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Evolution of Management Theory Part 1 Famous People Encyclopedia of Management

Evolution of Management Theory Part 1 Famous People Encyclopedia of Management http://www.12manage.com/. Scientific Management 1885- 1920. Frederick Winslow Taylor ( 1856 –1915). Four Principles of Scientific Management.

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Evolution of Management Theory Part 1 Famous People Encyclopedia of Management

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  1. Evolution of Management Theory Part 1 Famous People Encyclopedia of Management http://www.12manage.com/ Lecture 2 Evolution of Management Theory

  2. Scientific Management1885- 1920 Frederick Winslow Taylor (1856–1915) Lecture 2 Evolution of Management Theory

  3. Four Principles of Scientific Management • Replace the old methods with methods based on a scientific study of the tasks. 2. The scientific selection, training and development of workers. 3. Detailed instructions and supervision to each worker to ensure the job is done in a scientific way. 4. The division of work between workers and the management. Lecture 2 Evolution of Management Theory

  4. Strength of Scientific Management. Benefits • One of the first formal division between workers and managers. • Focus on individual task and worker level. • Contribution to efficient production methods • Compensation system. • Limitations. • Disadvantages • Mechanistic. Treating people as machines. • Not useful to deal with groups or teams. • Leaves no room for initiative. • No attention to soft factors. Lecture 2 Evolution of Management Theory

  5. Frank and Lillian Gilbreth 1878 - 1972 1868 - 1924 Lecture 2 Evolution of Management Theory

  6. Gilbreths’ Contributions to Management Theory Motion study (1911) “Analyzing an activity into its smallest possible elements, and from the results synthesizing a method of performing the activity that shall be more efficient.” --Frank Gilbreth Lecture 2 Evolution of Management Theory

  7. Administrative Management Theory 1920 -1950 Henry Fayol 1841 - 1925 Lecture 2 Evolution of Management Theory

  8. Fayol’s Principles of Management 1. Division of Labor. Specialization 2. Authority and Responsibility 3. Discipline 4. Unity of Command 5. Unity of Direction 6. Subordination of Individual Interest 7. Remuneration Lecture 2 Evolution of Management Theory

  9. Fayol’s Principles of Management 8. Centralization 9. Scalar chain (Line of Authority) 10. Order 11. Equity 12. Stability of Personnel 13. Initiative 14. Esprit de corps Lecture 2 Evolution of Management Theory

  10. Behavioral Management Theory 1930 - 1950 Elton Mayo Mary Parker Follett (1880 – 1949) (1868-1933) Lecture 2 Evolution of Management Theory

  11. Selected Mary Parker Follett Quotations1918-1924 • The study of human relations in business and the study • of the technology of operating are bound up together. • The aim of every form of organization, should be not • to share power, but to increase power, to seek the methods by which power can be increased in all. • We find the true man only through group organization. • The potentialities of the individual remain potentialities • until they are released by group life. Man discovers his • true nature, gains his true freedom only through the group. Lecture 2 Evolution of Management Theory

  12. Elton Mayo’s Hawthorn experiments(1924- 1927) • There is an unwritten understanding between the worker and employer. • A worker’s motivation can be increased by showing an interest in them. • Work is a group activity, team work can increase a worker’s motivation. • Workers are motivated by recognition, security and a sense of belonging. Lecture 2 Evolution of Management Theory

  13. ABRAHAM MASLOW 1908-1970 Hierarchy of Needs 1940-50th Lecture 2 Evolution of Management Theory

  14. Douglas McGregor Book The Human Side of Enterprise(1960) Theory X and Theory Y (1906- 1964) Lecture 2 Evolution of Management Theory

  15. Theory X and Theory Y Douglas McGregor proposed the two different sets of assumptions about workers. • Theory X assumes the average worker is lazy, dislikes work and will do as little as possible. • Managers must closely supervise and control through reward and punishment. Lecture 2 Evolution of Management Theory

  16. Theory X and Theory Y • Theory Y assumes workers are not lazy, want to do a good job and the job itself will determine if the worker likes the work. • Managers should allow workers greater latitude, and create an organization to stimulate the workers. Lecture 2 Evolution of Management Theory

  17. Evolution of Management Theory Part 2 Contemporary Theories in Management Lecture 2 Evolution of Management Theory

  18. Management Science School1940 - • An approach to management that uses quantitative techniques to maximize the use of organizational resources • A rational, structured approach characterized by the use of mathematical and computer models for decision making. Lecture 2 Evolution of Management Theory

  19. Management Science School • Application of quantitative methods to solve management problems: statistics, operations research, management information systems. Lecture 2 Evolution of Management Theory

  20. Systems Theory • Organizations are open systems that constantly interact with the external environment Lecture 2 Evolution of Management Theory

  21. “What is a system?” inputs (resources and information) transformation process Feedback outputs (products, services) Lecture 2 Evolution of Management Theory

  22. Organizational Environment Theory Organizational Environment –The set of forces and conditions that operate beyond an organization’s boundaries but affect a manager’s ability to acquire and utilize resources Lecture 2 Evolution of Management Theory

  23. The Open-Systems View Open System • A system that takes resources for its external environment and converts them into goods and services that are then sent back to that environment for purchase by customers. Lecture 2 Evolution of Management Theory

  24. Contingency Theory • is a class of behavioral theory • claims that there is no best way to organize an organization • the optimal organization/ leadership/ decision-making style depends on various internal and external constrains (factors). Lecture 2 Evolution of Management Theory

  25. Examples of the constrains (factors) • The size of the organization • How the organization adapts itself to its environment • Differences among resources and operations activities • Strategies • Technologies being used Lecture 2 Evolution of Management Theory

  26. Contingency Theory on the Organization 1. There is no universal way or the best way to manage an organization. 2. The design of an organization and its subsystems must fit with the environment. 3. The needs of organization are better satisfied when it is properly designed and management style is appropriate both to the tasks and the nature of the group. Lecture 2 Evolution of Management Theory

  27. Chaos Theory • events indeed are rarely controlled • we live in an uncertain and turbulent environment and, • with massive amounts of available information, • it has become increasingly difficult for us to choose appropriate organizational survival behaviors. Lecture 2 Evolution of Management Theory

  28. What isChaos? • "the irregular, unpredictable behavior of deterministicnon-linear dynamical systems." Lecture 2 Evolution of Management Theory

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