Chapter 4: Historical Foundations of Management
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Transcript Chapter 4: Historical Foundations of Management
Historical foundations of
management
Dr. Bagus Nurcahyo
Program Studi Manajemen Pemasaran
Direktorat Program D3 Bisnis & Kewirausahaan
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Historical foundations of
management
Study questions
– What can be learned from classical
management thinking?
– What ideas were introduced by the human
resource approaches?
– What is the role of quantitative analysis in
management?
– What is unique about the systems view and
contingency thinking?
– What are continuing management themes of
the 21st century?
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Major schools of
management thought
1.
Classical management approaches
–
2.
Developing universal principles for use in
various management situations.
Behavioural management (or human
resource) approaches
–
Human needs, the work group and social
factors in the workplace.
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Major schools of
management thought
3. Quantitative management approaches
–
Use of mathematical techniques for
management problem solving.
4. Modern approaches
–
Systems and contingency views of
organisations.
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What can be learned from
classical management thinking?
Classical approaches to management include:
– Scientific management – emphasizes careful selection
& training of workers, & supervisory support
– Administrative principles – based on attempts to
document & understand the experiences of successful
managers
– Bureaucratic organisation – is a rational & efficient
organisation founded on logic, order & legitimate
authority
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What can be learned from
classical management thinking?
I. Scientific management (Frederick
Taylor) “Father of scientific management”
– Design jobs properly, standardised work
processes and proper working conditions for
every job.
– Carefully select workers with the right abilities
for the job.
– Carefully train workers to do the job and
provide proper incentives.
– Support workers by carefully planning their
work and removing obstacles.
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What can be learned from
classical management thinking?
Scientific management (the Gilbreths)
Frank & Lillian
– Motion study
• Science of reducing a job or task to its
basic physical motions
• Eliminating wasted motions improves
performance.
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Scientific management
• Henry Gantt’s contributions, which
include:
• (a) an innovative task and bonus
wage scheme in which workers and
supervisors received bonuses for
exceeding standards;
• (b) the Gantt chart which graphically
depicts the scheduling of tasks
required to complete a project.
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What can be learned from
classical management thinking?
II. Administrative principles (Henri
Fayol)
– Rules of management
• Foresight — to complete plan of action for the
•
•
•
•
future
Organisation — to provide and mobilise resources
to implement the plan
Command — to lead, select and evaluate workers
to get the best work towards the plan
Coordination — to fit diverse efforts together,
ensure information is shared and problems solved
Control — to make sure things happen according to
plan and to take necessary corrective action.
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What can be learned from
classical management thinking?
Administrative principles (Henri Fayol)
– Key principles of management
• Scalar chain - there should be a clear and
unbroken line of communication from the top to the
bottom of the organisation
• Unity of command - each person should receive
orders from only one boss.
• Unity of direction - one person should be in
charge of all activities that have the same
performance objective
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What can be learned from
classical management thinking?
Administrative principles (Mary Parker
Follett)
– - Her insights about groups and human
cooperation include the following:
• Groups are mechanisms through which individuals
could combine their talents for a greater good.
• Organisations as cooperating ‘communities’ of
managers and workers
• The manager’s job is to help people in the
organisation cooperate and achieve an integration
of interests.
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What can be learned from
classical management thinking?
Administrative principles (Mary Parker
Follett)
– Forward-looking management insights
• Employee ownership creates sense of collective
responsibility (precursor of employee ownership,
profit sharing and gain sharing).
• Business problems involve a variety of interrelated
factors (precursor of systems thinking).
• Private profits relative to public good (precursor of
managerial ethics and social responsibility).
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What can be learned from
classical management thinking?
III. Bureaucratic organisation (Max
Weber)
– Bureaucracy
• An ideal, intentionally rational and very efficient
form of organisation.
• Based on principles of logic, order and legitimate
authority.
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What can be learned from
classical management thinking?
Characteristics of
bureaucratic
organisations:
– Clear division of labor
– Clear hierarchy of
authority
– Formal rules and
procedures
– Impersonality
– Careers based on
merit.
Possible
disadvantages of
bureaucracy:
– Excessive paperwork
or ‘red tape’
– Slowness in handling
problems
– Rigidity in the face of
shifting needs
– Resistance to change
– Employee apathy.
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What ideas were introduced by the
human resource approaches?
Behavioural management (or human
resource) approaches include:
– Hawthorne Studies
– Maslow’s theory of human needs
– McGregor’s Theory X and Theory Y
– Argyris’s theory of adult personality.
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What ideas were introduced by the
human resource approaches?
I. Hawthorne Studies conducted by
Elton Mayo
– Initial study examined how
economic incentives and physical
conditions at workplace affected worker
output
– No consistent relationship found
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What ideas were introduced by the
human resource approaches?
Hawthorne Studies
– 2. Relay assembly test-room studies
• Manipulated physical work conditions to assess
impact on output
• Designed to minimise the ‘psychological factors’ of
previous experiment
• Group atmosphere and participative supervision
accounted for increased productivity.
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What ideas were introduced by the
human resource approaches?
Hawthorne Studies
– 3.Employee attitudes, interpersonal
relations and group processes
• Some things satisfied some workers but not others.
• People restricted output to adhere to group norms.
– Lessons of the Hawthorne Studies
• People’s feeling, attitude & relationships with coworkers influence performance
• Hawthorne effect — people who are singled out for
special attention perform as expected.
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What ideas were introduced by the
human resource approaches?
II. Maslow’s theory of human needs
– A need is a physiological or psychological
deficiency a person feels compelled to satisfy.
– Need levels
•
•
•
•
•
Physiological
Safety
Social
Esteem
Self-actualisation.
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What ideas were introduced by the
human resource approaches?
Maslow’s theory of human needs
– Deficit principle
• People act to satisfy “deprived” needs CONTRARY
a satisfied need is not a motivator of behaviour.
– Progression principle
• A need becomes a motivator once the preceding
lower-level need is satisfied.
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What ideas were introduced by the
human resource approaches?
III. Douglas McGregor
McGregor’s Theory X
assumes that
workers:
–
–
–
–
–
dislike work
lack ambition
are irresponsible
resist change
prefer to be led.
McGregor’s Theory Y
assumes that workers
are:
– willing to work
– capable of self-control
– willing to accept
responsibility
– imaginative and
creative
– capable of
self-direction.
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What ideas were introduced by the
human resource approaches?
McGregor’s Theory X and Theory Y
– Managers create self-fulfilling
prophecies.(that is, through their
behaviour they create situations where
subordinates act to confirm their
expectations)
– How do managers create positive self –
fulfilling prophecy?
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What ideas were introduced by the
human resource approaches?
IV. Chris Argyris’s theory of adult personality
– Classical management principles and practices
discourage worker independence and are
inconsistent with the mature adult personality.
– Management should accommodate the mature
personality.
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What ideas were introduced by the
human resource approaches?
Argyris’s theory of adult personality
– Management practices consistent with the
mature adult personality:
• Increasing task responsibility
• Increasing task variety
• Using participative decision making.
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What is the role of quantitative
analysis in management?
1.Management science (operations
research) foundations
– Scientific application of mathematical
techniques to management problems
– Techniques and applications include:
• Mathematical forecasting - for making future
projections that are useful in the planning process.
• Inventory modeling - for helping to control
inventories by establishing how much to order and
when
• Linear programming - for determining how to best
allocate scarce resources among competing uses
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What is the role of quantitative
analysis in management?
• Queuing theory - for allocating service
personnel or workstations to minimise
customer waiting time and service cost
• Network models - for breaking large tasks
into smaller components to allow for better
analysis, planning, and control of complex
projects.
• Simulations - for developing models of
problems so different solutions under
various assumptions can be tested.
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What is the role of quantitative
analysis in management?
Quantitative analysis today
– Use of staff specialists to help managers
apply techniques
– Software and hardware developments have
expanded potential quantitative applications
to managerial problems.
– Good managerial judgement and appreciation
for human factors must accompany use of
quantitative analysis.
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What is unique about the systems
view and contingency thinking?
According to the modern approaches
to management:
- people have multiple and varied
needs and talents that change over time
- therefore organisation & managers
should respond to individual differences
with a wide variety of managerial
strategies and job opportunities
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What is unique about the systems
view and contingency thinking?
Systems thinking
– System
• Collection of interrelated parts that function together
to achieve a common purpose
– Subsystem
• A smaller component of a larger system
– Open system
• An organisation that interacts with its environments
in the continual process of transforming resource
inputs into outputs.
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What is unique about the systems
view and contingency thinking?
Contingency thinking
– Tries to match managerial responses with
problems and opportunities unique to different
situations
– No ‘one best way’ to manage, managers
need to understand situational differences &
respond to them in appropriate ways
– Most appropriate way to manage depends on
the situation.
– IF = THEN
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What are continuing management
themes of the 21st century?
1.Quality and performance excellence
– Managers and workers in progressive
organisations are quality conscious.
– Total quality management (TQM)
• Comprehensive approach to continuous quality
improvement for a total organisation
• Creates context for the value chain (a specific
sequence of activities that transform raw materials
into a finished good or services)
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What are continuing management
themes of the 21st century?
Eight attributes of performance
excellence:
1. Bias towards action - making timely
decisions and getting things done
2. Closeness to the customer - knowing
customer needs and valuing
customer satisfaction.
3. Autonomy and entrepreneurship supporting innovation, change, and
risk taking.
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4. Productivity through people - valuing human
resources as keys to quality and
performance.
5. Hands-on and value-driven - having a clear
sense of organisational purpose.
6. Sticking to the knitting - focusing resources
and attention on what the organisation does
best.
7. Simple form and lean staff - minimising
levels of management and staff personnel.
8. Simultaneous loose-tight properties allowing flexibility while maintaining control.
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What are continuing management
themes of the 21st century?
2.Global awareness
– Pressure for quality and performance
excellence is created by a highly competitive
global economy.
– Has fostered increasing interest in new
management concepts:
•
•
•
•
Process reengineering – process redesign
Virtual organisations
Agile factories
Network firms
– Adoption of Theory Z management practices.
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What are continuing management
themes of the 21st century?
• Theory Z – describes a
management framework
emphasising long-term employment
& teamwork, attention to career
planning , employee involvement,
that are found in the Japanese
models.
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What are continuing management
themes of the 21st century?
3. Learning organisation
Contemporary businesses must learn to
become learning organisations.
These are organisations operating with
values and systems that result in continuous
change and improvement based on the
lessons of experience.
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What are continuing management
themes of the 21st century?
Learning organisation success depends on:
– culture that emphasises information,
teamwork, empowerment, participation and
leadership
– special leadership qualities
The 21st century manager must be:
– a global strategist
– a master of technology
– an effective politician
– an inspiring leader.
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