Topic
2
Evolution of
Management
Thought
Prof. James J. Barkocy
Bus100
Historical Background of
Management Theories
Early
Examples
Adam
Smith
Industrial
Revolution
Egyptian
Pyramids
Wealth
of Nations
Machine
Power
Division
of Labor
Mass
Production
Great Wall
of China
Venetians
2–2
Evolution of Management Thought
Scientific
Management
F.W.
Taylor
Administrative
Management
Henri
Fayol
Management
Science
Organizational
Environment
Early
Advocates
QM,OM,
TQM
MIS
Open
Systems
“Whiz
Kids”
Contingency
Theory
Hawthorne
Studies
Gilbreths
Henry
Ford
Behavioral
Management
Max
Weber
McGregor
Maslow
Herzberg
2–3
Taylor
Gilbreths
Advocates
of Scientific
Management
Ford
2–4
Taylor’s Four Principles of Management
1.
Study the way workers perform their task and develop
a science for each element of an individual’s work.
2.
Codify the new methods of performing tasks into
written rules and standard operating procedures.
3.
Scientifically select and then train, teach, and develop
the worker.
4.
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.
2–5
Administrative
Management Theory
Henri
Fayol
Max
Weber
2–6
Fayol’s 14 Priniciples of Management
Division of
Labor
• Specialization increases output by making employees
efficient.
Authority
• Managers must be able to give orders. Authority gives them
that right. With authority, however, goes responsibility.
Discipline
• Employees must obey and respect the rules that govern the
organization.
Unity of
Command
• Every employee should receive orders from only one
superior.
Unity of
Direction
• The organization should have a single plan of action to
guide managers and workers.
Subordination
• The interests of any one employee or group should not take
precedence over the interests of the organization.
Remuneration
• Workers must be paid a fair wage for their services.
2–7
Fayol’s 14 Priniciples of Management
Centralization
• Subordinates should be involved in decision making.
Scalar Chain
• A single line of authority from the lowest ranks to top
management. This should be limited.
Order
• People and materials should be in the right place at the right
time.
Equity
• Managers should be kind and fair to their subordinates.
Stability of
Tenure
• Management should provide orderly personnel planning and
ensure that replacements are available to fill vacancies.
Initiative
• Employees who are allowed to originate and carry out plans
will exert high levels of effort.
Esprit de
corps
• Promoting team spirit will build harmony and unity within
the organization.
2–8
Weber’s Ideal Bureaucracy
2–9
Early Advocates of Behavioral Management
2–10
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
2–11
Maslow’s
Hierarchy
of Needs
• Self-Actualization
• Esteem
• Social
• Safety
• Physiological
2–12
Little Ambition
Theory X
Workers
Dislike Work
Avoid Responsibility
Self-Directed
Theory Y
Workers
Enjoy Work
Accept Responsibility
2–13
Contrasting Views Of Satisfaction-Dissatisfaction
Traditional View
Satisfaction
Dissatisfaction
Herzberg’s View
Motivators
Satisfaction
No Satisfaction
Hygienes
No Dissatisfaction
Dissatisfaction
2-14
Herzberg’s Motivation-Hygiene Theory
2-15
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
2–16
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
2–17
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
2–18
The Organization as an Open System
2–19
The Contingency Theory
Contingency Theory Defined
• The idea that the organizational structures
and control systems manager choose are
contingent on characteristics of the external
environment in which the organization
operates.
• “There is no one best way to
organize”
2–20
Popular Contingency Variables
Organization
size:
as size
increases, so
do problems
of
coordination
Routineness
of 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
2–21
Contingency Theory
2–22