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History of Management
Management thought developed in the
mid-late 1800’s
 Ran parallel with the industrial
revolution

– Prior to that time organizations were small
– Agrarian society moved to a mass
production society
Five Viewpoints of
Management

Classical- late 1800’s
– Bureaucratic, Scientific, Administrative
Behavioral- 1930’s, 40’s, 50’s
 Systems-50’s, 60’s, 70’s
 Contingency-60’s, 70’s, 80’s
 Quality-80’s, 90’s

2.2
History of Management
Thought
Quality Viewpoint
Contingency Viewpoint
Systems Viewpoint
Behavioral Viewpoint
Traditional Viewpoint
1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2
Adapted from Figure 2.1
Assumptions of Viewpoints
Continuous viewpoints do not replace
each other but have differing
perspectives
 All differ on how they view:

– behavior of individuals
– organizational goals
– issues that the organization faces
– how those issues should be resolved
Bureaucratic Management

Max Weber wanted to eliminate
nepotism, and favoritism in
organizations

A rational method-scientific and logical
approach to business
Negative View of Bureacracy
Bureaucracies “strip all relations of
content but that which is strictly
applicable to the attainment of
organizational ends” (Lincoln, 1982: 21)
 How we view bureaucracy

– School
– Taxes
– Government
Aspects of Bureaucracy
Formal Rules for uniformity
 Impersonality in hiring, evaluation, etc.
rather than social status, or personality
 Division of labor into specialized areas
 Hierarchy
 Set Decision/Power Structure

2.3
Hierarchical Organization Chart
Top Manager
Middle Manager
Middle Manager
First-Line Manager
First-Line Manager
First-Line Manager
First-Line Manager
Work
Group
Work
Group
Work
Group
Work
Group
Work
Group
Work
Group
Work
Group
Work
Group
Adapted from Figure 2.2
2.4
Continuum of Bureaucratic
Orientation
U.S
Dreamworks
SKG
Construction
Firms
Low
Bureaucratic
Structure
Coca-Cola
Hoechst-Celanese
Mid-Range
Bureaucracy
Postal
Service
UPS
High
Bureaucratic
Orientation
Adapted from Figure 2.3
Positive and Negative Aspects

Positive aspects
– efficiency
– consistency
– set lines of communication

Costs
– follows rigid rules for the sake of rules
– slow or change
– can’t respond to a dynamic environment
Scientific Management
Fred Taylor
 Time and Motion studies
 Proposed “One most efficient way” for
completing a task
 Employees are economically motivated
 Formen

Gilbreths and Therbligs
Frank and Lillian
 Broke tasks down by each motion called
“therbligs”
 Used motion video
 Lillian later played an instrumental role
in behavioral movement

Administrative Management
Management is a science that can be
learned
 Division of Labor
 Authority of Managers
 Discipline
 Unity of Command
 Centralization of power

Behavioral/Human Relations
People and their behaviors matter
within the organization
 In light of that assumption this school
looks at how managers do their job in
order to affect the behavior of
subordinates

Major Players

Follet
– Involvement of workers
– Continuous aspect of management

Barnard
– Organizations are social systems
– Acceptance theory of authority

understand, believe, see benefits
Hawthorne Studies
Western Electric Studies
 Mayo

– Theorized that workers would be more
productive if given favorable working
conditions
– Theory did not hold, but......
– Found that the attention given to workers
was the variable that affected performance
Behavioral Viewpoint
Summary
Employees are social beings, not just
economically motivated
 The social aspect of humans must be
addressed by management
 Fulfillment of needs and participation
will motivate employees

Systems Viewpoint

Organizations are machines that
operate within an environment
– Inputs-human, financial, physical, and info
– Processes
– Outputs-products and services

A change in one part of the system
affects the whole system
Systems
Closed-limited interaction with the
environment, only at input and output
portals
 Open-systems- all parts of the
organization interact with the
environment
 Subsystems- parts within the
organization

– groups (formal and informal), individuals,
2.7
Basic Systems View of
Organization
Environment
INPUTS
Human, physical,
financial, and
information
resources
Feedback
TRANSFORMATION
PROCESS
OUTPUTS
Products
and
Services
Loops
Adapted from Figure 2.4
Contingency Approach
“It Depends!”
 Must assess the environment and use
aspects of the three previous
approaches in combination to maximize
performance
 No prescriptive “One best way”

2.9
Contingency Viewpoint



Behavioral Viewpoint
How managers influence others:
Informal Group
Cooperation among employees
Employees’ social needs
Systems Viewpoint
Traditional Viewpoint
How the parts fit together:
 Inputs
 Transformations
 Outputs
What managers do:
 Plan
 Organize
 Lead
 Control
Contingency Viewpoint
Managers’ use of other viewpoints
to solve problems involving:
 External environment
 Technology
 Individuals
Adapted from Figure 2.6
Quality and Ed Demming
Society has passed the point of concern
with quantity of production, because for
the most part quantity has been maxedout
 Quality is now the issue when
performance is discussed
 Demming pioneered the quality
movement, and was ignored in the US

Demming’s Story
Developed the quality idea
 Was rejected by US companies
 Sold his ideas in Japan
 Japan excelled in automobile, and
technological quality
 US companies had to play catch-up in
the 1980’s

Demming’s Principles
Quality at the beginning will lead to
lower costs and greater productivity in
the long-run
 use of statistical methods to assess
quality
 all employees are responsible for quality
checks
 leads to company image, lower costs,
less product liability

2.10
Importance of Quality
Positive
Company
Image
Lower
Costs &
Higher
Market
Share
QUALITY
Decreased
Product
Liability
Adapted from Figure 2.7
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