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1. Evolution of Management

2. 2000 The Technology-Driven Workplace 2010 1990 The Learning Organization 2000 1990 The Learning Organization 2010 1980 Total Quality Management 1970 Contingency Views 1950 Systems 2000 1940 Management Science 1930 Humanistic 1990 1890 Classical 1940 Management Perspectives Over Time

3. 3 Classical Perspective 0 The early study of management. 19th – late 20th Century Scientific Management Bureaucratic Organizations Administrative Principles Very powerful, gave companies fundamental skill for high productivity

4. 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

5. 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.

6. Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. 6 Administrative Principles 0 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

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

8. 8 Bureaucratic Organizations 0 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

9. 6 Characteristics of Weberian Bureaucracy Labor is divided with clear definitions of authority and responsibility. Positions are in hierarchy of authority. Personnel are selected and promoted based on qualifications. Acts and decisions are recorded in writing Management is separate from the ownership. Rules and procedures ensure reliable, & predictable behavior. Rules are impersonal and uniformly applied.

10. Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. 10 6 Characteristics of Weberian Bureaucracy 0

11. Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. 11 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 0

12. 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.

14. Human Resources Perspective.

16. 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

17. 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.

18. 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

19. 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.

20. Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. 19 Human Relations Movement 0 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

21. Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. 20 Human Resources Perspective 0 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

22. Maslow’s Hierarchy of Needs

23. 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

24. Organizational Examples General Examples Abraham Maslow’s Hierarchy Self- actualization Challenging Job Self-fulfillment Esteem Job Title Status Belonging Friends Friendship Safety Retirement Plan Stability Physiological Shelter Wages Based on needs satisfaction

25. 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

26. Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. 25 Theory X and Theory Y 0

27. Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. 26 Behavioral Sciences Approach 0 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

28. Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. 27 Management Science Perspective 0 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

29. Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. 28 Recent Historical Trends 0 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.

30. Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. 29 The Systems View of Organizations 0

31. Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. 30 Contingency View of Management 0

32. Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. 31 Total Quality Management 0 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: Employee involvement Focus on customer Benchmarking Continuous improvement

33. Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. 32 The Learning Organization 0 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

34. 33 Managing the Technology-Driven Workplace 0 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

35. 34 Supply Chain for a Retail Organization 0

37. Operations Management emerged.

38. Management Information Systems emerged.