Chapter 2 Management, Yesterday and Today

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Chapter 2Management, Yesterday and Today
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Historical background of management

• Are there any management in the history?
• Pyramid and the Great Wall
• The Wealth of Nation by Adam Smith
• Industrial revolution
• Chinese traditional government and confucianism
• Politics is also a kind of management.
• Modernization and rationalization

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Management theories
General administrative theory
Historical background Early examples Adam
Smith Industrial revelution
Scientific management
Quantitative approach
System approach
Organizational behavior Early advocates Hawthorne
studies
Contingency approach
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Scientific management

• Frederick W. Taylor (1856-1915), the father of
  scientific management.
• Taylors four principles
• Develop a science for each element of an
  individuals work, replacing the old
  rule-of-thumb method.
• Scientifically select and then train, and develop
  the workers.
• Heartily cooperation between manager and
  employee.
• Divide work and responsibility equally.
• Significance and critics.
• Can you find some scientific management now?

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Taylorism and Fordism

• Mass production.
• Machine controls people.
• Modernization.

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Frank and Lillian Gilbreth

• Construction contractor and psychologist.
• Optimizing work performance.
• Microchronometer and motion research.
• Cheaper by the Dozen.
• Time is money, efficience is life. Compare their
  time and today.

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General administrative theory

• Henri Fayol (1841-1925).
• Five functions of manager
• Planning, organizing, commanding, coordinating,
  and controlling.
• 14 principles of management
• Division of work, authority, discipline, unity of
  command, unity of direction, subordination of
  individual interests to general interest,
  remuneration, centralization, scalar chain,
  order, equity, stability of tenure of personnel,
  initiative, esprit de corps.

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Max Weber (1864-1920)

• Sociologist and religious.
• Burearcracy, todays formal organization
• Division of labor
• Authority hierarchy
• Formal selection
• Format rules and regulations
• Impersonality
• Career orientation
• Other type of organization
• Chrisma
• traditional
• Organization in the future.

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Quantitative approach

• Operations research or management science.
• Statistics, optimization models, information
  models, computer simulations, linear programming,
  etc.
• Example.
• Queuing, ticket saling, classroom allocation.
• Centralized transportation.
• Restriction local, micro issue.

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Organizational behavior

• Early advocates
• Robert Owen, late 1700s
• Hugo Munsterberg, early 1900s
• Mary Parker Follett, Early 1900s
• Chester Barnard, 1930

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Hawthorne Studies

• Elton Mayo
• Experiment on the effect of light intensity on
  output.
• Redesign fo jobs
• Changes in workday and workweed length
• Introduction of rest period
• Individual vs. group wage plans
• Conclusion
• Peoples behavior and attitudes are closely
  related
• Group factors significantly affect individual
  behavior
• Group standards establish individual worker
  output
• Money is less a factor in determining output than
  are group standards, group attitudes, and
  security.
• Lead to new emphasis on the human behavior
  factorin the management of organizations.

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Behavior approach in today

• Design jobs
• Teams
• Open communication
• Motivation
• Leadership
• Group behavior and development

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Systems approach

• System
• A set of interrelated and interdependent parts
  arranged in a manner that produces a unified
  whole.
• close system
• System that are not influenced by and do not
  interact with their enviroment.
• open system
• Systems that interact with their environment.

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environment
system
Inputs Raw materials Human resources Capital Techn
ology Information
Transformation process Employees work
activities Management activities Technology and
operation methods
Output Products and services Financial
results Information Human results
feedback
environment
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Contingency approach

• Management approach that says that organizations
  are different, face different situations
  (contigencies), and require different ways of
  managing.

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Current trends and issues

• Globalization
• Working with people from different cultures
• Coping with anticapitalist backlash
• Movement of jobs to countries with low-cost labor
• Civilization clash
• Global citizenship and governance

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ethics

• Profit and socia responsibility
• Stakeholder vs. shareholder
• Corporation citizenship

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• Workforce diversity
• A workforce that is heterogeneous in terms of
  gender, race, ethnicity, age, and other
  characteristics that reflect differences.
• Entrepreneurship
• E-business
• Knowledge management

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Learning organization
Are there any learning organizations? Can you
give some examples?
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Total quality management (TQM)

• Interse focus on customer.
• Concern for continual improvement.
• Improvement in the quality of everything the
  organization does.
• Accurate measurement.
• Empowerment of employees.
• To be perfect.
• Examples, KFC, TOYOTA, APPLE.