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The Evolution of Management

Thought

chapter two

McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

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Learning Objectives

1. Describe how the need to increase organizationalefficiency and effectiveness has guided theevolution of management theory

2. Explain the principle of job specialization anddivision of labor, and tell why the study of person-task relationships is central to the pursuit of increased efficiency

3. Identify the principles of administration andorganization that underlie effective organizations

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Learning Objectives

4. Trace the change in theories about how managersshould behave to motivate and control employees

5. Explain the contributions of management science tothe efficient use of organizational resources

6. Explain why the study of the external environmentand its impact on an organization has become acentral issue in management thought

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The Evolution of Management Theory

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Figure 2.1

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Job Specialization andthe Division of Labor

Adam Smith (18th century economist) ± Observed that firms manufactured pins in one of

two different ways:- Craft-style each worker did all steps.- Production each worker specialized in one step.

Smith found that the performance of the factories inwhich workers specialized in only one or a few tasks

was much greater than the performance of thefactory in which each worker performed all pin-making tasks

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Job Specialization andthe Division of Labor

Job Specialization ± process by which a division of labor occurs as

different workers specialize in specific tasks overtime

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F.W. Taylor and Scientific Management

Scientific Management ± The systematic study of the relationships between

people and tasks for the purpose of redesigningthe work process to increase efficiency.

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Problems with Scientific Management

Managers frequentlyimplemented only theincreased output side of

Taylor s plan. ± Workers did not share in

the increased output.

Specialized jobs becamevery boring, dull.

± Workers ended up

distrusting the ScientificManagement method.

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The Gilbreths

1. Analyze every individual action necessary toperform a particular task and break it into each of its component actions

2. Find better ways to perform each component action3. Reorganize each of the component actions so that

the action as a whole could be performed moreefficiently-at less cost in time and effort

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Administrative Management Theory

AdministrativeManagement

± The study of how to

create an organizationalstructure that leads tohigh efficiency andeffectiveness.

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Administrative Management Theory

Max Weber ± Developed the principles of bureaucracy as a

formal system of organization and administrationdesigned to ensure efficiency and effectiveness.

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Weber s Principles of Bureaucracy

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Figure 2.2

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Rules, SOPs and Norms

Ru les ± formal written instructions that specify actions to be

taken under different circumstances to achieve

specific goalsStandard Operating Proced u res (SOPs)

± specific sets of written instructions about how toperform a certain aspect of a task

N orms ± unwritten, informal codes of conduct that prescribe

how people should act in particular situations

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