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ninth edition

STEPHEN P. ROBBINS

PowerPoint Presentation by Charlie CookThe University of West Alabama

MARY COULTER

Management

Yesterday and Today

Chapter

2

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Historical View of Management

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Pyramids

4500 years ago

2.3 Millions blocks, each 2.5 tons

Was this an organization?? People were there

There was a common objective

Was there management ??

There was management

Motivation

Resources were utilized

Skills were employed

Objective was achieved

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Management from History

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Great Wall of China

From 688 BC to 1644 AD

Total 6000 KM

500 KM in 300 years

Renovation 200 Years

Base 20 Feet Top 11 Feet

Height 7 37 Feet

Defense

Division of Area

To Protect Silk Road

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Modern Perspective of Management

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Millau Bridge - France

Lord Foster

Height 300 meters (984 feet)

Weight 36000 tons

Purpose

Cut travelling time to southern France

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Why Purpose???

Edward Deming

An American goes to Japan after 2nd World War

Introduced Quality in Management

14 philosophical points

Purpose

Process

Peter Drucker

Focused on Efficiency and Effectiveness

Introduced New Field of Knowledge Management

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Theories of Management

Importance of theory

Theories go hand on hand with practice

Dividing Theories of Management

Pre Classical Theories

Pyramids and China WallAdam Smith (1776)

Industrial Revolution

Classical Theories

Scientific Management

Bureaucratic Management

Administrative Management

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Theories of Management

Behavioral Theories

Hawthorne Experiment

Human Relation Views

Behavioral Science

Quantitative Theories

Operations Research Operations Management

MIS

Contemporary Theories

Systems Theory Contingency Theory

Emerging Theories

(TQM, KM)

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Ancient Pyramids and Wall of China

Adam Smith (1776)

Division of Labour

The breakdown of jobs into narrow and repetitive tasks

Textile sector

Auto Sector

8

Steps

8

People

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Industrial Revolution

(Early Management Ideas)

Robert Owen

(1771 1858)

Charles Babbage (1792 1871)

Henry R. Towne

(1844 1924)

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Early Management Ideas

Robert Owen

British Entrepreneur

Had his factory 400 employees

Advocated the importance of working and living

conditions i.e. Social responsibility

Charles Babbage

A Cambridge Professor

Father of computer

Built First Mechanical Calculator

Work specialization (Physical and mental), efficiency

of production, costing, incentives and profit sharing

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Early Management Ideas

Henry R. Towne

Called for Management Science and for

development of Management Principles

Basically an engineer

+

No one paid attention except Taylor

Engineering

Skills

MGMTSkills

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Major Approaches to Management


General Administrative Theory

Quantitative Management

Organizational Behavior

Systems Approach

Contingency Approach

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Fredrick Winslow Taylor

The father of scientific management

Published Principles of Scientific Management(1911)

The theory of scientific management

Using scientific methods to define the one best way for ajob 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.

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Exhibit 22 Taylors Four Principles of Management

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 theworker.

3. Heartily cooperate with the workers so as to ensure that allwork is done in accordance with the principles of the science

that has been developed.

4. Divide work and responsibility almost equally betweenmanagement and workers. Management takes over all work

for which it is better fitted than the workers.

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Scientific Management (contd)

Frank and Lillian Gilbreth

Focused on increasing worker productivity through

the reduction of wasted motion

Developed the microchronometer to time worker

motions and optimize work performance

How Do Todays Managers Use Scientific

Management?

Use time and motion studies to increase productivity

Hire the best qualified employees

Design incentive systems based on output

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General Administrative Theory

Henri Fayol

Believed that the practice of management was distinct

from other organizational functions

Developed fourteen principles of management that

applied to all organizational situations

Max Weber

Developed a theory of authority based on an ideal

type of organization (bureaucracy)

Emphasized rationality, predictability, impersonality, technicalcompetence, and authoritarianism

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Exhibit 23 Fayols 14 Principles of Management

1. Division of work.2. Authority.

3. Discipline.

4. Unity of command.5. Unity of direction.

6. Subordination ofindividual intereststo the generalinterest.

7. Remuneration.8. Centralization.

9. Scalar chain.

10. Order.11. Equity.

12. Stability of tenureof personnel.

13. Initiative.

14. Esprit de corps.

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Exhibit 24 Webers Ideal Bureaucracy

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Quantitative Approach to Management

Quantitative Approach

Also called operations researchormanagementscience

Evolved from mathematical and statistical methods

developed to solve WWII military logistics and quality

control problems

Focuses on improving managerial decision making by

applying:

Statistics, optimization models, information models, and

computer simulations

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Understanding Organizational Behavior

Organizational Behavior (OB)

The study of the actions of people at work; people are

the most important asset of an organization

Early OB Advocates

Robert OwenHugo Munsterberg

Mary Parker Follett

Chester Barnard

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Exhibit 25 Early Advocates of OB

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A series of productivity experiments conductedat Western Electric from 1927 to 1932.

Experimental findings

Productivity unexpectedly increased under imposedadverse working conditions.

The effect of incentive plans was less than

expected.

Research conclusionSocial norms, group standards and attitudes more

strongly influence individual output and work behavior

than do monetary incentives.

The Hawthorne Studies

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The Systems Approach

System Defined

A set of interrelated and interdependent parts

arranged in a manner that produces a unified whole.

Basic Types of Systems

Closed systemsAre not influenced by and do not interact with their

environment (all system input and output is internal).

Open systems

Dynamically interact to their environments by taking in inputsand transforming them into outputs that are distributed into

their environments.

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Exhibit 26 The Organization as an Open System

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Implications of the Systems Approach

Coordination of the organizations parts is

essential for proper functioning of the entireorganization.

Decisions and actions taken in one area of the

organization will have an effect in other areas ofthe organization.

Organizations are not self-contained and,

therefore, must adapt to changes in theirexternal environment.

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The Contingency Approach

Contingency Approach Defined

Also sometimes called the situational approach.

There is no one universally applicable set of

management principles (rules) by which to manage

organizations.

Organizations are individually different, face different

situations (contingency variables), and require

different ways of managing.

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Exhibit 27 Popular Contingency Variables

Organization size

As size increases, so do the problems of coordination.

Routineness of task technology

Routine technologies require organizational structures,leadership styles, and control systems that differ from

those required by customized or nonroutine technologies.

Environmental uncertainty

What works best in a stable and predictable environmentmay 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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Current Trends and Issues

Globalization

Ethics

Workforce Diversity

Entrepreneurship

E-business

Knowledge Management

Learning Organizations

Quality Management

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Current Trends and Issues (contd)

Globalization

Management in international organizations

Political and cultural challenges of operating in a

global market

Working with people from different cultures

Coping with anticapitalist 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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Exhibit 28 A Process for Addressing Ethical Dilemmas

Step 1: What is the ethical dilemma?

Step 2: Who are the affected stakeholders?

Step 3: What personal, organizational, andexternal factorsare important tomy decision?

Step 4: What are possible alternatives?

Step 5: Make a decisionand act on it.

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Workforce Diversity

Increasing heterogeneity in the workforce

More gender, minority, ethnic, and other forms of diversity in

employees

Aging workforce

Older employees who work longer and do not retire

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 Defined

The process of starting new businesses, generally in

response to opportunities.

Entrepreneurship process

Pursuit of opportunities

Innovation in products, services, or business methods

Desire for continual growth of the organization

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E-Business (Electronic Business)

The work preformed by an organization using

electronic linkages to its key constituencies

E-commerce: the sales and marketing aspect of an e-

business

Categories of E-Businesses

E-business enhanced organization

E-business enabled organization

Total e-business organization

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Exhibit 29 Categories of E-Business Involvement

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Learning Organization

An organization that has developed the capacity to

continuously learn, adapt, and change.

Knowledge Management

The cultivation of a learning culture whereorganizational members systematically gather and

share knowledge with others in order to achieve

better performance.

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Exhibit 210 Learning Organization versus Traditional Organization

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Quality Management

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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Exhibit 211 What is Quality Management?

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 (electronicbusiness)

e-commerce (electronic

commerce)

intranet

learning organization

knowledge management

quality management

Documents

Chapter 2 - 9th