Evolution of Management Theory

hi everyone this module is going to cover the evolution of management theory before we get started the lecture and get into that for this particular module I want to encourage you to go out and watch this video I'll play here as part of this lecture but just to give us a background into the Industrial Revolution and how it's going to relate into what we're talking about today so we need to build that foundation to better understand where we were at and how how we got to where we're at today hi I'm John Green this is crash course world history and today we're gonna discuss the series of events that made it possible for you to watch crash course and also made this studio possible and made the warehouse containing the studio possible a warehouse by the way that houses four warehouses that's right it's time to talk about the Industrial Revolution although it occurred around the same time that the French American Latin American and Asian revolutions between say 1750 and 1850 the Industrial Revolution was really the most revolutionary of the bunch o blaid doing all those other revolutions resulted in like new borders and eyes this stuff we've studied fifteen thousand years of history here at crash course made from the past and borders and flags have changed plenty and they're going to keep changing but I don't have time nothing much changed about the way we disposed of waste or located drinking water or acquired clothing most people live on or very close to the land of provided their food except for a few exceptions life expectancy never rose above 35 or below 25 education was a privilege not a right in all those millennia we never developed a weapon that could kill more than a couple dozen people at once are a way to travel faster than horseback for fifteen thousand years most humans never owned or used a single item made outside of their communities Simone Bolivar didn't change that and neither did the American Declaration of Independence you have electricity Industrial Revolution blueberry's in February Industrial Revolution you have somewhere other than a farm Industrial Revolution you drive a car Industrial Revolution you get 12 years of free clothes education Industrial Revolution your bed your antibiotics your toilet your contraception your cap water your every waking and sleeping Second Industrial Revolution here's one simple statistic that sums it up before the Industrial Revolution about 80 percent of the world's population was engaged in farming to keep yourself and the other 20% of people from starving today in the United States less than 1% of people with their occupation as farming we've come too far that we don't even have to farm flowers anymore cities real by the way they're made out of film or digital so what happened technology here's my definition the Industrial Revolution with an increase in production brought about by these machines and characterized by the use of new energy sources although this was going to get more complicated for our purposes today industrialization is not capitalism although as we will see next week is connected to modern capitalism and the Industrial Revolution began around 1750 and it occurred across most of the earth but it started in Europe especially Britain what happens well let's go to the buckle the innovations of the Industrial Revolution were intimately interconnected like look for instance at the British textile industry the invention of the flying shuttle by John Kay and 1733 dramatically increased the speed of weaving which in turn created demand for yard which led to inventions like this spinning jenny and the water frame so these processes were mechanized leading water power until the steam engine came along to make flying shuttles really quietly change continents the most successful steam engines was built by Thomas they didn't name anything after minou comin to clear water out of mind and because water was cleared out of those mind there was more coal to power more steam engines which eventually led to the fancy opportunity minted by James I got a unit of power and the university named after you watch tweed engine a popular model railroaders steamboats but also ever more efficient cotton mills and for the first time chemicals other than sale urine I wish I was kidding we're being used to bleach the profit people for the first of which with sulfuric acid which was created in large quantity only thanks to lead line chambers which would have been impossible without dead corruption rising dramatically right around 1750 in Britain thanks to leg foundries powered by coal and okay guys I'm going to go ahead and stop it there you can finish watching the rest of the video at your leisure but just wanted to kind of set us up and give us a little background into you know what we'll be talking about today and how the Industrial Revolution relates back into management theory so after you watch the video if you would back and watched it you may just be thinking you know what does this what does the Industrial Revolution have to do with health care how to do with management in general and it's important to understand and note here the Industrial Revolution really changed the way we saw the role of a manager you know we saw the manager become more of a professional manager not just managing over their own farm their own you know sharecroppers that worked under them but now we're transitioning the manager into more of that professional role and this may all seem really simple you know really you know why didn't you know that that simple you know that's nothing new but it's important to understand at the time now this was really unprecedented and to think about you know what organizations really existed prior to the Industrial Revolution that we could really base management off of the only ones that that really existed were really out there were things like the government military different churches and that's how when the Industrial Revolution came through and we started to we started to evolve management that's why a lot of management and management theory and the way we do things is based on different things that we see in the military the church or the government because that's how the structure was based because that's what we needed that's what existed at the time so for the next couple of slides we're going to be talking about different schools and thoughts of management different theories of management now they are going to be very you know very academic very textbook heavy so they can be a little tedious but just stick with me on it we'll work through and talk through it all out a couple things that are supplemental into your textbook in regards to a couple of the different theories but it's a you know it's again important to note that you know as organizations were starting to form you know we've never seen anything really like this we'd seen it loosely constructed but we're starting to get this more formalized organization coming together so there wasn't much precedent past how we do it in the government how we do with you know in that church religious structure how we do it with the military and so that's why you see a lot of the same language a lot of the same lingo used in government and military used within the management structure because that's what we based it on but as we go through and talk about these different schools of management you know these different theories you know they all revolve around you know what is the best way to lead people and that's what I want you to think about going forward as we work through this so as we start out we're starting out in the more classical area of theory regarding management's we're talking about late 1800s moving into the 1950s and under this theory or at this time at this stage of management Theory we see you know it may seem simple but we started to note that that money is what motivated employees and how they they gave their best output was tied to money so we have this economic man concept all revolving around money motivating employees so we come to Henri fail and he is often credited with coming up with the five essential functions of Management he's also termed the father of modern management but he came up with these five functions that we discussed in the previous module revolving around planning organizing commanding coordinating and controlling and even though these are you know they're probably about 120 550 years old by now this is still relevant in the workplace today and things that we need to be aware of as we move forward particularly if you see yourself going into a management or a supervisory role so fail in addition to his five essential functions the planning the organizing the commanding the coordinating and the controlling he had 414 management principles and they all revolving around you know again what is the best way to manage what is the best way to manage the workforce I mean you can read through these different management principles again that were created by Phil who is often turned the the father of modern management so as we move into scientific management you'll start to note here that it starts to overlap with the more classical management theories that we had just talked about or that classical era going from the late 1800s to the 1950s so we see kind of this overlap with scientific management from 1890 1890 to 1940 so here we're looking at or here this particular time era in management history we're starting to from the Industrial Revolution we're starting to get more machines more equipment integrated into the workplace so now we have to start thinking how do we integrate our workforce our people with these machines with these equipments how do we you know continue to increase our profit seeking that you know economy a scale economy of time you know how do we increase profit our time and increase our efficiency so how do we bump up our human energy make that more efficient make sure that we're using it appropriately and getting out of it what we need and you know time is money so how do we decrease our time still make quality products still make things run more efficiently so we have a couple different people that were pretty prominent during this scientific management era we have Frederick Taylor all about scheduling and controlling we have Franken Lillian Gilbreth and what they did it seems simple maybe they study tongin motion analysis but it was really groundbreaking and fits nicely if you're planning on taking quality improvement the work of the Gilberts really tie in to what we see in quality improvement in terms of time studies understanding the process mapping it out you know they would for example watch bricklayers watch how they worked what their process was and try to come up with change management theories on you know how do we decrease the time that is taking so that we can increase the output that we're seeing and run more efficiently and then the last the last one we'll talk about Henry Gantt I'm all about scheduling how do we schedule tasks Gantt charts which we're going to talk about a little in the next slide and throughout the semester very relevant still used today particularly in the military we see that a lot but just scheduling you know how do we schedule appropriately to make sure we're using resources appropriately we're not overloading one side or the other so here's an example of a Gantt chart that I wanted to just show you that we could go over and again Gantt charts just assisting with how do we schedule tasks or events out to make sure that we're staying on turn and that we we are staying with pace that we need to to finish the project on time so you can see at the top there we have our time separated out this particular one has it separated out in quarters so have Q one through four with it three months under each quarter and then we can see there under projects that's the first one explore the market needs we see that particular task for that particular step is going to take from about mid January to early mid March and it just gives us a quick visual on who's doing was we can see explore market me that's the job of marketing anything in blue is going to be development QA testing is going to be in red and so on so on we can see when we meet major milestones just making sure that we stay on task so that we can finish in the time that we need to the next kind of era of Management we move on to is bureaucratic era of Management that this runs 1930 to 1950 and this particular era focused heavily on rules and regulations making sure that we're following that the different rules in place but I want you to think for a second particularly around the time that we see this kind of error come about in the 1930s and 1950s and start to ask yourself you know what was particularly State range in our country's history overall and if you said that you know you're correct if you said you know our country was involved in World War two at the time and the events that happened through World War two you know they significantly changed our structure as a country the way we did things on multiple different aspects and particularly in management so through World War two we seen you know the men typically were the workers of the household we saw then because either sign up or be drafted into the war so women would come in fill the spots that were left vacant by those that were off to fight when they came back with a man came back for more you know some women were display some went back to the home some stayed in the workforce and when the men came home you know they were really you know they were really changed by everything they went through through World War two and they were used to the organization of the military and the level of organization that that brought to them and they brought that level of organization that level of management structure to the workplace with them so we started to see management firm you know firmly construct around different aspects that we see coming out of the military and out of the government structure so we had Max Weber during this time big believer in you know everything is ran by bureaucracy it's the most efficient structure oh and it's most efficient to follow the rules rules of law and rules of organizations so he defined three different aspects rational Authority and these three different levels of authority rational Authority which of course is based on law and rules and regulation he also defined that we have something called positional Authority which is simply put based on the position that you have within the organization so if you're the CEO the CEO of the CNO the authority is based on the position you have I mean the last one that he defined pretty interesting I think anyway based on charismatic Authority so not necessarily tied to the rules in law not necessarily tied to the position you have in the work foot workplace but more time to your personality or the person's personality you give a person you know very charismatic Lee I'm sure you've followed at one time in your life someone who's been very charismatic very outgoing and you follow them based on their personality within the thought situation so right now we currently find ourselves in the human relations era of management theory now this again kind of overlaps with bureaucratic era of management so we see us going from 1930s to present to the tene of it but era were currently in now and you know this this particular relates back to having a workforce that's not necessarily as motivated by money or that money is tied to employees motivation you know it is but this this era and this management theory is saying that's not the only determining factor employees want something where they feel like they're adding meaning you know they're making a difference they're motivated by culture by the environment they're doing meaningful work and just all relating back to Maslow's hierarchy of needs which we're going to talk about later throughout the course so just a you know a shift in the way we start to think about things management not necessarily tied to money well motivation not necessarily tied to money so much is you know we want to make sure that what we're doing is meaningful that we're going to be highly motivated by the culture in the environment that we find ourselves in next thing we'll cover in regards to management theory we'll talk a little bit about the Hawthorne studies so these were you know very groundbreaking landmark studies and they may seem simple now but at the time they were very very you know groundbreaking studies that were conducted that just sense you know people simply saying that people change their behavior around tasks around things that they're assigned to do when they know they're being watched which seems you know simple you know I changed my behavior when I I'm being launched but it was very groundbreaking at the time to understand that you know if employees have a watchful eye over them they'll generally give their best output get their best effort and give you a quality product I want to encourage you to go out and watch the Hawthorne effect video no it's linked up here in the PowerPoint slide right here if you click on Hawthorne effect it will take you to a YouTube video so make sure that you go out and watch that learn a little bit more about the Hawthorne effect and the the studies that were conducted from that a couple of the findings from the Hawthorne studies just revolve around informal leadership and understanding the informal leadership does exist out there and because we do have this kind of level of informal leadership groups the workforce groups of workers are going to decide what their culture is regardless of you know any money that's tied to anything their attitude is going to be what is key to productivity because they were going to set the tone for the culture and the environment they're going to work in a different video just regarding the Hawthorne effect I want you guys to go out and watch I've linked up here at the bottom the Hawthorne effect the study of employee productivity make sure to go out and check out that link so the man Mayo the study that was done come out and concluded generally that you know the Industrial Revolution just changed a lot of things that we do it changed the way we operate change the way we function as a society and again you know said it a couple times already but it may seem really simple now but that's because we've worked in it for so long that it's second nature to us at the time it was very very groundbreaking think about the organizational structure that you know didn't exist before the Industrial Revolution and how society was set up and then we had you know this boom in the industry and how that changed the way we do things and then we find ourselves in World War 1 World War two and how that changed management for us overall you know we had a loose loose structure if you will to management and after these couple events that happen in our country's history we started to firm up that management theory and the way that we do things in the way things are organized but you know Mayo concluded too that again through these Hawthorne effects studies that people's behavior changes when you watch them know don't mistake that to mean that you just need to sit around watch your employees all day you know that's for micromanaging that's going to you know greatly disenfranchise your employees and create a less than hospitable work environment but it's more important to just be present you know make it make yourself be visible be out there checking on your employees checking on people who work for you making sure they have the things they need what assistance can you provide them not just saying they're scrutinizing everything they're doing but making sure that you're getting out of your office now you know we have an office when we have you know when we work because there are some things that have to be done in the office but just make sure as you move into more of these management and supervisory roles from the administration side that you are making an effort to get out there to get out there and understand what's going on with your employees don't just manage from a desk or manage from the boardroom or manage from the conference room you need to actually get out there see what's going on see what changes need to happen and see how things are are happening from an employee standpoint so amended to Bernards acceptance theory of authority I want you to make sure that you know this theory very well because you may see it again on a quiz or exam coming up but the basis of this acceptance theory of authority is that as crazy as it may sound managers are only going to have as much authority as their employees are going to allow them to have because you know a couple slides ago we said groups are going to take the the authority or the groups are going to dictate the culture going to dictate the environment that they work in and as a manager you're only going to have as much authority as you're given by your employees they need to trust you they need to know that they can follow you trust your decisions so we have three basic tenants that we want to talk about for bernards acceptance theory and that are important in this whole thority theory the first one just is that you need to be able to make sure as a person working in a managerial or a supervisory role that you can establish and maintain that effective communication system you know how well do you communicate with your employees do you have an open-door policy do you communicate very well with them so it's not perceived that you're you know not necessarily trying to hide things how do you get the information out to them and how open do you keep those channels and you also need to hire and maintain that effective workforce you want people motivated to be there to you know in the case of health care you want people there who want to be there to take care of your patients so you need to make you know make sure that you're hiring and maintaining that effective workforce and then motivating your personnel that work for you your employees making sure that they feel like they're contributing because you know generally that's why we go to work right because we want to feel like we're making a difference and we want to feel like we're contributing to the overall bigger picture so I have a couple different theories of you know prep really name theory XYZ very creative but as you read through these theories and it may seem a little crazy to think you know people actually subscribe to these theories and the one that that I particularly get stucked on stuck on is Theory X um you know I I don't subscribe to this theory at all that employees need to be directed because they're lazy and irresponsible you know people do need to take responsibility and I you know I'm more kind of between y&z I guess knowing that people you know people need to feel like they're responsible for making decisions again going back to wanting to make you know motivating your personnel making sure they feel like they're contributing and having more of that emphasis on quality improvement how can we continually work to make this better for our patients I'm so as we move into the contemporary era of management theory in 1940s through present we have a couple different theories that we're going to cover over contingency NB o--'s and organizational development so we had Mary Parker Follett slaw of situation revolving around contingency theory specifically just saying you know there's no one right way to do anything it's really just going to depend on the situation we see that out in the workforce you know what may work for one doesn't work for another but we can take different elements and adapt it to work for our needs and will tell you the management by objectives please make sure that you know this this will pop up again on a quiz and an exam so make sure that you are very very familiar with management by objectives from Peter Drucker just revolving around how we go out and set targets that are attainable for our employees as well as managers that report to us to making sure that we set them up for success and then organizational development from kurt lewin relating back to Maslow's hierarchy of needs which we'll get into in a couple slides and continue to talk through about throughout the semester now if you don't work in healthcare or if you do I just remember thinking when I first started working in healthcare how shocking it was how many you know departments there there are that kind of try to work independently but understanding that we have one patient that may go through all these different departments emergency department surgery lab x-ray housekeeping dietary they run the continuum so they're running kind of horizontal through these streams and we try to set up these departments in silos so how do we kind of make the systems function together for the purpose of the patient so that they have a smooth transition from one aspect to the next so said one one aspect that I really want you to know we're going to focus in on is management by objectives for Peter Drucker management by objectives and I would say this in healthcare I would you know complete this task with my superior but just talking about how we as a sip you know a manager and an employee that report reports to that manager or managers that report to higher-ups how we can work together to jointly kind of establish these objectives so you know we don't feel like things are being forced on us but that were a partner in the overall structure of things and how we can create these obtainable objectives together and and most importantly making sure you know if you're taking planning strategic planning or if you have already taken strategic planning you know we talked a lot about the mission vision and values of the organization and how crucial they are so through creating these different objectives you know we need to make sure as a manager as a superior you know as an administrator that we're making sure that these objectives and these action plans that we have are going to be tied to our mission vision and values and our overall business plan for the organization because if we don't you know we don't need to focus on them if it's not going to ultimately push our mission vision values for the organization so I've got a couple I've got an example that we'll go over with you on the next slide but we talked about you know how do we sit down as a manager to a subordinate I'm a director to a manager and create goals and objectives for our department that are attainable and how do we make them smart you know following smart criteria specific measurable attainable reliable and timely how do we make them irvil relate back to the mission vision and values and oftentimes how we do that and we'll talk about this a little more in human the human resources lecture but tying the performance on the objectives back to employee evaluations so that they have kind of this push to want to do well because it is tied to their overall evaluation within the organization so here's an example of you know a structure that's used to kind of help create these objectives so if we wanted to improve patient satisfaction from 89 to 92% you know that's going to be our objectives it's smart it's specific what are we going to do it's measurable we see that we need to increase from 89 to 92 percent it's attainable definitely we have a reliable way of catching the data and it has that time factor in there so we're giving ourselves until 2013 to complete this now the objectives again if you were in strategic planning or planning on taking strategic planning you'll know that action plans overall their purpose is to drive the achievement of the objective the objective is to push the achievement of the goal so the action plans relate back to the objective overall and how do we set ourselves up or what are the tasks that we need a complete to achieve this objective and then you can see we have completion dates for each one and the different resources that we may need for each one to be accomplished so kartaa lumen and organizational development theory revolves just around the thought and the idea that you know well while labor yes may be your most expensive line item on your budget people your workforce are going to be your most valuable assets regardless of anything else you know your buildings your equipment you know they don't take care of patients your people your people take care of patients so they are going to be your most valuable asset so organizational development it's just more of an organizational wide management theory on how to manage your most valuable asset your people so we talk about organizational culture and it goes a little bit beyond the shared values and beliefs of an organization and here's a little test you know just to make sure that you guys are not just skimming through these slides but are listening to a couple little extra things that I'm adding in organizational culture you know really refers back and relates to workforce diversity and the culture overall you know the way we do things around here how do we do things how do we operate around this organization and that style of managerial leadership which can either you know sink or swim an organization if you've got very supportive leadership there you know supports innovation supports change supports their employees and what they're doing you're going to have a very successful organization and so just make sure to know the term organizational culture because you will see it again so we needed to the entrepreneurial era of management starting in the 1970s um we talked about autonomy and I want you to think for a second what does a tata may mean to you you know what what overall does that mean that word and you know people overall if you were to go out and survey they want autonomy in the workforce they want to be able to have the freedom to choose they want to be trusted with decision makings they want that level of trust given to them and it really does help with your retention of your staff overall if they feel like they're being trusted to do the right thing and it's important you know particularly in health care administration to have this level of autonomy and understand why autonomy is important to two individuals because as an administrator as a manager as a director whatever leadership role you find yourself in you are not going to have all the answers it's almost impossible you will not have all the answers to everything you need but you do need to set yourself up to be able to have the people around you or be able to rely on others around you to give you the information you need help you help guide you in those decision-making processes and making sure you know you you set yourself up to have these people around you because again you're not going to have all the information you need in that setting now we've we've heard if you work out I'm sure it's ubiquitous between all organ industries but we particularly hear this in health care a lot especially when we're trying to do process change or you know change things you know that's the way we've always done it has been done this way for years and we hear it all the time but think back to what we said about health care it's dynamic it's ever-changing and you know what when you hear that you know what I used to hear that would make me so upset because you know just because we did this one process this one way for 30 years doesn't mean it's the right way or the most efficient way that we need to do it um you know we're always changing what is the best known way today maybe different tomorrow so we need to as managers as administrators as supervisors really encourage our employees and those working under us and really coaching and mentoring those above us as well to really think outside of the box and be you know the standard phrases you know think outside the box be really innovative and how do you get ahead of the trends and ahead of the curves and how do you adjust and adapt to this very rapidly changing very dynamic environment that we find ourself in in health care so just as a final note on to kind of in you know this theory of management I want you to go through and watch some of the art of war by Sun zu and see if you can pick up on what management theories are presented in their you know particularly around something we're going to talk about later with HR but how do you exercise discipline so it's a good short little watch linked up right here at the bottom the art of war make sure to go out and watch it

Channel: Jennifer Hunt

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Length: 38min 52sec (2332 seconds)

Published: Tue Jun 06 2017