Origins of Contemporary Management Thoughtv1

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IV.

Origins of Contemporary
Management Thought
Learning Objectives :
• Appreciate the fact that human beings from the dawn of history
knew and practiced what are known now as concepts, princi-
ples, and practices of management.
• Recognize that the creation, construction and the development
of cultures and civilizations throughout the ages have been made
possible through early practices, knowledge of concepts, and
principles of management.
• Present the historical, technological, economic, social and cul-
tural perspectives and context out of which modern manage-
ment sprang and operated.
• Learn about different approaches in management. Identify the
leading gurus and exponents of each management approach and
know their principal contributions or ideas, concepts and
principles of management.
CLASSICAL MANAGEMENT:
I. Scientific Management

Frederick Winslow Taylor (1856-1915) –


the father of scientific management

Taylor’s principles:
1. Identify the important elements of the task through time
and motion studies.
2. Scientific Selection of Personnel
3. Financial Incentives through the Differential Piece-Rate-System
4. Functional foremanship where the manager and the
worker are differentiated.
(Aldag and Stearns, 1991).
Classical…
I. Scientific…
 Henry L Gantt (1861-1919):
1. Task-and-bonus wage system
2. The Gantt Chart

Source GanttChartAnatomy.png
Classical…
I. Scientific…
 Frank (1868-1924) and Lilian Gilbreth
(1878-1972)

1. Elimination of unnecessary motions in task performance to


reduce fatigue and so increase productivity.
2. Job rotation that provides variety resulting to higher morale
among workers.
Classical Management…
II. The Administrative Management
Henri Fayol (1841-1925)- known as
the father of modern management
14 Principles of Administrative Management
1. Division of labor
2. Authority & Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Scalar Chain
7. Remuneration
Administrative…
14 Principles…
8. Subordination of individual interest to the general interest
9. Centralization/Decentralization
10. Order
11. Equity
12. Stability of Tenure
13. Initiative
14. Esprit de corps
III. Bureaucratic Organization
 Max Weber (1864-1920)- known as
the Father of Modern Sociology
Bureaucracy-defined
"the ideal pure form of organization".(Weber)

“isa model of organization based on defined positions, formal


authority, and a regulated environment that includes well-
documented rules, policies, and procedures. (Higgins, p42.)
Bureaucratic…
Bureaucratic management-
is a traditional management system that relies on rules, set
hierarchy, a clear division of labor, and formal procedures and
that focuses on the overall organizational structure.(Holt, p40.)
Bureaucratic…
The Principles Of Bureaucracy:
1. Hierarchical Structure 4. Technical Competence
2. Division of Labor 5. Positional Power
3. Rules and Regulations 6. Record Keeping
7. Security of Tenure
BEHAVIORAL MANAGEMENT

Eras of Behavioral Approach


• The First Era -- 1920's when Hawthorne research
inspired what we now call Human Relations
Movement.
• The Second Era -- Human Needs And Motivation.
• The Third Era -- occurring now, as we search for
integrative concepts that satisfy the dual necessities
of meeting employee needs and improving
productivity.
BEHAVIORAL MANAGEMENT
The First Era:
Human Relations Movement
 Elton Mayo(1880-1949)-Australian psychologist who spear-
headed the Hawthorne experiment.
Hawthorne Experiment: (First round-1924)
Behavioral…
Human Relations Movement…
Hawthorne Experiment: (Second round-1927)
Behavioral…
The Hawthorne Plant Studies (Western Electric Co.)

I. The illumination experiments


2. The relay assembly group experiments
3. The interviewing program
4. The bank wiring group studies.
Behavioral…
Mayo and company research conclusions:
1. Financial incentives did not necessarily make the workers more productive
than the other group.
2. An "emotional chain reaction" was happening as a result of the participants'
being chosen to take part in the experiment that made them feel "special" to
the management — they fell they were important and the opportunity to
make decisions on their job contributed to their productivity.

Important Contributions Of The Behavioral Management:


1. Workers are not only driven by pay and good working conditions but by
psychological needs as well that can be satisfied by belonging to a work
group.
2. Giving workers a chance to make decisions concerning their jobs make
them feel they are contributing something significant to the organization.
Behavioral…
Some Basic Ideas Of Mayoism
1. Supervisors should not act like supervisors - they should be friends, counselors to the workers
2. Managers should not try to micro-manage the organization by an overriding concern for pro-
duct or job quality at the expense of the macro-social, or characteristics of work.
3. People should be periodically asked how they feel about the work, their supervisors, and co-
workers
4. Humanistic supervision plus morale equals productivity
5. Time who don't respond to group influence should be freed with sarcasm
6. Workers should be involved or at least consulted before any change in the organization
7. Employees who leave should be exit-interviewed - turnover should be kept to a minimum
Behavioral…

 Kurt Lewin (1890-1947) He examined the effects of different types of


leaderships and wrote extensively on group Behavior. He is
remembered more for his 3-step process of change: Defreezing,
Introduction of change, Refreezing.
 Chester I. Barnard (1886-1961) He advocated conciliatory management
relations that enhanced cooperation between employees and
supervisors.
 Mary Parker Follett (1868-1933) She is considered one of the founders of the
human relations movements. She felt that managers were respon-
sible for motivating employees to pursue organizational goals enthu-
siastically, not simply to obey orders. She rejected the notion
that managers should be groomed to give orders. Instead, managers
should be trained to work with employees toward the attainment of
common objectives.
Behavioral…
Human Needs and Motivation– Second era
Selected Followers Of Mayoism:

• Douglas McGregor
• Abraham Maslow
• Frederick Herzberg
• David McClelland
Behavioral…
Human Needs and Motivation– Second era
Douglas McGregor Theory X and Theory Y
Theory X Beliefs
1. The average person dislikes work and will avoid it if possible.
2. Because they dislike work, most subordinates must be
coerced, controlled, directed, or threatened with punishment
to get them to exert effort
toward achieving organizational objectives.
3. The average subordinate prefers to be directed, wants to
avoid responsibility, has little ambition, and wants security
above all other needs.
4. The average human being avoid leading and wants to be led.
Behavioral…
Human Needs and Motivation– Second era
Theory Y Beliefs
1. Exerting physical and mental effort in work is as natural
as play or rest.
2. Subordinates will exercise self-direction and self-control
(inner motivation) in the service of organizational objec-
tives to which they are committed.
3. Commitment to objectives is a function of positive rewards
associated with their achievement.
4. Average subordinates not only accept but seek respon-
sibility under the proper conditions.
5. Subordinates have as much imagination, ingenuity, and
creativity to offer in the solution of organizational
problems as do supervisors.
Behavioral…
Human Needs and Motivation– Second era
Maslow’s Hierarchy of Needs

Self
Actualization

Esteem or
Recognition

Social Affiliation/
Belongingness

Security or Safety

Basic/Physiological
Behavioral…
Human Needs and Motivation– Second era
Behavioral…
Human Needs and Motivation– Second era

Needs Theory (David McClelland)

• Need For Power


• Need For Achievement
• Need For Affiliation
SYSTEMS MANAGEMENT
SYSTEMS MANAGEMENT
Some Key Concepts:

1. SUBSYSTEM — the parts that make up the whole of the system


2. SYNERGY — "the whole is greater than its parts"
3. OPEN AND CLOSED SYSTEM — a system is considered open if it
interacts with its environment, it is close if it is not.
4. SYSTEM BOUNDARY that which separates the organization from its
environment.
5. FLOW — refers to the movement of information, materials and other
resources which enter the system from the environment as inputs, undergo
transformation process within the system and exit from the system as
outputs.
6. FEEDBACK they key to system controls which is information describing
how efficient or inefficient the inputs are.
CONTINGENCY MANAGEMENT

Contingency management is also known as situational


management that emerged in the 1960s. It is based on the
theme "It depends" arguing that there are no one best
management style. The solution to any management
problem depends on the factors present in a given
situation. This theory calls for the different management
theories rather than for the exclusive use of one theory.
Contingency Management…
Contingency Management…
Factors that influence the contingency theory are:

• The size of the organization


• How the firm adapts itself to its environment
• Differences among resources and operations activities
• Assumption of managers about employees
• Strategies
• Technologies being used

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