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LessonOneEvolutionofManagementTextEvolutionofManagementExercisesFurtherReadingCaseStudyofBoeingCompanyTermsSynergyDelphianalysisProfileHenriFayolReferencesHistoryofManagementTheclassicalperiodThecontemporaryapproachestomanagementThreekeydirectionsformanagementtheoryTheEnd HistoryofManagementAround1100B.C.Between350and400B.CTheRomansDuringthemedievaltimesTrial-and-errorAsaformaldisciplineEconomiesofscaleMassproductionTheclassicalperiodAdamSmithSystematicmanagementScientificmanagementAdministrativemanagementHumanrelationsBureaucracyThecontemporaryapproachestomanagementTheclassicalapproachesdisadvantageQuantitativemanagementOrganizationalbehaviorSystemtheoryThecontingencyperspectiveAround1100B.C.TheChinesepracticedthefourmanagementfunctionsplanning,organizingandstaffing,leading,andcontrolling.TheShangDynasty(1523-1027BC)WasChinasfirsthistoricaldynasty.TheShangcivilizationleftChinasearliest-knownwrittenrecords,intheformofinscriptionsetchedinobjectsofboneandbronze.TheinscriptionsdocumentthedynasticsuccessionoftheShangkings,aswellasmanyfeaturesoftheBronzeAgecultureoftheShang.TheShangstatewascenteredintheYellowRiverValleyoftheNorthChinaPlain.Between350and400B.C.TheGreeksrecognizedmanagementasaseparateartandadvocatedascientificapproachtowork.AncientGreeceCivilizationthatthrivedaroundtheMediterraneanSeafromthe3rdmillenniumtothe1stcenturyB.C.,knownforadvancesinphilosophy,architecture,drama,government,andscience.ThemostfamousperiodofancientGreekcivilizationiscalledtheClassicalAge,whichlastedfromabout480to323B.C.Thecity-statesfelltoRomanconquerorsin146bc.TheByzantineEmpirefelltotheOttomansin1453.TheRomansDecentralizedthemanagementoftheirvastempirebothbeforeandafterthebirthofChrist.RomanEmpireTheempireincludedlandsthroughouttheMediterraneanworld.TheempirelasteduntilGermanicinvasions,economicdecline,andinternalunrestinthe4thand5thcenturiesadendedRomesabilitytodominatesuchahugeterritory.In44bcGaiusJuliusCaesar,theRomanleaderwhoruledtheRomanRepublicasadictator,wasassassinated.TheRomanRepublic,whichhadlastednearly500years,wasdead,nevertoberevived.Theempirewouldendureforanother500yearsuntilad476.DuringthemedievaltimesTheVenetiansstandardizedproductionthroughtheuseofanassemblyline,buildingwarehousesandusinganinventorysystemtomonitorthecontents.Arowofworkersandmachinesalongwhichworkispasseduntilthefinalproductismade.Trial-and-errorThroughouthistorymostmanagersoperatedstrictlyonatrial-and-errorbasis.Thechallengesoftheindustrialrevolutionchangedthat.AsaformaldisciplineManagementemergedasaformaldisciplineattheturnofthecentury.EconomiesofscaleTheemergenceofeconomiesofscalereductionsintheaveragecostofaunitofproductionasthetotalvolumeproducedincreasesdrovemanagerstostriveforfurthergrowth.MassproductionTheopportunitiesformassproductioncreatedbytheindustrialrevolutionspawnedintenseandsystematicthoughtaboutmanagementproblemsandissuesparticularlyefficiency,productionprocessesandcostsavings.Themakingofgoodsinlargequantities,especiallybymachineryandwithdivisionoflabor.TheSystematicManagement Itattemptedtobuildspecificproceduresandprocessesintooperationstoensurecoordinationofeffort.ItsgoalsachievedwaysItsemphasisItsshortcomingItsgoalswereachievedthrough:1.Carefuldefinitionofdutiesandresponsibilities2.Standardizedtechniquesforperformingtheseduties3.Specificmeansofgathering,handling,transmitting,andanalyzinginformation.4.Costaccounting,wage,andproductioncontrolsystemstofacilitateinternalcoordinationandcommunications.Amethodofaccountingforthecostsofoperatingabusinessbyallocatingthesecoststothegoodsacompanyproducesortheservicesitrenders.SystematicManagementsemphasisInternaloperationsManagerswerefreetofocusoninternalissuesofefficiency.Manymanagerswereorientedmoretowardthingsthantowardpeople.SystematicManagementsshortcomingItfailedtoleadtowidespreadproductionefficiency.FrederickTaylorFrederickTaylorHisdiscoveriesTaylor Frederick WinslowTaylor Frederick Winslow(1856-1915)Americanindustrialengineer,whooriginatedscientificmanagementinbusiness.WasborninGermantown,Pennsylvania.BeganworkingattheMidvaleSteelCompanyin1878.Developeddetailedsystemsintendedtogainmaximumefficiencyfrombothworkersandmachinesinthefactory.BecamejointdiscovereroftheTaylor-Whiteprocess,amethodoftemperingsteelin1898.HismanagementmethodswerepublishedinThe Principles of Scientific Management(1911).TaylordiscoveriesProductionandpaywerepoor,inefficiencyandwastewereprevalent.Managementdecisionswereunsystematicandnoresearchtodeterminethebestmeansofproductionexisted.ScientificManagementAdvocatedtheapplicationofscientificmethodstoanalyzeworkandtodeterminethe“onebestway”tocompleteproductiontasksefficiently.FourprinciplesAdvantageDisadvantagesFourprinciplesofscientificmanagement1.Developascientificapproachforeachelementofanindividualsworktoreplacerule-of-thumbguidelines.2.Scientificallyselect,train,teach,anddevelopeachworkersothattherightpersonhastherightjob.3.Cooperatewithworkerstoensurethatthejobmatchesplansandprinciples.4.Ensureanequaldivisionofworkandresponsibilitybetweenmanagersandworker.Time-and-MotionstudiesTime-and-MotionstudiesAtaskwasdividedintoitsbasicmovements,anddifferentmotionsweretimedtodeterminethemostefficientwaytocompletethetask.Afterthe“onebestway”toperformthejobwasidentified.TaylorsScientificManagementadvantageProductivityandefficiencyinmanufacturingimproveddramaticallyTheconceptsofscientificmethodsandresearchwereintroducedtomanufacturingEmphasizedtheneedforcooperationbetweenmanagementandworkersTheconceptofamanagementspecialistgainedprominenceDisadvantagesIgnoredmanyjob-relatedsocialandpsychologicalfactorsbyemphasizingonlymoneyasaworkerincentive.Productiontaskswerereducedtoasetofroutine,machine-likeproceduresthatledtoboredom,apathy,qualitycontrolproblems.Abusetheirpowertosetthestandardsandthepiecerates,thusexploitingworkersanddiminishingtheirimportance.Didnothelpmanagersdealwithbroadexternalissues.Apaymentplaninwhichemployeesarepaidafixedamountofmoneyforeachunitofoutputproduced.TheAdministrativeManagementEmphasizedtheperspectiveofseniormanagerswithintheorganization.Andarguedthatmanagementwasaprofessionandcouldbetaught.HenriFayol5functionsofmanagementThe14principles5functionsofmanagementPlanningOrganizingCommandingCoordinatingControlling.The14principlesDivisionofworkAuthorityDisciplineUnityofcommandUnityofdirectionSubordinationofindividualinteresttothegeneralinterestRemunerationCentralizationScalarchainOrderEquityStabilityandtenureofpersonnelInitiativeEspritdecorpsHumanRelationsEmphasizeinformalworkrelationshipsandworkersatisfaction.Stressprimarilyemployeewelfare,andcommunication.Socialneedshadprecedenceovereconomicneedsandtheinformalgroupexertedcontroloverthebehaviorofemployees.Gainthecooperationofthegroupandpromotejobsatisfactionandnormsconsistentwiththegoalsoftheorganization.BureaucracyMaxWeberFunctionThecontemporaryapproachestomanagementMaxWeberHebelievedbureaucraticstructurecouldeliminatethevariabilitythatresultswhenmanagersinthesameorganizationhavedifferentskills,experiences,andgoals.Headvocatedthattherolesthemselvesbestandardizedsothatpersonnelchangeswouldnotdisrupttheorganization.Emphasizedastructured,formalnetworkofrelationshipsamongspecializedpositionsinanorganization.Rulesandregulationsstandardizebehavior,andauthorityresidesinpositionsratherthaninindividuals.Theorganizationneednotrelyonaparticularindividual;butitwillrealizeefficiencyandsuccessbyfollowingtherulesinaroutineandunbiasedmanner.BureaucracyfunctionBureaucraciesareespeciallyimportantBureaucraticpositionsfosterspecializedskills,eliminatingmanysubjectivejudgmentsbymanagers.Iftherulesandcontrolsareestablishedproperly,bureaucraciesshouldbeunbiasedintheirtreatmentofpeople,bothcustomersandemployees.QuantitativemanagementHelpsamanagermakeadecisionbydevelopingformalmathematicalmodelsoftheproblem.Computershavefacilitatedthedevelopmentofspecificquantitativemethods.break-evenanalysis.Organizationsapplythesetechniquesinmanyareas,includingproduction,qualitycontrol,marketing,humanresources,finance,distribution,planning,andresearchanddevelopment.OrganizationalbehaviorStudiesandidentifiesmanagementactivitiesthatpromoteemployeeeffectivenessthroughanunderstandingofthecomplexnatureofindividual,group,andorganizationalprocesses.Organizationalbehaviordrawsfromavarietyofdisciplines,includingpsychologyandsociology,toexplainthebehaviorofpeopleonthejob.TheoryXandTheoryYDouglasMcGregorMarkedthetransitionfromhumanrelationsTheoryXManagersassumeworkersarelazyandirresponsibleandrequireconstantsupervisionandexternalmotivationtoachieveorganizationalgoals.TheoryYManagersassumeemployeeswanttoworkandcandirectandcontrolthemselves.Managerswhoencourageparticipationandallowopportunitiesforindividualchallengeandinitiativewouldachievesuperiorperformance.TheclassicalapproachesdisadvantageIgnoredtherelationshipbetweentheorganizationanditsexternalenvironmentandusuallystressedoneaspectoftheorganizationoritsemployeesattheexpenseofotherconsiderations.SystemsTheoryProvidesawaytointerpretorganizations.Takesaholisticviewoftheentireorganizationalsystemandstressesprocess.Includeopenversusclosedsystems,efficiencyandeffectiveness,subsystems,equifinality,andsynergyThisconceptstatesthattherearemanyavenuestothesameoutcome,i.e.manydifferentcombinationsofsubsystems,ideas,andmethodscanleadtothesamegoal.ThecontingencyperspectiveAvarietyoffactors,bothinternalandexternaltothefirm,mayaffecttheorganizationsperformance.Thereisno“onebestway”tomanageandorganize,becausecircumstancesvary.ThreekeydirectionsformanagementtheoryGlobalinterdependenceThesearchforexcellenceThequalityrevolutionMiddleAgesLastedfromaboutad350toabout1450.Atthebeginning,thewesternhalfoftheRomanEmpirebegantofragmentintosmaller,weakerkingdoms.Duringthistime,theprecursorsofmanymoderninstitutions.InventedbypeopleduringtheRenaissance,aperiodofculturalandliterarychangeinthe14th,15th,and16thcenturies.TheadjectivemedievalcomesfromtheLatinwordsforthisterm,medium(middle)andaevum(age).InventoryAdetailed,itemizedlist,report,orrecordofthingsinonespossession,especiallyaperiodicsurveyofallgoodsandmaterialsinstock.Stocksofgoodsormaterialsoftenarelocatedatpointswherethereisachangeintherateandunitofmovement.Inventoriesrepresentaninvestmentthattheownerhopestosell.Costsassociatedwithholdinginventories,includinginterestonthemoneyinvestedintheinventory,storagecosts,andrisksofdeterioration,obsolescence,andshrinkage.ShrinkageInventory“shrinkage”isthetermthatacknowledgesandmeasuresthefactthatmostinventoryrecordsshowmoregoodshaveenteredaninventorythancanbefound.TrialandErrorAmethodofreachingacorrectsolutionorsatisfactoryresultbytryingoutvariousmeansortheoriesuntilerrorissufficientlyreducedoreliminated.Problem-solvingactivity:emphasizessimpletrialanderrorrequiressomedegreeofinsightTheindividualproceedsmainlybyexploringandmanipulatingelementsoftheproblemsituationinanefforttosortoutpossibilitiesandtorunacrossstepsthatmightcarryhimclosertothegoal.NotnecessarilyovertEconomiesofscaleTheloweringofcoststhroughtheproductionoflargervolume.WhatAreEconomiesOfScale?TheStagesOfIndustryGrowthDoesSizeReallyMatter?AdamSmith(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).BorninKirkcaldy,ScotlandEducatedattheuniversitiesofGlasgowandOxford.From1748to1751Gavelecturesonrhetoricandbelles-lettresinEdinburgh.ContributedmuchtothedevelopmentofSmithsethicalandeconomictheories.SeealsoThematicEssay:BritishPoliticalandSocialThought.Wealth of NationsRepresentsthefirstseriousattemptinthehistoryofeconomicthoughttodivorcethestudyofpoliticaleconomyfromtherelatedfieldsofpoliticalscience,ethics,andjurisprudence.Itembodiesapenetratinganalysisoftheprocesseswherebyeconomicwealthisproducedanddistributedanddemonstratesthatthefundamentalsourcesofallincome.ThecentralthesisIntroduction:AdamSmithsLife:TheSpiritoftheAge:The Wealth of Nations:Quotes.Dates&EventsDuringSmithsLife.ThecentralthesisIsbestemployedfortheproductionanddistributionofwealthunderconditionsofgovernmentalnoninterference,orlaissez-faire,andfreetrade.Theproductionandexchangeofgoodscanbestimulated,andaconsequentriseinthegeneralstandardoflivingattained,onlythroughtheefficientoperationsofprivateindustrialandcommercialentrepreneursactingwithaminimumofregulationandcontrolbygovernments.DetailedsystemsThesesystemsreliedontimeandmotionstudies,whichhelpdeterminethebestmethodsforperformingataskintheleastamountoftime.HenriFayol(1841-1925)AFrenchengineeranddirectorofmines,waslittleknownoutsideFranceMovedintoresearchgeologyandin1888joined,ComambaultasDirector.OnretirementhepublishedA comprehensive theory of administration.Earlycontributortoaclassicaloradministrativemanagementschoolofthought.EspritdecorpsGroupspiritSenseofunionandofcommoninterestsandresponsibilitiesinsomegroup.ComradeshipWeberMax(1864-1920)Germaneconomistandsocialhistorian,knownforhissystematicapproachtoworldhistoryandthedevelopmentofWesterncivilization.WasbornApril21,1864,inErfurt,andeducatedattheuniversitiesofHeidelberg,Berlin,andGttingen.HeldprofessorshipsineconomicsattheuniversitiesofFreiburg(1894),Heidelberg(1897),andMunich(1919).HewaseditoroftheArchivfrSozialwissenschaftundSozialpolitik,theGermansociologicaljournal,forsomeyears.WeberMaxChallengedbytheMarxisttheoryofeconomicdeterminism.Hisbest-knownworks-The Protestant Ethic and the Spirit of CapitalismThe Religions of the Eastseries,inwhichhepostulatedthattheprevailingreligiousandphilosophicalideasintheEasternworldpreventedthedevelopmentofcapitalisminancientsocieties.Bureaucracy1)Administrationofagovernmentchieflythroughbureausordepartmentsstaffedwithnon-electedofficials.2)Managementoradministrationmarkedbydiffusionofauthorityamongnumerousofficesandadherencetoinflexiblerulesofoperation.3)Aprofessionalcorpsofofficialsorganizedinapyramidalhierarchyandfunctioningunderimpersonal,uniformrulesandprocedures.MathematicalmodelEitheroftwodecidedlydifferentkindsofmathematicalrepresentation.Physicalmathematicalmodelsincludereproductionsofplaneandsolidgeometricfiguresmadeofcardboard,wood,plastic,orothersubstances.Modelsofconicsections,curvesinspace,orthree-dimensionalsurfacesofvariouskindsmadeofwire,plaster,orthreadstrungfromframes.Modelsofsurfacesofhigherorderthatmakeitpossibletovisualizeabstractmathematicalconcepts.MathematicalmodelAnyrealsituationinthephysicalandbiologicalworld,issubjecttoanalysisbymodelingifitcanbedescribedintermsofmathematicalequations.Optimizationandcontroltheorymaybeusedtomodelindustrialprocesses,trafficpatterns,sedimenttransportinstreams,andothersituations.MathematicalmodelInformationandcommunicationtheorymaybeusedtomodelmessagetransmission,linguisticcharacteristics,andthelike.Dimensionalanalysisandcomputersimulationmaybeusedtomodelatmosphericcirculationpatterns,stressdistributioninengineeringstructures,thegrowthanddevelopmentoflandforms,andahostofotherprocessesinscienceandengineering.Break-evenanalysisIsatechniquewidelyusedbyproductionmanagementandmanagementaccountants.ItisbasedoncategorisingproductioncostsbetweenthosewhicharevariableandthosethatarefixedTheBreak-EvenChartFixedCostsArenotdirectlyrelatedtothelevel
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