Chapter 2 THE HISTORY OF MANAGEMENT

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2

Management Perspectives Over Time

1930 Humanistic Perspective

1990 1890 Classical

1940

1950

2000 Systems Theory

2000

2010

The Technology-Driven Workplace

1990

2010

The Learning Organization

1970 Contingency Views

2000

1980 Total Quality Management

2000

1940 Management Science Perspective

1990

2010 1870

Exhibit 2.1, p.44

Classical Perspective

Classical Perspective

Scientific Management

Bureacratic Administrative

Management - Chapter 2

4 CLASSICAL PERSPECTIVE

Scientific Management

Scientific Management

Studies and tests methods to identify

the best, most efficient ways

“Seat-of-the Pants” Management

No standardization of procedures

No follow-up on improvements

6

Scientific Management: Taylor 1856-1915

General Approach

• Developed standard method for performing each job.

• Selected workers with appropriate abilities for each job.

• Trained workers in standard method.

• Supported workers by planning work and eliminating interruptions.

• Provided wage incentives to workers for increased output.

Frederick W. Taylor Frederick Taylor is known

today as the "father of

scientific management."

One of his many

contributions to modern

management is the

common practice of giving

employees rest breaks

throughout the day.

Frederick W. Taylor

1856-1915

Frank & Lillian Gilbreth

Frank and Lillian Gilbreth were prolific

researchers and often used their family as

guinea pigs. Their work is the subject of

Cheaper by the Dozen, written by their son

and daughter.

Charts: Henry Gantt

Bureaucratic Management

Bureaucracy

The exercise of control on the

basis of knowledge, expertise, or

experience.

Max Weber

1864-1920

11

Bureaucracy Organizations

• Max Weber 1864-1920

• Prior to Bureaucracy Organizations

• European employees were loyal to a single individual rather than to the organization or its mission

• Resources used to realize individual desires rather than organizational goals

• Systematic approach –looked at organization as a whole

Ethical Dilemma: The Supervisor

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12

Bureaucracy Organizations

Positions organized

in a hierarchy of authority

Managers subject to

Rules and procedures

that will ensure reliable

predictable behavior

Personnel are selected

and promoted based

on technical

qualifications

Administrative acts

and decisions recorded

in writing

Management separate

from the ownership

of the organization

Division of labor

with Clear definitions of

authority and responsibility

Exhibit 2.3, p. 49

13

Administrative Principles • Contributors: Henri Fayol, Mary Parker,

and Chester I. Barnard

• Focus:

• Organization rather than the individual

• Delineated the management functions

of planning, organizing, commanding,

coordinating, and controlling

14

Henri Fayol 1841-1925

Division of labor

Authority

Discipline

Unity of command

Unity of direction

Subordination of

individual interest

Remuneration

Centralization

Scalar chain

Order

Equity

Stability and tenure

of staff

Initiative

Esprit de corps

14 General Principles of Management

15

Mary Parker Follett 1868-1933

• Importance of common super-ordinate goals for reducing conflict in organizations

• Popular with businesspeople of her day

• Overlooked by management scholars

• Contrast to scientific management

• Reemerging as applicable in dealing with rapid change in global environment

• Leadership – importance of people vs. engineering techniques

Ethics - Power - Empowerment

16

Chester Barnard 1886-

1961

• Informal Organization

• Cliques

• Naturally occurring social groupings

• Acceptance Theory of Authority

• Free will

• Can choose to follow management orders

Humanistic Perspective

Humanistic Perspective

Human Relations

Movement

Human Resources Perspective

Behavioral Sciences Approach

18

Human Relations Movement

Emphasized satisfaction of employees’

basic needs as the key to increased

worker productivity

Hawthorne Studies:

Elton Mayo

• Workers’ feelings and attitudes affected their work

• Financial incentives weren’t the most important motivator for workers

• Group norms and behavior play a critical role in behavior at work

20

Human Resource

Perspective

Suggests jobs should be designed to meet

higher-level needs by allowing workers to

use their full potential

21

Physiological

Safety

Belongingness

Esteem

Self-actualization

Abraham Maslow’s

Hierarchy of Needs

Based on needs satisfaction

1908-1970

Chapter 16 – Maslow in more detail

22

• Dislike work –will avoid it

• Must be coerced,

controlled, directed, or

threatened with punishment

• Prefer direction, avoid

responsibility, little

ambition, want security

• Do not dislike work

• Self direction and self

control

• Seek responsibility

• Imagination, creativity

widely distributed

• Intellectual potential only

partially utilized

Douglas McGregor Theory X & Y

Theory X Assumptions Theory Y Assumptions

1906-1964

23

Behavioral Sciences

Approach

• Applies social science in an organizational context

• Draws from economics, psychology, sociology,

anthropology, and other disciplines

• Understand employee behavior and interaction in an

organizational setting

• OD – Organization Development

Sub-field of the Humanistic Management Perspective

24

Management Science

Perspective

• Emerged after WW II

• Applied mathematics, statistics, and other quantitative techniques to managerial problems Operations Research – mathematical modeling

Operations Management – specializes in physical production of goods or services

Information Technology – reflected in management information systems

Recent Historical Trends

●Systems Theory

●Contingency View

●Total Quality Management (TQM)

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26

Systems View of Organizations

Exhibit 2.5, p. 58

Contingency Management

Contingency Approach

Holds that the most effective management

theory or idea depends on the kinds of

problems or situations that managers are

facing at a particular time and place.

Contingency Management

• Management is harder than it looks

• Managers need to look for key contingencies that differentiate today’s situation from yesterday’s situation

• Managers need to spend more time analyzing problems before taking action

• Pay attention to qualifying phrases, such as “usually”

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29

Elements of a Learning Organization

Learning

Organization

Open

Information

Empowered

Employees

Team-Based Structure

Exhibit 2.7, p. 61

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Management - Chapter 2 30

In the 21st century, managers must be:

– Global strategists

– Masters of technology

– Inspiring leaders

– Models of ethical behavior