HISTORY OF MANAGEMENT THOUGHT

Important Management Movements:

Administrative and Scientific Management Movement

The Behavioral Management Movement

The Contemporary Movement

The Entrepreneurial Movement

Administrative and Scientific Management Movement(1850-1945)

• It did not focus on improving employee working conditions. Unions emerged during this period.

– Contributions

– increasing efficiency and effectiveness in the way work designed and accomplished

– giving management, rather than workers, control over planning and coordinating work

– instituting pay structures and incentive systems

– ensuring mandatory employee obedience and company loyalty (I.e., the interest of the employees or work groups should not supersede the organization’s objectives)

– motivating employees primarily through monetary rewards

– creating division of work and job specialization(I.e., breaking jobs down to small units of work

Behavioral Management Movement(1930s to mid-1970s)

• The behavioral management movement focused on the employee as well as on management.

• Major Contributions

• Improving the management of human resources in the areas of employee selection, employee counseling, employee compensation, and incentives, work group behavior, organizational communication, human relations, employee job satisfaction and productivity, working conditions, employee morale, job enrichment and managerial leadership.

• Management should make employees feel important.

• Human resource theory, total quality management(TQM), contingency theory emerged during this period.

Contemporary Management Movement (1970s-1990s)

• Contemporary movement focuses on developing theories that shapers of the administrative and scientific and behavioral management movements either excluded, only lightly touched on, or were not aware of when developing their concepts.

• The contemporary management movement based on contributions of systems theory, decision theory, human resource theory, contingency theory, total quality management, and open book management.

• Major Contributions

• Developed quantitative procedures to aid managers in making decisions under conditions of uncertainty relative to both short and long range planning.

Contemporary Management Movement

• Systems Theory:Systems thoery views the organization as an open system. The theory assumes that:

– the organization is composed of interdependent subsystems and that change in any subsystem

– the organization is dynamic and constantly undergoing change

– the organization strives for homeostasis or balance

– the total organization has multiple objectives that might conflict with one another

– the organization is continually receiving inputs that are transformed into new outputs

• Decision Theory: Focuses on problem solving and decision making styles of managers. These models provide rules for managers to follow in their problem-solving and decision -making activities.

• Major Contributions : identifying approaches to the problem solving process

– providing decision-making strategies for managers under conditions of certainty and uncertainty

– providing a framework for identifying and using different problem-solving styles

– using linear programming concepts to find the best solution to a problem

– developing decision matrices to determine various forms of payoffs for respective decisions

Created OPERATIONS RESEARCH MANAGEMENT

Contemporary Management Movements

• Human Resource Management Theory: HRM views the organization’s human resources as assets or investments that can profit both the company and the employee if appropriately managed.

• The implementation of HRM philosophy establishes personal growth opportunities and planned career experiences for employees. These activities attempt to maximize employee personnel needs, potential for career enhancement and overall organizational effectiveness.

• The HRM approach contrast greatly with scientific management approach.

Contingency Theory: C.T. considers the situation and environment in which the work is performed.

• C.T. assumes that there is no best way to manage or lead an enterprise. The contingency manager has no universal prescriptions, principles, or techniques that will work in every situation.

• Contingency theory maintains that organization’s structure, processes, and situational characteristics work together. For example the structure of a task can significantly influence the supervisor’s behavior as well as employee job satisfaction. By changing the task structure, the manager may able to change his/her leadership style

Contemporary Management Movements

• Total Quality Management (TQM): Edward Deming first introduced in U.S. T.Q.M. philosophy stresses that customer satisfaction is the responsibility of every member of the organization and can be accomplished only through a process of continually discovering ways to improve quality and service.

• T.Q.M. is a people-focused management system that stresses continual increase in internal and external customer satisfaction and continually lower costs. It works horizontally across functions and departments within the organization and involves employees at all levels.

• Open Book Management: O.B.M. applies the ideas of the contemporary management school to three major elements:

• Employees learn to understand the organization’s financial status and are trained to track the firm’s performance. Employees are trained to determine if what they are doing is earning money for the organization.

• Employees learn that their job stability depends on moving the economic indicators of their job in the right direction

• Employees are stakeholders in the organization’s success and survival.O.B.M. trains employees to think of themselves as businesspeople rather then as employees.

• Sharing all financial data with employees.

Entrepreneurial Management Movement

• French economist J.B. Say introduced this term 200 years ago.

• The business has to be based on creating a new demand.The business must take some existing service , product or idea and add new dimensions to it to create new markets, opportunities, and customers. Entrpreneurship is value-added concept.

• Apply management principles to new problems and new opportunities.

• Entrepreneur ( Self-confidence, perseverance, determination, ability to calculated risk, need to achieve, creativity, initiation, flexibility, positive response to challenge

PES 402 ADMINISTRATION & MANAGEMENT IN PHYSICAL EDUCATION PROGRAMS