history of management by wren(part 1 of 2)

ByLorelyn T. Dumaug

Based on The History of Management Thought, 5th edition, 2005 by Daniel A. Wren

Early Management Theory

Tzu and Machiavelli

Sun TzuAncient Chinese Military General

Strategist and philosopher

Authored the Art of War, an influential ancient Chinese book on military strategy

Lived in 544-496 B.C.

Sun Tzu’s Art of WarIt presents a philosophy of war for

managing conflicts and winning battles

Popular among political leaders and those in business management.

Despite its title, The Art of War addresses strategy in a broad fashion, touching upon public administration and planning.

Art of War:Chapter SummaruLaying Plans/The CalculationsWaging War/The ChallengeAttack by Stratagem/The Plan of AttackTactical Dispositions/PositioningEnergy/DirectingWeak Points & Strong/Illusion and

RealityManeuvering/Engaging The Force

Art of War:Chapter SummaruVariation in Tactics/The Nine VariationsThe Army on the March/Moving The

ForceTerrain/Situational PositioningThe Nine Situations/Nine TerrainsThe Attack by Fire/Fiery AttackThe Use of Spies/The Use of

Intelligence 

Niccolò di Bernardo dei MachiavelliAn Italian historian, philosopher, humanist,

and writer based in Florence during the Rennaissance.

He is one of the main founders of modern political science 

Author of “The Prince”

Machiavelli’s “The Prince” claimed to be one of the first works of

modern philosophy, especially modern political philosophy, in which the effective truth is taken to be more important than any abstract ideal.

It was also in direct conflict with the dominant Catholic  and scholastic doctrines of the time concerning how to consider politics and ethics.

Machiavelli’s “The Prince”Political behavior  were perceived as shocking by contemporaries, and its immorality is still a subject of serious discussion.

 Advises princes how to tyrannize 

Tzu and Machiavelli In the works of these two military strategists have long lived as huge influences to governments, militaries, and even corporations, forever reminding us of the importance of historical influence on the dawn of the future.

Thomas Carlyle

Thomas Carlyle

4 December 1795 – 5 February 1881  Scottish satirical  writer, essayist, historian and

teacher during the Victorian era.

Coming from a strict Calvinist family, Carlyle was expected to become a preacher by his parents but lost his Christian faith but kept his Calvinist values.

This combination, of a religious temperament

with loss of faith in traditional Christianity, made Carlyle's work appealing to many Victorians who were grappling with scientific and political changes that threatened the traditional social order.

Great Man Theory popular idea in the 19th century according

to which history can be largely explained by the impact of "great men“

"the history of the world is but the biography of great men." 

Frederick Taylor

Frederick Winslow Taylor March 20, 1856 – March 21, 1915

was an American mechanical engineer who sought to improve indusrial efficiency.

 He is regarded as the father of scientific management  and was one of the first management consultants.

He was one of the intellectual leaders of the Efficiency Movement and his ideas, broadly conceived, were highly influential in the Progressive Era.

SCIENTIFIC MANAGEMENTAlso known as “Taylorism” - was a theory of

management that analyzed and synthesized workflows. Its main obejective was improving economic efficiency, especially labor productivity. It was one of the earliest attempts to apply science to the engineering of process and to management.

SOLDIERINGTaylor observed that most workers who are

forced to perform repetitive tasks tend to work at the slowest rate that goes unpunished. Taylor used the term "soldiering" and observed that, when paid the same amount, workers will tend to do the amount of work that the slowest among them does.  

SOLDIERINGTaylor himself prominently acknowledged (although many white-collar imitators of his ideas would forget) that if each employee's compensation was linked to their output, their productivity would go up.

SHOVELINGTaylor said that labor should include rest breaks so that the worker has time to recover from fatigue, either physical (as in shoveling or lifting) or mental (as in the ball inspection case). Workers were taught to take more rests during work, and as a result production "paradoxically" increased.

Making jobs unpleasantUnder Taylorism, workers work effort increased in intensity. Workers became dissatisfied with the work environment and angry.

George Elton Mayo

George Elton MayoGeorge Elton Mayo (26 December 1880 - 7

September 1949) was an Australian psychologist, sociologist and organization theorist.

He lectured at the University of Queensland from 1911 to 1923 before moving to the University of Pennsylvannia spent most of his career at Harvard Business School teaching on industrial research.

George Elton MayoFounder of the Human Relations Movement

is known for his research including the Hawthorn Studies

his book The Human Problems of an Industrialized Civilization (1933).

Hawthorne Studies

showed the importance of groups in affecting the behaviour of individuals at work.

that work satisfaction depended to a large extent on the informal social pattern of the work group.

Hawthorne StudiesWhere norms of cooperation and higher

output were established because of a feeling of importance---physical conditions or financial incentives had little motivational value.

People will form work groups and this can be used by management to benefit the organization

Conclusion onHawthorne Studies

Mayo concluded that people's work performance is

dependent on both social issues and

job content.

Summary of Mayo's BeliefsIndividual workers cannot be treated in

isolation, but must be seen as members of a group.

Monetary incentives and good working conditions are less important to the individual than the need to belong to a group.

Summary of Mayo's BeliefsInformal or unofficial groups formed at work

have a strong influence on the behavior of those workers in a group.

Managers must be aware of these 'social needs' and cater for them to ensure that employees collaborate with the official organization rather than work against it.

Max Weber

Karl Emil Maximilian "Max" Weber21 April 1864 – 14 June 1920)

was a German sociologist and politico economist who profoundly influenced social theory, social research and the disciple of sociology itself.

Purpose of a Bureaucracy is to successfully implement the actions of

an organization of any size (but often associated with large entities such as government, corporations, and NGO’s), in achieving its purpose and mission, and the bureaucracy is tasked to determine how it can achieve its purpose and mission with the greatest possible efficiency and at the least cost of any resources

Weber’s Bureaucratic Principles1. A formal hierarchical structure

2. Management by rules

3. Organization by functional specialty

Weber’s Bureaucratic Principles4. An "up-focused" or "in-focused" mission

5. Purposely impersonal6. Employment based on technical qualifications

7. Predisposition to grow in staff "above the line.

Weberian BureaucracyBureaucratic administration means fundamentally domination through knowledge.

-Max Weber

Weberian BureaucracyThe decisive reason for the advance of bureaucratic organization has always been its purely technical superiority over any other form of organization

– Max Weber

Weberian BureaucracyIn order to counteract bureaucrats, the system needs entrepreneurs and politicians.

Management Theory and Practice

Part 2

Organizational theoryOrganizational theory is a set of ideas and studies as to how people interact in groups.

Understanding organizational theory is the first step towards understanding your employees and yourself.

Small-Batch ProductionOrganizations that create small amounts of high-value products or services (such as computer programs, legal advice or copywriting) tend to focus more on the people making the product and less on the product itself.

Large-Batch ProductionSome companies create large amounts of products and services. Rather than sell small amounts of products for a large amount of money they do the opposite (relative to cost).

The lower levels of these companies will have large amounts of less-skilled people who earn less pay, and more managers.

Classical Theory

It follows a scientific method: examining every factor involved in production, adjusting one at a time, and assessing whether it increases or decreases productivity.

Neo-Classical Theory

It recognizes the fact that workers often behave irrationally, responding to non-economic incentives such as increased lighting or a better sense of a connection between their labor and the finished product.

Centralization vs Decentralization

Both of these can work, depending on the needs and culture of the organization in question, so it is important to understand the benefits and drawbacks of both of them.

Centralization

Centralized organizations are essentially bureaucracies. Everyone has to report to a superior before they make decisions, and everything is eventually run by the head office.

Decentralization

A decentralized organization, on the other hand, is one that lets managers make their own decisions and focuses on results rather than following a set-in-stone process.

Organization CultureOrganizational culture is “a cognitive framework consisting of attitudes, values, behavioral norms, and expectations shared by the organization’s members.

Organization CultureHelps to establish a sense of identity for employees within the organization and therefore can facilitate comfort and a greater likelihood of internalizing organization goals. 

Organization CultureProvides a status quo and maintains stability in processes, communication and role interaction. 

Organizational valuesbeliefs and ideas about what kinds of goals members of an organization should pursue and ideas about the appropriate kinds or standards of behavior organizational members should use to achieve these goals.

Strong/weak culturesStrong culture is said to exist where staff respond to stimulus because of their alignment to organizational values. In such environments, strong cultures help firms operate like well-oiled machines, cruising along with outstanding execution and perhaps minor tweaking of existing procedures here and there.

Strong/weak culturesConversely, there is weak culture where there is little alignment with organizational values and control must be exercised through extensive procedures and bureaucracy.

Characteristics ofHealthy organizational cultures

Acceptance and appreciation for diversity

Regard for and fair treatment of each employee as well as respect for each employee’s contribution to the company

Characteristics ofHealthy organizational cultures

Employee pride and enthusiasm for the organization and the work performed

Equal opportunity for each employee to realize their full potential within the company

Characteristics ofHealthy organizational cultures

Strong communication with all employees regarding policies and company issues

Strong company leaders with a strong sense of direction and purpose

Characteristics ofHealthy organizational cultures

Ability to compete in industry innovation and customer service, as well as price

Lower than average turnover rates (perpetuated by a healthy culture)

Characteristics ofHealthy organizational cultures

Investment in learning, training, and employee knowledge

4 TYPES OF CULTURE

Power Culture Role Culture Task CulturePerson Culture 

POWER CULTUREPower  among a few. Control radiates from the center like a

web. Power and influence spread out from a

central figure or group. Power desires from the top person and personal relationships with that individual matters more than any formal title of position.

Power Cultures have few rules and little bureaucracy.

Swift decisions can ensue.

ROLE CULTUREIn a Role Culture, people have

clearly delegated authorities within a highly defined structure.

form hierarchical bureaucracies. Power derives from a person's

position and little scope exists for expert power.

Controlled by procedures, roles descriptions and authority definitions.

Predictable and consistent systems and procedures are highly valued.

TASK CULTURE Task Culture, teams are formed to

solve particular problems. Power derives from expertise as long

as a team requires expertise. These cultures often feature the

multiple reporting lines of a matrix structure.

It is all a small team approach, who are highly skilled and specialist in their own markets of experience.

PERSON CULTUREA Person Culture exists where all

individuals believe themselves superior to the organization.

Survival can become difficult for such organizations, since the concept of an organization suggests that a group of like-minded individuals pursue the organizational goals.

Some professional partnerships can operate as person cultures, because each partner brings a particular expertise and clientele to the firm.

Industrial/Organizational Psychology

I–O psychology is "the scientific study of the relationship between man and the world of work:... in the process of making a living" .

Blum and Naylor (1968) define it as "simply the application or extension of psychological facts and principles to the problems concerning human beings operating within the context of business and industry“.

Common Field/Area for I-OJob PerformanceJob AnalysisPersonnel RecruitmentStudent/educational selection and assessment

Common Field/Area for I-OStudent/educational selection and

assessmentPerformance AppraisalIndividual AssessmentPsychometricsCompensation

Common Field/Area for I-O

CompensationTraining and Training EvaluationEmployment LawWork Motivation

Common Field/Area for I-O

Occupational Health and SafetyHuman ResourcesOrganizational DevelopmentOrganizational Research MethodsTechnology in the Workplace

Learning OrganizationA learning organization is the term given to a company that facilitates the learning of its members and continuously transforms itself.

Learning OrganizationA learning organization is the term given to a company that facilitates the learning of its members and continuously transforms itself.

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