Welcome back today we start “looking back”... Ch.2 Management Yesterday and Today

1. Welcome backtoday we start “looking back”... Ch.2 Management Yesterday and Today © Emily & Jian, MGTO120 Summer 2006, HKUST

2. Today’s Agenda • Some reminder – rules and expectations • Short review – basic concepts in Ch.1 • Ch.2 – development of management ideas • Tutorial – © Emily & Jian, MGTO120 Summer 2006, HKUST

3. Review—what did we learn last time? • What is management? Process, people, efficiency, effectiveness • What is an organization? People, structure, purpose • What do Managers Do? (Management!) • Functions involved (POLC) • Skills required (CHT) • Roles played (IID) © Emily & Jian, MGTO120 Summer 2006, HKUST

4. Application of knowledge –Cases we analyzed © Emily & Jian, MGTO120 Summer 2006, HKUST

5. Application of knowledge –Cases we analyzed Southwest Airline - Mr. Kelleher You did a great job in your case analysis! © Emily & Jian, MGTO120 Summer 2006, HKUST

6. Ch.2 Management Yesterday and Today “Yesterday” ? Why bother to learn the history, since we don’t major in Management? © Emily & Jian, MGTO120 Summer 2006, HKUST

7. Ch.2 Management Yesterday and Today Textbook: “Looking at the management history can help us understand today’s management theory and practice. It can help us see what worked and what didn’t work.” Emily: “the ‘history’ itself is interesting! and it helps us to THINK!” © Emily & Jian, MGTO120 Summer 2006, HKUST

8. Where We Are Today Management (Robbins & Coulter) Part 1 Basic Concepts (Ch1) Part 1 Retrospect (ch2) Part 2 Context (ch3-5) Part 3 Planning (ch6-9) Part 4 Organizing (Ch10-13) Part 5 Leading (Ch 14-17) Part 6 Controlling (Ch 18,19) © Emily & Jian, MGTO120 Summer 2006, HKUST

9. Ch.2 Management Yesterday and Today Learning objectives – after studying this chapter, you’d be able to: • Describe some ancient evidences of management practice • Describe major approaches to management • Describe the important contributions made by: Taylor, Fayol, Weber and other early advocates of management approaches • Describe how these approaches related to today’s management • Describe the trends and issues facing managers today © Emily & Jian, MGTO120 Summer 2006, HKUST

10. Management Theories Historical Background Organizational Behavior General Administrative Theorists Scientific Management Quantitative Approach Early Examples of Management Early Advocates Hawthorne Studies Adam Smith Industrial Revolution Development of Major Management Theories © Emily & Jian, MGTO120 Summer 2006, HKUST

11. Historical background • Egypt (pyramids) • China (Great Wall) • Wisdom in Bible (Moses) • Adam Smith,1776 “The Wealth of Nations” (example of pin – an exercise for you to think) • Industrial Revolution © Emily & Jian, MGTO120 Summer 2006, HKUST

12. Ancient management 100,000workers for 20years for a single pyramid – who told each workers what to do and make sure they do it right? compared to building the Great Wall, building the Pyramids was nothing! (p. 58) © Emily & Jian, MGTO120 Summer 2006, HKUST

13. Moses and Management (maybe4000 BC?) © Emily & Jian, MGTO120 Summer 2006, HKUST

14. Wealth of Nations Adam Smith, 1776 • a workman not educated to this business [pin making] could scarce, perhaps, with his utmost industry, make one pin in a day, and certainly could not make twenty. Now this business is … divided … One man draws out the wire, another straights it, a third cuts it, a fourth points it, a fifth grinds it at the top for receiving, the head; to make the head requires two or three distinct operations; to put it on is a peculiar business, to whiten the pins is another; it is even a trade by itself to put them into the paper… (p.7) © Emily & Jian, MGTO120 Summer 2006, HKUST

15. Major Approaches to Management • Scientific Management • General Administrative Theory • Quantitative Management • Organizational Behavior • Systems Approach • Contingency Approach © Emily & Jian, MGTO120 Summer 2006, HKUST

16. Scientific ManagementThe “father” of scientific management – Fredrick Winslow Taylor“Principles of Scientific Management” (1911) • Develop a science for each element of an individual’s work, which will replace the old rule-of-thumb method. • Scientifically select and then train, teach, and develop the worker. • Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. • Divide work and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers. © Emily & Jian, MGTO120 Summer 2006, HKUST

17. video show THINK: What is good? What is not good? (think and hold the answer to tutorial class) © Emily & Jian, MGTO120 Summer 2006, HKUST

18. General Administrative Theory • Henri Fayol • Believed that the practice of management was distinct from other organizational functions • Developed fourteen principles of management that applied to all organizational situations • Max Weber • Developed a theory of authority based on an ideal type of organization (bureaucracy) • Emphasized rationality, predictability, impersonality, technical competence, and authoritarianism © Emily & Jian, MGTO120 Summer 2006, HKUST

19. Fayol’s 14 Principles of Management • Remuneration. • Centralization. • Scalar chain. • Order. • Equity. • Stability of tenure of personnel. • Initiative. • Esprit de corps. • Division of work. • Authority. • Discipline. • Unity of command. • Unity of direction. • Subordination of individual interest to the interests of the organization. © Emily & Jian, MGTO120 Summer 2006, HKUST

20. Weber’s Ideal Bureaucracy © Emily & Jian, MGTO120 Summer 2006, HKUST

21. Organizational Behavior OB — The study of the actions of people at work; people are the most important asset of an organization Where much of current micro-level management research and human resource management (HRM) come from • Early OB Advocates (late 1800s and early 1900s) • Robert Owen • Hugo Munsterberg • Mary Parker Follett • Chester Barnard © Emily & Jian, MGTO120 Summer 2006, HKUST

22. Organizational Behavior The Hawthorne Studies – the most important contribution to the developing of OB field • A series of productivity experiments conducted at Western Electric from 1927 to 1932. • Experimental findings • Productivity unexpectedly increased under imposed adverse working conditions. • The effect of incentive plans was less than expected. © Emily & Jian, MGTO120 Summer 2006, HKUST

23. Dimmer Lights? Brighter Lights? The Hawthorne Studies video show © Emily & Jian, MGTO120 Summer 2006, HKUST

24. The Hawthorne Studies • Research conclusion Social norms, group standards and attitudes strongly influence individual output and work behavior. • people matter • attention to people matters • groups matter © Emily & Jian, MGTO120 Summer 2006, HKUST

25. TASK PRODUCTIVITY Employees are part of the production system => MACHINES that are replaceable! Frederick Taylor EMPLOYEE Hawthorne Effect ATTITUDES Personal Characteristics Social Situation • The Hawthorne Studies © Emily & Jian, MGTO120 Summer 2006, HKUST

26. Quantitative Management Also called operations research or management science Focuses on improving managerial decision making by applying:Statistics, optimization models, information models, and computer simulations. © Emily & Jian, MGTO120 Summer 2006, HKUST

27. Systems ApproachThe Organization as an Open System © Emily & Jian, MGTO120 Summer 2006, HKUST

28. Contingency Approach OR situational approach There is no one universally applicable set of management principles (rules) by which to manage organizations.Organizations face different situations (contingency variables), and require different ways of managing. • Popular Contingency Variables, e.g.:Organization sizeRoutineness of task technologyEnvironmental uncertaintyIndividual differences © Emily & Jian, MGTO120 Summer 2006, HKUST

29. For more info. about Management History • James C. Collins & Jerry I. Porras 1994 • Built to Last: Successful Habits of Visionary Companies. Harper Business Publishers, NY. HF5386 .C735 1997.       • Peter F. Drucker 1999 • Management Challenges for the 21st Century. Harper Business Publishers, NY. HD30.27 .D78 1999 • Edgar H. Schein 1992 • Organizational Culture and Leadership, 2nd Ed. Jossey-Bass Publishers, San Francisco, CA. HD58.7 .S33 1992 • The Bible: c1984 • The Holy Bible : containing the Old and New Testaments in the King James version, Exodus 17. Jethro Nashville : Thomas Nelson ,  BS185 1984 .N37 • Pyramid: Parry Dick. 2004 • Engineering the Pyramids . Stroud : Sutton. DT63 .P377 2004 • Great Wall: Gorbing-King Charles. 1973 • Wall of Death, London : Abelard-Schuman. DS 793 G67 G63 1973 • Taylor, Frederick Winslow, 1856-1915 [1967, c1947] • First published 1911 The Principles of Scientific Management. New York : Norton. HD31 .T39 1967 • Fayol, Henri, 1841-1925. c1984 • General and industrial management / Henri Fayol ; revised by Irwin Gray. New York : Institute of Electrical and Electronics Engineers. HD31 .F313 1984 • Mayo, Elton, 1880-1949 1988 • The social problems of an industrial civilization , N.H. : Ayer, HD6331 .M38 1988 • Operations Research. Management Science  • Operations Research/Management Science journals (Since 1961). Whippany, N.J. : Executive Sciences InstituteHD30.25 .O66 © Emily & Jian, MGTO120 Summer 2006, HKUST

30. Current Trends and Issues(more about this in later chapters) • Globalization • Workforce Diversity • Learning Organizations • Ethics • Entrepreneurship • E-business • Knowledge Management • Quality Management © Emily & Jian, MGTO120 Summer 2006, HKUST

31. What do we learn from Management Yesterday and Today? Tutorial Video, cases, and discussions © Emily & Jian, MGTO120 Summer 2006, HKUST

32. ? © Emily & Jian, MGTO120 Summer 2006, HKUST

33. Homework (remember, this course is to HELP you to think critically, but it is YOU who THINK): Tutorial • Think about Taylor, Fayol. What are their contributions to management? What kind of workplaces would they create based on their theories? What are the drawbacks in the views? • Review the famous Hawthorne studies. What is it about? What are the findings and conclusions? • Relate history to management today. In your view, how do those different approaches related to current management practices? © Emily & Jian, MGTO120 Summer 2006, HKUST

34. Next class (this Fri.)... Tutorial • Next time, we will talk about “the manger’s terrain”. We will cover chapter 3 & 5 – culture & ethics issues. • Will begin class at 2:00pm sharp.Probably with PRS questions from Chapter 2 and 3! © Emily & Jian, MGTO120 Summer 2006, HKUST