© emily & jian, mgto120 summer 2006, hkust 1 welcome back today we start “looking back”......

© Emily & Jian, MGTO120 Summer 2006, HKU© Emily & Jian, MGTO120 Summer 2006, HKUSTST

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Welcome Welcome backback

today we start today we start

“looking back”...“looking back”...

Ch.2 Management Ch.2 Management

Yesterday and TodayYesterday and Today


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Today’s AgendaToday’s Agenda

Some reminder – rules and Some reminder – rules and expectationsexpectations

Short review – basic Short review – basic concepts in Ch.1 concepts in Ch.1

Ch.2 – development of Ch.2 – development of management ideas management ideas

Tutorial – Tutorial –

© Emily & Jian, MGTO120 Summer 2006, HKUST

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Review—what did we learn last time?

• What is management?

Process, people, efficiency, effectiveness• What is an organization?

People, structure, purpose• What do Managers Do? (Management!)

• Functions involved (POLC)

• Skills required (CHT)

• Roles played (IID)


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Application of knowledge –Cases we analyzed


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Application of knowledge –Cases we analyzed

Southwest Airline - Mr. Kelleher

You did a great job in your

case analysis!


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Ch.2 Management Yesterday and Ch.2 Management Yesterday and TodayToday

““YesterdayYesterday”” ? Why bother to ? Why bother to learn the history, since learn the history, since

we don’t major in we don’t major in Management?Management?


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Ch.2 Management Yesterday Ch.2 Management Yesterday and Todayand Today

Textbook: “Looking at the Textbook: “Looking at the management history can help us management history can help us understand today’s management understand today’s management theory and practice. It can help us theory and practice. It can help us see what worked and what didn’t see what worked and what didn’t work.” work.”

Emily: “the ‘history’ itself is Emily: “the ‘history’ itself is interesting! and it helps us to interesting! and it helps us to THINK!”THINK!”


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Where We Are TodayWhere We Are Today

Management (Robbins & Coulter)

Part 1Basic

Concepts(Ch1)

Part 2

Context(ch3-5)

Part 1

Retrospect(ch2)

Part 3

Planning(ch6-9)

Part 4

Organizing(Ch10-13)

Part 5

Leading (Ch 14-17)

Part 6

Controlling(Ch 18,19)


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Ch.2 Management Yesterday Ch.2 Management Yesterday and Todayand TodayLearning objectivesLearning objectives – after studying this – after studying this

chapter, you’d be able to:chapter, you’d be able to:

Describe some ancient evidences of Describe some ancient evidences of management practicemanagement practice

Describe major approaches to Describe major approaches to managementmanagement

Describe the important contributions made Describe the important contributions made by: Taylor, Fayol, Weber and other early by: Taylor, Fayol, Weber and other early advocates of management approachesadvocates of management approaches

Describe how these approaches related to Describe how these approaches related to today’s managementtoday’s management

Describe the trends and issues facing Describe the trends and issues facing managers todaymanagers today


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Development of Major Management Theories

HistoricalBackground

ScientificManagement

GeneralAdministrative

Theorists

QuantitativeApproach

Management Theories

IndustrialRevolution

Adam Smith

Early Advocates

Hawthorne Studies

OrganizationalBehavior

Early Examplesof Management


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Historical background

• Egypt (pyramids)• China (Great Wall)• Wisdom in Bible (Moses)• Adam Smith,1776 “The Wealth

of Nations” (example of pin – an exercise for you to think)

• Industrial Revolution

http://www.aegypten-online.de/images/giza/pyramid.jpg

http://images.google.com/imgres?imgurl=http://www7.tamu-commerce.edu/counseling/faculty/leddick/Great%2520Wall.jpg&imgrefurl=http://www7.tamu-commerce.edu/counseling/faculty/leddick/mainframe.htm&h=1710&w=1155&sz=676&tbnid=u_3K5nGG58oJ:&tbnh=150&tbnw=101&hl=en&start=1&prev=/images%3Fq%3Dgreat%2Bwall%26hl%3Den%26lr%3D%26client%3DREAL-tb%26rls%3DRNWA,RNWA:2003-36,RNWA:en%26sa%3DG


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Ancient management100,000workers for

20years for a single pyramid – who told each workers what to do and make sure they do it right?

compared to building the Great Wall, building the Pyramids was nothing!

(p. 58)


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Moses and Management (maybe 4000 BC?) 17 Moses' father-in-law replied, "What you are doing is not good. 18 You and these people who come to you will only wear yourselves out. The work is too heavy for you; you cannot handle it alone. 19 Listen now to me and I will give you some advice, and may God be with you. You must be the people's representative before God and bring their disputes to him. 20 Teach them the decrees and laws, and show them the way to live and the duties they are to perform. 21 But select capable men from all the people—men who fear God, trustworthy men who hate dishonest gain—and appoint them as officials over thousands, hundreds, fifties and tens. 22 Have them serve as judges for the people at all times, but have them bring every difficult case to you; the simple cases they can decide themselves. That will make your load lighter, because they will share it with you. 23 I f you do this and God so commands, you will be able to stand the strain, and all these people will go home satisfied."

BIBLE (NIV) Exodus 18:13-26

摩西的岳父说，你这作得不好。你和这些百姓必都疲惫，因为这事太重，你独自一人办理不了。现在你要听我的话。我为你出个主意，愿神与你同在。你要替百姓到神面前，将案件奏告神，又要将律例和法度教训他们，指示他们当行的道，当作的事，并要从百姓中拣选有才能的人，就是敬畏神，诚实无妄，恨不义之财的人，派他们作千夫长，百夫长，五十夫长，十夫长，管理百姓，叫他们随时审判百姓，大事都要呈到你这里，小事他们自己可以审判。这样，你就轻省些，他们也可以同当此任。你若这样行，神也这样吩咐你，你就能受得住，这百姓也都平平安安归回他们的住处。


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Wealth of Nations Adam Smith, 1776

– a workman not educated to this business [pin making] could scarce, perhaps, with his utmost industry, make one pin in a day, and certainly could not make twenty. Now this business is … divided … One man draws out the wire, another straights it, a third cuts it, a fourth points it, a fifth grinds it at the top for receiving, the head; to make the head requires two or three distinct operations; to put it on is a peculiar business, to whiten the pins is another; it is even a trade by itself to put them into the paper… (p.7)


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Major Approaches to Major Approaches to ManagementManagement

Scientific ManagementScientific Management General Administrative TheoryGeneral Administrative Theory Quantitative ManagementQuantitative Management Organizational BehaviorOrganizational Behavior Systems ApproachSystems Approach Contingency ApproachContingency Approach


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Scientific Management The “father” of scientific management –

Fredrick Winslow Taylor “Principles of Scientific Management” (1911)

1. Develop a science for each element of an individual’s work, which will replace the old rule-of-thumb method.

2. Scientifically select and then train, teach, and develop the worker.

3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed.

4. Divide work and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers.


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THINK:

What is good? What is not good?

(think and hold the answer to tutorial class)


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General Administrative TheoryGeneral Administrative Theory Henri FayolHenri Fayol

Believed that the practice of management Believed that the practice of management was distinct from other organizational was distinct from other organizational functions functions

Developed fourteen principles of Developed fourteen principles of management that applied to all management that applied to all organizational situationsorganizational situations

Max WeberMax Weber Developed a theory of authority based on Developed a theory of authority based on

an ideal type of organization (bureaucracy)an ideal type of organization (bureaucracy) Emphasized rationality, predictability, Emphasized rationality, predictability,

impersonality, technical competence, and impersonality, technical competence, and authoritarianismauthoritarianism


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Fayol’s 14 Principles of Fayol’s 14 Principles of ManagementManagement

1. Division of work.

2. Authority.

3. Discipline.

4. Unity of command.

5. Unity of direction.

6. Subordination of individual interest to the interests of the organization.

7. Remuneration.

8. Centralization.

9. Scalar chain.

10. Order.

11. Equity.

12. Stability of tenure of personnel.

13. Initiative.

14. Esprit de corps.


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Weber’s Ideal Bureaucracy


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Organizational BehaviorOrganizational Behavior

OB — OB — The study of the actions of people at The study of the actions of people at work; people are the most important asset of work; people are the most important asset of an organizationan organization

Where much of current micro-level Where much of current micro-level management research and human resource management research and human resource management (HRM) come frommanagement (HRM) come from

Early OB Advocates Early OB Advocates ((late 1800s and late 1800s and early 1900s) early 1900s) Robert OwenRobert Owen Hugo MunsterbergHugo Munsterberg Mary Parker FollettMary Parker Follett Chester BarnardChester Barnard


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Organizational Behavior

The Hawthorne Studies – the most important contribution to the developing of OB field

• A series of productivity experiments conducted at Western Electric from 1927 to 1932.

• Experimental findings– Productivity unexpectedly

increased under imposed adverse working conditions.

– The effect of incentive plans was less than expected.


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The Hawthorne StudiesDimmer Lights? Brighter Lights?


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The Hawthorne StudiesThe Hawthorne Studies

Research conclusionResearch conclusion

Social norms, group standards and Social norms, group standards and attitudes strongly influence attitudes strongly influence individual output and work individual output and work behaviorbehavior..

people matterpeople matterattention to people mattersattention to people mattersgroups mattergroups matter


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• The Hawthorne Studies

TASK PRODUCTIVITY

EMPLOYEE

ATTITUDES

Personal Characteristics

Social Situation

Employees are part of the production

system => MACHINES that are replaceable!

Hawthorne Effect

Frederick Taylor


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Quantitative Management Also called operations research or

management science

Focuses on improving managerial decision making by applying: Statistics, optimization models, information models, and computer simulations.

http://www.irl.cri.nz/applied-maths/images/linear_programming.gif


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Systems ApproachThe Organization as an Open

System


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Contingency Approach Contingency Approach OR OR situational approachsituational approach

There is no one universally applicable set of There is no one universally applicable set of management principles (rules) by which to management principles (rules) by which to manage organizations.manage organizations. Organizations face Organizations face different situations (contingency variables), different situations (contingency variables), and require different ways of managingand require different ways of managing..

Popular Contingency VariablesPopular Contingency Variables, e.g.:, e.g.:Organization sizeRoutineness of task technologyEnvironmental uncertaintyIndividual differences


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For more info. about Management History• James C. Collins & Jerry I. Porras 1994

– Built to Last: Successful Habits of Visionary Companies. Harper Business Publishers, NY. HF5386 .C735 1997.

• Peter F. Drucker 1999– Management Challenges for the 21st Century . Harper Business Publishers, NY. HD30.27 .D78 1999

• Edgar H. Schein 1992– Organizational Culture and Leadership, 2nd Ed. Jossey-Bass Publishers, San Francisco, CA.

HD58.7 .S33 1992 • The Bible: c1984

– The Holy Bible : containing the Old and New Testaments in the King James version , Exodus 17. Jethro Nashville : Thomas Nelson , BS185 1984 .N37

• Pyramid: Parry Dick. 2004– Engineering the Pyramids . Stroud : Sutton. DT63 .P377 2004

• Great Wall: Gorbing-King Charles. 1973 – Wall of Death, London : Abelard-Schuman. DS 793 G67 G63 1973

• Taylor, Frederick Winslow, 1856-1915 [1967, c1947]– First published 1911 The Principles of Scientific Management. New York : Norton. HD31 .T39 1967

• Fayol, Henri, 1841-1925. c1984 – General and industrial management / Henri Fayol ; revised by Irwin Gray . New York : Institute of

Electrical and Electronics Engineers. HD31 .F313 1984 • Mayo, Elton, 1880-1949 1988

– The social problems of an industrial civilization , N.H. : Ayer, HD6331 .M38 1988 • Operations Research. Management Science

– Operations Research/Management Science journals (Since 1961). Whippany, N.J. : Executive Sciences Institute HD30.25 .O66

http://ustlib.ust.hk/record=b724735

http://ustlib.ust.hk/search/cHF5386+.C735+1997/chf+5386+c735+1997/-2,-1,,E/browse





http://ustlib.ust.hk/search/cHD30.27+.D78+1999/chd+++30.27+d78+1999/-2,-1,,E/browse


http://ustlib.ust.hk/search/cHD58.7+.S33+1992/chd+++58.7+s33+1992/-2,-1,,E/browse



http://ustlib.ust.hk/search/cBS185+1984+.N37/cbs++185+1984+n37/-2,-1,,E/browse

http://ustlib.ust.hk/search/a?SEARCH=Parry%2C+Dick%2C+Dr.+&searchscope=4


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Current Trends and Issues(more about this in later chapters)

• Globalization• Workforce Diversity• Learning Organizations • Ethics• Entrepreneurship• E-business• Knowledge Management• Quality Management


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What do we learn from Management What do we learn from Management Yesterday and Today?Yesterday and Today?

Video, cases, and discussionsVideo, cases, and discussions


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Homework Homework (remember, this course is (remember, this course is to to HELPHELP you to think critically you to think critically, but i, but it is t is

YOUYOU who who THINK THINK):): Think about Taylor, Fayol. What are their Think about Taylor, Fayol. What are their

contributions to management? What kind contributions to management? What kind of workplaces would they create based on of workplaces would they create based on their theories? What are the drawbacks in their theories? What are the drawbacks in the views?the views?

Review the famous Hawthorne studies. Review the famous Hawthorne studies. What is it about? What are the findings and What is it about? What are the findings and conclusions?conclusions?

Relate history to management today. In Relate history to management today. In your view, how do those different your view, how do those different approaches related to current management approaches related to current management practices?practices?


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Next class (this Fri.)...Next class (this Fri.)...

Next time, we will talk about Next time, we will talk about “the manger’s terrain”. We will “the manger’s terrain”. We will cover chapter 3 & 5 – culture & cover chapter 3 & 5 – culture & ethics issues.ethics issues.

Will begin class at 2:00pm Will begin class at 2:00pm sharp. Probably with PRS sharp. Probably with PRS questions from Chapter 2 and questions from Chapter 2 and 3!3!

© emily & jian, mgto120 summer 2006, hkust 1 welcome back today we start “looking back”......

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