LECTUREPEDIA - Ajarn Paul Tanongpol, J.D.; M.B.A.;B.A.; CBEST
|
LECTUREPEDIA - Ajarn Paul Tanongpol, J.D.; M.B.A.;B.A.; CBEST
|
|
|
CHAPTER 4 Historical Foundations of Management
1. Classical approaches to management ¦ Scientific management ¦ Administrative principles ¦ Bureaucratic organization
2. Behavioral management approaches ¦ The Hawthorne studies of human relations ¦ Maslow’s theory on human needs ¦ McGregor’s theory X and theory Y ¦ Argry’s theory of adult personality
3. Quantitative management approaches ¦ Management science ¦ Quantitative analysis today
4. Modern approaches to management ¦ Systems thinking ¦ Contingency thinking
5. Continuing management themes ¦ Quality and performance excellence ¦ Global awareness ¦ Learning organizations
.
1. Classical approaches to management a. Scientific management o Careful selection and training of workers, and supervisory support. The right man for the right job. This approach was pioneered by Federick W. Taylor, The Principles of Scientific Management. § Scientific approach to all jobs: rules of motion, standardized work implement and proper work conditions.
§ Right ability for the right job.
§ Train for the right job. Give workers incentive to support scientific approach to management.
§ Careful planning and provide support to workers for smooth operations.
o Motion Study § Reduce job motions into their most basic elements for purposes of efficiency and cost control, i.e. assembly works.
§ Objectives of motion studies are: Simplification Standardization Incentive work plan
b. Administrative principles § Foyol’s rules of management 1. Foresight = Plan of action 2. Organization = Mobilize resource to implement plan 3. Command = To lead, select & evaluate workers 4. Coordination = Share information & solve problems 5. Control = Take corrective action; go as planned
§ Foyol’s scalar chain principle Clear and unbroken line of communication from top to bottom in the organization.
§ Foyol’s unity of command principle Each person should receive order from one boss.
§ Foyol’s unity of direction principle One person should be in charged of all activities that have the same performance objective.
§ Mary Parker Folett Emphasizes human group interaction. Groups were mechanism through which diverse individual combines their talents for greater good. Making every employee an owner of the company makes him/her feel collectively responsible in the business, i.e. profit sharing. § Collective responsibility § Labor harmony § Cooperation within group § No domination
c. Bureaucratic organization § Beuraucracy is defined a rational and efficient form of organization founded on logic, order, and legitimate authority. § Max Weber redefined bureaucratic organization as: 1. Clear division of labor 2. Clear hierarchy of authority 3. Formal rules and procedures 4. Impartiality 5. Careers based on merit
2. Behavioral management approaches a. The Hawthorne studies of human relations § Explored the relationship between working condition and worker’s productivity. The study began by looking at the illumination of the work place and how workers performed. The finding was that workers worked best when there was sufficient lighting.
§ Relay assembly test room Elton Mayo studied the effect of workers fatigue on output. There were 2 factors that were important to output: (a) positive work atmosphere, and (2) participative supervision.
§ Employee attitudes, interpersonal relations and group process A study during the depression shows that some workers would restrict output to avoid displeasing other workers. From this study, it was concluded that group can influence an individual’s conduct (productivity) in the work place.
§ Lessons of the Hawthorne studies 1. Today’s thinkers look at the Hawthorne studies and criticized it as unscientific and making too broad a generalization. However, the legacy of Hawthorne’s study still influence today’s management.
a. Hawthorne Effect: the tendency of people who had been singled out for attention to perform as anticipated because of the expectation created by the situation.
b. Human relations movement: another legacy of the Hawthorne study is human relations movement. In the 1950s-1960s, this movement held a viewpoint that managers who use human relations in the workplace will achieve higher productivity.
b. Maslow’s theory on human needs § A need is a physiological or psychological deficiency which makes a person wants the compulsion to satisfy. These needs are: 1. Self-actualization 2. Esteem 3. Social 4. Safety 5. Physiological § This concept still holds validity today. For instance, in a case of a volunteer worker. He/she does not receive monetary compensation for the work. However, the satisfaction from working towards the common good for humanity satisfies his/her needs of self-actualization.
c. McGregor’s theory X and theory Y § The X theory 1. This theory assumes that people dislike work, lack ambition, are irresponsible, are resistant to change, and prefer to be led rather t lead.
2. These type of people are nonproductive in the workplace.
§ The Y theory 1. The theory assumes that people are willing to work, accepts responsibility, self directed and creative.
2. These are the productive workers and managers.
§ Self-fulfilling prophesy 1. Managers who believe in theory X acted in a very restrictive manner: command and control. This type of thinking sets the managers apart from the workers and tend to create conflict because managers believe that workers are lazy and need to be direct at all time.
2. Managers with theory Y perspective believes that workers are participative and are creative, willing to work, and need little supervision. In the workplace, this type of management creates an opportunity for workers to satisfy their esteem and self-actualization needs.
d. Argry’s theory of adult personality § Argry’s study looks at adult personality. He found that classical management theories are not consistent with adult personality. He believes that if managers treat workers like adults and gives workers adult responsibilities, they will be productive. § Under Argry’s adult personality approach, managers should: 1. Give more responsibilities to workers 2. task variety 3. Adjust supervisory styles to allow more participation and better human relations. 4. Low productivity and unconstructive behavior of workers in the workplace may be the result of a mismatch between adult personality and the outdated practice of management practices.
3. Quantitative management approaches Management science uses mathematical modeling to analyze and solve management problems. Management science and operations research are used interchangeably.
a. Management science § Encounter problem § Systematic analysis of the problem § Apply appropriate mathematical models 1. mathematical forecasting 2. Inventory modeling 3. Linear programming § Identify optimum solution
b. Quantitative analysis today Many companies use sophisticated computer programs. Many companies set up a separate department of analyst to work on modeling.
4. Modern approaches to management a. Systems thinking § System is defined as a collection of integrated parts working together for a purpose.
§ Subsystem is a smaller component of a larger system.
§ Open system interacts with its environment and transforms resource inputs into outputs.
b. Contingency thinking Contingency thinking is defined as an attempt to match management practices with situational demands. Specifically, it means when you plan, you should have Plans A, B, and C. Do not rely on Plan A only; if the situation changes, you should be ready to face with an alternative plan if plan A does not work.
5. Continuing management themes
Materials ð Receiving ð Production ð Packing & distributing ð End user
This is the value chain of an organization. A value chain is defined as the sequence of activities that transform materials into finished products.
a. Quality and performance excellence b. Global awareness Companies throughout the world are transforming themselves into world-class organizations. A new theory is emerging; it is called the theory Z. Theory Z describes a management framework emphasizing long-term employment and teamwork.
There are 8 attributes in performance excellence: 1. Result oriented 2. Closeness to customer 3. Autonomy and entrepreneurship 4. Productivity through people 5. Hands-on and value driven 6. Focus on core competence 7. Lean staff 8. Flexibility
c. Learning organizations A learning organization is defined as an organization that is ready for changes and keeps up with technology. It is an organization that puts the right people for the right jobs. It is an organization that emphasizes information, teamwork, empowerment, participation, and leadership.
The characteristics of the 21st century executive are: § Global strategist § Master of technology § Effective politician § Inspiring leader
|
|
