CHAPTER 2
PIONEERING IDEAS IN
MANAGEMENT
© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus
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Lecture outline
• Early management ideas
• Classical theorists
• Behavioural theorists
• Quantitative approach
• Contemporary ideas
• Innovation & management theory
© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus
Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.
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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.
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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).
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Classical theorists
‘This viewpoint emphasises managing work and organisations more efficiently.
It comprises three different management approaches: scientific, administrative and bureaucratic.’
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Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.
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Classical theorists
• Scientific management
F. W. Taylor, F. & L. Gilbreth, H. Gantt
• Bureaucratic management
M. Weber
• Administrative management
H. Fayol
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Scientific management
‘Scientific management is an approach within classical management theory emphasising the scientific study of work methods to improve worker efficiency.’
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Scientific management
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.
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Scientific management
• Frank & Lillian Gilbreth
– Time & motion studies
– Human implications of Scientific Management
• Henry Gantt
– Pay incentives
– Gantt chart
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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.’
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Bureaucratic management
Weber’s Ideal Bureaucracy
• Specialisation of labour
• Formal rules & procedures
• Impersonality
• Well-defined hierarchy
• Advancement on merit
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Bureaucratic management
Hierarchy of positions
Advancement on merit
Specialisation of labour
Formal rules & procedures
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Administrative management
‘Approach focusing on principles used by managers to co-ordinate the organisation’s internal activities.’
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Administrative management
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
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Administrative management
Organising
Planning
Commanding
Co-ordinating
Controlling
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Behavioural theorists
‘Perspective on management emphasising the importance of attempting to understand various factors affecting human behaviour in organisations.’
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Behavioural theorists
Early theorists:
• Hugo Munsterberg
Creating optimal psychological conditions, behaviour shaping
• Mary Parker Follett
Importance of group functioning
• Hawthorne studies
Importance of supervisory style
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Behavioural theorists
Human relations movement
• Abraham Maslow
Hierarchy of Needs
• Douglas McGregor
Theory X & Y
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Maslow’s Hierarchy of Needs
Self-actualisation
Esteem
Social
Safety
Physiological
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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
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Quantitative management viewpoint
‘Focuses on mathematics, statistics and information aids to support managerial decision making and organisational effectiveness.’
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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.’
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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.’
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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.’
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Promoting innovation
Each management viewpoint provides a contribution to managing innovation:
• Classical
• Behavioural
• Quantitative
• Contemporary
© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus
Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.
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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.
© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus
Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.
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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 .
© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus
Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.
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