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PartⅠFoundationsofManagement

Chapter1:Management

Ⅱ.TheEvolutionofManagementTheory

PartⅠFoundationsofManagemLearningObjectivesAfterstudying,youshouldbeableto:Explaintheprincipleofjobspecializationanddivisionoflabor,andtellwhythestudyofperson-taskrelationshipsiscentraltothepursuitofincreasedefficiency.Identifytheprinciplesofadministrationandorganizationthatunderlieeffectiveorganizations.Tracethechangeintheoriesabouthowmanagersshouldbehavetomotivateandcontrolemployees2LearningObjectivesAfterstudyLearningObjectives(cont’d)Explainthecontributionsofmanagementsciencetotheefficientuseoforganizationalresources.Explainwhythestudyoftheexternalenvironmentanditsimpactonanorganizationhasbecomeacentralissueinmanagementthought.3LearningObjectives(cont’d)ExContentOutlineScientificManagementTheoryJobSpecializationandtheDivisionofLaborF.W.TaylorandScientificManagementTheGilbrethsAdministrativeManagementTheoryTheTheoryofBureaucracyFayol’sPrinciplesofManagementBehavioralManagementTheoryTheWorkofMaryParkerFollettTheHawthorneStudiesandHumanRelations4ContentOutlineScientificManaContentOutline(cont’d)BehavioralManagementTheory(cont’d)TheoryXandTheoryYManagementScienceTheoryOrganizationalEnvironmentTheoryTheOpenSystemsViewContingencyTheory5ContentOutline(cont’d)BehaviⅡ.TheEvolutionofManagementTheory

1.ScientificManagementTheory

1.1EvolutionofModernManagementBeganintheindustrialrevolutioninthelate19thcenturyas:Managersoforganizationsbeganseekingwaystobettersatisfycustomerneeds.Large-scalemechanizedmanufacturingbegantosupplantingsmall-scalecraftproductioninthewaysinwhichgoodswereproduced.Socialproblemsdevelopedinthelargegroupsofworkersemployedunderthefactorysystem.Managersbegantofocusonincreasingtheefficiencyoftheworker-taskmix.6Ⅱ.TheEvolutionofManagementTheEvolutionofManagementTheoryFigure2.1Source:7TheEvolutionofManagementTh1.2JobSpecializationandtheDivisionofLaborAdamSmith(18thcenturyeconomist)Observedthatfirmsmanufacturedpinsinoneoftwodifferentways:Craft-style—eachworkerdidallsteps.Production—eachworkerspecializedinonestep.RealizedthatjobspecializationresultedinmuchhigherefficiencyandproductivityBreakingdownthetotaljoballowedforthedivisionoflaborinwhichworkersbecameveryskilledattheirspecifictasks.81.2JobSpecializationandth1.3F.W.TaylorandScientificManagement

ScientificManagementThesystematicstudyoftherelationshipsbetweenpeopleandtasksforthepurposeofredesigningtheworkprocessforhigherefficiency.DefinedbyFrederickTaylorinthelate1800’storeplaceinformalruleofthumbknowledge.Taylorsoughttoreducethetimeaworkerspentoneachtaskbyoptimizingthewaythetaskwasdone.91.3F.W.TaylorandScient1.4FourPrinciplesofScientificManagement

Principlestoincreaseefficiency:-Studythewaysjobsareperformednowanddeterminenewwaystodothem.Gatherdetailedtimeandmotioninformation.Trydifferentmethodstoseewhichisbest.-Codifythenewmethodsintorules.Teachtoallworkersthenewmethod.-Selectworkerswhoseskillsmatchtherules.-Establishfairlevelsofperformanceandpayapremiumforhigherperformance.Workersshouldbenefitfromhigheroutput101.4FourPrinciplesofScien1.5ProblemswithScientificManagement

ManagersfrequentlyimplementedonlytheincreasedoutputsideofTaylor’splan.Workersdidnotshareintheincreasedoutput.Specializedjobsbecameveryboring,dull.WorkersendedupdistrustingtheScientificManagementmethod.Workerscouldpurposely“under-perform.”Managementrespondedwithincreaseduseofmachinesandconveyorsbelts.111.5ProblemswithScientific<FrankandLillianGilbreth>RefinedTaylor’sworkandmademanyimprovementstothemethodologiesoftimeandmotionstudies.TimeandmotionstudiesBreakingupeachjobactionintoitscomponents.Findingbetterwaystoperformtheaction.Reorganizingeachjobactiontobemoreefficient.Alsostudiedworker-relatedfatigueproblemscausedbylighting,heating,andthedesignoftoolsandmachines.12<FrankandLillianGilbreth>Re2、AdministrativeManagementTheoryAdministrativeManagementThestudyofhowtocreateanorganizationalstructurethatleadstohighefficiencyandeffectiveness.MaxWeberDevelopedtheconceptofbureaucracyasaformalsystemoforganizationandadministrationdesignedtoensureefficiencyandeffectiveness.132、AdministrativeManagementThWeber’sPrinciplesofBureaucracyFigure2.214Weber’sPrinciplesofBureaucr2.1

Weber’sFivePrinciplesofBureaucracyAuthorityisthepowertoholdpeopleaccountablefortheiractions.Positionsinthefirmshouldbeheldbasedonperformance,notsocialcontacts.Positiondutiesareclearlyidentifiedsothatpeopleknowwhatisexpectedofthem.Linesofauthorityshouldbeclearlyidentifiedsuchthatworkersknowwhoreportstowho.Rules,standardoperatingprocedures(SOPs),andnormsguidethefirm’soperations.152.1Weber’sFivePrincipleso2.2Fayol’sPrinciplesofManagementDivisionofLabor:allowsforjobspecialization.Fayolnotedjobscanhavetoomuchspecializationleadingtopoorqualityandworkerdissatisfaction.AuthorityandResponsibilityFayolincludedbothformalandinformalauthorityresultingfromspecialexpertise.UnityofCommandEmployeesshouldhaveonlyoneboss.162.2Fayol’sPrinciplesofManLineofAuthorityAclearchainofcommandfromtoptobottomofthefirm.CentralizationThedegreetowhichauthorityrestsatthetopoftheorganization.UnityofDirectionAsingleplanofactiontoguidetheorganization.2.2Fayol’sPrinciplesofManagement17LineofAuthority2.2Fayol’sPEquityTheprovisionofjusticeandthefairandimpartialtreatmentofallemployees.OrderThearrangementofemployeeswheretheywillbeofthemostvaluetotheorganizationandtoprovidecareeropportunities.InitiativeThefosteringofcreativityandinnovationbyencouragingemployeestoactontheirown.2.2Fayol’sPrinciplesofManagement18Equity2.2Fayol’sPrinciplesDisciplineObedient,applied,respectfulemployeesarenecessaryfortheorganizationtofunction.RemunerationofPersonnelAnequitableuniformpaymentsystemthatmotivatescontributestoorganizationalsuccess.StabilityofTenureofPersonnelLong-termemploymentisimportantforthedevelopmentofskillsthatimprovetheorganization’sperformance.2.2Fayol’sPrinciplesofManagement19Discipline2.2Fayol’sPrincipSubordinationofIndividualInteresttotheCommonInterestTheinterestoftheorganizationtakesprecedenceoverthatoftheindividualemployee.EspritdecorpsComradeship,sharedenthusiasmfosterdevotiontothecommoncause(organization).2.2Fayol’sPrinciplesofManagement20SubordinationofIndividualIn3、BehavioralManagementTheory3.1BehavioralManagementThestudyofhowmanagersshouldbehavetomotivateemployeesandencouragethemtoperformathighlevelsandbecommittedtotheachievementoforganizationalgoals.Focusesonthewayamanagershouldpersonallymanagetomotivateemployees.213、BehavioralManagementTheory3.2MaryParkerFollettAninfluentialleaderinearlymanagerialtheoryHeldahorizontalviewofpowerandauthorityinorganizationsSuggestedworkershelpinanalyzingtheirjobsforimprovements—theworkerknowsthebestwaytoimprovethejob.Ifworkershaverelevantknowledgeofthetask,thentheyshouldcontrolthetask.3、BehavioralManagementTheory223.2MaryParkerFollett3、Beha3.3TheHawthorneStudiesStudiesofhowcharacteristicsoftheworksettingaffectedworkerfatigueandperformanceattheHawthorneWorksoftheWesternElectricCompanyfrom1924-1932.Workerproductivitywasmeasuredatvariouslevelsoflightillumination.Researchersfoundthatregardlessofwhetherthelightlevelswereraisedorlowered,workerproductivityincreased.233.3TheHawthorneStudiesStuHumanRelationsImplicationsHawthorneeffect—workersrespondedtotheattentiontheyreceivedandweremoreproductive.Managersshouldbebehaviorallytrainedtomanagesubordinatestoelicittheircooperationandincreasetheirproductivity.Groupsimposeinformalperformancenormsontheirmembers(both“ratebusters”and“chiselers”)GaverisetothefieldofOrganizationalBehaviorThestudyofthefactorsthathaveanimpactonhowindividualsandgroupsrespondtoandactinorganizations.3.3TheHawthorneStudies24HumanRelationsImplications3.3.4TheoryXandTheoryYDouglasMcGregorproposedthetwodifferentsetsofassumptionsaboutworkers.TheoryXassumestheaverageworkerislazy,dislikesworkandwilldoaslittleaspossible.Managersmustcloselysuperviseandcontrolthroughrewardandpunishment.TheoryYassumesworkersarenotlazy,wanttodoagoodjobandthejobitselfwilldetermineiftheworkerlikesthework.Managersshouldallowworkersgreaterlatitude,andcreateanorganizationtostimulatetheworkers.253.4TheoryXandTheoryYDoTheoryXversusTheoryYFigure2.3Source:26TheoryXversusTheoryYFigure4、ManagementScienceTheoryAnapproachtomanagementthatusesrigorousquantitativetechniquestomaximizetheuseoforganizationalresources.Quantitativemanagement—utilizeslinearprogramming,modeling,simulationsystems.Operationsmanagement—techniquestoanalyzeallaspectsoftheproductionsystem.TotalQualityManagement(TQM)—focusesonimprovingqualitythroughoutanorganization.ManagementInformationSystems(MIS)—providesinformationabouttheorganization.274、ManagementScienceTheoryAn5、OrganizationalEnvironmentTheory5.1OrganizationalEnvironmentThesetofforcesandconditionsthatoperatebeyondanorganization’sboundariesbutaffectamanager’sabilitytoacquireandutilizeresources.285、OrganizationalEnvironmentT5.2OpenSystemAsystemthattakesresourcesforitsexternalenvironmentandconvertsthemintogoodsandservicesthatarethensentbacktothatenvironmentforpurchasebycustomers.Inputs:theacquisitionofexternalresources.Conversion:theprocessingofinputsintogoodsandservices.Output:thereleaseoffinishedgoodsintotheenvironment.5、OrganizationalEnvironmentTheory295.2OpenSystem5、OrganizatioTheOrganizationasanOpenSystemFigure2.430TheOrganizationasanOpenSy6、

ContingencyTheoryContingencyTheoryTheideathattheorganizationalstructuresandcontrolsystemsmanagerchoosedependon—arecontingenton—characteristicsoftheexternalenvironmentinwhichtheorganizationoperates.Assumesthereisnoonebestwaytomanage.Theenvironmentimpactsthefirmandmanagersmustbeflexibletoreacttoenvironmentalchanges.Inrapidlychangingorganizationalenvironments,managersmustfindwaystocoordinatedifferentdepartmentstorespondquicklyandeffectively.316、ContingencyTheoryContingenContingencyTheoryofOrganizationalDesignFigure2.5Source:32ContingencyTheoryofOrganiza<MechanisticandOrganicStructures>MechanisticStructureAuthorityiscentralizedatthetop.(TheoryX)Employeesarecloselymonitoredandmanaged.Canbeveryefficientinastableenvironment.OrganicstructureAuthorityisdecentralizedthroughouttheorganization.(TheoryY)Tasksandrolesareleftambiguoustoencourageemployeestoreactquicklytochangingenvironment.33<MechanisticandOrganicStrucPartⅠFoundationsofManagement

Chapter1:Management

Ⅱ.TheEvolutionofManagementTheory

PartⅠFoundationsofManagemLearningObjectivesAfterstudying,youshouldbeableto:Explaintheprincipleofjobspecializationanddivisionoflabor,andtellwhythestudyofperson-taskrelationshipsiscentraltothepursuitofincreasedefficiency.Identifytheprinciplesofadministrationandorganizationthatunderlieeffectiveorganizations.Tracethechangeintheoriesabouthowmanagersshouldbehavetomotivateandcontrolemployees35LearningObjectivesAfterstudyLearningObjectives(cont’d)Explainthecontributionsofmanagementsciencetotheefficientuseoforganizationalresources.Explainwhythestudyoftheexternalenvironmentanditsimpactonanorganizationhasbecomeacentralissueinmanagementthought.36LearningObjectives(cont’d)ExContentOutlineScientificManagementTheoryJobSpecializationandtheDivisionofLaborF.W.TaylorandScientificManagementTheGilbrethsAdministrativeManagementTheoryTheTheoryofBureaucracyFayol’sPrinciplesofManagementBehavioralManagementTheoryTheWorkofMaryParkerFollettTheHawthorneStudiesandHumanRelations37ContentOutlineScientificManaContentOutline(cont’d)BehavioralManagementTheory(cont’d)TheoryXandTheoryYManagementScienceTheoryOrganizationalEnvironmentTheoryTheOpenSystemsViewContingencyTheory38ContentOutline(cont’d)BehaviⅡ.TheEvolutionofManagementTheory

1.ScientificManagementTheory

1.1EvolutionofModernManagementBeganintheindustrialrevolutioninthelate19thcenturyas:Managersoforganizationsbeganseekingwaystobettersatisfycustomerneeds.Large-scalemechanizedmanufacturingbegantosupplantingsmall-scalecraftproductioninthewaysinwhichgoodswereproduced.Socialproblemsdevelopedinthelargegroupsofworkersemployedunderthefactorysystem.Managersbegantofocusonincreasingtheefficiencyoftheworker-taskmix.39Ⅱ.TheEvolutionofManagementTheEvolutionofManagementTheoryFigure2.1Source:40TheEvolutionofManagementTh1.2JobSpecializationandtheDivisionofLaborAdamSmith(18thcenturyeconomist)Observedthatfirmsmanufacturedpinsinoneoftwodifferentways:Craft-style—eachworkerdidallsteps.Production—eachworkerspecializedinonestep.RealizedthatjobspecializationresultedinmuchhigherefficiencyandproductivityBreakingdownthetotaljoballowedforthedivisionoflaborinwhichworkersbecameveryskilledattheirspecifictasks.411.2JobSpecializationandth1.3F.W.TaylorandScientificManagement

ScientificManagementThesystematicstudyoftherelationshipsbetweenpeopleandtasksforthepurposeofredesigningtheworkprocessforhigherefficiency.DefinedbyFrederickTaylorinthelate1800’storeplaceinformalruleofthumbknowledge.Taylorsoughttoreducethetimeaworkerspentoneachtaskbyoptimizingthewaythetaskwasdone.421.3F.W.TaylorandScient1.4FourPrinciplesofScientificManagement

Principlestoincreaseefficiency:-Studythewaysjobsareperformednowanddeterminenewwaystodothem.Gatherdetailedtimeandmotioninformation.Trydifferentmethodstoseewhichisbest.-Codifythenewmethodsintorules.Teachtoallworkersthenewmethod.-Selectworkerswhoseskillsmatchtherules.-Establishfairlevelsofperformanceandpayapremiumforhigherperformance.Workersshouldbenefitfromhigheroutput431.4FourPrinciplesofScien1.5ProblemswithScientificManagement

ManagersfrequentlyimplementedonlytheincreasedoutputsideofTaylor’splan.Workersdidnotshareintheincreasedoutput.Specializedjobsbecameveryboring,dull.WorkersendedupdistrustingtheScientificManagementmethod.Workerscouldpurposely“under-perform.”Managementrespondedwithincreaseduseofmachinesandconveyorsbelts.441.5ProblemswithScientific<FrankandLillianGilbreth>RefinedTaylor’sworkandmademanyimprovementstothemethodologiesoftimeandmotionstudies.TimeandmotionstudiesBreakingupeachjobactionintoitscomponents.Findingbetterwaystoperformtheaction.Reorganizingeachjobactiontobemoreefficient.Alsostudiedworker-relatedfatigueproblemscausedbylighting,heating,andthedesignoftoolsandmachines.45<FrankandLillianGilbreth>Re2、AdministrativeManagementTheoryAdministrativeManagementThestudyofhowtocreateanorganizationalstructurethatleadstohighefficiencyandeffectiveness.MaxWeberDevelopedtheconceptofbureaucracyasaformalsystemoforganizationandadministrationdesignedtoensureefficiencyandeffectiveness.462、AdministrativeManagementThWeber’sPrinciplesofBureaucracyFigure2.247Weber’sPrinciplesofBureaucr2.1

Weber’sFivePrinciplesofBureaucracyAuthorityisthepowertoholdpeopleaccountablefortheiractions.Positionsinthefirmshouldbeheldbasedonperformance,notsocialcontacts.Positiondutiesareclearlyidentifiedsothatpeopleknowwhatisexpectedofthem.Linesofauthorityshouldbeclearlyidentifiedsuchthatworkersknowwhoreportstowho.Rules,standardoperatingprocedures(SOPs),andnormsguidethefirm’soperations.482.1Weber’sFivePrincipleso2.2Fayol’sPrinciplesofManagementDivisionofLabor:allowsforjobspecialization.Fayolnotedjobscanhavetoomuchspecializationleadingtopoorqualityandworkerdissatisfaction.AuthorityandResponsibilityFayolincludedbothformalandinformalauthorityresultingfromspecialexpertise.UnityofCommandEmployeesshouldhaveonlyoneboss.492.2Fayol’sPrinciplesofManLineofAuthorityAclearchainofcommandfromtoptobottomofthefirm.CentralizationThedegreetowhichauthorityrestsatthetopoftheorganization.UnityofDirectionAsingleplanofactiontoguidetheorganization.2.2Fayol’sPrinciplesofManagement50LineofAuthority2.2Fayol’sPEquityTheprovisionofjusticeandthefairandimpartialtreatmentofallemployees.OrderThearrangementofemployeeswheretheywillbeofthemostvaluetotheorganizationandtoprovidecareeropportunities.InitiativeThefosteringofcreativityandinnovationbyencouragingemployeestoactontheirown.2.2Fayol’sPrinciplesofManagement51Equity2.2Fayol’sPrinciplesDisciplineObedient,applied,respectfulemployeesarenecessaryfortheorganizationtofunction.RemunerationofPersonnelAnequitableuniformpaymentsystemthatmotivatescontributestoorganizationalsuccess.StabilityofTenureofPersonnelLong-termemploymentisimportantforthedevelopmentofskillsthatimprovetheorganization’sperformance.2.2Fayol’sPrinciplesofManagement52Discipline2.2Fayol’sPrincipSubordinationofIndividualInteresttotheCommonInterestTheinterestoftheorganizationtakesprecedenceoverthatoftheindividualemployee.EspritdecorpsComradeship,sharedenthusiasmfosterdevotiontothecommoncause(organization).2.2Fayol’sPrinciplesofManagement53SubordinationofIndividualIn3、BehavioralManagementTheory3.1BehavioralManagementThestudyofhowmanagersshouldbehavetomotivateemployeesandencouragethemtoperformathighlevelsandbecommittedtotheachievementoforganizationalgoals.Focusesonthewayamanagershouldpersonallymanagetomotivateemployees.543、BehavioralManagementTheory3.2MaryParkerFollettAninfluentialleaderinearlymanagerialtheoryHeldahorizontalviewofpowerandauthorityinorganizationsSuggestedworkershelpinanalyzingtheirjobsforimprovements—theworkerknowsthebestwaytoimprovethejob.Ifworkershaverelevantknowledgeofthetask,thentheyshouldcontrolthetask.3、BehavioralManagementTheory553.2MaryParkerFollett3、Beha3.3TheHawthorneStudiesStudiesofhowcharacteristicsoftheworksettingaffectedworkerfatigueandperformanceattheHawthorneWorksoftheWesternElectricCompanyfrom1924-1932.Workerproductivitywasmeasuredatvariouslevelsoflightillumination.Researchersfoundthatregardlessofwhetherthelightlevelswereraisedorlowered,workerproductivityincreased.563.3TheHawthorneStudiesStuHumanRelationsImplicationsHawthorneeffect—workersrespondedtotheattentiontheyreceivedandweremoreproductive.Managersshouldbebehaviorallytrainedtomanagesubordinatestoelicittheircooperationandincreasetheirproductivity.Groupsimposeinformalperformancenormsontheirmembers(both“ratebusters”and“chiselers”)GaverisetothefieldofOrganizationalBehaviorThestudyofthefactorsthathaveanimpactonhowindividualsandgroupsrespondtoandactinorganizations.3.3TheHawthorneStudies57HumanRelationsImplications3.3.4TheoryXandTheoryYDouglasMcGregorproposedthetwodifferentsetsofassumptionsaboutworkers.TheoryXassumestheaverageworkerislazy,dislikesworkandwilldoaslittleaspossible.Managersmustcloselysuperviseandcontrolthroughrewardandpunishment.TheoryYassumesworkersarenotlazy,wanttodoagoodjobandthejobitselfwilldetermineiftheworkerlikesthework.Managersshouldallowworkersgreaterlatitude,andcreateanorganizationtostimulatetheworkers.583.4TheoryXandTheoryYDoTheoryXversusTheoryYFigure2.3S

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