History of Management Thought Lecture #3 Schools of Management Thought Schools of Management Thought Classical School Behavioral School Management Science School Classical School “One best way to manage” It is management’s job to ascertain the best way to perform a job, then teach that method to workers. The same philosophy applies to running the organization (the manager’s job) Scientific Management The Scientific Method applied to work Scientific Management Observation Measurement Logic Analysis Frederick Taylor The “Father of Scientific Management” Taylor & Scientific Management Experiment in Iron Foundry Shoveling Coal Taylor & Shoveling Coal Standard Operating Procedure: Hire the man with the shovel Taylor & Shoveling Coal New Idea: Use standardized shovels!!! Taylor & Shoveling Coal Optimal shovel size for the average worker: 21 ½ pounds Loading Pig Iron Intermediate product in the processing of iron ore into steel Taylor & Loading Pig Iron Before: Average load of 12 ½ tons per day After: Average load of _____ tons per day Wages increased ____% Taylor & Loading Pig Iron Productivity gain for company More money for worker Worker was less fatigued at end of day Scientific Management Frank & Lillian Gilbreth Motion & Time Studies Therbligs Gilbreths Brick-laying Gilbreths Cheaper By the Dozen World War I telegram to President Wilson: Arriving Washington 7:03 pm. If you don’t know how to use me, I’ll tell you. Scientific Management Application of the Scientific Method to work Selection of the most capable workers Provide resources to workers Scientific Management Train the workers Provide fair pay incentives to workers (share productivity gains) Scientific Management: Bastardized Version Application of the Scientific Method to work Selection of the most capable workers Provide resources to workers Train the workers Behavioral School aka Human Relations School Genesis was in an experiment in Scientific Management Behavioral School Western Electric Hawthorne plant in Cicero, Illinois Hawthorne Studies Hawthorne Studies Experiment in lighting conditions Experimental group Control group Hawthorne Studies (storybook version) Increased lighting associated with increased productivity!! Decreased lighting associated with _________ productivity?? Who ya’ gonna call? Hawthorne Studies Elton Mayo Researcher from Harvard Workers were not reacting to the changes in lighting Hawthorne Studies Workers were not reacting to the conditions of the experiment Workers were reacting to being in an experiment “Hawthorne Effect” Classical vs. Behavioral Two diametrically opposed views Which view do you hold? Management Science School Management Science is NOT the same as Scientific Management Originated in the Polaris missile project Management Science A problem is defined, and a model of the situation is developed The model simplifies reality or represents reality in an abstract manner Management Science Step One: Develop a model of the problem or situation Step Two: Quantify the variables Management Science A politically incorrect example Management Science No underage! No drink and drive!