Evolution of

Management

Thought

Topic

2

Prof. James J. BarkocyBus100

2–2

Machine

Power

Mass

Production

Wealth

of Nations

Division

of Labor

Early

Examples

Adam

Smith

Industrial

Revolution

Historical Background of

Management Theories

Egyptian

Pyramids

Great Wall

of China

Venetians

2–3

Evolution of Management Thought

Scientific Management

F.W. Taylor

Gilbreths

Henry

Ford

Administrative Management

Henri

Fayol

Max

Weber

Behavioral Management

Early Advocates

Hawthorne

Studies

McGregor

Maslow

Herzberg

Management Science

QM,OM,

TQM

MIS

“Whiz Kids”

Organizational Environment

Open

Systems

Contingency Theory

2–4

Advocates

of Scientific

Management

Taylor

Gilbreths

Ford

2–5

Taylor’s Four Principles of Management

Study the way workers perform their task and develop a science for each element of an individual’s work.

Codify the new methods of performing tasks into written rules and standard operating procedures.

Scientifically select and then train, teach, and develop the worker.

Establish a fair level of performance and a pay system that rewards performance. Management takes over all

work for which it is better fitted than the workers.

1.

2.

3.

4.

2–6

Administrative

Management Theory

Henri

Fayol

Max

Weber

Fayol’s 14 Priniciples of Management

2–7

• Specialization increases output by making employees efficient.

Division of Labor

• Managers must be able to give orders. Authority gives them that right. With authority, however, goes responsibility.

Authority

• Employees must obey and respect the rules that govern the organization.Discipline

• Every employee should receive orders from only one superior.

Unity of Command

• The organization should have a single plan of action to guide managers and workers.

Unity of Direction

• The interests of any one employee or group should not take precedence over the interests of the organization.

Subordination

• Workers must be paid a fair wage for their services.Remuneration

Fayol’s 14 Priniciples of Management

2–8

• Subordinates should be involved in decision making.Centralization

• A single line of authority from the lowest ranks to top management. This should be limited.

Scalar Chain

• People and materials should be in the right place at the right time.Order

• Managers should be kind and fair to their subordinates.Equity

• Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies.

Stability of Tenure

• Employees who are allowed to originate and carry out plans will exert high levels of effort.

Initiative

• Promoting team spirit will build harmony and unity within the organization.

Esprit de corps

2–9

Weber’s Ideal Bureaucracy

2–10

Early Advocates of Behavioral Management

2–11

The Hawthorne Studies

• Studies of how characteristics of the work setting

affected worker fatigue and performance at the

Hawthorne Works of the Western Electric Company from

1924-1932.

Worker productivity was measured at various levels of light

illumination.

• Experimental findings

Productivity unexpectedly increased under imposed adverse

working conditions.

The effect of incentive plans was less than expected.

• Research conclusion

Demonstrated the importance of understanding how the feelings,

thoughts, and behavior of work-group members and managers

affect performance

2–12

• Self-Actualization

• Esteem

• Social

• Safety

• Physiological

Maslow’s

Hierarchy

of Needs

2–13

Dislike Work

Enjoy Work

Avoid Responsibility

Little Ambition

Theory X

Workers

Accept Responsibility

Self-Directed

Theory Y

Workers

Contrasting Views Of Satisfaction-Dissatisfaction

Satisfaction No Satisfaction No Dissatisfaction Dissatisfaction

Motivators Hygienes

Satisfaction Dissatisfaction

Herzberg’s View

Traditional View

2-14

Herzberg’s Motivation-Hygiene Theory

2-15

2–16

Management Science

Quantitative Approach

• Also called operations research.

• Evolved from mathematical and statistical methods developed to solve WWII military logistics and quality control problems

• Focuses on improving managerial decision making by applying: Statistics, optimization models, information models, and computer simulations

2–17

Management Science

Operations management

provides managers a set of techniques they can use to analyze any aspect of an organization’s production

system to increase efficiency

Management information systems

• help managers design systems that provide information that is vital for effective decision making

• Information networks

2–18

Total Quality Management(TQM)?

Intense focus on the customer

Concern for continual improvement

Process-focused

Improvement in the quality of everything

Accurate measurement

Empowerment of employees

2–19

The Organization as an Open System

2–20

The Contingency Theory

Contingency Theory Defined

• The idea that the organizational structuresand control systems manager choose arecontingent on characteristics of the externalenvironment in which the organizationoperates.

• “There is no one best way to organize”

2–21

Popular Contingency Variables

Organizationsize:

as size increases, so do problems

of coordination

Routinenessof task

technology: routine

technology requires a different

structure and approach than

non-routine

Environmental uncertainty:

what works in a stable

environment may be

inappropriate when change

is rapid

Individual differences: individuals

differ in terms of their desire

for growth, autonomy,

tolerance of ambiguity, and expectations

2–22

Contingency Theory