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Chapter 2

Chapter 2 - Management History.docx

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Department
Global Management Studies
Course Code
GMS 200
Professor
Shavin Malhotra

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Chapter 2: Management Learning – Past and Present Overview:  Scientific management era  Social man / Behavioural era  Modern era – Contingency theory Industrial Revolution:  Substitution of machine power for human power  Steam engine  The “Factory system”  Charles Babbage (1792 – 1871)  Designed first ever computer  Storage device, arithmetic unit, and a punch card input system Scientific Management: emphasizes careful selection and training of workers and supervisory support  F.W. Taylor (1856 – 1915)  “One best way”  HE studied the way people work and noticed that they are not productive and efficient  Midvale steel company  Workers purposely operate below their capabilities  They don’t know how to use their skill effectively and efficiently  Hence, one should train them and also by observing/measuring time and motion Scientific Management includes four guiding action principles: 1. Develop for every job a “science” that includes rules of motion, standardized work implements, and proper working conditions 2. Carefully select workers with the right abilities for this job 3. Carefully train workers to do the job and give them the proper incentives to cooperate with the job “science” 4. Support workers by carefully planning their work and by smoothing the way as they go about their jobs Soldiering:  The almost universally held belief among workers that if they became more productive, fewer of them would be needed and jobs would be eliminated;  Non-incentive wage systems encourage low productivity  Workers waste much of their effort by relying on “rule-of-thumb methods” (making it better) rather than on optimal work methods that can be determined by scientific study of the task (  You train the people to work on these tasks under optimal methods through scientific studies  Workers will become more productive and efficient Scientific Management:  Worker’s productivity  ‘First-class’ worker  ‘Piece-rate’ system  People cannot drive themselves; managers have to direct them  Find the best way to do things  Tell the workers the entire process Taylor’s 4 Principles: 1. Replace rule of thumb work methods with methods based on a scientific study of the tasks 2. Scientifically, select and then train, teach, and develop the workman, whereas in the past the employee (or workmen) chose his own work and trained himself as best he could 3. Provide “detailed instruction and supervision of each worker in the performance of that worker’s discrete task” 4. Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks Drawbacks of Taylorism and Fordism:  Slow to change  Changes in capacities and processes expensive  Limited job enrichment  Money alone motivates workers Behavioural Management:  Human resource approaches include:  Hawthorne studies  Maslow’s theory of human needs  McGregor’s Theory X and Theory Y Hawthorne Studies: the tendency of persons singled out for special attention to perform as expected  As part of the Scientific Management regime, companies routinely studied the effects of the physical environment of their workers  The Hawthorne studies were carried out by the Western Electric company (with 40,000 workers) at their Hawthorne plant in the 1920s. Initially, the study focused on lighting  No relationship was seen  Contributed to the emergence of the human relations movement, which influenced management thinking during the 1950s and 1960s  This movement set the stage for what evolved into the field of organizational behaviour (the study of individuals and groups in organizations) Work Conditions and Productivity Results:  Workers were given two 5-minute breaks, one in the morning and one in the afternoon, for a period of five weeks  Output increased  The breaks were each lengthened to ten minutes  Output rose sharply  The workday was shortened to end at 4:30pm instead of 5:00pm  Output increased  The workday was shortened at 4:00pm  Output levelled off  Finally, all improvements were taken away; the original conditions before the experiment were reinstated. They were monitored in this state for 12 more weeks.  Output was the highest ever recorded – averaging 3,000 relays a week Motion Study: the science of reducing a task to its basic physical motions Administrative Principles: Henri Fayol identified 14 principles of management that he felt should be taught to all aspiring managers like yourselves 1. Division of Labour – Specialization of work will result in continuous improvements in skills and methods 2. Authority – Managers and workers need to understand that managers have the right to give orders 3. Discipline – Behaviour needs to be grounded in obedience and derived from respect. There will be no slacking or bending of rules 4. Unity of Command – Each employee should have one, and only one, manager 5. Unity of Direction – The leader generates a single plan, and all play their part in executing that plan 6. Subordination of Individual Interests – While at work, only work issues should be undertaken or considered 7. Remuneration – All should receive fair payment for their work; employees are valuable and not simply an expense 8. Centralization – While recognizing the difficulties in large organizations, decisions are primarily made from the top 9. Scalar Chain (line of authority) – Organizations must have clear, formal chains of command running from the top to the bottom of the organization 10. Order – There is a place for everything, and all things should be in their place 11. Equity – Managers should be kind and fair 12. Personal Tenure – Unnecessary turnover is to be avoided, and there should be lifetime employment for good workers 13. Initiative – Undertake work with zeal and energy 14. Esprit De Corps – Work to build harmony and cohesion among personnel Fayol identified the following 5 “rules” or “duties” of Management: 1. Foresight – to complete a plan of action for the future 2. Organization – to provide and mobilize resources to implement the plan 3. Command – to lead, select, and evaluate workers to get the best work toward the plan 4. Coordination – to fit diverse efforts together and to ensure information is shared and problems solved 5. Control – to make sure things happen according to plan and to take necessary corrective action What is Bureaucracy? - A rational and efficient form of organization founded on logic, order, and legitimate authority - Ideal, intentionally rational, and very efficient form of organization Defining Characteristics of Weber’s Bureaucratic Organization:  Clear division of labour: jobs are well defined, and workers become highly skilled at performing them  Clear hierarchy of authority: authority and responsibility are well defined for each position, and each position reports to a higher-level one  Formal rules and procedures: written guidelines direct behaviour and decisions in jobs, and written fil
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