I.Changing Paradigm范例 of Management History of management thought

Foundations of Management

The Classical School developing theories to improve management effectiveness in organizations； seek to develop a comprehensive theory of management ； provide the tools a manager required for dealing with their organizational challenges.

1. Bureaucratic Management——Max Weber (1864-1920)
Seven elements characterize bureaucracies;

1- Qualification based hiring，People should be hired because their technical training and education qualifies them to do their jobs, not because of their family or political connections.

2- Merit-based promotion， Promotion should be based on experience and achievement. Managers, not the organizational owners decide who is promoted.

3- Chain of command ，Each position or job is part of a chain of command that clarifies who reports to whom throughout the organization. A grievance不平 procedure and a right to appeal protect people in lower positions.

4- Division of labor，Tasks, responsibilities and authority are clearly divided and defined.

5- Impartial application of rules and procedures，Rules and procedures apply to all members of the organization and will be applied in an impartial公正的 manner, regardless of one’s position or status.

6- Recorded in writing，All administrative decisions, acts, rules or procedures will be recorded in writing.

7- Managers separate from the owners ，The owner of the organization should not manage or supervise it.

characterized by a specialization of labor, a specific hierarchy, a formal set of rules and a rigid promotion and selection criteria.

Fairness + the goal of efficiency+logical rules and procedures for decision making.

many critics

  1. Managers are supposed to influence employee behavior by fairly rewarding or punishing employees for compliance or non-compliance with organizational policies, rules and procedures. In reality, however, most employees would argue that managers emphasize punishment for noncompliance much more than rewards for compliance.
  1. By encouraging managers to apply well-thought rules and procedures, consistent manner to everyone in the organization, bureaucratic control is supposed to make companies more efficient and effective. However, if managers put the rules above all else, it may have a negative effect.
  1. The need to divide labor and specialize can foster feelings of employee alienation and estrangement隔阂. As the demands of society become more complex, the need increases for interpersonal communication and sharing between employees of the resulting organizations.
  1. Bureaucratic organizations, due to their rule and policy driven decision making, can be highly resistant to change and slow to respond to consumers and competitors.

2. Scientific Management—— Frederick Winslow Taylor (1856-1915)---Frank (1868-1924) and Lillian (1878-1972) Gilbreth couple focused on the productivity of the individual worker

Division of Labour + Career Orientation + Impersonality + Authority Hierarchy + Formal Selection + Rules and Regulations

manager is primarily responsible for increasing the organization's productivity.

General Approach

Developed standard method of performing each job

• Selected workers with appropriate abilities for each job

• Trained workers in standard method

• Supported workers by planning their work and eliminating interruptions

• Provided wage incentives to workers for increased output

Contributions

Demonstrated the importance of compensation of performance

• Initiated the careful study of tasks and jobs

• Demonstrated the importance of personnel selection and training

Criticisms

• Did not appreciate the social context of work and higher needs of workers

• Did not acknowledge variance变动 among individuals

• Tended to regard workers as uninformed and ignored their ideas and suggestions

clear division of labor between management and employees. // management was not only superior intellectually to the average employee but also had a positive duty to supervise them and organize their work activities

scientific management as the best management approach for achieving productivity increase. It rested on the manager's superior ability and responsibility to apply systematic knowledge to the organizational work setting.

four principles of scientific management:

  1. A scientific management methodology to be developed
  1. Managers should assume the responsibility for selecting, training and developing the employees
  1. Managers should fully cooperate with employees to insure the proper application of the scientific management method
  1. Management should become involved with the work of their employees as much as possible. The management takes over all the work for which they are better fitted than the workman, while in the past almost all of the work was thrown upon the men

close supervision flies in the face of all contemporary organizational research demonstrating close supervision is counterproductive.// the piece rate system all too often is either inapplicable in today's computerized assembly lines or is compromised by management continually raising the quota./// Motion study is to break each task or job into its separate motions and then to eliminate those that are unnecessary. Their system later became known as "speed work" which was achieved by eliminating unnecessary motions.

3. Administrative Management——Henri Fayol (1841-1925) ---Chester Barnard (1886-1961)focused on productivity of the total organization

Fourteen management principles:

1. Division of Work: Division of work and specialization produce more and better work with the same effort.

2. Authority and responsibility: A manager’s authority, which is the “right to give orders”, should be commensurate with the manager’s responsibility. However, organizations should enact controls to prevent managers from abusing their authority.

3. Discipline: Clearly defined rules and procedures are needed at all organizational levels to ensure order and proper behavior.

4. Unity of command: An employee should receive orders from only one superior. Employees cannot adapt to dual command.

5. Unity of direction: Organizational activities must have one central authority and one plan of action. Similar activities in an organization should be grouped together under one manager.

6. Subordination of individual interest to general interest: The interests of one employee or group of employees are subordinate to the interests and goals of the organization and cannot prevail over it.

  1. Remuneration of personnel: Salaries are the price of services rendered by employees. It should be fair and provide satisfaction both to the employee and employer.

8. Centralization: The optimum degree of centralization varies according to the dynamics of each organization. The objective of centralization is the best utilization of personnel.

9. Scalar chain: A chain of authority exists from the highest organizational authority to the lowest ranks and includes every employee. Each position is a part of a vertical chain of authority where each worker reports to just one boss.

10. Order: Organizational order for materials and personnel is essential. There should be no overlapping.

11. Equity: Equity is a combination of kindliness and justice. The desire for equity and equality of treatment are aspirations to be taken into account in dealing with employees.

12. Stability of tenure of personnel: In order to attain the maximum productivity of personnel, it is essential to maintain a stable work force.

13. Initiative: Because it is a “great source of strength for business,” managers should encourage the development of initiative, the ability to develop and implement a plan.

14. Team work: Teamwork is fundamentally important to an organization. Creating work teams and using extensive face-to-face verbal communication encourages this.

Concept of informal organization, organizations are communication systems organizational communication flows from the bottom to the top.

managers to develop a sense of common purpose,willingness to cooperate is strongly encouraged

Managers should treat employees properly because their acceptance of authority may be critical to organizational success.

the manager's ability to exercise authority is strongly determined by the employee's "zone of indifference" where orders are accepted without undue question

Four factors affecting the willingness of employees to accept authority

  1. Employees must understand the communication
  1. Employees accept the communication as being consistent with the organization's purposes
  1. Employees feel their actions will be consistent with the needs and desires of the other employees
  1. Employees feel they are mentally and physically carry out the order from the higher authority

2. The Neo-Classical School

classical theory ignored employee motivation and behavior.

change in the supervisory arrangement, the increased motivation and resulting productivity. extra money and benefits provided to the workers may have been the most important reasons for increased worker productivity.

Mary Parker Follett (1868-1933): power should be cooperatively shared for the purpose of resolving conflict. integration method of conflict resolution : domination, compromise or voluntary submission by one side over another.

Creative conflict resolution involves cooperatively working with others to devise inventive new ideas often providing strong interpersonal benefits.

the importance of worker participation - known today as "empowerment" - and shared goals among managers.

3. The Behavioral Movement---Abraham Maslow (1908-1970)

the needs of the employees and the role of management as a provider for these needs.

the satisfaction of the employees’ basic needs as the key to increased worker productivity.

Maslow’s hierarchy started with physiological needs and progressed to safety, belongingness, esteem and finally self-actualization needs.

Once a need is satisfied, it declines in importance and the next higher need is activated.

Douglas McGregor (1906-1964)-----Theory X and Theory Y
the classical perspective was based on Theory X assumptions about workers.// Theory Y as a more realistic view of workers for guiding management thinking. The point of Theory Y is that organizations can take advantage of the imagination and intellect of all their employees. Employees will exercise self-control and will contribute to organizational goals when given the opportunity.

Theory X: The average human being has an inherent dislike of work and will avoid it if possible…//Because of human characteristic of dislike for work, most people must be coerced被胁迫, controlled, directed or threatened with punishment to get them to put forth adequate effort toward the achievement of organizational objectives//The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, wants security above all.

Theory Y: The expenditure of physical and mental effort in work is as natural as play or rest. The average human being does not inherently dislike work.//External control and the threat of punishment are not the only means for bringing about effort toward organizational objectives. A person will exercise self-direction and self-control in the service of objectives to which he or she is committed…//The average human being learns, under proper conditions, not only to accept but to seek responsibility…//the capacity to exercise a relatively high degree of imagination, ingenuity and creativity in the solution of organizational problems is widely, not narrowly, distributed in the population.//Under the conditions of modern industrial life, the intellectual potentialities of the average human being are only partially utilized.

Frederick Herzberg (1923-2000)---“two factor theory: motivator factors and hygiene factors.”. the satisfaction of employees’ basic needs as the key to increased worker productivity. It suggests that jobs should be designed to meet higher-level needs by allowing workers to use their fuller potential.

Motivator factors can be considered as achievement, recognition, work itself, responsibility, promotion and growth.

Hygiene factors are pay and benefits, company policy and administration, relationships with co-workers, physical environment, supervision, status and job security.

Intrinsic Motivators: Content of the job--what you ask me to do at work// Extrinsic Hygiene Factors: Job Environment--the conditions in which you expect me to work

4. The Management Science Perspective

Operations management refers to the field of management that specializes in the physical production of goods and services.

Operations management specialists use quantitative techniques to solve manufacturing problems.

Some of the commonly used methods are forecasting, inventory modeling, scheduling and break-even analysis.

5. The Contemporary Management Thought

systems theory all organizations consist of processing inputs and outputs with internal and external systems and subsystems

Inputs are financial, human, material, information resources used to produce goods and services.// Raw materials, Human Resources, Capital, Technology, Information

Transformation process is management’s use of production technology to change inputs into outputs.// Employee's Work Activities, Management Activities, Technology and Operations Methods

Outputs include the organization’s products and services.// Products and Services, Financial Resuts, Information, Human Results

Feedback is knowledge of results that influence the selection of inputs during the next cycle of the process.

Environmental factors: The environment could be either external or internal and includes social, political, technological and economic forces.

substantial impact on management thinking：

Open systems must interact with the environment to survive; closed systems need not. In the classical management science perspectives, organizations were frequently thought of as closed systems.

Sub-System: a sub-system is part of the whole system that depend on one another. For example, departments make up divisions in an organization. An accounting department may have a receivables group, an accounts payable group, etc. That same accounting group may have a computer system to aid them in their work.

Synergy协同作用 means that the whole is greater than the sum of its parts. Systems, to prosper and survive, must have synergy. Synergy means that the combined and coordinated actions of many other parts of the system (sub-systems) achieve more than all the individual parts could have achieved if acting alone.

Entropy is a universal property of systems and refers to their tendency to run down and die. If a system does not receive fresh inputs and energy from its environment, it will eventually cease to exist. Organizations must monitor their environments, adjust to changes and continuously bring in new inputs in order to survive and prosper. Managers try to design the organization/environment interfaces to reduce entropy.

Contingency突发事件 Approach

leaders must adjust their style in a manner consistent with aspects of the context. It is recognition of the extreme importance of individual manager performance in any given situation. It rests on the extent of managerial power and control over a situation and the degree of uncertainty in any given situation.

to develop an appropriate management solution for any given organizational environment

devoid缺乏 of management principles//heuristic启发式 management paradigm highly dependent on the experience and judgment of the manager in a given organizational environment.

W. Edwards Deming (1900-1993) The quality movement in Japan

Quality = Results of work efforts / Total costs

when people and organizations focus primarily on costs (often dominant, typical human behavior), costs (due to not minimizing waste, ignoring amount of rework occurring, taking staff for granted, not rapidly resolving disputes, and failing to notice lack of product improvement, over time, loss of customer loyalty) tend to rise and quality declines over time.

Better design of products to improve service//Higher level of uniform product quality//Improvement of product testing in the workplace and in research centers//Greater sales through side [global] markets

Peter Drucker (1909-2005) management by objectives (MBO)

Management by Objectives (MBO) is a process of agreeing upon objectives within an organization so that management and employees agree to the objectives and understand what they are in the organization.

subordinates and management have joint consultations that produce agreement on areas of organizational responsibility.----This results in the mutual establishment and acceptance of organizational goals.

The employee is involved in the larger management issues of the organization and a new level of communication is developed with management.

MBO permits management to spend more time on strategic policy development and implementation rather than being distracted with supervisory issues.

Drucker suggests that organizations focus on eight content areas in developing goals: market standing, innovation, productivity, physical and financial resources, profitability, managerial performance and development, worker performance and attitude, and public responsibility.

Japanese Management://Theory Z focused on increasing employee loyalty to the company by providing a job for life with a strong focus on the well-being of the employee, both on and off the job.

tends to promote stable employment, high productivity, and high employee morale and satisfaction.

Characteristics of Theory Z:
Long-term employment and job security
Collective responsibility
Implicit隐含的, informal control with explicit, formalized measures
Collective decision-making
Slow evaluation and promotion
Moderately specialized careers
Concern for a total person, including their family

the high level of trust Japanese management has in its employees. This level of trust permits Japanese employees to have a great deal of decision-making authority.

the concept of intimacy in its managerial relationships where personal relationships are highly valued, respected and rewarded.

M Form organization： combination of a large decentralized organization where each unit competes with every other unit in order to obtain budgetary resources based upon earnings while at the same time having to draw upon the same centralized corporate services.