Transcript Historical Overview of Mgmt Thought

Historical Overview of Mgmt
Thought
Units 3 - 6
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Objective
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Explain the importance of the evolution of
management theories.
To understand how the historical theories still
apply to contemporary management.
Historical Overview
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Management practice has been around for thousands
and thousand of years.
Evidence of the development and use of management
principles prior to the 1800 is present but is meager.
Organized endeavors in antiquity such as:
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the building of the Egyptian Pyramids and
the Great Wall of China
are examples of structures that were overseen by people
responsible for
planning, organizing, leading and control activities
[Robins and Murkeji, 1990]
Historical Overview cont’d
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Studying management history helps you to
understand theory and practice as they are
today.
Because current management concepts are
the result of continual development, testing,
modification, retesting and improvement of
historical concepts.
Historical Overview cont’d
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Management did not emerge as a formal
discipline until about 1900,
mainly because of the advent of the Industrial
Revolution [Amrine, Ritchey and Hulley, 1975].
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The series of events that brought into being the
factory system;
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occurred from 1770 to the early 1800 and
was characterized by inventions that brought machine
power in the factory.
The Evolution Of Management
Thought
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Theorists over the past century have developed
numerous models to answer the same basic
management question:
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What is the best way to manage a business
enterprise or an organization?
The reason we continue to study those models
today is that they still apply to the manager’s job.
No Universally Accepted Theory of
Management
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There are several approaches to the theory and
practice of management.
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The Classical School
The Behavioral approach
The Systems approach
The Contingency approach
The Mgmt Science/Decision Making Approach
These Approaches are Based on
Different Assumptions About:
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behavior of people in organizations,
key objectives of an organization,
types of problems faced, and
solutions to those problems.
Each approach has contributed to the evolution
of modern mgmt thought & can be used
effectively in different circumstance.
1. Classical School (1890-1938)
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Grew out of the need to find guidelines for
managing complex organizations.
The writers include:
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They placed emphasis on:
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F. Taylor, Gilbreth, Fayol, Weber, Urwick, & Barnard.
the planning of work,
the technical requirements of the organization,
principles of management, and
Improving the organization structure as a means of
increasing efficiency
1. Classical School; cont’d.
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Attention was given to:
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Stresses the manager’s role in a strict hierarchy &
focuses on efficient & consistent job performance, &
is divided into three main branches namely:
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ii.
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division of work
clear definition of duties & responsibilities
specialization, and
coordination
Scientific management, (Taylor, 1856-1915, F & L Gilbreth, Gantt),
Administrative management, (Fayol 1841-1925); and
Bureaucratic management, (Weber, 1864-1920, Barnard 1886-1961,
Urwick 1891-1983).
Scientific Mgmt / Operational
Approach
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Mgmt which conducts a business by standards
established by facts gained through systematic
observation experiment or reasoning.
Scientific Management Frederick
W. Taylor (1856-1915)
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Arose out of the need to improve manufacturing
productivity through more efficient utilization of physical
& human resources
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Taylor believed that:
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focuses on individual worker-machine relationships in
manufacturing plants.
Its philosophy is that management should be based on proven
fact and observation, not on guesswork or hearsay.
increased productivity ultimately depended on finding ways to
make workers more efficient.
One of his goals was to study and define precisely all aspects of
the worker-machine relationship by using objective, scientific
techniques.
Scientific Management
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Focused on
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Developing performance standards on the basis of
systematic observations and experimentation
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Standardization of work practices and methods to reduce
waste and increase productivity
Time and task study of workers’ efforts to maximize
productivity and output
Systematic selection and training of workers to increase
efficiency and productivity
Differential pay incentives based on established work
standards
Taylor
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used time and motion studies to determine the most
efficient way to complete the task.
stressed the importance of hiring and training the proper
worker to do that job.
advocated for:
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the standardization of tools,
the use of instruction cards to help workers
breaks to eliminate or reduce fatigue [tiredness] and
a differential pay system.
also suggested that management had the responsibility
to support and help worker solve problems.
Taylor’s principles of scientific
management
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Develop a science for each element of an individual’
work, which replaces the old rule of thumb method
Establish standards with respects to methods and
time for each task
Scientifically select and then train, train, teach and
develop the worker.
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(Previously, workers chose their own work and trained
themselves as best they could)
Wage incentives should be an integral part of each
job
Taylor’s principles of scientific
management
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Job specialization should be a part of each
job
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this specialization included mgmt, which he termed
functional foremanship
Planning and scheduling of work
F.W. Taylor
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Using similar approaches in other jobs, Taylor was
able to define the best way of doing each job.
Overall, Taylor achieved consistent improvements in
productivity in the range of 200 percent or more.
He reaffirmed the role of managers to:
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plan and control, and
of workers to perform as they were instructed.
Contributions of Scientific Mgmt
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Made jobs and the management of these jobs
more efficient and productive.
The concept of scientific analysis was introduced
to the work place – time and motion study.
Task and bonus plan is the foundation of many
incentive plans today.
Use of standard hour
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Amount of work a worker may normally be expected
to do in an hour
Contributions of Scientific Mgmt
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The concept of a management specialist was
introduced through the role of functional
foremanship.
Workers enjoyed a higher standard of living,
more respect and improved job skills.
Suggestion that executives manage by exception
Contributions of Scientific Mgmt
cont’d
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Today’s management topics that address issues
such as:
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job design, incentives and goal setting,
all find their origin in scientific management approach.
One of the most famous examples of the
application of scientific management is the
factory Henry Ford built to manufacture model T
cars.
Criticisms of Scientific Mgmt
It is a machine model.
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worker was seen as an instrument of production which can
be treated as any other tool to perform simple repetitive
tasks. his was blamed for boredom & apathy & attendant
quality problems.
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had an authoritative leadership approach.
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Trade unions thought that by mgmt setting standards &
piece rates, workers were being exploited, especially that
workers participation was not emphasized.
was not concerned with the problems of senior
executives, it concentrated on the shop floor problems.
Criticisms of Scientific mgmt cont’d
The motivational assumption of scientific
management were simplistic.
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The broader relationship between the firm
and society was ignored.
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Taylor ignored many social and psychological
factors related to the job.
However, money is a powerful motivator.
The focus was on the internal operations of the
firm, specifically the factory.
Other Contributors
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2.
3.
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Frank Gilbreth (1868 - 1924)
Lillian Gilbreth (1878 – 1972)
Henry Gantt (1961 – 1919)
Frank Gilbreth (1868 - 1924)
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studied work arrangements to eliminate wasteful hand
and body motions.
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He based his studies on a new tool [motion pictures] to carefully
study the structure of the task.
he identified 18 individual motions that a bricklayer uses to lay
bricks.
By changing the task’s structure he reduced the 18 motions to 5,
which resulted in more than 200 % increase in the worker’s
productivity.
He developed a new way to stack bricks, and invented the
SCAFOLD to reduce bending.
Today’s industrial engineers have combined Frank
Gilbreth’s methods with Taylor’s to redesign jobs for
greater efficiency.
Lillian Gilbreth - psychologist (1878
– 1972)
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was more concerned with the human side of
industrial engineering.
She championed the idea that workers:
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should have standard days,
scheduled rest breaks, and
normal lunch periods.
Her work influenced USA Congress to
establish child labor laws and to develop rules
for protecting workers from unsafe conditions.
Henry Gantt (1861 – 1919)
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Developed the Gantt Chart for control systems in
production scheduling.
Gantt charts are still widely used to plan project
scheduling and have been adapted for computer
scheduling applications.
He also established quota systems and bonuses for
workers who exceeded their quotas.
His control systems coupled with bonuses that
supplemented basic wage rates has produced a
profound impact on current concepts like gain-sharing.
Administrative/Universal Approach
(Henri Fayol 1841 – 1925).
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Universal Process Approach
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Assumes all orgs require the same rational mgmt process
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Fayol wrote around the same time as Taylor.
However, whereas:
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Core management process remains the same regardless of
the purpose of the organization.
The management process can be reduced to a set of
separate functions and related principles.
Taylor was concerned with management at the shop-floor
level and used the scientific method.
Fayol’s attention was directed at the activities of all
managers and wrote from personal experience.
General Administrative Theorists
cont’d
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Focused on the identification of major functions and
principles that
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achieve
superior
levels
of
Supporters of this approach
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managers could use to
organizational performance.
emphasized the perspective of senior managers within the
organization and
believed that management was a profession and could be
taught.
Fayol, a French industrialist [practitioner] identified 5
operating activities, 5 functions and 14 principles of
management.
5 Key Operating Activities
1.
Technical activities
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Commercial activities
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Concerned with safeguarding property
Accounting activities
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ie. Securing capital
Security activities
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buying and selling
Financial activities
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ie. production
ie providing financial information
H. Fayol’s 5 Functions of Mgmt.
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Fayol published Administration Industrielle et
Générale in 1916.
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He divided a manager’s job into five functions:
Planning
2. Organizing
3. Command
4. Coordination
5. Control
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He developed 14 universal principles of
management.
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Lessons from the Universal
Process Approach
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The management process can be separated
into interdependent functions.
Management is a continuous process.
Management is a largely, though not an
entirely, rational process.
The functional approach is useful because it
specifies what managers should do.
Criticisms of Fayol’s Principles
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Create the impression that the mgmt process is
more rational and orderly than it really it.
Some critics:
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dismiss his principles as no more than advice
say his concepts reflect a rigidity and formalism
which leads directly to inefficiencies of bureaucracy.
Contribution
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Fayols functions of mgmt are still popular today
Emphasis of the organization chart and job
specification.
His 14 principles can contribute to successful
mgmt
Mgrs seeking to solve structuring problems
would do well to use most Fayols basic
concepts.
Max Weber (1864 -1920) and The
Concept of Bureaucracy.
a German social scientist felt organizations be made
most efficient by having a :
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Bureaucratic management:
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highly organized system,
rigid structure of authority, and
working according to a detailed set of procedures, rules and
regulations
provides a rational blueprint of how an entire organization
should operate.
prescribes seven characteristics.
which represent a formal somewhat rigid method of managing
Characteristics of Bureaucratic
Mgmt
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A Hierarchical Structure
Division of Labor
A system of rules and procedures
Impersonality
Stability of employment
Separation of ownership
Rationality
1. A Hierarchical Structure
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Ranks jobs according to the amount of power
and authority given to each level.
Typically, power and authority increases at each
higher level, up to the top of the hierarchy.
According to Weber,
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a well-defined hierarchy helps control the behavior of
employees by
making clear to each exactly where he or she stands
in relation to every other employee.
2. Division of Labor
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Specialization is necessary.
Functions of the job are defined and
qualifications are to some extent specified.
Selection for employment & promotion are
directly related to technical competence.
Proven capacity in the execution of the job is
the basis for for internal promotion.
3. A system of rules and procedures
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Duties, rules, standards of performance and
regulations are drawn up clearly.
The rules facilitate standardization & equality of
treatment
Administrative acts, decision and rules are
formulated and recorded in writing and files are
properly kept
Unity of command prevails
4. Impersonality
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Officials are expected to carry out their duties
without regard to personal considerations.
Operation of the rules will be without ill-will and
or bias.
This characteristic guarantees fairness for all
employees when it is assumed that
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an impersonal superior does not allow subjective
personal or emotional considerations to color his or
her evaluations of subordinates.
5. Stability of employment
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Employment is under the terms of a contractual
relationship in which duties and rights are
clearly stated.
The employee is offered a regular salary, some
degree of security of tenure and the
opportunity of promotion
Pension rights are offered to most categories
of employees.
6. Separation of ownership
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Managers should be completely separated from
ownership of the means of production.
There should be complete separation between
the office belonging to the organization and the
personal property of the of the official.
7. Rationality
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Running the organization logically and scientifically
making decisions that promote achieving of
organization's objectives.
Rational managers use the most efficient possible
means to achieve the organisation’s objectives.
Rationality allows general organizational objectives to
be broken down into more specific objectives for each
part of the organization.
Benefits Of Bureaucracy
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The bureaucratic system’s strengths are:
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efficiency, consistency and predictability.
functions best when many routine tasks need to be
done.
The lower level employees far removed from the top,
execute their jobs by simply following the rules.
The mangers lack of direct observance of what the
employees are doing is substituted by rules and
regulations.
In order to bring efficiency, the output is of a standard
nature.
Drawbacks of Bureaucracy
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Rigid rules and red tape
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The reliance on formal structure and procedures reduces
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Protection of authority
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individual freedom, creativity and flexibility, fostering low
motivation and high turnover among the best employees
Managers may perform at minimum productivity, while
protecting and expanding their own authority.
Knowledge and expertise is assumed to reside at the top
Drawbacks of Bureaucracy cont’d
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Slow decision-making
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Formality and ritual, delay decision making at every
management level until
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all red tape has been cleared,
insistence on power and status privileges has been satisfied;
and
any chance or error in judgment has been minimized.
Bureaucracies do not cope well with change.
Drawbacks of Bureaucracy cont’d
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Incompatibility with changing technology.
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Incompatibility with professional values.
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Bureaucratic rules are much less useful when the nature of the
task continually changes and new procedures and have to be
experimented with
The professional sees authority as stemming from personal
competence or technical knowledge not from bureaucratic
authority related to hierarchical position.
Bureaucratic Approach is Effective
When:
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large amounts of standard information or products have
to be processed and an efficient processing method has
been found
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as in banks, insurance and manufacturing companies
the needs of the customer are known and are not likely
to change.
the technology is routine and stable, so employees can
be easily and quickly taught how to operate machines.
Criticisms of Bureaucracy
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In practice it has become the epitome of inefficiency.
Career orientation makes some interested in protection
of their career than in dealing with clients.
Rules often slow down the work of the organization –
red tape.
Specialization leads to ignorance of even related tasks.
Initiative may be stifled.
Impersonal relations can lead to lack of responsiveness
Lack of attention to the informal organization
It restricts mental/emotional growth of the individual
The Legacy of The Classical
Approach
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Still provides insights into many management
problems today
Scientific approach shows that
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job design is critical to the efficiency & effectiveness
of an organization.
Mgrs should not assume that the way a job is being
done is the best way.
Mgrs must reward performance
Webers concept of bureaucracy continues to
define most organization structure today
The Legacy of The Classical
Approach
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Fayols guidelines are followed by almost all
modern organizations.
Limitation of Classical Approach
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It does not take human matters into account.
It does not consider how people fulfill the work
roles given to them, instead
It tends to treat worker efficiency from a
mechanical view point.
The Behavioral Approach
Human relations movement is concerned with
increasing productivity by (Kreitner, 2007 p. 41):
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making mgrs more sensitive to employee needs, and
focusing on understanding the human element in an
organization
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Arose out of the influences of
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ie individuals and groups and how they can be effectively and
efficiently combined in a large organization.
The threat of unionization
The philosophy of industrial humanism
The Hawthorne studies
The Human Relations Movement
1.
The Threat of Unionization
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The Hawthorne Studies (1924)
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The Wagner Act of 1935 legalized unionmanagement collective bargaining, promoting the
growth of unions and union avoidance by firms.
The study’s results that productivity was strongly
affected by workers’ attitudes
turned management toward the humanistic and
realistic viewpoint of the “social man” model.
3. The Philosophy of Industrial
Humanism
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Elton Mayo (1880 – 1949)
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Mary Parker Follett (1868 - 1933)
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The founder of both the human relations and industrial
sociology school- Australian
Emotional factors were more important determinants of
productive efficiency than were physical and logical factors.
Managers should be aware of how complex each employee is
and how to motivate employees to cooperate rather than to
simply demand performance from them.
The Philosophy of Industrial
Humanism
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Douglas McGregor
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Developed Theory X and Theory Y
 Theory
X: Management’s traditionally negative
view of employees as unmotivated and unwilling
workers
 Theory Y: The positive view of employees as
energetic, creative, and willing workers
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The Philosophy of Industrial
Humanism
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H. Munsterberg (1863 – 1916)
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He argued for the scientific study of human behavior to
identify general patterns and to explain individual
differences.
He suggested the use of psychological tests to improve
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employee selection,
the value of learning theory in the development of training
methods, and to
understand what techniques are most effective for
motivating workers.
Most of the current knowledge of selection techniques,
employees training, job design and motivation are built
on the work of Munsterberg
Mary Parker Follet
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Managers should:
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have the desire to get employees to work harder
and be aware that each employee is a complex
collection of emotions beliefs and habits
Recognize the individuals motivation
Motivate performance rather than simply demanding
it.
The Hawthorne Experiments
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Human relations or behavioral approach was
the first major approach to emphasize informal
work relationship and worker satisfaction.
The approach emerged from a research project
that:
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started as a scientific management study of seeking
greater efficiency through,
improving the tools and methods of work in this
case light.
The Hawthorne Experiments
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Illumination studies (1924 – 1927)
Assembly Test Room studies (1927- 1929)
Interview studies (1928 – 1931)
Bank Wiring Observation Room
Personnel counseling programme (1936)
Discoveries of Mayo
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The amount of work carried out by a worker is
not determined by his or her physical capacity,
but by his or her social capacity.
Non-economic rewards play a central role in
determining the motivation and happiness of
the worker.
The highest specialization is by no means the
most efficient form of division of labor.
Workers do not react to management its norms
and rewards as individuals, but as groups.
Mayo’s Conclusions
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Behavior and sentiments were closely related,
group influence significantly affected individual
behaviors,
group standards established individual worker
output, and
money was less, a factor in determining output
than group standards, group sentiments
Contributions of Hawthorne
Studies
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Placed a concern for people into the main
stream of mgmt thought.
Recognition that the
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Feelings, attitudes, background, need & social
relationships of people are crucial to effective mgmt
and
That efficiency and productivity in business require
a better utilization of human resources.
Contributions of Hawthorne
Studies
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Called for a new mix of managerial skills,
namely:
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Diagnostic skills
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Interpersonal skills
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understanding new behavior
counseling, motivating, leading and communication
Technical skills
Criticisms of The Hawthorne Studies
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Methodology & failure of investigates to
sufficient account of environmental factors.
Major flaws in the study included changing
several factors at the same time.
Lessons from the Behavioral
Approach
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People are the key to productivity.
Success depends on motivated and skilled
individuals committed to the organization.
Managerial sensitivity to employees is
necessary to foster the cooperation needed for
high productivity.
The Human Relations Movement
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emphasized the role of communication, participation and
leadership
assumed that the most satisfying organization would be
the most efficient
pointed out that workers would not be happy in
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cold, formal, rational orgs that only satisfied their economic
needs.
Happy employees would be cooperative and thus increase
organization efficiency
It pointed to a perfect balance between the
organization’s goals and the workers needs
The Human Relations Movement
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emphasized the importance of:
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communication between ranks,
explaining to the lower participants the reasons why
a particular course of action was taken,
lower ranks participation in decision making,
particularly in matters that affect directly.
Criticisms
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It did not have a full view of the organization
It viewed the factory as a family, rather than
– a power struggle among groups with
conflicting interests
Eg
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Supportive supervision and good human relations
may not automatically lead to higher morale or even
better job performance.
The Systems Approach
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A system is:
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An organization is a system with many departments that
are linked by people working together.
The systems viewpoint of management represents an
approach to solving problems by:
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an association of interrelated and interdependent parts.
diagnosing them within a framework of what are called the
systems inputs,
transformation processes, and
outputs, in the light of feedback.
Chester I. Barnard’s Early Systems
Perspective
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He saw organizations as social systems that require
employee cooperation if they are to be effective.
He viewed organizations as made up of people who
have interacting social relationships.
As such, the managers’ major roles were to
communicate and stimulate subordinates to high levels
of effort.
Barnard saw that a major part of an organization’s
success depended on maintaining good relations with
its personnel.
Chester I. Barnard’s Early Systems
Perspective cont’d
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Successful management depends on maintaining good
relations with people outside the organization, and
others with whom managers deal regularly.
By recognizing the organization’s dependence on
investors, suppliers, customers and other outside
interests, he introduced the idea that:
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managers have to examine the organization’s external
environment and
adjust its internal structure to maintain a balance between the
two.
General Systems Theory
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Is based on the assumptions that everything is
part of a larger, interdependent arrangement
Levels of systems (Kreitner 2007, p.45)
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Each system is a subsystem of the system above it.
Identification of systems at various levels helps
translate abstract systems theory into more
concrete terms.
Levels of Living Systems (Kreitner 2007,
p.46)
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General Systems Theory (cont’d)
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Closed Versus Open Systems
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Closed system:
 A self-sufficient entity
Open system:
 Something that depends on its surrounding
environment for survival
Systems are classified as open / closed by
how much / how little they interact with their
environments.
Lessons From The System Approach
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Mgrs have greater appreciation for the importance of
seeing the whole picture
Open-systems thinking encourages awareness of both
internal & external realities.
The systems approach also works to integrate various
mgmt theories.
Critics say:
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the systems approach is nice in theory, but
short on facts and practical advice.
The Contingency Approach
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Contingency Approach
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A research effort to determine which managerial
practices and techniques are appropriate in specific
situations
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Different situations require different managerial responses.
It deals with intercultural feelings in which custom and
habits cannot be taken for granted.
The Contingency Approach (cont’d)

Lessons from the Contingency Approach
–
–
–
79
it emphasizes situational appropriateness,
rather than
rigid adherence to universal principles.
Critics say:
• It creates the impression that an
organization is captive to its environment
Mgmt Science Approach



The study of complex systems of people, money,
equipment and procedures, with the
goal of understanding them and improving their
effectiveness (Bittel & Ramsey, 1985)
Studies are conducted through:
–
–
80
the use of scientific method, utilizing tools and
knowledge from the physical, mathematical and
behavioral sciences.
Its ultimate purpose is to provide the mgr with a sound,
scientific and quantitative basis for decision making.
Mgmt Science Approach cont’d

The quantitative techniques include:
–

81
simulation forecasting, inventory modeling, network
modeling and break-even analysis.
The major area of application is in the
production and operations management to
solve problems of scheduling and budgeting
and maintenance of inventory levels.
Limitations


82
The models neglect non-quantifiable factors
such as subjective, political and behavioral
issues and in consequence, the important
human element is left out.
This approach may not be suitable for noroutine
or
unpredictable
management
decisions.
Contemporary Mgmt a Synthesis

Contemporary management is a synthesis of
the five approaches to management:
1.
2.
3.
4.
5.
83
Classical
Behavioral
Systems
Contingency, and
Management science / decision making approach
Contemporary Mgmt a Synthesis
cont’d
1.
Scientific management:
–
–
–
84
provides a means for competing more effectively
with foreign firms.
Firms are placing renewed emphasis on job
design, making products simpler, and
scientifically examining the workplace to improve
work functions.
Contemporary Mgmt a Synthesis
cont’d
2.
Behavioral approach
–
–
–
–
85
Chester Barnard's concern for communication and cooperation
and
Douglas McGregor's belief in participation to improve both
effectiveness and efficiency can be seen throughout business
today.
Managerial sensitivity to employees is necessary to foster the
cooperation needed for high productivity
Emotional factors were a more important determinant of
productive efficiency than physical and logical factors were
Contemporary Mgmt a Synthesis
cont’d
3.
4.
Systems approach
– is also being used more than ever, as a problem
solving approach. Organisations build complex
models to evaluate the impact of their decisions on
other Stakeholders.
Contingency approach
–
–
86
more and more managers are practicing
contingency theory management.
they examine the variables in a problem - solving
situation and then make decisions based on
experience, and knowledge
Contemporary Mgmt a Synthesis
cont’d
5.
Management science approach
–
87
Both managers and operating employers are
increasingly using management science
techniques in their efforts to become more
competitive and make better decisions
Japanese Mgmt Practices


Embody many aspects of the 5 approaches to
management.
Japanese mgrs have refined some techniques
and practices, and
–

88
have imitated many of the more desirable aspects of
American management philosophy.
The Japanese have been so successful with
their management approaches that they have
come to dominate many foreign markets.
Japanese Mgmt Practices cont’d
Are based on several important principles:

I.
II.
III.
IV.
V.
VI.
89
VII.
Participative management
Job design
Quantitative methods
Effectiveness and efficiency
Increasing productivity through group decision
making
Holistic treatment of employees, who are seen as
interchangeable parts.
Cooperation and harmony in the workplace.
Excellence in Mgmt


An approach in which characteristics of
excellent firms are used as models for other
firms
Thomas J. Peters and Robert H. Waterman
suggest that:
–
–
financially successful companies possess certain
characteristics that result in excellence.
The set of characteristics is based on:


90
information gathered from interviews and questionnaires,
and
on secondary data obtained principally from thirty-three
leading U.S companies.
Excellence in Mgmt cont’d

Characteristics that result in excellence:
1.
Fleet-of-foot

2.
Simple form and lean staff


91
successful companies rely on a few bright people to
experiment for a while with cheap prototypes, testing out
ideas on a few intimate customers.
the innovative, fleet-of-foot operation is only possible
because the company superstructure of top-level
executives is kept lean, and
the organisation structure is simple and flexible
Excellence in Mgmt cont’d
3.
Autonomy and entrepreneurship
–
It is necessary to have enough innovative people and they must
be given the autonomy to operate freely.

4.
Close to customers
–
–
–
–
92
This demands mutual trust and a willingness to accept a
reasonable number of mistakes.
customers are colleagues, part of the business and first among
equals.
They serve through informing management what their needs
are, and
how well they are, or are not, being satisfied.
Listening to them is often the spark that fires innovation.
Excellence in Mgmt cont’d
5.
Simultaneous loose-tight properties
–
–
most managers are used to conventional, rigid, hierarchical
structures, in which they exercise tight control.
Top managers of successful companies


–
–
93
concentrate only on those things that must be centrally determined,
and
as much responsibility and authority as possible is placed wherever
it can best be exercised.
Instead of communication barriers that exist in some traditional
companies, there is
a lively human interaction between the conductor and the
players.
Excellence in Mgmt cont’d
6.
Sticking to the knitting
–
–
7.
Productivity through people
–
94
ensuring that everyone is playing the same tune,
or
engaging only in ventures in which the company
has complete competence.
The way people make use of the equipment
provided, will determine the quality and
productivity.
Excellence in Mgmt cont’d
8.
Hands-on, value driven
–
9.
managers who spend nearly all of them time in seclusion of
their offices, relating only to a few individuals who are directly
responsible to them.
There are also managers who spend very little of their
time in that way.
–
–
They prefer to be out visiting operational units, R&D
laboratories, customers & suppliers, gaining direct knowledge of
all kinds.
Through their 'walking the floor" they are able continuously to:


95
–
express to employees in words and actions, the
vision and values of the company.
Peters and Austin's MBWA is what is most needed in times of
rapid change and uncertainty.
Excellence in Mgmt cont’d


The excellence characteristics are often
viewed as the way to manage.
Peters and waterman found that successful
companies:
–
–
96
avoid management science approaches, and
emphasize "softer' issues such as closeness to the
customer and the importance of innovation.
Limitations




97
The Peters and Waterman study has been
criticized for not being very systematic.
Only successful companies were studied.
It is possible that unsuccessful companies had
similar characteristics.
Moreover, several of the firms included in the
study subsequently experienced financial or
market difficulties.
Strength

98
The excellence approach in which these
characteristics are used as a model, changed
management significantly
Summary




99
Management is an interdisciplinary and
international field that has evolved over the years.
The operational approach has evolved from
scientific management to operations management.
Quality advocates teach the strategic importance
of high-quality goods and services.
Management has turned to the human factor in the
human relations movement and organizational
behavior approach.
Summary (cont’d)



100
Under the systems approach, modern
organizations are viewed as open systems.
The contingency approach stresses situational
appropriateness rather than universal
principles.
A quick-fix is unlikely to solve an organization’s
unique problems.
The End
Unit 3 - 6
101