Chapter 2

CHAPTER 2

PIONEERING IDEAS IN

MANAGEMENT

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus

Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

1

Lecture outline

• Early management ideas

• Classical theorists

• Behavioural theorists

• Quantitative approach

• Contemporary ideas

• Innovation & management theory



2

Early management ideas

• Robert Owen

(1771–1858)

Identified the importance of working and social conditions for employees.

• Charles Babbage

(1792–1871)

Ideas on work specialisation, production efficiency, incentive and profit-sharing plans.

• Henry R. Towne

(1844–1924)

Called for a ‘management science’ that would establish ‘principles’ of management.



3

Early management ideas

Assessing the early contributions:

• Uncoordinated efforts.

• Contributions tended to relate to specific problems.

• Did not see ‘management’ as a separate field or skill

(until Towne).



4

Classical theorists

‘This viewpoint emphasises managing work and organisations more efficiently.

It comprises three different management approaches: scientific, administrative and bureaucratic.’



5

Classical theorists

• Scientific management

F. W. Taylor, F. & L. Gilbreth, H. Gantt

• Bureaucratic management

M. Weber

• Administrative management

H. Fayol



6

Scientific management

‘Scientific management is an approach within classical management theory emphasising the scientific study of work methods to improve worker efficiency.’



7


Frederick W. Taylor

Four principles of ‘scientific management’:

• Select & train the best.

• Determine the most efficient work methods.

• Co-operate with workers to ensure best method is used.

• Divide work/responsibility between workers & managers.



8


• Frank & Lillian Gilbreth

– Time & motion studies

– Human implications of Scientific Management

• Henry Gantt

– Pay incentives

– Gantt chart



9

Bureaucratic management

‘Approach emphasising the need for organisations to operate in a rational manner rather than relying on owner’s and manager’s arbitrary whims.’



10


Weber’s Ideal Bureaucracy

• Specialisation of labour

• Formal rules & procedures

• Impersonality

• Well-defined hierarchy

• Advancement on merit



11


Hierarchy of positions

Advancement on merit

Specialisation of labour

Max Weber

Formal rules & procedures



12

Administrative management

‘Approach focusing on principles used by managers to co-ordinate the organisation’s internal activities.’



13


Henri Fayol’s

• Division of work

• Authority

• Discipline

• Unity of command/direction

• Primacy of general interest

• Remuneration

• Esprit de corps

Principles of management

• Centralisation

• Scalar chain

• Order

• Equity

• Low turnover

• Initiative



14


Organising

Planning

Commanding

Henri Fayol

Co-ordinating

Controlling



15

Behavioural theorists

‘Perspective on management emphasising the importance of attempting to understand various factors affecting human behaviour in organisations.’



16


Early theorists:

• Hugo Munsterberg

Creating optimal psychological conditions, behaviour shaping

• Mary Parker Follett

Importance of group functioning

• Hawthorne studies

Importance of supervisory style



17


Human relations movement

• Abraham Maslow

Hierarchy of Needs

• Douglas McGregor

Theory X & Y



18

Maslow’s Hierarchy of Needs

Self-actualisation

Esteem

Social

Safety

Physiological



19

McGregor’s Theory X & Y

Theory X Theory Y

Work avoiding

Need to control

Work is natural

Capable of self-direction

Avoid responsibility Seek responsibility

Can make good decisions Workers seek security



20

Quantitative management viewpoint

‘Focuses on mathematics, statistics and information aids to support managerial decision making and organisational effectiveness.’



21

Quantitative management viewpoint

• Management science

‘Approach aimed at increasing decision effectiveness through use of sophisticated mathematical models & statistical methods.’

• Operations management

‘Function or field of expertise primarily responsible for managing production & delivery of an organisation’s products and services.’

• Management information systems

‘Field of management focused on designing & implementing computer-based information systems for use by management.’



22

Contemporary viewpoints

• Systems theory

‘Approach based on the idea that organisations can be viewed as systems.’

• Contingency theory

‘Viewpoint arguing that appropriate managerial action depends on the particular parameters of the situation.’



23

Contemporary viewpoints

• Theory Z

‘Concept combining positive aspects of American and Japanese management into a modified approach aimed at increasing managerial effectiveness while remaining compatible with the norms and values of American society and culture.’

• Total Quality approach

‘Approach highlighting collective responsibility for product and service quality, and encouraging individuals to work together to improve quality.’



24

Promoting innovation

Each management viewpoint provides a contribution to managing innovation:

• Classical

• Behavioural

• Quantitative

• Contemporary



25

Lecture summary

• Early management ideas

Generation of ideas leading to identification of management as a significant field of inquiry.

• Classical theorists

Emphasised finding ways to more efficiently manage work and organisations.

• Behavioural theorists

Emphasised the importance of trying to understand factors affecting human behaviour in organisations.



26

Lecture summary

• Quantitative approach

Focuses on mathematics, statistics and information aids supporting managerial decision making and effectiveness.

• Contemporary ideas

Views of organisations as systems, importance of contingency factors & amalgamating Japanese & American management practices.

• Innovation & management theory

Each approach provides insights, knowledge & practice regarding the management of innovation in organisations .



27

Chapter 2

Max Weber

Henri Fayol

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Max Weber

Henri Fayol

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