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Chapter 2 - Historical Foundations of Management PDF
Chapter 2 - Historical Foundations of Management PDF
Foundations
of
Management
Chapter Two
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Evolution Of Management Thought
Bureaucracy
Early Management Concepts And
Influences
Industrial revolution
minor improvements in management tactics produced
impressive increases in production quantity and quality
economies of scale - reductions in the average cost of a unit
of production as the total volume produced increases
opportunities for mass production created by the industrial
revolution spawned intense and systematic thought about
management problems and issues
efficiency
production processes
cost savings
Classical Perspective
Three Sub-Fields
Scientific
Bureaucratic Organizations
Administrative Principles
Scientific Management
• Personalities
– Frederick W. Taylor
General Approach
• Developed standard method for performing each job.
• Selected workers with appropriate abilities for each job.
• Trained workers in standard method.
• Supported workers by planning work and eliminating
interruptions.
• Provided wage incentives to workers for increased
output.
Scientific Management (cont.)
Contributions
Improved factory productivity and efficiency
Introduced scientific analysis to the workplace
Piecerate system equated worker rewards and
performance
Limitations
Personalities
Max Weber
Labor is divided with clear definitions of authority and
responsibility.
Positions are in hierarchy of authority.
Contributions
Promotes efficient performance of routine operations
Eliminates subjective judgment by employees and management
Emphasizes position rather than the person
Limitations
11
Mary Parker Follet
emphasized worker participation and
shared goals among managers.
Concepts:
Empowerment
Facilitating rather than controlling
employees
Allowing employees to act according to
the situation
Chester I. Bernard
Concepts:-
Informal Organisation
Organisation not machines and
informal relationships are powerful
forces that can help the organisation if
properly managed.
Acceptance theory of authority
Employees can choose/ free will.
Administrative Management (cont.)
Contributions
Key concepts
Productivity and employee behavior are influenced by the informal
work group
Cohesion, status, and group norms determine output
Social needs have precedence over economic needs
Contributions
Psychological and social processes influence performance
Maslow’s hierarchy of need
Limitations
Ignored workers’ rational side and the formal organization’s
contributions to productivity
Research overturned the simplistic belief that happy workers are more
productive
Organizational Behavior
Theory X Theory Y
People are lazy People are energetic
People lack ambition People want to make
Dislike responsibility contributions
People are self-centered People do have ambition
People don’t like change People will seek responsibility
Three Contemporary Trends
Systems Theory
Contingency View
Systems View
Systems Theory
Key concepts
Organization is viewed as a managed system
Management must interact with the environment
Organizational goals must address effectiveness and efficiency
Organizations contain a series of subsystems
Synergies enable the whole to be more than the sum of the parts
Contributions
Recognized the importance of the relationship between the
organization and the environment
Limitations
Does not provide specific guidance on the functions of managers
Contingency Perspective
Key concepts
Situational contingencies influence the strategies, structures, and
processes that result in high performance
There is more than one way to reach a goal
Managers may adapt their organizations to the situation
Contributions
Identified major contingencies
Argued against universal principles of management
Limitations
Not all important contingencies have been identified
Theory may not be applicable to all managerial issues