ARTIKELS Inleiding Management & HRM
THE HISTORY OF MANAGEMENT: a global perspective
Keys to successful management: ability to understand and apply modern management principles and
techniques effectively.
1. Classical management movement
Oldest and most widely accepted school of thought among management practitioners.
Arose between 1885 and 1940 in effort to provide rational and scientific basis for management
organizations à industrial revolution: people were brought together to put work in factories as
opposed to the handicraft system (people worked in small shops/homes).
à need for efficient planning, organizing, influencing, and controlling of all work activities.
1.1 Scientific management
Centers on ways to improve productivity. Employees as individuals and their tasks.
Soho Engineering Foundry (UK, 1796): Watt and Boulton implemented several management techniques
including:
• Market research and forecasting
• Planned machine layout and work-flow requirements
• Planned site location
• Production planning
• Production process standards
• Standardization of product components
Accounting and cost analysis: calculate cost and profits for each machine manufactured for each
department
Personal: payment by result based on work studies and welfare programs (sickness benefit program)
Charles Babbage, the economy of machinery and manufactures (1832) àmutual interests could exist
between workers and owners of factories: profit sharing system whereby workers could profit from
their productivity.
Henry Varnum Poor, American railroad journal à railroads needed effective management: developed
managerial system with clearly established organizational structure so individuals could be held
accountable. It would also incorporate a top-down report communications system.
Beginning 1900: new concerns about productivity, business was expanding and money available, but
labor in short supply.
à methods to improve efficiency: Frederick W Taylor (Midvale Steel Company) recognized the need for
labor and management co-operation, cost controlling and work methods analysis.
à systematic soldiering: what constituted a “good day’s work”: high wage rates for performance
deemed above standard and low rates for work which fell below the mark. No minimum wages until
Taylors later programs.
à entire theory predicated on the assumption that the primary interest of management and the worker
was one and the same.
1
,Henri L Gantt (colleague of Taylor) implemented a wage incentive program: bonuses for workers who
completed their jobs in less time than the allowed standard. And a bonus plan for supervisors. à main
thrust of his system was centered on the completion of a given amount of work in each time: developed
planning and control techniques (Gantt Chart) to display relationships between planned & completed
work and elapsed time.
Frank and Lillion Gillbreth (another follower of Taylor) à contributions in production and operation
management: time and motion studies. à law of motion economy: 22 principles dealing with
- The uses of the human body
- The workplace arrangement
- Tools and equipment design
1.2 General administrative management
Examines organizations as total entities and focuses on ways to make them more effective and efficient.
à runs from 1895 – 1940 but has been renewed as a method to cut costs, increase productivity, and
examine organizational efficiency and effectiveness. = forerunner of modern organization theory.
Henri Fayol: systematic management theory à basic functions of any manager incorporated planning,
organizing, commanding, coordinating, and controlling. All activities involved with industrial projects
could be separated into 6 sections:
- Technical (production)
- Commercial (buying, selling and exchange)
- Financial (optimum use of capital)
- Security (protection of property and persons)
- Accounting (statistical analysis)
- Managerial (planning, organization, command, coordination, and control)
à carried the management process beyond basic hierarchical model from Taylor. The command
function continued to operate efficiently and effectively through co-ordination and control methods.
Max Weber, the father of bureaucratic management à system in which individual was granted series
of primary occupations and responsibilities within an office. Each lower office was accountable to the
next higher one following. à promotions were designed to reward seniority, achievement, or both. Not
affected by political maneuvering. Workers were expected to separate personal business from official
responsibilities.
Chester I Barnard: important transitional figure attempted to connect scientific management and
Human Relations = organization: system of discerning coordinated individual activities or forces.
àtheory concerning the acceptance of authority maintained that employees considered validity of a
superior’s orders and then decided whether to accept them or not.
- If he understood it / Was able to follow it / Believed it
Along with formal organization, informal organization appeared = dealt with communication and
relationships that the formal structure was not equipped to handle. They establish attitudes, customs,
and standards. à interactions without any specific purpose.
Luther Gulick, expanded on the works of Fayol to build a foundation for management theory. Viewed
management functions as universal à 7 activities acronym: POSDCORB (planning, organizing, staffing,
directing, coordinating, reporting, and budgeting). Revise administrative practices by establishment of
general rules. àagreedwithTaylorthatcertaincharacteristicoforganisationsprovidedadministrators with
the means to manage effectively à Agreed with Weber that organizations were hierarchical. He added
concept of span of control: addressed factors limiting the numbers of people a manager could supervise
+ recommended unity of command
2
,Lyndall Urwick: structure of management and function of the executive + foresting modern thought
about management functions of planning, organizing, controlling, and developing general managerial
guidelines.à 10 general principles for improving managerial effectiveness.
James Mooney: 3 primary management principles
1. Co-ordination principles: individuals performing activities together to obtain a common goal.
2. Scalar principle: rating of duties involved for different members of the organization according
to the degrees of authority and corresponding responsibility.
3. Functional principle: differentiation between various kinds of duty.
Major limitations of classical management movement:
- each worker is an economic man and will work harder to make more money
- It does not deal with relationships between an organization and its environment
- most classical theorists regard employees as tools rather than as valuable resources
2. Behavioral management movement
Primarily concern with human psychology, motivation and leadership as differentiated from simple
mechanical efficiency. Includes human relations movement as well as modern behaviorism.
1920, 1930; scientific management was short-sighted and incomplete. The human aspects of business
organizations had been ignored.
Behavioral management movement: employee behavior in organizational setting. 2 main trusts
2.1 Human relations
Hugo Munstberg: father of industrial of applied psychology à connection between scientific
management and industrial psychology or human behavior. Both sought increased efficiency through
scientific work analyses.
Mary Parker Pollet: administrative conflict, motivation, co-operation, and authority à portrayed
conflict as a process in which important differences occur but the resolution could contribute in a
constructive way towards the attainment of organizational goals. à relationships between supervisors,
subordinates and peers have a stronger effect on productivity than either economic benefits or
organization’s physical environment.
Abraham Maslow (1943): five-tiered hierarchy of needs.
Needs = Internal states which make certain outcomes appear attractive.
Motivation = willingness to exert high levels of effort to reach certain goals
à individuals are motivated by certain needs, that are arranged in a hierarchy from lower- level
physiological needs to higher-level needs for self-actualization.
Frederick Herzberg (extending from Maslow): job design and satisfaction à basic assumption:
redesigning and improving employee positions to increase motivation and involvement.
à satisfiers & dissatisfiers of the hygiene-motivators
- Set of extrinsic conditions result in dissatisfiers among employees when they are not present
(pay, working conditions, ...)
- BUT when these are present: they do not necessarily motivate employees
- Satisfiers are intrinsic and create dynamic levels of motivation which can result in good job
performance (challenge, achievement, recognition, responsibility, ...)
3
, Herbert A Simon: administrative behavior (1947) à attacked principles approach to management: in
consisted and inapplicable àadvocated a systems approach to administration based on decision making
process. à individuals who behave relationally do not optimize their situation (good enough rather than
optimal). à his research is an important link between management science and behavioral approaches.
Doughlas McGregor (1950): stressed importance of understanding the relationship between motivation
and human nature: managers are attempted to motivate employees using one of the basic approaches:
- Negative theory, theory X: traditional view of management based on direction and control.
Suggested that managers were required to coerce, control, or threaten to motivate.
- Positive theory, theory Y: new information about behavior suggesting that managers believed
that people are capable of being responsible and mature.
à using Herzbergs motivation theories: he determined that the more basic and fundamental needs
were generally being met for most employees in industrial organizations. These needs ceased to be
motivators. The workplace needed to reorganize to assist individuals in reaching self- actualization
needs, at that point work becomes enjoyable and employees seek responsibility and commit themselves
to the achievement of organizational goals.
Chris Argyris: open-system theory of organization which used organizational behavior as a frame of
reference. à placed a high value on human beings as individuals and everything done openly and
honestly (theory Y): accurate information and communication à informed decisions concerning
individual’s future could be made freely.
Charles A Lindblom (1959): the science of muddling through à criticized rational models of decision
making in reality the rational models did not work and decision makers depended on small, incremental
decisions.
Maslow: stressed uniform and pervasive set of hierarchical needs.
à McCLelland emphasized certain needs are learned or socially acquired by individuals as they
interaction in within environment.
à three needs theory, 3 significant motives which are formed by interaction
- The need for achievement
- The need for power
- The need for affiliation
J Stacey Adams: Equity theory: employees make comparisons of their job inputs and outcomes relative
to others, and inequities influence the degree of effort which employees exert.
à equity: perception by workers that they are treated fairly. This has a major impact on performance.
- External equity: employees performing jobs within a firm are paid a level comparable with those
paid for similar jobs in other firms
- Internal equity: employees paid according to the relative value of their jobs within the
organization.
Major contributions of behavioral management: it produces understanding concerning motivation,
group dynamics, leadership, and other interpersonal processes in organizations. à employees are
valuable resources.
Major limitations:
- the difficulty in predicting human behavior (complexity).
- The difficulty implementing them
- Current research revealed by behavioral scientists are often not communicated effectively to
management field
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