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Chapter 2 Management History - Yesterday and Today
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LEARNING OUTLINE
Follow this Learning Outline as you read and study this chapter.
Historical Background of Management Different Approached to Management
Scientific Management
General Administrative Theory Quantitative Approach Organizational Behavior The Systems Approach
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Quantitative Behavioral
Early Advocates Hawthorne Organizational
Contemporary
Systems Approach Contingency Approach
Using scientific methods to define the one best way for a job to be done: Putting the right person on the job with the correct tools and equipment. Having a standardized method of doing the job. Providing an economic incentive to the worker. Critical as this was considered the main employee motivator
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1. Develop a science for each element of an individuals work, which will replace the old rule-of-thumb method. 2. Scientifically select and then train, teach, and develop the worker. 3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. 4. Divide work and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers.
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In-depth analysis of basic tasks that must be performed Conduction of time and motion studies elimination of waste and increase of productivity Recruit best qualified persons for the job Provide relevant resources Incentive systems based on output Emphasis was on the task completion - little thought given to the employees as people or the customers Leadership was expected at the top but suppressed everywhere else Constant monitoring of workers and the tasks fostered highly repetitive and boring tasks. Suppressed worker imagination and creativity
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Max Weber
Developed a theory of authority based on an ideal type of organization (bureaucracy)
7. 8. 9.
10. Order.
5. Unity of direction.
6. Subordination of individual interests to the general interest.
11. Equity.
12. Stability of tenure of personnel.
13. Initiative.
14. Esprit de corps.
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Fayols basic functional approach to the management process His 14 principles provides the term of reference for many current management concepts Accepted that the flow of authority and paperwork can be scientifically regulated Webers concept of an organizational structure though rigid with a focus on division of labour is still followed today to a large extent
Rigid and unresponsive decision making Subordination of individual interests Lack of commitment among workers without autonomy
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Main contributors were, Robert Owen (1771-1858), Mary Parker Follett (1868-1933), Elton Mayo (18801949), Hugo Munsterberg (1863-1916) and Chester Barnard (1886-1961) . Their ideas provided the foundation for OB in areas such as motivation, employee selection, training and leadership etc.
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Its complexity
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Encourages managers to be methodical in the extreme in decision making due to recognition that any decision will affect others in the system or indeed the whole organization
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Organization size
As size increases, so do the problems of coordination.
Environmental uncertainty
What works best in a stable and predictable environment may be totally inappropriate in a rapidly changing and unpredictable environment.
Individual differences
Individuals differ in terms of their desire for growth, autonomy, tolerance of ambiguity, and expectations.
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Working with people from different cultures Coping with anti-capitalist backlash Movement of jobs to countries with low-cost labor
Ethics
Increased emphasis on ethics education in college curriculums Increased creation and use of codes of ethics by businesses
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Step 1: What is the ethical dilemma? Step 2: Who are the affected stakeholders? Step 3: What personal, organizational, and external factors are important to my decision? Step 4: What are possible alternatives? Step 5: Make a decision and act on it.
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Aging workforce
The increased costs of public and private benefits for older workers
An increasing demand for products and services related to aging.
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Entrepreneurship process
Pursuit of opportunities
Categories of E-Businesses
E-business enhanced organization E-business enabled organization
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Knowledge Management
The cultivation of a learning culture where organizational members systematically gather and share knowledge with others in order to achieve better performance.
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A philosophy of management driven by continual improvement in the quality of work processes and responding to customer needs and expectations Inspired by the total quality management (TQM) ideas of Deming and Juran Quality is not directly related to cost Poor quality results in lower productivity
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Intense focus on the customer. Concern for continual improvement Process-focused. Improvement in the quality of everything.
Accurate measurement.
Empowerment of employees.
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Terms to Know
division of labor (or job specialization) Industrial Revolution scientific management therbligs general administrative theory principles of management bureaucracy quantitative approach organizational behavior (OB) Hawthorne Studies system closed systems open systems contingency approach workforce diversity entrepreneurship e-business (electronic business) e-commerce (electronic commerce) intranet learning organization knowledge management quality management
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