Evolution of management theories.

EVOLUTION OF MANAGEMENT THEORIES

PRECLASSICAL CONTRIBUTORS

Laid the groundwork for subsequent, broader inquires into the nature of management.

· Robert Owen: He laid the groundwork for the human relation movement. He was the one who realized the importance of human resources and emphasized on improving the living conditions of the employees.

· Charles Babbage: known as the “ father of modern computing”. He introduced the concept of work specialization i.e. the degree to which work is divided into various jobs.

· Henry R. Towne: realized that management techniques could be applied factories. He outlined the importance of management as a science and called for the development of management principles that cannot be used in all types of management situations.

CLASSICAL VIEWPOINT

A management approach that emphasizes the total organization and ways to improve overall effectiveness and efficiency. Have three approaches:

Scientific Management: A management perspective that focuses on the rational scientific study of work situations to improve efficiency.

· Fredrick Winslow Taylor: he came up with time and motion study. The study involves breaking down the work tasks into various elements or motions, eliminating unnecessary motions, and determining the next way to do a job.

· Frank & Lillian Gilbreth: He also proposed motion studies to remove the unnecessary work motions in a work.

· Henry L. Gantt: He came up Gantt chart, a graphic aid to planning, scheduling and control, that is still used today.

Bureaucratic management: A management approach that emphasizes a structured organization in which positions and authority are defined according to formal rules. Max Weber was the prominent follower of this approach.

Administrative management: A management approach that stresses the function of the organization and management by planning, organizing, leading and controlling.

· Henri fayol: Gave functional approach to management, focussed on the functions of management

· Chester Barnard: Came up with “ acceptance theory of authority”. This theory states that the authority not only depends on one who orders but also on the willingness of who receives the order.

BEHAVIORAL VIEWPOINT

A management perspective that focuses on the nature and impact of individual and group behaviors on the organizations.

Early Behaviorists: Hugo Minsterberg and Mary Parker follet contributed ideas that made the behavioral perspective a major viewpoint. Hugo is called “the father of industrial psychology”. He did the study of human behavior in work settings.

Hawthorne Studies: Emphasized on concern for workers

Human relation movement: A management perspective that views employees as responding to the interpersonal processes within the organization. The two theorists that made contribution in this field are:

· Abraham ...

This is a preview of the whole essay

BEHAVIORAL VIEWPOINT

A management perspective that focuses on the nature and impact of individual and group behaviors on the organizations.

Early Behaviorists: Hugo Minsterberg and Mary Parker follet contributed ideas that made the behavioral perspective a major viewpoint. Hugo is called “the father of industrial psychology”. He did the study of human behavior in work settings.

Hawthorne Studies: Emphasized on concern for workers

· Abraham Maslow: He developed a need theory of motivation that was based on basic assumptions about human nature and needs.

· Douglas McGregor: He developed the concept of theory X and Theory Y, based on the assumptions manager make about their workers. Managers who hold theory X assumptions control and motivate the employees strictly through economic incentives. Managers with theory Y have the potential for integrating individual goals with organizational goals.

Behavioral Science Approach: A school of management thought that stresses scientific research about human behavior to guide management perspective.

QUANTITATIVE MANAGEMENT VIEWPOINT

A management perspective that applies mathematical techniques, statistical tools and information aid to management situations. The three main branches of quantitative management viewpoint are:

Management Science: A quantitative management perspective that applies mathematical model to management situations.

Operations management: A management approach that uses quantitative techniques to improve the productivity and efficiency of goals and services.

Management information system: a management tool that focuses on the collection, processing & transmission of information to support management functions.

CONTEMPORARY VIEWPOINT

This viewpoint is based on two perspectives, which are:

Systems theory: a management approach that sees organization as system functioning in relation to their environment.

· System: is defined as a group of interrelated parts that functions as a whole to achieve organizational goals.

· Inputs: The human, physical, financial and information resources used to produce goods and services.

· Transformation Process: The management, technological and production operations performed by the organization to convert inputs to output.

· Output: The results, goods and services produced by an organization.

· Feedback: is the information about the status and result of organizational activities.

2 types of system:

Closed system: A system that is self sufficient with little or no interaction with the environment.

Open System: A system that interacts with its environment and receives feedback.

Three characteristics of open system:

· Entropy: the tendency of systems to deteriorate over time

· -ve entropy: The ability to acquire new inputs from the environment to keep the system from deteriorating.

· Synergy: The idea that whole is greater than sum of its part.

Contingency Theory: A management approach emphasizing that appropriate management behavior should be adapted to the unique circumstances of the organization and the specific situation.

chapter3

EXTERNAL ENVIRONMENT

Forces that exist outside the organization that influence the ability to achieve organizational goal.

INTERNAL ENVIRONMENT

Forces inside the organization that can influence the organization and its performance, it includes owners and shareholders, board of directors, employees and organizational culture.

TYPES OF EXTERNAL ENVIRONMENT:

· Mega / general Environment

· Task environment

Mega Environment: these forces don’t always have a direct influence on the organizations daily activities but,

1. It can evolve into significant trends with far reaching results

2. Conditions created by forces in the general environment can produce an overall climate that organization must consider.

Task Environment: The part of the external environment that includes forces with a direct effect on the organization.

GENERAL ENVIRONMENT

· Economic forces: availability of resources and the broad economic trends that affect the organization like inflation interest rate, unemployment rate and per capita income.

· Politicolegal elements: government policies, legal policies laws and institutions that influence people and organizations.

· Sociocultural elements: the values, attitudes, needs and demographic characteristic of the societies in which the organization operates.

· Technological Forces: The knowledge, techniques and activities that lead to profound changes in products or processes.

· International elements: forces originating outside the organization’s home country that can potentially affect the organization.

TASK ENVIRONMENT

· Customers: are the key force in the task environment because their purchase or use of the goods or services determines success/ failure.

· Competitors: are rival organizations that provide good and services to the same set of customers or that compete for the same set of resources.

· Suppliers: people and organization that furnish the resources that other organizations use to produce goods or services.

· Labor supply: the people who may potentially be employed by an organization.

· Government agencies: influence or enforce guidelines at local, state, regional and national levels that affect the organization.

CHARACTERISTICS OF THE ENVIRONMENT

Environmental Uncertainty: is the degree to which change and complexity influence an organization and its performance. This is a function of two major functions:

· Complexity: number of elements within the organization and their degree of similarity.

· Dynamism: the extent to which these elements and their impacts are understood.

Environmental Munificence: the level of resources available in the organization to support prolonged growth and stability.

MANAGING ENVIRONMENT ELEMENTS

Adaptation: is the rearranging of internal activities and conditions to make the organization more compatible with the environment. In this approach, managers do not attempt to influence outside force but concentrate instead on internal elements that can reduce vulnerability to the environment.

The four methods of adaptation are:

· Buffering: is either building a reserve or releasing resources or finished goods.

· Smoothing: making internal adjustments in anticipation of expected environmental fluctuations.

· Forecasting: the process of making predictions about changing conditions and future events that may significantly affect the business of the organization.

· Rationing: Deliberately limiting production of goods and services during times of peak demands.

FAVORABILITY INFLUENCE: helps to reduce environmental dependency, establishes a favorable relationship with the external elements and serves to modify, shape and control external events.

· Advertising and public relations: are used to influence the environment such as

- when they want to bring in more customers

- find new employees

- Sway the voting public for or against an issue

· Boundary Spanning: organization roles that link and co ordinate the organization’s plans and activities with the environment.

· Recruiting: Process of hiring the right person for the right job.

· Co-opting Absorption of key members of the environment into influential policy making positions in the organization.

· Joint Venture: Teaming with one / more partners to jointly produce goods and services.

· Trade associations: organizations in the same industry or that are interested in common issues.

· Political activity: in which organizations attempt to enhance their competitive situations by influencing legislation and / or the behavior of government regulatory issues.

ORGANIZATIONAL CULTURE: is a system of shared values, assumptions, beliefs and norms that unite the members of the organization.

· Symbols: object, act or events that communicates meaning to others.

E.g. logos, flags, awards, posters

· Stories: repeated narratives based on the events.

· Rites and ceremonials: are planned activities that mark a specific event or occasion. They reinforce organizational values, reward employees who have achieved goals that will form a bond among staff and members.

· Slogans: express the organization key values.