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GMS 200 - Past and Present - History of Management

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Global Management Studies
GMS 200
Sui Sui

Week 8 – GMS 200 – Past/Present of Management Study Questions 1. What can be learned from classical management thinking? 2. What ideas were introduced by the human resource approaches? 3. What is the role of quantitative analysis in management? 4. What is unique about the systems view and contingency thinking? 5. What are the continuing management themes of the 21st century? SQ1: What can be learned from classical management thinking? Classical approaches to management include: o Scientific Management o Administrative principles o Bureaucratic organization Figure 2.1 – Major branches in the classical approach to management Scientific management (Frederick Taylor) o Father of scientific management, which emphasizes careful selection and training of workers and supervisory support. o Develop rules of motion, standardized work implements, and proper working conditions for every job. o Carefully select workers with the right abilities for the job. o Carefully train workers and provide proper incentives. o Support workers by carefully planning their work and removing obstacles. Scientific management (the Gilbreths [Frank and Lillian]) o Motion study Science of reducing a job or task to its basic physical motions. A management tool (United Parcel Service) o Eliminating wasted motions improves performance. Administrative principles (Henri Fayol) — rules of management: o Foresight — to complete a plan of action for the future. o Organization — to provide and mobilize resources to implement the plan. o Command — to lead, select, and evaluate workers to get the best work toward the plan. o Coordination — to fit diverse efforts together and ensure information is shared and problems solved. o Control — to make sure things happen according to plan and to take necessary corrective action. Administrative principles (Henri Fayol) — key principles of management: o Scalar chain — there should be a clear and unbroken line of communication from the top to the bottom of the organization. o Unity of command — each person should receive orders from only one boss. o Unity of direction — one person should be in charge of all activities with the same performance objective. Administrative principles (Mary Parker Follett) o Groups and human cooperation: Groups are mechanisms through which individuals can combine their talents for a greater good. Organizations are cooperating “communities” of managers and workers. Manager’s job is to help people in the organization cooperate and achieve an integration of interests. o Forward-looking management insights: Making every employee an owner creates a sense of collective responsibility (precursor of employee ownership, profit sharing, and gain-sharing) Business problems involve a variety of inter-related factors (precursor of systems thinking) Private profits relative to public good (precursor of managerial ethics and social responsibility) Bureaucratic organization (Max Weber) o Bureaucracy An ideal, intentionally rational, and very efficient form of organization. Based on principles of logic, order, and legitimate authority. Characteristics of bureaucratic organizations: o Clear division of labor o Clear hierarchy of authority o Formal rules and procedures o Impersonality o Careers based on merit Possible disadvantages of bureaucracy: o Excessive paperwork or “red tape” o Slowness in handling problems o Rigidity in the face of shifting needs o Resistance to change o Employee apathy SQ2: What ideas were introduced by the human resource approaches? Human resource approaches include: o Hawthorne studies o Maslow’s theory of human needs o McGregor’s Theory X and Theory Y o Argyris’s theory of adult personality Figure 2.2 – Foundations in the behavioural or human resource approaches to management Hawthorne studies o A research program on individual productivity that was conducted at the Hawthorne Works of Western Electric Company (today’s Lucent Technologies) o Initial study examined how economic incentives and physical conditions affected worker output. o No consistent relationship found. o “Psychological factors” influenced results. o Relay assembly test-room studies Manipulated physical work conditions to assess impact on output. Designed to minimize the “psychological factors” of previous experiment. Factors that accounted for increased productivity: • Group atmosphere • Participative supervision o Employee attitudes, interpersonal relations, and group processes. Some things satisfied some workers but not others. People restricted output to adhere to group norms. o Lessons from the Hawthorne Studies: Workers perform well when they share pleasant social relations with one another and when supervision is
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