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