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Chapter 2 THE HISTORY OF MANAGEMENT
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
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
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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
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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
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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”
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
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
