Historical Foundations of
Management
Classical Approaches
Assumption:
People are Rational
Scientific
Management
Administrative
Principles
Frederick Taylor
Frank & Lillian Gilbreth
Henry Fayol
Mary Parker Follett
Bureaucratic
Organization
Max Weber
Classical Approaches to
Management
 Scientific Management - Frederick Taylor
 Develop for every job: rules of motion, standardized work
implements, proper working conditions
 Carefully select workers with the right abilities for the job
 Carefully train workers to do the job and give proper
incentives
 Support workers by carefully planning their work
 Motion Studies are a management tool that allows for a task
to be broken down into smaller parts (motions)
 UPS use motion standards to time their sorters in order to
insure that vans are packed in the shortest time possible
Classical Approaches to
Management
Administrative Principles
Henri Fayol believed management could be
taught, and so he developed his managerial
guide
foresight - complete plan of action for future
organization - provide resources to implement plan
command - lead, select, evaluate workers to get the
best work
coordination - fit diverse efforts together
control - make sure things happen according to plan
Classical Approaches to
Management
Administrative Principles
Mary Parker Follett
Groups are mechanisms through which individuals
can combine their talents for a greater good
She viewed organizations as “communities”
Manager’s job is to help others in organizations
cooperate and achieve an integration of interests
All workers should be made to feel like an owner of
the company
Classical Approaches to
Management
Bureaucratic Organization - Max Weber
Bureaucracy
ideal, intentionally rational and very efficient form of
organization
based on principles of logic, order and legitimate
authority
Exercise – “Why it Pays to be a Jerk”
Classical Approaches to
Management
Bureaucratic Organization
Defining characteristics
Clear division of labor
• Jobs are well defined and workers are highly skilled
Clear hierarchy of authority
Formal rules and procedures
Impersonality
• No preferential treatment; all rules are uniformly applied
Careers based on merit
Classical Approaches to
Management
Bureaucracy
Today the term is often associated with a
negative connotation
associated with possible disadvantages of
bureaucracy are excessive paperwork or “red tape”
Slowness in handling problems
Rigid and often resistant to change
Employee apathy
Behaviourial Approaches to
Management
Human Resource Approaches to Management
Assumption: People are Social and
Self-actualizing
Hawthorne Studies
Theory of Human Needs
Elton Mayo
Abraham Maslow
Theory X and Theory Y
Personality & Organization
Douglas McGregor
Chris Argyris
Classical Approaches to
Management
Hawthorne Studies
initial study to examine the relationship of economic
incentives and physical conditions on worker output
relationship was not supported
“psychological factors” interfered with experiment
Relay Assembly Test-Room Studies
designed to minimize the “psychological factors” of
previous experiment
factors that accounted for increased productivity
• group atmosphere
• participative supervision
Classical Approaches to
Management
Hawthorne Studies
Employee Attitudes, Interpersonal
Relations and Group Processes
Findings in final study
• people will restrict output to avoid displeasure
from the group
• Groups can have strong negative, as well as
positive, influences on individual productivity
Classical Approaches to
Management
Hawthorne Studies
Lessons
Shift toward social and human concerns as
keys to productivity
Hawthorne effect
• people who are singled out for special attention
perform as expected
Classical Approaches to
Management
 Human Relations
Movement
managers who use
good human relations
will achieve productivity
The insights of the
human relations
movement set the
stage for what is now
evolved as the field of
organizational
behaviour
Classical Approaches to
Management
Human Relations Movement
Maslow’s Theory of Human Needs
need is a physiological or psychological deficiency a
person feels the compulsion to satisfy
deficit principle
• satisfied need is not a motivator of behavior
progression principle
• a need becomes a motivator once the need below it is
satisfied
Classical Approaches to
Management
 Human Relations Movement
Maslow’s Theory of Human Needs
 Physiological
• Most basic of all human needs; necessities
 Safety
• Need for security, protection, and stability
 Social
• Need for love, affection, sense of belongingness
 Esteem
• In the eyes of others; respect; mastery; competence
 Self-actualization
• Self-fulfillment; to grow and be creative; use abilities to fullest
extent
Classical Approaches to
Management
McGregor’s Theory X and Theory Y
According to Theory X, managers believe
workers
dislike work
lack ambition
are irresponsible
are resistant to change
prefer to be led
Classical Approaches to
Management
McGregor’s Theory X and Theory Y
According to Theory Y, managers believe
workers
are willing to work
are capable of self control
accept responsibility
are imaginative and creative
self-directed
Classical Approaches to
Management
 McGregor’s Theory X and Theory Y
Managers create self-fulfilling prophesies
 That is, through their behaviour they create situations
where subordinates act in ways that confirm the original
expectations
Theory X managers create dependent and reluctant
workers
Theory Y managers create workers who perform as
expected with initiative and high performance
 central to notions of empowerment
 Exercise – Richest CEO’s
Classical Approaches to
Management
Argyris’ Theory of Personality and
Organization
management practices in traditional hierarchical
organizations are inconsistent with mature adult
personalities
Managers who treat people positively and like
responsible adults will achieve more
productivity
Exercise – What Would the Classics Say?
Consider the following…
Six months after being hired, Bob, a lab worker, is performing just well
enough to avoid being fired. He was carefully chosen and had the
abilities required to do the job well. At first Bob was enthusiastic
about his new job, but now he isn’t performing up to this potential.
Fran, his supervisor, is concerned and wonders what can be done to
improve this situation.
Assume the identity of one of the philosophers discussed in the unit so
far. Fran has asked you for advice of the management situation
describe. Answer the following questions as you think your
assumed identity would respond.
Be prepared to share your results with the class.
Exercise – What Would the Classics Say?
1. What are your basic beliefs about good
management and organizational
practices?
2. What do you perceive may be wrong in
this situation that would account for
Bob’s low performance?
3. What could be done to improve Bob’s
future job performance?
Modern Approaches to Management
Systems Thinking
System
collection of interrelated parts that function together
to achieve a common purpose
Subsystem
smaller component of a larger system
Open systems
organizations that interact with their environments in
the continual process of transforming resource inputs
into outputs
Organizational Network of Subsystems
Purchasing &
Inventory
Systems
Inputs
Suppliers
Marketing, sales,
& Distribution
Systems
Outputs
Operations &
Service
Management
Systems
Accounting &
Financial
Systems
Customers
Information &
Technology
Systems
Modern Approaches to Management
Systems Thinking
external environment
source of both resources and customer feedback
impact on operations and outcomes
boundary spanners
departments whose functions include working with
outsiders and staying informed about external
environmental developments
Modern Approaches to Management
 Contingency Thinking
match managerial
responses with
 opportunities unique to
different situations
 no longer “one best
way” to manage
Summative Case Study – Hewlett
Packard
Trends and Directions
 Global Awareness
pressure for quality and
performance excellence
is created by a highly
competitive global
economy
Self Assessment
Complete the self assessment A 21st
Century Manager?
This survey will provide a profile of your
management foundations (PMF). Before
calculating what your score is, ask
someone to predict the outcome.