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Management philosophies and organization
forms change over time to meet new needs
Some ideas and practices from the past are stillrelevant and applicable to management today
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Provides a context or environment
Develops an understanding ofsocietal impact
Achieves strategic thinking Improves conceptual skills
Social, political, and economic forces
have influenced organizations andthe practice of management
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Social Forces - values, needs, andstandards of behavior
Political Forces - influence of politicaland legal institutions on people &organizations
Economic Forces - forces that affect theavailability, production, & distributionof a societys resources amongcompeting users
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5
Management Perspectives Over Time
Exhibit 2.1
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Rational, scientific approach to
management make organizationsefficient operating machines
Scientific Management
Bureaucratic Organizations
Administrative Principles
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General Approach
Developed standard method forperforming each job.
Selected workers with appropriateabilities for each job.
Trained workers in standard method.
Supported workers by planningwork and eliminating interruptions.
Provided wage incentives to workersfor increased output.
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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 ofworkers. Did not acknowledge variance among individuals. Tended to regard workers as uninformed and ignored their
ideas
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Max Weber 1864-1920
Prior to Bureaucracy Organizations European employees were loyal to a single
individual rather than to the organization or its
mission Resources used to realize individual desires rather
than organizational goals
Systematic approach looked at organizationas a whole
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Positions organized
in a hierarchy of authority
Managers subject to
Rules and procedures
that will ensure reliable
predictable behavior
Personnel are selected
and promoted based
on technical
qualifications
Administrative acts
and decisions recorded
in writing
Management separate
from the ownership
of the organization
Division of labor
with Clear definitions of
authority and responsibility
Exhibit 2.3
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Contributors: Henri Fayol, MaryParker Follett, and Chester I. Barnard
Focus:
Organization rather than the individual Delineated the management functions of
planning, organizing, commanding,coordinating, and controlling
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Division of work
Unity of command Unity of direction
Scalar chain
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Importance of common super-ordinate goals for reducing conflictin organizations
Popular with businesspeople of her day Overlooked by management scholars
Contrast to scientific management
Reemerging as applicable in dealing with rapidchange in global environment
Leadership importance of people vs. engineering techniques
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Ethics - Power - Empowerment
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Emphasized understanding human behavior,
needs, and attitudes in the workplace
Human Relations Movement
Human Resources Perspective
Behavioral Sciences Approach
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Emphasized satisfaction of employees basic
needs as the key to increased worker
productivity
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Started in 1895
Four experimental & three control groups Five different tests
Test pointed to factors other than illumination
for productivity 1st Relay Assembly Test Room experiment, was
controversial, test lasted 6 years
Interpretation, money not cause of increased
output Factor that increased output, Human Relations
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Suggests jobs should be designed to meet
higher-level needs by allowing workers to use
their full potential
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Identified a hierarchy of needs
Problems stem from an inability to satisfy onesneeds
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Dislike work will avoidit
Must be coerced,controlled, directed, orthreatened with
punishment Prefer direction, avoid
responsibility, littleambition, want security
Do not dislike work Self direction and self
control Seek responsibility Imagination, creativity
widely distributed Intellectual potential only
partially utilized
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Douglas McGregor Theory X & Y
1906-1964Theory X Assumptions Theory Y Assumptions
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Applies social science in an
organizational context Draws from economics, psychology,
sociology, anthropology, and otherdisciplines Understand employee behavior and
interaction in an organizational setting
OD Organization Development
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Sub-field of the Humanistic Management Perspective
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Emerged after WW II
Applied mathematics, statistics, and otherquantitative techniques to managerialproblems Operations Research mathematical modeling
Operations Management specializes in physicalproduction of goods or services
Information Technology reflected in managementinformation systems
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Systems Theory
Contingency View
Total Quality Management (TQM)
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Exhibit 2.5
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Exhibit 2.6
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Focuses on managing the total organization to deliverquality to customers.
Four significant elements are Employee involvement
Focus on the customer
Benchmarking
Continuous improvement
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Learning
Organization
OpenInformation
EmpoweredEmployees
Team-Based Structure
Exhibit 2.7
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Business-to-Consumer B2C
Selling Products and
Services Online
Business-to-Business B2B
Transactions Between
Organizations
Consumer-to-Consumer C2C
Electronic Markets
Created by Web-Based
Intermediaries
Exhibit 2.8