The Development History of The Development History of Business Management Business Management

TheoriesTheories

国金 1106 班

组员：叶倩倩 郑毓雯 杨欣 陈曦 尹航

2 、 General Administrative Theory

3 、 Human resources approach

4 、 System approach, Contingency approach

1 、 Scientific Management

5 、 Globalization, diverse workforce, innovation

and change management

Part 1.Part 1.Scientific ManagementScientific Management

1 、 ‘ the father of Scientific management’.

2 、 The Principles of Scientific management in 1911.

Frederick Taylor(弗雷德里克•泰勒 )

Background of That TimeBackground of That Time

• There were no clear concepts of responsibilities to workers and managers.

• No effective work standards existed. • Management decisions were based on hunch and

intuition.• Workers were placed on jobs with little or no concern

for matching their abilities and aptitudes with the tasks required.

• Managers and workers considered themselves to be in continual conflict—any gain by one would be at the expense of the other.

Scientific management also called Taylorism

Key words: analyzed and synthesized   labor productivity

science

Taylor’s Four Principles of Taylor’s Four Principles of ManagementManagement

Develop a scientific way for each element of an individual’s work, which replaces the old rule-of-thumb method.

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

Heartily cooperate with the workers so as to ensure that all work is done in accordance with the scientific way that has been developed.

Divide work and responsibility almost equally between managers and workers. Managers take over all work for which it is better fitted than the workers.

Today, most of its themes are still important parts

of industrial engineering and management.

• Analysis

• Synthesis

• Logic

• Rationality

• Empiricism

• Work ethic

• Efficiency and elimination of waste standardization of best practices

How do today’s managers use Scientific Management?

• Use time and motion studies to increase productivity

• Hire the best qualified employees

• Design incentive systems based on output

Part2

General Administrative Theory

• Herial Fayol

• French executive and engineer

• Herial Fayol’s contributions He stated 14 principles of management—

fundamental or universal truths. 1916 《 Industrial management and general

management 》

Fayol’s Administrative Fayol’s Administrative TheoryTheory

• Five Elements of Management -- Managerial Five Elements of Management -- Managerial ObjectivesObjectives– Forecasting and planning 预测和计划– Organizing 组织– Command 命令– Coordination 协调– Control 控制

• Keep machine functioning effectively and Keep machine functioning effectively and efficientlyefficiently

• Replace quickly and efficiently any part or process Replace quickly and efficiently any part or process that did not contribute to the objectivesthat did not contribute to the objectives

Fayol’s Administrative TheoryFayol’s Administrative Theory

• Fourteen Principles of Management (Tools for Fourteen Principles of Management (Tools for Accomplishing Objectives)Accomplishing Objectives)– Division of work 劳动分工

– Authority and Responsibility 职权和责任

– Discipline 纪律

– Unity of Command 统一指挥

—Unity of Direction 统一领导

—Remuneration of Personnel 人员报酬

—Centralization 集中.

—Scalar Chain 等级链

– Order 秩序

– Equity 公平

– Stability of Tenure of Personnel 员工稳定

– Subordination of Individual Interest to General Interest 个人利益服从整体利益

– Initiative 首创精神

– Esprit de corps 团队精神

Weber’s Theory of BureaucracyWeber’s Theory of Bureaucracy

• Max Weber (1864-1920)Max Weber (1864-1920)– German Sociologist– Theory of Social and Economic Organization (1947)– Principles and Elements of Management - describe an

ideal or pure form of organizational structure (general policy and specific commands

– PRIMARY FOCUS: Organizational Structure– Worker should respect the “right” of managers to direct

activities dictated by organizational rules and procedures

Weber’s Theory of BureaucracyWeber’s Theory of Bureaucracy

• Bureaucracy allows for the optimal form of Bureaucracy allows for the optimal form of authority - “rational authority”authority - “rational authority”

• Three types of Legitimate AuthorityThree types of Legitimate Authority– Traditional Authority - past customs; personal

loyalty– Charismatic Authority - personal trust in

character and skills– Rational Authority - rational application of rules

or laws

Max Weber

Max Weber’s contributions

Weber developed a theory of authority structures and described organizational activity on the basis of authority relations. He described an ideal type of organization that he called a bureaucracy, characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships.

Weber’s Ideal BureaucracyWeber’s Ideal Bureaucracy

• Division of labor 劳动分工• Authority hierarchy 权威等级• Formal selection 正式的甄选• Formal rules and regulation 正式的规则和法规• Impersonality 非个人的• Career orientation 职业生涯导向

Part 3

Human resources approach

Managers get things done by working with people, which explains why some writers and researchers have chosen to look at management by focusing on the organization’s human resources. Much of what currently makes up the field of personnel or human resources management, as well as contemporary views on motivation and leadership, has come out of the work of theorists we have categorized as part of the human resources approach to management.

Human resources approach

Human resources approach （ Before 1950s)

Owen

Maslow

McGredor

Get the main ideas

Look at people as humans rather than machines

People’s need

The environment( human relations)

Owen

Maslow

McGredor

Owen

Maslow

1.Who were some early advocates of the human resources 1.Who were some early advocates of the human resources approach?approach?

Undoubtedly, many people in the nineteenth and early part of the twentieth centuries recognized the importance of the human factor to an organization’s success, but five individuals stand out as early advocates of the human resources approach. They are Robert Owen, Hugo Munsterberg, Mary Paraker Follett, Chester Barnard, and Elton Mayo.

Robert Owen

The Background of Robert OwenThe Background of Robert Owen

Robert Owen was a successful Scottish businessman who bought his first factory in 1789 when he was just 18 years old. Repulsed by the harsh practices he saw in factories across Scotland such as the employment of young children (many under the age of 10), 13 hour work days, and miserable working conditions – Owen became a reformer.

The Background of Robert OwenThe Background of Robert Owen

He chided factory owners for treating their equipment better than their employees. He said that they would buy the best machines but then buy the cheapest labor to run them. Owen argued that money spent on improving labor conditions was one of the best investments that business executive could make. He claimed that a concern for employees was highly profitable for management and would relieve human misery.

The status of OwenThe status of Owen

Owen proposed a utopian workplace; he is not remembered in management history for his successes but rather for his courage and commitment to reducing the suffering of the working class. He was more than a hundred years ahead of his time when he argued, ,in 1825 for regulated hours of work for all, child labor laws, public education, company furnished tools and equipment and business involvement in community projects.

2. Maslow's hierarchy of needs2. Maslow's hierarchy of needs

Maslow‘s hierarchy of needs(马斯洛需求层次理论，亦称“基本需求层次理论”） is a theory in psychology, proposed by Abraham Maslow in his 1943 paper "A Theory of Human Motivation".

.

Maslow use the terms Physiological, Safety, Belongingness and Love, Esteem, and Self-Actualization needs to describe the pattern that human motivations generally move through.

需求分为五种，像阶梯一样从低到高，按层次逐级

递升：生理上、安全上、情感和归属、尊重、自我实现的需求。

3. Douglas McGregor3. Douglas McGregor

Douglas Murray McGregor (1906) was a Management professor at the MIT Sloan School of Management and president of Antioch College from 1948 to 1954.

His theoryHis theory

In the book The Human Side of Enterprise (the fourth most influential management book of the 20th century in a poll of the Fellows of the Academy of Management), McGregor identified an approach of creating an environment within which employees are motivated via authoritative, direction and control or integration and self-control, which he called theory X and theory Y ， respectively. Theory Y is the practical application of Dr. Abraham Maslow's Humanistic School of Psychology, or Third Force psychology, applied to scientific management.

Part 4

System approach, Contingency approach

System ApproachSystem Approach

What’s the system approach?

Two basic types of the system:

closed and openClosed systems are not influenced by and do not interact with their environment.

In contrast, an open system dynamically interacts with its environment.

What’s the System Approach?What’s the System Approach?

The system approach defines a system as a set of interrelated and interdependent parts arranged in a manner that produces a unified whole. Societies are systems and so, too, are computers, automobiles, organizations, and animal and human bodies.

The definition of Contingency The definition of Contingency ApproachApproach

• An assumption that no one theory or method for business management can apply to all businesses or to all circumstances.

• From a business perspective, using a contingency approach to problem solving would indicate that issues need to be understood and then addressed in ways that depend on the environment and context in which they occur.

Contingency ApproachContingency Approach

• Contingency approach, also known as situational approach, is a concept in management stating that there is no one universally applicable set of management principles (rules) by which to manage organizations.

• A conceptual model of the contingency approach was developed by Kieser and Kubicek.

According to the model, the formal structure of an organization defines the roles of its members in a specific way and thereby directs their behavior to a certain degree. The performance of the organization depends on the degree to which these role definitions enable members to cope with the requirements resulting from the context of the organization.

Part 5

Globalization, diverse workforce, innovation and change management

Globalization Globalization

• Forms of globalization (Internationalization)

• Stages of going global

• Understanding different cultures

Forms of InternationalizationForms of Internationalization• Multinational Corporations (MNCs) Multinational corporations maintain significant operations in

two or more countries simultaneously but are based in one home country .

• Transnational Corporations (TNCs) Transnational corporations maintain significant operations in

more than one country simultaneously and decentralizes decision making in each operation to the local country.

• Borderless Organization Borderless organization is a management structure in which

internal arrangements that impose artificial geographic barriers are broken down.

Stages of Going GlobalStages of Going GlobalStageⅠ

Passive ResponseStageⅡ

Initial Overt Entry

StageⅢEstablished International

Operations

Exporting to foreign countries

Hiring foreign Representation or Contracting with

Foreign manufactures

Licensing/franchising

Jointventures

Foreignsubsidiary

Four Dimensions of National Four Dimensions of National CultureCulture

• Individualism versus collectivism

• Power distance

• Uncertainty avoidance

• Quantity versus quality of life

Continuous Improvements in Continuous Improvements in QualityQuality —— TQMTQM

• Original idea

Deming emphasized the use of statistics to analyze variability in production processes to create uniform quality and predictable

quantity of output. • TQM (total quality management)

TQM is a philosophy of management that is driven by customer needs and expectations and that is committed to continuous improvement.

Components of Components of Total Quality ManagementTotal Quality Management

• Intense focus on the customer

• Concern for continuous improvement

• Improvement in the quality of everything the organization does

• Accurate measurement

• Empowerment of employees

Diverse workforceDiverse workforce

• Religious affiliation• Age• Disability status• Military• Experience• Sexual orientation• Economic class• Educational level……

Competitive advantages through Competitive advantages through diverse workforcediverse workforce

• Ability to attract and retain motivated employees

• Better perspective of a differentiated market

• Ability to leverage creativity and innovation in problem

• Enhancement of organizational flexibility

What is Innovation?What is Innovation?

• Innovation means renewal or alter

• Prerequisite for innovation is the dissatisfaction with the current status and an inquisitive mind

Innovation ManagementInnovation Management

• Innovation management is the discipline of managing processes in innovation. It can be used to develop both product and organizational innovation. Without proper processes, it is not possible for R&D to be efficient.

Innovation ManagementInnovation Management

• Innovation management includes a set of tools that allow managers and engineers to cooperate with a common understanding of goals and processes. It involves workers at every level in contributing creatively to a company's development, manufacturing, and marketing.

What are innovation drivers?What are innovation drivers?

Innovations

Market Pull

TechnologyPush

Societydemand

Main focus: Innovationsbased on own technologies and on market knowledge

Main focus: Innovation trends backed by governmental fundsand regulations

Focus of innovation Focus of innovation managementmanagement

Allow the organization to respond to an external or internal opportunity

Use its creative efforts to introduce new ideas, processes or products

Change managementChange management

Change management is an approach to shifting/transitioning individuals, teams, and organizations from a current state to a desired future state. It is an organizational process aimed at helping change stakeholders to accept and embrace changes in their business environment.

6 Processes Associated with 6 Processes Associated with Organizational ChangeOrganizational Change

1.Innovation and change are facilitated when organizations create a stage that enables and motivates innovation.

Stage-setting initially involves an extended gestation period involving many participants – not spur of the moment, or single dramatic incident or a single entrepreneur.

6 Processes Associated with 6 Processes Associated with Organizational ChangeOrganizational Change

2. Shocks (not mere persuasion), produced by exposing individuals to direct personal confrontations with needs or problems, are necessary to trigger attention and action for innovation.

6 Processes Associated with 6 Processes Associated with Organizational ChangeOrganizational Change

3. Once innovation activities begin, the process does not unfold in a simple linear sequence of stages; instead, it proliferates into complex bundles of ideas and divergent paths of activities.

6 Processes Associated with 6 Processes Associated with Organizational ChangeOrganizational Change

4. Setbacks and mistakes are frequently encountered during the innovation process. Innovation or opportunities for learning through reinvention are often rejected. Learning fails when individuals initiating change cause consequences felt by people not involved in its initiation.

5. Change adoption is facilitated by modifying the innovations to fit the local organizational situation, through extensive involvement in and commitment to the innovation by top management.

6 Processes Associated with 6 Processes Associated with Organizational ChangeOrganizational Change

6 Processes Associated with 6 Processes Associated with Organizational ChangeOrganizational Change

6. Change processes vary with the novelty, size, and duration of the innovations being developed and adopted. The greater the novelty, size and duration of a change, the more complex the process.

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