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1、Part Foundations of Management,Chapter 1: Management . The Evolution of Management Theory,2,Learning Objectives,After studying , you should be able to: Explain the principle of job specialization and division of labor, and tell why the study of person-task relationships is central to the pursuit of

2、increased efficiency. Identify the principles of administration and organization that underlie effective organizations. Trace the change in theories about how managers should behave to motivate and control employees,3,Learning Objectives (contd),Explain the contributions of management science to the

3、 efficient use of organizational resources. Explain why the study of the external environment and its impact on an organization has become a central issue in management thought.,4,Content Outline,Scientific Management Theory Job Specialization and the Division of Labor F. W. Taylor and Scientific Ma

4、nagement The Gilbreths Administrative Management Theory The Theory of Bureaucracy Fayols Principles of Management Behavioral Management Theory The Work of Mary Parker Follett The Hawthorne Studies and Human Relations,5,Content Outline (contd),Behavioral Management Theory (contd) Theory X and Theory

5、Y Management Science Theory Organizational Environment Theory The Open Systems View Contingency Theory,6,. The Evolution of Management Theory,1. Scientific Management Theory 1.1 Evolution of Modern Management Began in the industrial revolution in the late 19th century as: Managers of organizations b

6、egan seeking ways to better satisfy customer needs. Large-scale mechanized manufacturing began to supplanting small-scale craft production in the ways in which goods were produced. Social problems developed in the large groups of workers employed under the factory system. Managers began to focus on

7、increasing the efficiency of the worker-task mix.,7,The Evolution of Management Theory,Figure 2.1,Source:,8,1.2 Job Specialization and the Division of Labor,Adam Smith (18th century economist) Observed that firms manufactured pins in one of two different ways: Craft-styleeach worker did all steps. P

8、roductioneach worker specialized in one step. Realized that job specialization resulted in much higher efficiency and productivity Breaking down the total job allowed for the division of labor in which workers became very skilled at their specific tasks.,9,1.3 F.W. Taylor and Scientific Management,S

9、cientific Management The systematic study of the relationships between people and tasks for the purpose of redesigning the work process for higher efficiency. Defined by Frederick Taylor in the late 1800s to replace informal rule of thumb knowledge. Taylor sought to reduce the time a worker spent on

10、 each task by optimizing the way the task was done.,10,1.4 Four Principles of Scientific Management,Principles to increase efficiency: - Study the ways jobs are performed now and determine new ways to do them. Gather detailed time and motion information. Try different methods to see which is best. -

11、 Codify the new methods into rules. Teach to all workers the new method. - Select workers whose skills match the rules. - Establish fair levels of performance and pay a premium for higher performance. Workers should benefit from higher output,11,1.5 Problems with Scientific Management,Managers frequ

12、ently implemented only the increased output side of Taylors plan. Workers did not share in the increased output. Specialized jobs became very boring, dull. Workers ended up distrusting the Scientific Management method. Workers could purposely “under-perform.” Management responded with increased use

13、of machines and conveyors belts.,12,Refined Taylors work and made many improvements to the methodologies of time and motion studies. Time and motion studies Breaking up each job action into its components. Finding better ways to perform the action. Reorganizing each job action to be more efficient.

14、Also studied worker-related fatigue problems caused by lighting, heating, and the design of tools and machines.,13,2、Administrative Management Theory,Administrative Management The study of how to create an organizational structure that leads to high efficiency and effectiveness. Max Weber Developed

15、the concept of bureaucracy as a formal system of organization and administration designed to ensure efficiency and effectiveness.,14,Webers Principles of Bureaucracy,Figure 2.2,15,2.1 Webers Five Principles of Bureaucracy,Authority is the power to hold people accountable for their actions. Positions

16、 in the firm should be held based on performance, not social contacts. Position duties are clearly identified so that people know what is expected of them. Lines of authority should be clearly identified such that workers know who reports to who. Rules, standard operating procedures (SOPs), and norm

17、s guide the firms operations.,16,2.2 Fayols Principles of Management,Division of Labor: allows for job specialization. Fayol noted jobs can have too much specialization leading to poor quality and worker dissatisfaction. Authority and Responsibility Fayol included both formal and informal authority

18、resulting from special expertise. Unity of Command Employees should have only one boss.,17,Line of Authority A clear chain of command from top to bottom of the firm. Centralization The degree to which authority rests at the top of the organization. Unity of Direction A single plan of action to guide

19、 the organization.,2.2 Fayols Principles of Management,18,Equity The provision of justice and the fair and impartial treatment of all employees. Order The arrangement of employees where they will be of the most value to the organization and to provide career opportunities. Initiative The fostering o

20、f creativity and innovation by encouraging employees to act on their own.,2.2 Fayols Principles of Management,19,Discipline Obedient, applied, respectful employees are necessary for the organization to function. Remuneration of Personnel An equitable uniform payment system that motivates contributes

21、 to organizational success. Stability of Tenure of Personnel Long-term employment is important for the development of skills that improve the organizations performance.,2.2 Fayols Principles of Management,20,Subordination of Individual Interest to the Common Interest The interest of the organization

22、 takes precedence over that of the individual employee. Esprit de corps Comradeship, shared enthusiasm foster devotion to the common cause (organization).,2.2 Fayols Principles of Management,21,3、Behavioral Management Theory,3.1 Behavioral Management The study of how managers should behave to motiva

23、te employees and encourage them to perform at high levels and be committed to the achievement of organizational goals. Focuses on the way a manager should personally manage to motivate employees.,22,3.2 Mary Parker Follett An influential leader in early managerial theory Held a horizontal view of po

24、wer and authority in organizations Suggested workers help in analyzing their jobs for improvementsthe worker knows the best way to improve the job. If workers have relevant knowledge of the task, then they should control the task.,3、Behavioral Management Theory,23,3. 3 The Hawthorne Studies,Studies

25、of how characteristics of the work setting affected worker fatigue and performance at the Hawthorne Works of the Western Electric Company from 1924-1932. Worker productivity was measured at various levels of light illumination. Researchers found that regardless of whether the light levels were raise

26、d or lowered, worker productivity increased.,24,Human Relations Implications Hawthorne effectworkers responded to the attention they received and were more productive. Managers should be behaviorally trained to manage subordinates to elicit their cooperation and increase their productivity. Groups i

27、mpose informal performance norms on their members (both “rate busters” and “chiselers”) Gave rise to the field of Organizational Behavior The study of the factors that have an impact on how individuals and groups respond to and act in organizations.,3.3 The Hawthorne Studies,25,3.4 Theory X and Theo

28、ry Y,Douglas McGregor proposed the two different sets of assumptions about workers. Theory X assumes the average worker is lazy, dislikes work and will do as little as possible. Managers must closely supervise and control through reward and punishment. Theory Y assumes workers are not lazy, want to

29、do a good job and the job itself will determine if the worker likes the work. Managers should allow workers greater latitude, and create an organization to stimulate the workers.,26,Theory X versus Theory Y,Figure 2.3,Source:,27,4、Management Science Theory,An approach to management that uses rigorou

30、s quantitative techniques to maximize the use of organizational resources. Quantitative managementutilizes linear programming, modeling, simulation systems. Operations managementtechniques to analyze all aspects of the production system. Total Quality Management (TQM)focuses on improving quality thr

31、oughout an organization. Management Information Systems (MIS)provides information about the organization.,28,5、Organizational Environment Theory,5.1 Organizational Environment The set of forces and conditions that operate beyond an organizations boundaries but affect a managers ability to acquire an

32、d utilize resources.,29,5.2 Open System A system that takes resources for its external environment and converts them into goods and services that are then sent back to that environment for purchase by customers. Inputs: the acquisition of external resources. Conversion: the processing of inputs into goods and services. Output: t

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