CHAPTER Management Yesterday and Today lsctreautine Scientific Manager men Since the birth of modern management theory in Management? he earl小v1900s. management experts have developed theories to help organizations and thei and effici presenting the history of modem management s Ma Chapter wo QUE Do Todays Managers Use knowledge of management history can help us un tan current manage ent pracu practice of management has Studie historical times and so How Do Today 's Man nstanc on, mpetition, an today's business w vorld:nnovate or ose A N ation As Cha anager's Dile global footwear design for Nike,leads an ear.Design team members find insp ration for their new styles through activities that include to th zoo to obs rve the Japanese art of origami.What can other managers learn from Nike today's dynamic b 15
15 CHAPTER TWO Management Yesterday and Today 2 Lecture Outline Historical Background Scientific Management Important Contributions Frederick W. Taylor Frank and Lillian Gilbreth How Do Today’s Managers Use Scientific Management? General Administrative Theory Important Contributions Henri Fayol Max Weber How Do Today’s Managers Use General Administrative Theories? Quantitative Approach Important Contributions How Do Today’s Managers Use Quantitative Approach? Toward Understanding Organizational Behavior Early Advocates The Hawthorne Studies How Do Today’s Managers Use the Behavioral Approach? The Systems Approach The Contingency Approach Current Trends and Issues Globalization Ethics Workforce Diversity Entrepreneurship Managing in an E-Business World Knowledge Management and Learning Organizations Quality Management Since the birth of modern management theory in the early 1900s, management experts have developed theories to help organizations and their managers coordinate and oversee work activities as effectively and efficiently as possible. In presenting the history of modern management, Chapter Two explores the evolution of management thought and practice during the twentieth century. Students discover how knowledge of management history can help us better understand current management practices while avoiding some mistakes of the past. The practice of management has always reflected historical times and societal conditions. For instance, innovation, global competition, and general competitive pressures reflect a reality of today’s business world: “Innovate or lose.” As Chapter Two opens, “A Manager’s Dilemma” relates how John R. Hoke III, vice president of global footwear design for Nike, leads an international design team in creating hundreds of innovative, sustainable footwear designs every year. Design team members find inspiration for their new styles through activities that include taking trips to the zoo to observe the structure of animals’ feet and devoting time to studying the Japanese art of origami. What can other managers learn from Nike about managing innovation in today’s dynamic business environment?
variety of Po otoatsites both original otpdnkaca ANNOTATED OUTLINE practiced for thousands of years. 2.1 Why do Ineed to know management history? Organization nd ma ha ed for th tremendous scope and magnitude,requiring the efforts of tens of thousa eo peopl out history.someone has always had to plan shed,organize people and materials,lead s to ensure that goals were actices can also be seen by studying business in the fifteenth century that are common to today's C f the c doctrin that he divisionofabor (the breakdown of jobs into narrow,repetitive tasks) ety D on Is po nt T combined with the division of labor made large,efficient factories possible. Planning,organizing.leading,and controlling became Exhibit nd PowerPoint slide 2-7 illustrate the development of management theories. >NOTES Materials I Plan to Use: 2. SCIENTIFIC MANAGEMENT 16
16 A variety of PowerPoint slides, including both original text art and newly created images, are available for your use in enhancing the presentation of Chapter Two materials to your students. ANNOTATED OUTLINE 1. HISTORICAL BACKGROUND OF MANAGEMENT Many fascinating examples from history illustrate how management has been practiced for thousands of years. Q & A 2.1 Why do I need to know management history? A. Organizations and managers have existed for thousands of years. The Egyptian pyramids and the Great Wall of China were projects of tremendous scope and magnitude, requiring the efforts of tens of thousands of people. How was it possible for these projects to be completed successfully? The answer is management. Regardless of the titles given to managers throughout history, someone has always had to plan what needs to be accomplished, organize people and materials, lead and direct workers, and impose controls to ensure that goals were attained as planned. B. Examples of early management practices can also be seen by studying the Arsenal of Venice. Assembly lines, accounting systems, and personnel functions are only a few of the processes and activities used in business in the fifteenth century that are common to today’s organizations as well. C. Adam Smith, author of the classical economics doctrine The Wealth of Nations, argued brilliantly for the economic advantages that he believed division of labor (the breakdown of jobs into narrow, repetitive tasks) would bring to organizations and society. D. The Industrial Revolution is possibly the most important pre-twentiethcentury influence on management. The introduction of machine powers combined with the division of labor made large, efficient factories possible. Planning, organizing, leading, and controlling became necessary activities. E. Exhibit 2-1 and PowerPoint slide 2-7 illustrate the development of management theories. ¾ NOTES Materials I Plan to Use: 2. SCIENTIFIC MANAGEMENT
Important Contributions 1. Frederick W.Taylor is known as the"father of scientific a Taylor sought to create a mental revolution among both workers and managers by defining c ent(Exhibit 2-2) His"pig iron"experiment is probably the most widely c ample of his scientific m Tavlo was able to define the"one best way"for doing each iob d Frederick W.Taylor achieved consistent improvements workers to perform as they were instructed. NOTES Materials I Plan to Use: A2.2 It sure seems like Frederick W.Taylor viewed people negatively.Is that true? Frank Lillian Gilbreth swork and of scient山f a Frank Gilbreth is probably best known for his experiments in reducing the number of motions in 6 The Gilbreths were among the first to use motion picture films to study hand and body motions in order to eliminate wastefu c backward.with the th transposed). >NOTES Materials I Plan to Use B How Do Today's Mar ent? rove production efficiency are still used in today's organizations.However,current 17
17 Scientific management is defined as the use of the scientific method to determine the “one best way” for a job to be done. A. Important Contributions 1. Frederick W. Taylor is known as the “father” of scientific management. Taylor’s work at the Midvale and Bethlehem Steel companies stimulated his interest in improving efficiency. a. Taylor sought to create a mental revolution among both workers and managers by defining clear guidelines for improving production efficiency. He defined four principles of management (Exhibit 2-2). b. His “pig iron” experiment is probably the most widely cited example of his scientific management efforts. c. Using his principles of scientific management, Taylor was able to define the “one best way” for doing each job. d. Frederick W. Taylor achieved consistent improvements in productivity in the range of 200 percent. He affirmed the role of managers to plan and control and the role of workers to perform as they were instructed. ¾ NOTES Materials I Plan to Use: Q & A 2.2 It sure seems like Frederick W. Taylor viewed people negatively. Is that true? 2. Frank and Lillian Gilbreth were inspired by Taylor’s work and proceeded to study and develop their own methods of scientific management. a. Frank Gilbreth is probably best known for his experiments in reducing the number of motions in bricklaying. b. The Gilbreths were among the first to use motion picture films to study hand and body motions in order to eliminate wasteful motions. c. They also devised a classification scheme to label 17 basic hand motions called therbligs (Gilbreth spelled backward, with the th transposed). ¾ NOTES Materials I Plan to Use: B. How Do Today’s Managers Use Scientific Management? Guidelines devised by Taylor and others to improve production efficiency are still used in today’s organizations. However, current
Ising time and motion studies 43 Hiring best qualified workers Designing incentive systems based on output NOTES Materials I Plan to Use: 2.3 Why was scientific management even a management theory when it concentrated on laborers'jobs? 3 GENERAL ADMINISTRATIVE THEORISTS This group of writers,who focused on the entire organization,developed more general theories of what managers do and what constitutes good management Henri favol and max weber were the two most prominent proponents of the general administrative approach. Henri Fayol,who was a contemporary of Fred derick W.Taylor, rencn o all m ng the practice of management as distinct c e ypical bus ght in schools:sec Exhibit 2-3 and PowerPoint slide 2-13) NOTES Materials I Plan to Use: Q&A s W modern management rather than Taylor? 2 Max Wehe ced VAY.ber who wrote in the ar was a German sociologis ieth centun 6 He described the ideal form ofc a clearl 18
18 management practice is not restricted to scientific management practices alone. Elements of scientific management still used include: 1. Using time and motion studies 2. Hiring best qualified workers 3. Designing incentive systems based on output ¾ NOTES Materials I Plan to Use: Q & A 2.3 Why was scientific management even a management theory when it concentrated on laborers’ jobs? 3. GENERAL ADMINISTRATIVE THEORISTS This group of writers, who focused on the entire organization, developed more general theories of what managers do and what constitutes good management practice. A. Henri Fayol and Max Weber were the two most prominent proponents of the general administrative approach. 1. Henri Fayol, who was a contemporary of Frederick W. Taylor, was the managing director of a large French coal-mining firm. a. Fayol focused on activities common to all managers. b. He described the practice of management as distinct from other typical business functions. c. He stated 14 principles of management (fundamental or universal truths of management that can be taught in schools; see Exhibit 2-3 and PowerPoint slide 2-13). ¾ NOTES Materials I Plan to Use: Q & A 2.4 It would seem that Fayol’s view of management is more in tune with current views of management than was Taylor’s. Why, then, isn’t Fayol known as the “father” of modern management rather than Taylor? 2. Max Weber (pronounced VAY-ber) was a German sociologist who wrote in the early twentieth century. a. Weber developed a theory of authority structures and described organizational activity based on authority relations. b. He described the ideal form of organization as a bureaucracy marked by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships (see Exhibit 2-4)
NOTES Materials I Plan to Use: How Do Today's Managers Use General Administrative Theories? Wome current management conceptsan te r's job relates to Henri Fayol's cent of management 2. bureaucratic characteristics are evident in many of bureaucratic mechanisms are necessary in highly innovative ceetrvto ensure hat resoure cntly NOTES Materials I Plan to Use: making.Thspproach includes applications of statisties,optimization nform and computer simulation The quantitative ap roach originated during World War II as maic and atistical solutions to military problems were As often dnim Worl Wrcoure p vartime methods that were dev private industry follo ve decision making at Ford Motor Con pany in the mid- 1940 NOTES Materials I Plan to Use B How Do Today's Mar rs Use the ouanti manag rial decision making.particularly in planning and controlling
19 ¾ NOTES Materials I Plan to Use: B. How Do Today’s Managers Use General Administrative Theories? Some current management concepts and theories can be traced to the work of the general administrative theorists. 1. The functional view of a manager’s job relates to Henri Fayol’s concept of management. 2. Weber’s bureaucratic characteristics are evident in many of today’s large organizations—even in highly flexible organizations that employ talented professionals. Some bureaucratic mechanisms are necessary in highly innovative organizations to ensure that resources are used efficiently and effectively. ¾ NOTES Materials I Plan to Use: 4. QUANTITATIVE APPROACH TO MANAGEMENT The quantitative approach to management, sometimes known as operations research or management science, uses quantitative techniques to improve decision making. This approach includes applications of statistics, optimization models, information models, and computer simulations. A. Important Contributions. 1. The quantitative approach originated during World War II as mathematical and statistical solutions to military problems were developed for wartime use. 2. As often happens after wartime, methods that were developed during World War II to conduct military affairs were applied to private industry following the war. For instance, a group of military officers—the Whiz Kids—used quantitative methods to improve decision making at Ford Motor Company in the mid- 1940s. ¾ NOTES Materials I Plan to Use: B. How Do Today’s Managers Use the Quantitative Approach? 1. The quantitative approach has contributed most directly to managerial decision making, particularly in planning and controlling