1、 Evolution of ManagementText Evolution of ManagementExercisesFurther Reading Case Study of Boeing CompanyTerms Synergy Delphi analysisProfile Henri FayolReferences History of Management The classical period The contemporary approaches to management Three key directions for management theory The End
2、History of Management Around 1100 B.C.Between 350 and 400 B.C The Romans During the medieval times Trial-and-error As a formal discipline Economies of scale Mass productionThe classical periodAdam Smith Systematic management Scientific management Administrative management Human relations Bureaucracy
3、The contemporary approaches to management The classical approaches disadvantage Quantitative management Organizational behavior System theory The contingency perspectiveAround 1100 B.C.The Chinese practiced the four management functions planning,organizing and staffing,leading,and controlling.The Sh
4、ang Dynasty(1523-1027 BC)Was Chinas first historical dynasty.The Shang civilization left Chinas earliest-known written records,in the form of inscriptions etched in objects of bone and bronze.The inscriptions document the dynastic succession of the Shang kings,as well as many features of the Bronze
5、Age culture of the Shang.The Shang state was centered in the Yellow River Valley of the North China Plain.Between 350 and 400 B.C.The Greeks recognized management as a separate art and advocated a scientific approach to work.Ancient GreeceCivilization that thrived around the Mediterranean Sea from t
6、he 3rd millennium to the 1st century B.C.,known for advances in philosophy,architecture,drama,government,and science.The most famous period of ancient Greek civilization is called the Classical Age,which lasted from about 480 to 323 B.C.The city-states fell to Roman conquerors in 146 bc.The Byzantin
7、e Empire fell to the Ottomans in 1453.The Romans Decentralized the management of their vast empire both before and after the birth of Christ.Roman Empire The empire included lands throughout the Mediterranean world.The empire lasted until Germanic invasions,economic decline,and internal unrest in th
8、e 4th and 5th centuries ad ended Romes ability to dominate such a huge territory.In 44 bc Gaius Julius Caesar,the Roman leader who ruled the Roman Republic as a dictator,was assassinated.The Roman Republic,which had lasted nearly 500 years,was dead,never to be revived.The empire would endure for ano
9、ther 500 years until ad 476.During the medieval times The Venetians standardized production through the use of an assembly line,building warehouses and using an inventory system to monitor the contents.A row of workers and machines along which work is passed until the final product is made.Trial-and
10、-error Throughout history most managers operated strictly on a trial-and-error basis.The challenges of the industrial revolution changed that.As a formal discipline Management emerged as a formal discipline at the turn of the century.Economies of scale The emergence of economies of scale reductions
11、in the average cost of a unit of production as the total volume produced increases drove managers to strive for further growth.Mass production The opportunities for mass production created by the industrial revolution spawned intense and systematic thought about management problems and issues partic
12、ularly efficiency,production processes and cost savings.The making of goods in large quantities,especially by machinery and with division of labor.The Systematic Management It attempted to build specific procedures and processes into operations to ensure coordination of effort.Its goals achieved way
13、s Its emphasis Its shortcomingIts goals were achieved through:Careful definition of duties and responsibilities Standardized techniques for performing these duties Specific means of gathering,handling,transmitting,and analyzing information.Cost accounting,wage,and production control systems to facil
14、itate internal coordination and communications.A method of accounting for the costs of operating a business by allocating these costs to the goods a company produces or the services it renders.Systematic Management s emphasis Internal operations Managers were free to focus on internal issues of effi
15、ciency.Many managers were oriented more toward things than toward people.Systematic Management s shortcoming It failed to lead to widespread production efficiency.Frederick Taylor Frederick Taylor His discoveriesTaylor Frederick WinslowTaylor Frederick Winslow(1856-1915)American industrial engineer,
16、who originated scientific management in business.Was born in Germantown,Pennsylvania.Began working at the Midvale Steel Company in 1878.Developed detailed systems intended to gain maximum efficiency from both workers and machines in the factory.Became joint discoverer of the Taylor-White process,a m
17、ethod of tempering steel in 1898.His management methods were published in The Principles of Scientific Management(1911).One home page on Taylor Taylor discoveries Production and pay were poor,inefficiency and waste were prevalent.Management decisions were unsystematic and no research to determine th
18、e best means of production existed.Scientific Management Advocated the application of scientific methods to analyze work and to determine the“one best way”to complete production tasks efficiently.Four principles Advantage DisadvantagesFour principles of scientific management Develop a scientific app
19、roach for each element of an individuals work to replace rule-of-thumb guidelines.Scientifically select,train,teach,and develop each worker so that the right person has the right job.Cooperate with workers to ensure that the job matches plans and principles.Ensure an equal division of work and respo
20、nsibility between managers and worker.Time-and-Motion studiesTime-and-Motion studies A task was divided into its basic movements,and different motions were timed to determine the most efficient way to complete the task.After the“one best way”to perform the job was identified.Taylors Scientific Manag
21、ement advantage Productivity and efficiency in manufacturing improved dramatically The concepts of scientific methods and research were introduced to manufacturing Emphasized the need for cooperation between management and workers The concept of a management specialist gained prominence Disadvantage
22、s Ignored many job-related social and psychological factors by emphasizing only money as a worker incentive.Production tasks were reduced to a set of routine,machine-like procedures that led to boredom,apathy,quality control problems.Abuse their power to set the standards and the piece rates,thus ex
23、ploiting workers and diminishing their importance.Did not help managers deal with broad external issues.A payment plan in which employees are paid a fixed amount of money for each unit of output produced.The Administrative Management Emphasized the perspective of senior managerswithin the organizati
24、on.And argued that management was a profession and could be taught.Henri Fayol 5 functions of management The 14 principles5 functions of management Planning Organizing Commanding Coordinating Controlling.The 14 principles Division of work Authority Discipline Unity of command Unity of direction Subo
25、rdination of individual interest to the general interest Remuneration Centralization Scalar chain Order Equity Stability and tenure of personnel Initiative Esprit de corpsHuman Relations Emphasize informal work relationships and worker satisfaction.Stress primarily employee welfare,and communication
26、.Social needs had precedence over economic needs and the informal group exerted control over the behavior of employees.Gain the cooperation of the group and promote job satisfaction and norms consistent with the goals of the organization.Bureaucracy Max Weber Function The contemporary approaches to
27、managementMax Weber He believed bureaucratic structure could eliminate the variability that results when managers in the same organization have different skills,experiences,and goals.He advocated that the roles themselves be standardized so that personnel changes would not disrupt the organization.E
28、mphasized a structured,formal network of relationships among specialized positions in an organization.Rules and regulations standardize behavior,and authority resides in positions rather than in individuals.The organization need not rely on a particular individual;but it will realize efficiency and
29、success by following the rules in a routine and unbiased manner.Bureaucracy function Bureaucracies are especially important Bureaucratic positions foster specialized skills,eliminating many subjective judgments by managers.If the rules and controls are established properly,bureaucracies should be un
30、biased in their treatment of people,both customers and employees.Quantitative management Helps a manager make a decision by developing formal mathematical models of the problem.Computers have facilitated the development of specific quantitative methods.break-even analysis.Organizations apply these t
31、echniques in many areas,including production,quality control,marketing,human resources,finance,distribution,planning,and research and development.Organizational behavior Studies and identifies management activities that promote employee effectiveness through an understanding of the complex nature of
32、 individual,group,and organizational processes.Organizational behavior draws from a variety of disciplines,including psychology and sociology,to explain the behavior of people on the job.Theory X and Theory Y Douglas McGregor Marked the transition from human relations Theory X Managers assume worker
33、s are lazy and irresponsible and require constant supervision and external motivation to achieve organizational goals.Theory Y Managers assume employees want to work and can direct and control themselves.Managers who encourage participation and allow opportunities for individual challenge and initia
34、tive would achieve superior performance.The classical approaches disadvantage Ignored the relationship between the organization and its external environment and usually stressed one aspect of the organization or its employees at the expense of other considerations.Systems Theory Provides a way to in
35、terpret organizations.Takes a holistic view of the entire organizational system and stresses process.Include open versus closed systems,efficiency and effectiveness,subsystems,equifinality,and synergy This concept states that there are many avenues to the same outcome,i.e.many different combinations
36、 of subsystems,ideas,and methods can lead to the same goal.The contingency perspective A variety of factors,both internal and external to the firm,may affect the organizations performance.There is no“one best way”to manage and organize,because circumstances vary.Three key directions for management t
37、heory Global interdependence The search for excellence The quality revolution Middle AgesLasted from about ad 350 to about 1450.At the beginning,the western half of the Roman Empire began to fragment into smaller,weaker kingdoms.During this time,the precursors of many modern institutions.Invented by
38、 people during the Renaissance,a period of cultural and literary change in the 14th,15th,and 16th centuries.The adjective medieval comes from the Latin words for this term,medium(middle)and aevum(age).InventoryA detailed,itemized list,report,or record of things in ones possession,especially a period
39、ic survey of all goods and materials in stock.Stocks of goods or materials often are located at points where there is a change in the rate and unit of movement.Inventories represent an investment that the owner hopes to sell.Costs associated with holding inventories,including interest on the money i
40、nvested in the inventory,storage costs,and risks of deterioration,obsolescence,and shrinkage.Shrinkage Inventory“shrinkage”is the term that acknowledges and measures the fact that most inventory records show more goods have entered an inventory than can be found.Trial and ErrorA method of reaching a
41、 correct solution or satisfactory result by trying out various means or theories until error is sufficiently reduced or eliminated.Problem-solving activity:emphasizes simple trial and error requires some degree of insightThe individual proceeds mainly by exploring and manipulating elements of the pr
42、oblem situation in an effort to sort out possibilities and to run across steps that might carry him closer to the goal.Not necessarily overtEconomies of scale The lowering of costs through the production of larger volume.What Are Economies Of Scale?The Stages Of Industry Growth Does Size Really Matt
43、er?Adam Smith(1723-1790)An Inquiry into the Nature and Causes of the Wealth of Nations (国民财富的性质和原因的研究)Theory of Moral Sentiments 道德情操论(1759).Born in Kirkcaldy,ScotlandEducated at the universities of Glasgow and Oxford.From 1748 to 1751Gave lectures on rhetoric and belles-lettres in Edinburgh.Contrib
44、uted much to the development of Smiths ethical and economic theories.See also Thematic Essay:British Political and Social Thought.Wealth of Nations Represents the first serious attempt in the history of economic thought to divorce the study of political economy from the related fields of political s
45、cience,ethics,and jurisprudence.It embodies a penetrating analysis of the processes whereby economic wealth is produced and distributed and demonstrates that the fundamental sources of all income.The central thesis Introduction:Adam Smiths Life:The Spirit of the Age:The Wealth of Nations:Quotes.Date
46、s&Events During Smiths Life.The central thesis Is best employed for the production and distribution of wealth under conditions of governmental noninterference,or laissez-faire,and free trade.The production and exchange of goods can be stimulated,and a consequent rise in the general standard of livin
47、g attained,only through the efficient operations of private industrial and commercial entrepreneurs acting with a minimum of regulation and control by governments.Detailed systems These systems relied on time and motion studies,which help determine the best methods for performing a task in the least
48、 amount of time.Henri Fayol(1841-1925)A French engineer and director of mines,was little known outside France Moved into research geology and in 1888 joined,Comambault as Director.On retirement he published A comprehensive theory of administration.Early contributor to a classical or administrative m
49、anagement school of thought.Esprit de corps Group spirit Sense of union and of common interests and responsibilities in some group.ComradeshipWeber Max(1864-1920)German economist and social historian,known for his systematic approach to world history and the development of Western civilization.Was b
50、orn April 21,1864,in Erfurt,and educated at the universities of Heidelberg,Berlin,and Gttingen.Held professorships in economics at the universities of Freiburg(1894),Heidelberg(1897),and Munich(1919).He was editor of the Archiv fr Sozialwissenschaft und Sozialpolitik,the German sociological journal,
