The evolution of Management Models
Models are representations of a more complex reality. Help us to represent m communicate ideas about, and better understand more complex phenomena in the real world.
Represent a set of assumptions for , or a general way of thinking about or seeing, some phenomenon.
Help us to see also blind us to other aspect.
Models keep evolving as societal values change, existing viewpoints alter and new models of management emerge.
1900-1925: The Emergence of the Rational Goal Model and the Internal Process Model
Background: exciting growth and progress that ended in the high prosperity of the roaring twenties.
Economy: rich resources, cheap labor, laissez-faire policies.
Technology: invention and innovation as tremendous advances occurred in both agriculture and industry.
Work force: immigrants, people leaving the shrink world of agriculture.
Education: average level of edu is 8.2 years.
Henry Ford, Model T, assembly line
Taylor’s 4 principles of management
1. Develop a science for every job, which replaces the old rule-of-thumb method.
2. Systematically select workers so that they fit the job, and train them effectively.
3. Offer incentives so that workers behave in accordance with the principles of the science that has been developed.
4. Support workers by carefully planning their work and smoothing the way as they do their jobs.
1926-1950: The Emergence of the Human Relations Model background: stock market crash of 1929, World War 2 economic: boom, crash, recover with the war, and then once again.
Tech: agriculture, transportation, and consumer goods.
Fayol’s General Principles of Management
1. Division of work.
2. Authority and responsibility.
4. Unity of command.
5. Unity of direction.
6. Subordination of individual interest to general interest.
7. Remuneration of personnel.
9. Scalar chain.
12. Stability of tenure of personnel.
14. Esprit de corps.
Elements of Bureaucracy
1. There is division of labor with responsibilities that are clearly defined.
2. Positions are organized in a hierarchy of authority.
3. All personnel are objectively selected and promoted based on technical abilities.
4. Administrative decisions are recorded in writing, and records are maintained over time.
5. There are career managers working for a salary .
6. There are standard rules and procedures that are uniformly applied to all.
1951-1975: The Emergence of the Open Systems Model
Economic: oil embargo, 1970 staggering under the weight of stagnation and huge government debt.
Product economy to the beginning of a service economy.
Tech: television, computer, man on moon,
Societal Values: a more individualistic and conservative orientation began to take root.
Workforce: 12.6 year average edu. Women
Appropriateness of Managerial Actions Varies with Key Variables
2. Technology, produce outputs varies.
1976-Today: The Emergence of “Both-And” Assumptions
Labor force: knowledge work became commonplace and physical labor, rare.
Job security became increasing ly prominent in labor negotiation.
New issue: takeovers, downsizing.
Large problem: the need to achieve organizational effectiveness in a highly dynamic environment.
Action Imperatives: Collaborate, Control, Compete, Create
A single framework:
The four models is four important subdomains of a larger construct: organizational effectiveness.
The Use of Opposing Models
Adaptable and flexible
Stable and controlled
Growth, resource acquisition, and external support
Tight information management and formal communication
Emphasis on the value of human resources
Emphasis on planning and goal setting
1. To appreciate both the values and the