increaseUse time and motion studies to increase
productivityproductivity Hire the best qualified employeesHire the best qualified employees
Design incentive systems based on outputDesign incentive systems based on output
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General Administrative TheoristsGeneral Administrative Theorists
HenriFayolHenriFayol
Believed that the practice of management wasBelieved that the practice of management wasdistinct from other organizational functionsdistinct from other organizational functions
Developed fourteen principles of management thatDeveloped fourteen principles of management thatapplied to all organizational situationsapplied to all organizational situations
Max WeberMax Weber
Developed a theory of authority based on an idealDeveloped a theory of authority based on an idealtype of organization (bureaucracy)type of organization (bureaucracy)
Emphasized rationality, predictability,Emphasized rationality, predictability,
impersonality, technical competence, andimpersonality, technical competence, andauthoritarianismauthoritarianism
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Fayols 14 Principles ofFayols 14 Principles of
ManagementManagement
1. Division of work.
2. Authority.
3. Discipline.
4. Unity of command.
5. Unity of direction.
6. Subordination ofindividual interest
to the interests of
the organization.
7. Remuneration.
8. Centralization.
9. Scalar chain.
10. Order.
11. Equity.
12. Stability of tenure
of personnel.
13. Initiative.
14. Esprit de corps.
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Webers Ideal BureaucracyWebers Ideal Bureaucracy
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Quantitative Approach toQuantitative Approach to
ManagementManagement Quantitative ApproachQuantitative Approach
Also calledAlso called operations researchoperations research orormanagement sciencemanagement science
Evolved from mathematical andEvolved from mathematical andstatistical methods developed to solvestatistical methods developed to solveWWII military logistics and qualityWWII military logistics and quality
control problemscontrol problems Focuses on improving managerialFocuses on improving managerial
decision making by applying:decision making by applying:
Statistics, optimization models, informationStatistics, optimization models, information
models, and computer simulationsmodels, and computer simulations
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Understanding OrganizationalUnderstanding Organizational
BehaviorBehavior Organizational Behavior (OB)Organizational Behavior (OB)
The study of the actions of people atThe study of the actions of people at
work; people are the most importantwork; people are the most importantasset of an organizationasset of an organization
Early OB AdvocatesEarly OB Advocates
Robert OwenRobert Owen
Hugo MunsterbergHugo Munsterberg
Mary Parker FollettMary Parker Follett
Chester BarnardChester Barnard
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The Hawthorne StudiesThe Hawthorne Studies
A series of productivity experiments conducted atA series of productivity experiments conducted atWestern Electric from 1927 to 1932.Western Electric from 1927 to 1932.
Experimental findingsExperimental findings
Productivity unexpectedly increased underProductivity unexpectedly increased underimposed adverse working conditions.imposed adverse working conditions.
The effect of incentive plans was less thanThe effect of incentive plans was less thanexpected.expected.
Research conclusionResearch conclusion
Social norms, group standards and attitudesSocial norms, group standards and attitudesmore strongly influence individual output andmore strongly influence individual output andwork behavior than do monetary incentives.work behavior than do monetary incentives.
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Early Advocates of OBEarly Advocates of OB
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The Systems ApproachThe Systems Approach
System DefinedSystem Defined A set of interrelated and interdependent partsA set of interrelated and interdependent parts
arranged in a manner that produces a unifiedarranged in a manner that produces a unifiedwhole.whole.
Basic Types of SystemsBasic Types of Systems
Closed systemsClosed systems
Are not influenced by and do not interact withAre not influenced by and do not interact withtheir environment (all system input and outputtheir environment (all system input and outputis internal).is internal).
Open systemsOpen systems Dynamically interact to their environments byDynamically interact to their environments by
taking in inputs and transforming them intotaking in inputs and transforming them intooutputs that are distributed into theiroutputs that are distributed into theirenvironments.environments.
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The Organization as an OpenThe Organization as an Open
SystemSystem
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Implications of the SystemsImplications of the Systems
ApproachApproach Coordination of the organizations parts isCoordination of the organizations parts is
essential for proper functioning of theessential for proper functioning of theentire organization.entire organization.
Decisions and actions taken in one area ofDecisions and actions taken in one area ofthe organization will have an effect inthe organization will have an effect inother areas of the organization.other areas of the organization.
Organizations are not selfOrganizations are not self--contained and,contained and,therefore, must adapt to changes in theirtherefore, must adapt to changes in theirexternal environment.external environment.
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Exhibit 2.7Exhibit 2.7
Popular Contingency VariablesPopular Contingency Variables
Organization size
Routineness of task technology
Environmental uncertainty
Individual differences
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Current Trends and IssuesCurrent Trends and Issues
(contd)(contd) GlobalizationGlobalization
Management in internationalManagement in internationalorganizationsorganizations
Political and cultural challenges ofPolitical and cultural challenges ofoperating in a global marketoperating in a global market
EthicsEthics
Increased emphasis on ethics educationIncreased emphasis on ethics educationin college curriculumsin college curriculums
Increased creation and use of codes ofIncreased creation and use of codes ofethics by businessesethics by businesses
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Exhibit 2.8Exhibit 2.8
A Process for Addressing EthicalA Process for Addressing Ethical
DilemmasDilemmas
Step 1: What is the ethical dilemma?
Step 2: Who are the affected stakeholders?
Step 3: What personal, organizational, andexternal factors are important to
my decision?
Step 4: What are possible alternatives?
Step 5: Make a decision and act on it.
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Current Trends and Issues (contd)Current Trends and Issues (contd)
Workforce DiversityWorkforce Diversity Increasing heterogeneity in theIncreasing heterogeneity in the
workforceworkforce
More gender, minority, ethnic, and otherMore gender, minority, ethnic, and other
forms of diversity in employeesforms of diversity in employees
Aging workforceAging workforce
Older employees who work longer and doOlder employees who work longer and donot retirenot retire
The increased costs of public and privateThe increased costs of public and privatebenefits for older workersbenefits for older workers
An increasing demand for products andAn increasing demand for products andservices related to aging.services related to aging.
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Current Trends and Issues (contd)Current Trends and Issues (contd)
Entrepreneurship DefinedEntrepreneurship Defined
The process whereby an individual or group ofThe process whereby an individual or group ofindividuals use organized efforts to createindividuals use organized efforts to createvalue and grow by fulfilling wants and needsvalue and grow by fulfilling wants and needs
through innovation and uniqueness.through innovation and uniqueness. Entrepreneurship processEntrepreneurship process
Pursuit of opportunitiesPursuit of opportunities
Innovation in products, services, or businessInnovation in products, services, or business
methodsmethods
Desire for continual growth of the organizationDesire for continual growth of the organization
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Current Trends and Issues (contd)Current Trends and Issues (contd)
EE--Business (Electronic Business)Business (Electronic Business) The work preformed by an organizationThe work preformed by an organization
using electronic linkages to its keyusing electronic linkages to its key
constituenciesconstituencies EE--commerce: the sales and marketingcommerce: the sales and marketing
component of an ecomponent of an e--businessbusiness
Categories of ECategories of E--BusinessesBusinesses EE--business enhanced organizationbusiness enhanced organization
EE--business enabled organizationbusiness enabled organization
Total eTotal e--business organizationbusiness organization
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Exhibit 2.9Exhibit 2.9
Categories ofECategories ofE--BusinessBusiness
InvolvementInvolvement
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Current Trends and IssuesCurrent Trends and Issues
(contd)(contd) Knowledge ManagementKnowledge Management
The cultivation of a learning cultureThe cultivation of a learning culturewhere organizational memberswhere organizational memberssystematically gather and sharesystematically gather and shareknowledge with others in order toknowledge with others in order toachieve better performance.achieve better performance.
Learning OrganizationLearning Organization An organization that has developed theAn organization that has developed the
capacity to continuously learn, adapt,capacity to continuously learn, adapt,and change.and change.
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Exhibit 2.10Exhibit 2.10
Learning Organization versusLearning Organization versus
Traditional OrganizationTraditional Organization
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Current Trends and IssuesCurrent Trends and Issues
(contd)(contd) Quality ManagementQuality Management
A philosophy of management driven byA philosophy of management driven bycontinual improvement in the quality ofcontinual improvement in the quality ofwork processes and responding towork processes and responding tocustomer needs and expectationscustomer needs and expectations
Inspired by the total qualityInspired by the total quality
management (TQM) ideas of Demingmanagement (TQM) ideas of Demingand Juranand Juran
Quality is not directly related to costQuality is not directly related to cost
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What is Management Quality?What is Management Quality?
Intense focus on the customer
Concern forcontinual improvement
Process-focused
Improvement in the quality of everything
Accurate measurementEmpowerment of employees