evolution of management

Evolution of Management

Management Perspectives Over Time

2000

1930Humanistic

19901890Classical 1940

1940Management Science

1950

2000Systems

1970Contingency Views

1980Total Quality Management

1990

2010The Learning Organization

1990

2000The Learning Organization

2010The Technology-Driven Workplace

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Classical Perspective

• The early study of management. • 19th – late 20th Century

– Scientific Management– Bureaucratic Organizations– Administrative Principles

• Very powerful, gave companies fundamental skill for high productivity

Scientific Management• Frederick Winslow Taylor (1856-1915), father

of scientific management• Focus on improving efficiency and labor

productivity• Workers could be retooled like machines• Managers would need to change• Incentive systems for meeting standards• Others added to the theories

Characteristics of Scientific Management

General Approach• Developed standard method for performing each job.• Selected workers with appropriate abilities for each job.• Trained workers in standard method.• Supported workers by planning work and eliminating interruptions.• Provided wage incentives to workers for increased output.Contributions• Demonstrated the importance of compensation for performance.• Initiated the careful study of tasks and jobs.• Demonstrated the importance of personnel and their training.Criticisms• Did not appreciate social context of work and higher needs of

workers.• Did not acknowledge variance among individuals.• Tended to regard workers as uninformed and ignored their ideas.

Copyright ©2010 by South-Western, a division of Cengage Learning. All rights

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Administrative Principles• Henri Foyal (1841-1925), French mining engineer, turned

industrialist, and other contributors led the ideas

• Fayol wrote down his own management practices

• In the text, General and Industrial Management; 14 general principles were outlined

• Fayol divided industrial activities into six groups- Technical, Commercial, Financial, Security, Accounting and Managerial

• To perform six activities, Fayol identified five managerial functions : Planning, Organizing, Commanding, Coordinating, and Controlling

• Fayol was first to emphasize need for management teaching and outlined 14 principles of management

Administrative Principles &Henri Fayol’s 14 Points

• Division of work• Authority• Discipline• Unity of command• Unity of direction• Subordination of individual

interest for common good• Remuneration

• Division of work• Authority• Discipline• Unity of command• Unity of direction• Subordination of individual

interest for common good• Remuneration

• Centralization• Scalar chain• Order• Equity• Stability and tenure of staff• Initiative• Esprit de corps

• Centralization• Scalar chain• Order• Equity• Stability and tenure of staff• Initiative• Esprit de corps

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Bureaucratic Organizations

• Max Weber (1864-1920), a German theorist and father of modern sociology, introduced the bureaucratic theories

• He was concerned with managerial abuse of power and resources

• He identified three types of authority or power- traditional, Charismatic and Rational or legal.

• Weber opined Rational or legal authority is more efficient and adaptable to change

• Selection and advancement would be focused on competence and technical qualifications

6 Characteristics of Weberian Bureaucracy

1. Labor is divided with clear definitions of authority and responsibility.

2. Positions are in hierarchy of authority.3. Personnel are selected and promoted based on

qualifications.4. Acts and decisions are recorded in writing5. Management is separate from the ownership.6. Rules and procedures ensure reliable, &

predictable behavior. Rules are impersonal and uniformly applied.


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6 Characteristics of Weberian Bureaucracy


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Humanistic Perspective

• Led by Mary Parker Follett and Chester Barnard• It was Mary Parker Follett who defined

management as getting things done through people

• Importance of understanding human behaviors: needs, attitudes and social interactions– Human Relations Movement– Human Resources Perspective– Behavioral Sciences

Humanistic Perspective

• Emphasized understanding human behavior.• Dealt with needs & attitudes in the workplace.• Truly effective control comes from within the

individual worker rather than authoritarian control.• Hawthorne Studies brought this perspective to

forefront.

Humanistic PerspectiveThree Sub-Fields

Human Relations Movement. Human Resources Perspective. Behavioral Sciences Approach.

• Ten year study.• Four experimental & three control groups.• Five different tests.• Test pointed to factors other than illumination for

productivity.• 1st Relay Assembly Test Room experiment, was

controversial, test lasted 6 years.• Interpretation, money not cause of increased output.• Factor that increased output, Human Relations.

Human Relations Movement

Hawthorne Studies

• Study was initiated to at Hawthorne plant of Western Electric- an unit of AT&T to study effects of changes in lighting on productivity

• Part of unit was divided into experimental group and control group

• No change in lighting was effected in control group but light was enhanced in experimental group from 24 to 46 to 70’ candles- productivity went up in both groups

• Then lighting of experimental group was reduced gradually to below normal but without any change in control group - productivity continued to increase in both groups

Hawthorne Studies

• Productivity of experimental group finally started to decline when lighting was reduced to moon light level and visibility got affected.

• It proved that something other than lighting caused changes in productivity

• Another experiment was conducted in Relay Assembly Test Room for 6 years. In this test relationship amongst rest, fatigue and productivity were also examined.

Hawthorne Studies

• First the normal productivity was measured• Then production based pay system was introduced

without any change in working conditions for 8 weeks• Then two rest pauses of 5 minutes each were introduced

at 10 am and 2 pm• In next stage girls were given light lunch during pauses• In next stage workday was reduced by half hour• In next stage workday was reduced by one hour• In next stage 5 day week initiated• Gradual rise in output continued till here

Hawthorne Studies

• Then original work pattern without any pause, lunch and full work hrs introduced and productivity measured for 12 weeks.

• Productivity declined but not to original levels meaning physical conditions did not have impact

• Change in output could be related to attitudes and social factors at work place

• Workers enjoyed getting attention. This is known as Hawthorne effect.


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Human Relations Movement

• Control comes from the individual worker rather than authoritarian control

• The Hawthorne studies found increased output due to managers’ better treatment of employees

– Money mattered a great deal

– Productivity increased from feelings of importance

• Created a focus on positive treatment of employees


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Human Resources Perspective

• Emphasizes understanding human behavior, needs and attitudes in the workplace.

• Perspective came from the idea that cows gave more milk when they were more satisfied

• Maintains an interest in worker participation. • Focus on job tasks and theories of motivation

– Reduce dehumanizing or demeaning work– Allow workers to use full potential

• Main contributors: Abraham Maslow and Douglas McGregor

• Maslow’s Hierarchy of Needs• McGregor’s Theory X/Theory Y

Maslow’s Hierarchy of Needs

Abraham Maslow sought to explain why a need become driving at some time and some other needs at some other time

• Maslow’s answer is that human needs are arranged in a hierarchy, from the most pressing to the least pressing

• Physiological needs - food, shelter most potent• Psychological needs like safety, social, esteem and

self actualisation are potent in that order• It says that person shall fulfill its most important

need first at least to a minimum level and only then the next level need shall activate

Physiological

Safety

Belonging

Esteem

Self-actualization

Abraham Maslow’s Hierarchy

Based on needs satisfaction

OrganizationalExamples

Challenging Job

Job Title

Friends

Retirement Plan

Wages

GeneralExamples

Self-fulfillment

Status

Friendship

Stability

Shelter

Douglas McGregor’s Theory X & Theory Y

• Theory X • People are lazy• People lack ambition • Dislike responsibility• People are self-centered• People don’t like

change• People need close

supervision

• Theory Y • People are energetic• People want to make

contributions• People do have

ambition• People will seek

responsibility• Consider work as

natural as rest & play


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Theory X and Theory Y


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Behavioral Sciences Approach

• Scientific methods that draw from sociology, psychology, anthropology, economics and other disciplines

• Focus on human behavior and interaction

• Organizational development came from behavioral sciences approach– Applied behavioral sciences to improve

organizational health and effectiveness


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Management Science Perspective• Developed to meet changing and dynamic environment

created from WWII• Engaged mathematics, statistics and quantitative

techniques to aid in decision making• Increased study of management led by Peter Drucker• Use of technology and programming for optimizing

operations• Introduced new subsets of management:

– Operations Research– Operations Management– Information Technology


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Recent Historical Trends

• Systems Theory. A holistic view of management as a interrelated parts to achieve a common purpose.

• Contingency View. Successful resolution of organizational problems depends on situations.

• Total Quality Management. Management of the total organization to deliver quality.


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The Systems View of Organizations


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Contingency View of Management


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Total Quality Management

• W. Edward Deming, known as the father of the quality movement– US initially scoffed at Deming

• During the 1908s and 1990s, quality became a focus to meet global competition

• Four key elements of quality management:1. Employee involvement

2. Focus on customer

3. Benchmarking

4. Continuous improvement


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The Learning Organization

• Learning aids in the adaptation to change

• Peter Senge began the discussion about the learning organization

• All employees are engaged in identifying and solving problems

• Learning increases the capacity to learn and grow

• Move from efficiency to solving problems

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Managing the Technology-Driven Workplace

• Most work is performed on computers in today’s workplace

• Companies use technology to communicate and collaborate

• Key technologies in today’s workplace:– Supply Chain Management

– Customer Relationship Management

– Outsourcing

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Supply Chain for a Retail Organization

Management Science Perspective

• Emerged after WW II.• Distinguished for its application of

mathematics, statistics to problem solving. Operations Research emerged. Operations Management emerged. Management Information Systems emerged.

evolution of management

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selected workers

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