CHAPTER 2
PIONEERING IDEAS
IN MANAGEMENT
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PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)
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Lecture Outline
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The birth of management ideas
Preclassical contributors
Classical viewpoint
Behavioural viewpoint
Quantitative management viewpoint
Contemporary viewpoints
Promoting innovation - contributions of major
views
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PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)
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Early management ideas:
Preclassical contributors
• Robert Owen (1771–1858)
Scottish mill owner: Identified the importance of working and
social conditions for employees.
• Charles Babbage (1792–1871)
English mathematician: Ideas on work specialisation,
production efficiency, incentive and profit-sharing plans.
• Henry R. Towne (1844–1924)
American engineer: Called for a ‘management science’ that
would establish ‘principles’ of management.
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PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)
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The classical viewpoint
This viewpoint emphasises efficiently
managing work and organisations.
It comprises three different
management approaches: scientific,
administrative and bureaucratic
management.
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PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
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Classical theorists
• Scientific management
Frederick W. Taylor, Frank and Lillian Gilbreth,
Henry Gantt
• Bureaucratic management
Max Weber
• Administrative management
Henri Fayol, Chester Barnard
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PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
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SCIENTIFIC MANAGEMENT
‘Scientific management is an
approach in classical
management theory focusing on
the scientific study of work
methods to improve worker
efficiency.’
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PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
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Scientific Management
Frederick W. Taylor
Four principles of ‘scientific management:
1. Scientifically study each part of a job and develop
“the one best way” of doing it.
2. Carefully select and train workers
3. Co-operate with workers to ensure they use the
proper method.
4. Divide work and responsibility between workers and
managers.
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PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)
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Scientific Management
• Frank and Lillian Gilbreth
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Time and motion studies
Human implications of Scientific Management
• Henry Gantt
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Pay incentives
Gantt chart
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Bureaucratic Management
An approach which saw the need
of an organisation to operate
rationally rather than relying on
the arbitrary whims of owners and
managers.
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Bureaucratic Management
Weber’s Ideal Bureaucracy
• Specialisation of labour
• Formal rules and procedures
• Impersonality
• Well-defined hierarchy
• Career advancement on merit
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PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)
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Administrative Management
‘Approach focused on principles
for managers to co-ordinate
organisations’ internal activities.’
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PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
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Administrative Management
Organising
Planning
Commanding
Henri Fayol
Controlling
Co-ordinating
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PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
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Administrative Management
Henri Fayol’s ‘Principles of
Management’
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Division of work
Authority
Discipline
Unity of command/direction
Primacy of general interest
Remuneration
Esprit de corps
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PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
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Administrative Management
Henri Fayol’s ‘Principles of
Management’ (cont.)
• Centralisation
• Scalar chain
• Order
• Equity
• Low turnover
• Initiative
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PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
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Behavioural Viewpoint
Perspective on management
emphasising the importance of
trying to understand the effect of
different factors on human
behaviour in organisations.
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Behavioural Viewpoint
Early behaviourists:
• Hugo Munsterberg
Creating optimal psychological conditions, behaviour shaping
• Mary Parker Follett
Importance of group functioning
“Power with, rather than power over”
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PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
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Behavioural Viewpoint
The Hawthorne studies
• Series of studies carried out from late 1920s to
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early 1930s
Western Electric’s Hawthorne (Chicago) plant
Major researcher: Harvard psychologist Elton
Mayo
Initially a “scientific management” exercise
Example: Illumination studies… lighting levels
Led to identification of “Hawthorne effect”
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PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
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Behavioural Viewpoint
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 and Y
THEORY X
THEORY Y
Workers dislike work
Work is natural
Must be controlled
Capable of self-direction
Avoid responsibility
Seek responsibility
Workers seek security
Can make good decisions
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PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
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QUANTITATIVE MANAGEMENT
VIEWPOINT
‘Focused on mathematics,
statistics and information aids
supporting managerial decision
making and organisational
effectiveness.’
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PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
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Behavioural Science Approach
• Builds on the Human Relations approach (Maslow,
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McGregor and others)
Based on scientific research: management,
psychology, anthropology, economics, sociology.
Concepts tested in “laboratory” experiments or
with willing organisations
Development of theories to guide managers in
choosing the right action or technique
Example: goal-setting theory (Edwin Locke) improve performance by setting challenging goals
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PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)
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Quantitative management
viewpoint
• Management science
‘Approach aimed at increasing decision effectiveness through
use of sophisticated mathematical models and statistical
methods.’ Also called Operations Research (OR).
• Operations management
‘Function or field of expertise primarily responsible for managing
production and delivery of an organisation’s products and
services.’
• Management information systems
‘Field of management focused on designing and implementing
computer-based information systems for use by management.’
Copyright  2008 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)
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Contemporary Viewpoints
• Systems theory
‘Approach based on the idea that organisations can be
visualised as systems.’
System: set of interrelated parts operating as a whole in
pursuit of common goals.
Based on the biological and physical sciences.
Open systems: interact continually with environment.
Closed systems: does not interact with environment, gets
little feedback.
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PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)
2–24
Systems view of organisations
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PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
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Contemporary Viewpoints
• Contingency theory
‘Viewpoint arguing that appropriate managerial
action depends on the particular parameters of the
situation.’
No universal rules (contrast with classical theories)
The challenge for managers is to match the correct
techniques and decisions to the circumstances.
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PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)
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Contemporary Viewpoints
• Theory Z
William Ouchi (1975)
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.
(E.g. American traditions of short-term
employment contrasted with Japanese traditions
of lifetime employment).
Copyright  2008 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)
2–27
Contemporary Viewpoints
• Total Quality Management (TQM)
Approach highlighting collective
responsibility for product and service
quality, and encouraging individuals to work
together to improve quality.
Based on a philosophy of “continuous
improvement”.
W Edwards Deming
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PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
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Contemporary Viewpoints
• Business Process Re-engineering
(BPR)
A radical change approach to re-designing
how organisations work
Focuses on processes rather than the
“tasks” of individual workers
Seeks dramatic performance improvement
by re-thinking processes and eliminating
unnecessary steps.
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PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)
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Contemporary Viewpoints
• Knowledge Management (KM),
The Learning Organisation
Knowledge is seen as the key source of
organisational competitive advantage.
KM: Organisations try to ensure that their people
generate, use and assimilate knowledge (Mische
2001)
Learning Organisations: Peter Senge saw
organisations as learning systems - retaining and
building on knowledge allows change and
adaptation
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PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)
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Promoting Innovation
Each management viewpoint provides a
contribution to managing innovation:
• Classical
• Behavioural
• Quantitative
• Contemporary
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PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)
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Lecture Summary
• Early management ideas
• Classical theorists
Emphasised finding ways to more efficiently
manage work and organisations
• Behavioural viewpoint
Industrial psychology, the Hawthorne studies,
Human Relations and Behavioural Science
• Quantitative viewpoint
Focus on mathematics, statistics. Operations
Research, Operations Management and
Management Information Systems.
Copyright  2008 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)
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Lecture Summary
• Contemporary viewpoints
Systems and Contingency theories, Total
Quality Management, Business Process
Re-engineering and Knowledge
Management.
• Innovation
All major viewpoints contribute to
innovation. New developments will follow.
Copyright  2008 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma
Slides prepared by Rob Lawrence, Victoria University (Australia)
2–33