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University of Technology, Jamaica

School of Business Administration

MAN1006: Introduction to Management


(Groups~BBA1)
Lecture 2 – The Evolution of Management
Lecturer: Oswy Gayle
Monday September 6, 2010 (1:00-3:00 p.m.)
1
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Test Alert !
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Format
• 35 Multiple choice
• 5 True or False
• Four (4) Essays to choose one (1)
Recap of Lecture 1
The Management Process
and the Changing
Paradigm of Management
Recap -Context
• Management involves several process, functions,
skills and roles in order to be effective and
efficient in any project/activity/job or business.

• Businesses all satisfy economic needs by offering


goods and services to the public at a premium
Recap
• There are driving forces in and outside the
organizations which are forcing it to manage
more effectively
• Successful organizations don’t just happen...
they are managed to be that way!

• Management is about coping with


change and therefore, it is the process
of tying the organization together so
that it achieves its goals and objectives.
The Changing Dynamics of
Organizations

Driving
Driving Forces
Forces
1.
1. Telecommunications
Telecommunications
2.
2. Diversity
Diversityof
ofWorkers
Workers
3.
3. Public
Publicconsciousness
consciousness
4.
4. Global
Globalmarketplace
marketplace
5.
5. Community
Communityof ofstakeholders
stakeholders
6.
6. The
Thepace
paceof
ofknowledge
knowledge
What is Management? (cont’d)

3. Management is the process of creating an


environment through which order,
efficiency, and effectiveness are achieved
through appropriate planning, leadership,
organizing and controlling so as to
accomplish organizational goals and
respond to its changing environments.
(Gayle, 2009)
Recap
• There are four main functions of
management
• Managers make decision and therefore
need several skills to be able to do their
roles at all levels of the organizational
hierarchy.
• As our environment changes, so too the
nature of Management which ultimately
creates a New Workplace
Lecture 2
– The Evolution of Management -
Monday September 6, 2010
OBJECTIVES
1. Context of the Lecture
2. Understand how historical forces influence the
practice of management
3. Components of the classical and humanistic
perspectives
4. Look at the management science perspective
LEARNING

5. A look at the systems theory, the contingency


view and total quality management
6. The learning organization and the technology
driven workplace
7. The Technology Driven Workplace and its
impact on management
Context
• We are a product of history – our societies,
developments etc.

• If the Energies of the Universe is our first


parent, then History is our second parent.

• We emerge from history – actually


everything does. We are History Makers.
Context
• The nature of business and management is changing
rapidly – A diskette is now a history lesson
• We should not forget the historical contexts that
brought us where we are today.
• An understanding of past events not only impact our way
going forward, but also, is the very foundation on which new
management concepts are built.
The Importance of
Historical Perspective
• Provides a context of the environment
(opportunities and Problems)
• Helps us to look at the future through the
lenses of the past – For the understanding
of the present and future
• Develops an understanding of societal
impacts and track changes via history
The Importance of
Historical Perspective
(cont’d)
• Learn from others mistakes
and use the best practices
• Achieves strategic thinking
• Improves conceptual skills
Where are we now? What next?

• How did we get to


where we are
today?
The Story before the Story

• Garden of Eden - ????????????????


• The Roman Empire - 27 BC to AD 235
• 3000 B.C.E – Sumerians and
Egyptians - The first government organizations
The Pyramid Era

• Some form of Management must have taken place


• The Egyptian Pyramids are the oldest and only
surviving member of the ancient wonders.
• Today there are about eighty (80) surviving
pyramids in Egypt, the three largest and best
preserved of these being at Giza, near the city of
Cairo.
• They were built at the beginning of what we call the
Old Kingdom, starting around 2560BC (over 4,500
years ago!)
The Spread of Economic Prosperity
• 1400 - 1600 C.E. - The Renaissance Period

• 1560-1791 - Reformation or the French


Revolution
• 1619 – 1838 - Slavery

• Mid-1700 – the world was relatively poor,


with overall very low standards of living
The Spread of Economic Prosperity

• Up to 1800 most of the world was


relatively even in terms of per capita
income
• Britain used to get technology from
China

• Then came the Industrial Revolution –


Why Britain/Europe?
• 1820 – The biggest gap of economic growth
– British society was relatively open

– Political liberty

– Became the leading centre for scientific


revolution

– Geographical advantage to the rest of Europe


– Remained Sovereign
– Coal became a driver of economic prosperity
The Spread of Economic Prosperity
• And by 1850, England had become an economic
titan.

• Its goal was to supply two-thirds of the globe with


cotton spun, dyed, and woven in the industrial
centers of northern England.

• England proudly proclaimed itself to be the


"Workshop of the World," a position held until
the end of the 19th century when Germany, Japan
and United States overtook it.
The Spread of Economic Prosperity
in England
• Scientific advances were dramatic
• New technologies coupled with coal power
and market forces created the industrial
revolution
• Now this changed the way people think,
lived, worked and formed families etc.
• This level of technology started to spread
abroad creating a wave of change all over
the world (British-led Globalization)
OBJECTIVES
2.Understand how
historical forces influence
the practice of
management
LEARNING
So, how did historical
forces influenced the
practice of management ?
What (forces) influenced
management thought?
Main forces
• Social
• Political
• Economic
Sub-force
» Knowledge
What (forces) influenced
management thought?
1. Social – aspects of culture that guides our
behaviour (Generation X and Y)
Questions: What do people value? What do people
need? What are the standards of behaviour?
Depression Era (up to 1945) [now age 65 and over]
– Baby boomers (1946 to 1964 ) [now age 46 - 64]
– Generation X (1965 to 1979) [now age 31 – 45)
– Generation Y (1980 and 1984) [now age 26 - 30]
Generation Y (1985 – 1990) [ Now age 20 – 25]
– Generation Z (1991 and before 2004) [now age 6 - 19]
What influences management thought?
Gen X and Y Differences (cont’d)
a. Autonomy
• X - give them direction, and then leave them to it
• Y - questions, questions, questions

b. Loyalty
• X - they are committed as everyone else working
there
• Y - already working out their exit strategy
What influences management
thought? (cont’d)
2. Political –influence of politics and legal
institutions on people and organization
• The formation of the UN, IMF
• The need for self-government, property rights,
contract rights, and justice
• The spread of capitalism has altered the business
landscape Worldwide
• The growing interdependence amongst countries
What influences management
thought? (cont’d)
3. Economic – availability, production
and distribution of resources (now about
ideas, information and knowledge)
• Formation of the WTO and other such agreements

• The economy of the United States and other


developed countries is shifting with the sources of
wealth, distribution and decision-making.

• The new emerging economy is based largely on


ideas, information, and knowledge; supply chains
have been revolutionized by digital technology.
What Evolution?
• What are we talking about?

• Evolution - how anything moves from one


period or state to another and the fusion of those
periods, states, ideas, thoughts, perspectives etc.
• For example - ska, rock steady, reggae, dancehall,
what ever we have today.
Management Perspectives Over
Time – The Story

2000
The Technology-Driven Workplace
1990 2010
The Learning Organization
1980 2010
Total Quality Management
2000
1970
Contingency Views
1950 2000
Systems Theory
1940 2000
Management Science Perspective
1930 1990
Humanistic Perspective
1890 1990
Classical 1940
1870 2010
OBJECTIVES
1.Components of the
classical and humanistic
perspectives
2.Look at the
LEARNING

management science
perspective
Theories and Perspectives that
Contributed to the Field of Management

• A. Classical Perspective

• B. Humanistic Perspective

• C. Management Science Perspective


The Development of Management
Thought
A.Classical Perspective – formal study of
management began here
1800s
• Industrial revolution (Europe)– The railways led to
economic change
• Factory System (From Craftsmen to Machines)
• Problems in the factory - tooling, training, structures,
• Managers forced to find solutions
• View Organization as a machine – efficiency –
bureaucracy.
Why the name classical?
A.Classical Perspective or Scientific managers?

B.Prescriptive nature of organizations – i.e. – what


is good for organizations
The Development of Management
Thought
Classical Perspective - This perspective
contains three sub fields, each with a slightly
different emphasis:

A. Scientific management,

B. Bureaucratic organizations,

C. Administrative principles.
Contributors
• Many persons contributed to the
development of management
• Practicing managers (Practitioners)
– Experiences, theories and reflections
• Social Scientists (Researchers/Academics)
Taylorism
• Scientific Management - this is
where some -one up there controls
the lesser beings down there.
Taylor was not for this view.
Classical Theory -

1. Scientific Management - Frederick W.


Taylor (1856-1915) - American
• Scientific management - so named because the first set of
managers were Engineers not trained managers
• Taylor turned to "science" as a solution to the inefficiencies and
injustices of the period (Industrial Revolution). His idea of
breaking a complex task into a sequence of simple subtasks was
well received
• He suggested that they worked according to scientific laws.
Management must takeover and perform much of the work
which is now left to the men; almost every act of the workman
should be preceded by one or more preparatory acts of the
management which enable him to do his work better and quicker
than he otherwise could.
Scientific Management (cont’d)
• Taylor suggested decisions based on rules of thumb
and tradition be replaced with precise work
procedures developed after careful study of the
situation.

• In 1898, Taylor used the unloading of iron from rail


cars and reloading finished steel to calculate the
correct movements and tools needed to increase
productivity.
• Taylor worked out an incentive system that paid each
man $1.85 instead of $1.15 a day for meeting the
new standard; productivity shot up.
Classical Theory -

Scientific Management - Frederick W. Taylor (1856-1915)

• Taylor further believed that the workload would be evenly shared


between the workers and management with management
performing the science and instruction and the workers
performing the labor, each group doing "the work for which it
was best suited."
• Develops standards for a job, selects workers with appropriate
abilities, trains workers, supports workers and eliminates
interruptions, and provides wage incentives. (more tons per day)

• Because scientific management ignored the social context and


workers’ needs, it led to increased conflict and clashes between
management and employees.
Scientific Management
Contributions
• Demonstrated the importance of compensation for performance.
• Initiated the careful study of tasks and jobs.
• Demonstrated the importance of personnel and their training.

Criticisms
• Did not appreciate social context of work and higher needs of workers.
• Did not acknowledge variance among individuals.
• Tended to regard workers as uninformed and ignored their ideas
2. Bureaucratic Organizations
• Max Weber (1864-1920) - Germany
• Published the theory of Social and
Economic Organizations
• A systematic approach developed in Europe that looked at the
organization as a whole
• Max Weber (1864-1920) - introduced management on an
impersonal, rational basis through defined authority and
responsibility, formal recordkeeping, and separation of
management and ownership.
• Weber’s organization was the bureaucracy: division of labor,
hierarchy, rules and procedures, written decisions and promotion
based on technical qualifications
3. Administrative principles
Contributors - Henri Fayol (1841-1925), Mary
Parker, and Chester I. Barnard
•Henri Fayol (1841-1925) - French Engineer
•Focused on the total organization rather than the
individual worker, define the management functions
of planning, organizing, commanding (Leading),
coordinating, and controlling.
3. Administrative principles
Contributors - Mary Parker Follett (1868 – 1993), and
Chester I. Barnard

•Mary Parker Follett (American/Philosopher/management


theorist) - Importance of common super-ordinate goals for
reducing conflict in organizations and leadership

•Chester I. Barnard - Informal Organization; employees were not


machines and that informal relationships are powerful forces that can
help the organization.
Theories and Perspectives that
Contributed to the Field of Management

• A. Classical Perspective

• B. Humanistic Perspective

• C. Management Science Perspective


Management Perspectives Over
Time – The Story
2000
The Technology-Driven Workplace
1990 2010
The Learning Organization
1980 2010
Total Quality Management
2000
1970
Contingency Views
1950 2000
Systems Theory
1940 2000
Management Science Perspective
1930 1990
Humanistic Perspective
1890 1990
Classical 1940
1870 2010
The Development of Management –
B. Humanistic Theory
A group of perspectives that emphasized the
understanding of human behavior, needs, and
attitudes in the workplace context
Sub-fields
1. Human Relations Movement

2. Human Resources Perspective

3. Behavioral Sciences Approach


The Development of Management –
B. Humanistic Theory
Professor Elton Mayo (American) -
• Human Relations Movement - Emphasized that
satisfaction of employees’ basic needs is the key to
increased worker productivity

The Hawthorne Studies - The tests were to determine


the effect of illumination on output; five tests pointed
to the importance of factors other than illumination in
affecting productivity.
The Development of Management –
B. Humanistic Theory

Human Relations Movement


• Early interpretations agreed that human relations
not money caused increased output. Workers
performed better when managers treated them
positively.

• New data showed that money mattered, but


productivity increased because of increased feelings
of importance and group pride felt when selected for
the project.
The Development of Management –
B. Humanistic Theory

2. Human Resources Perspective –

• Maintained an interest in worker participation and


considerate leadership

• Suggests jobs should be designed to meet higher-level needs


by allowing workers to use their full potential (Abraham
Maslow & Douglas McGregory)
Abraham Maslow’s
Hierarchy of Needs 1908-1970

Self-
actualization
Esteem
Belongingness
Safety
Physiological
Based on needs satisfaction
Douglas McGregor
Theory X & Y
1906-1964
Theory X Assumptions
Theory Y Assumptions
• Dislike work –will avoid it • Do not dislike work
• Must be coerced, controlled, directed, or • Self direction and self control
threatened with punishment
• Seek responsibility
• Prefer direction, avoid responsibility, • Imagination, creativity widely
little ambition, want security
distributed
• Intellectual potential only
partially utilized
The Development of Management –
B. Humanistic Theory

3. Behavioral Sciences Approach –


● Applies social science in an organizational context;
Draws from economics, psychology, sociology,
anthropology, and other disciplines;
● Doing research to find the best interview questions
and best tests to select workers are examples
● The Field of Organizational Development was born
Theories and Perspectives that
Contributed to the Field of Management

• A. Classical Perspective
• B. Humanistic Perspective

• C. Management Science
Perspective
Management Perspectives Over Time
– The Story
2000
The Technology-Driven Workplace
1990 2010
The Learning Organization
1980 2010
Total Quality Management
2000
1970
Contingency Views
1950 2000
Systems Theory
1940 2000
Management Science Perspective
1930 1990
Humanistic Perspective
1890 1990
Classical 1940
1870 2010
3. Management Science
Perspective
• Emerged after WW II
• The frequency with which material and people had to
move from place to place gave rise to several
problems and opportunities after the war

• New Breed of Managers - former war-fighting


personnel were used to manage businesses using
those same techniques used in army combats
3. Management Science
Perspective
• And so the application of mathematics,
statistics, and other quantitative techniques to
managerial problems grew.
Operations Research – mathematical modeling
Operations Management – specializes in physical
production of goods or services
Information Technology – reflected in management
information systems

The real birth of American-led


Globalization or at least an increase
Recent Historical Trends

1. Systems Theory -

2. Contingency View -

3. Total Quality Management (TQM)


Recent Historical Trends
1. Systems Theory - A system is a set of interrelated parts that
function as a whole to achieve a common purpose.

• A system functions by taking inputs from the external


environment, transforming them, and then discharging the
transformed input back into the environment.
Recent Historical Trends
1. Systems Theory -
• 1960s – a group of theorists challenged the dominance of
psychology and human relations
• The claim was that organizations are more than just about human
behaviour but a complex system of people, technology and tasks.

• The arguments were that human is not the only important


considerations in achieving organizational effectiveness.
Systems View of Organizations

Exhibit 2.5, p. 58
2. Contingency View of Management

• Grew out of the systems theory of management


• Successful resolution of organizational
problems is thought to depend on managers’
identification of key variations in the situation at
hand
Exhibit 2.6, p. 59

•Management’s job is to search for important


contingencies to include industry, technology, the
environment, and international cultures
2. Contingency View of Management

• It Depends on the following;


1. The external environment
2. Technological factors
Exhibit 2.6, p. 59

3. Human skills and motivation


2. Contingency View of Management
OBJECTIVES

1.The learning organization


and the technology driven
workplace
LEARNING

2.The Technology Driven


Workplace and its impact on
management
3. Total Quality Management
(TQM)
• TQM focuses on managing the total
organization to deliver quality to customers.

• The ideas of W. Edwards Deming, "father of


the quality movement” were scoffed at in
America but embraced in Japanese which
became an industrial world power.
What is a Learning Organization?
• One of the greatest challenges a current
manager faces is to get employees to move
with the change of time.

• And so the learning organization was out next


stop, - A learning Organization is an
organization in which everyone is engaged in
identifying and solving problems, enabling
the organization to continuously improve, and
increase its capability
Elements of a Learning
Organization

Team-Based Structure

Learning
Organization
Empowered Open
Employees Information
The Technology Driven
Workplace and its impact on
management
• What we have now is a technology invasion
• The online syndrome
• Technology creating new technologies
• New types of jobs been created
• More jobs are now more “Knowledge work”
Types of E-Commerce

Business-to-Consumer (B2C)
Selling Products and
Services Online

Consumer-to-Consumer
Business-to-Business (B2B) (C2C)
Transactions Between Electronic Markets
Organizations Created by Web-Based
Intermediaries
Management Perspectives Over
Time – The Story

2000
The Technology-Driven Workplace
1990 2010
The Learning Organization
1980 2010
Total Quality Management
2000
1970
Contingency Views
1950 2000
Systems Theory
1940 2000
Management Science Perspective
1930 1990
Humanistic Perspective
1890 1990
Classical 1940
1870 2010
Rap up
• We are history makers; we are living histories

• As we speak the world is changing

• An understanding of the past helps to assess


what worked, how far we’ve come and for a
good predictive future

• Studying the past contributes to


understanding the present and future
(Societal, Political and Economic)
Rap up
• The world was not always rich
• From the Garden of Eden to the technology driven office

• Different periods of history contributed to the development


of the field of management

• Theories and Perspectives that Contributed to the


Development of Management
– A. Classical Perspective
– B. Humanistic Perspective
– C. Management Science Perspective
Rap up

● Systems Theory -

● Contingency View -

● Total Quality Management (TQM)


● The Learning Organization
● The Technology Driven office
–Have the best life ever.
References
• Cole, G.A ( 1993) Management, Theory
and Practice – GA
• Daft, R. & Marcic, D. (2007) Management:
The New Workplace (7th edition)
• Websites:
http://www.kernsanalysis.com/sjsu/ise250/h
istory.htm

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