Historical Foundations of Management
Understand how historical forces influence the practice of management.Identify and explain major developments in the history of management thought.
Why is history important?
It gives executives a way of thinking, a way of searching for patterns and understanding trends. It provides a context or environment in which to interpret current problems.
Forces: Social, political, economic
Management Approaches
Classical Humanistic Management Science Recent Trends
Systems Theory Contingency View Total Quality Management
3 Classical Approaches to Management
Classical Approaches
Assumption: People are
rational
Bureaucratic Orgnaization
Max Weber
Bureaucratic Orgnaization
Max Weber
Administrative Principles
Henry FayolMary Parker
Follett
Administrative Principles
Henry FayolMary Parker
Follett
Scientific Management
Fredrick TaylorThe Gilbbreths
Scientific Management
Fredrick TaylorThe Gilbbreths
Classical Perspective
Emerged during the 19th and 20th centuries
Factory systems appearing in 1800’s
Problems: Tooling the plants Organizing managerial
structure Training employees (many
immigrants) Scheduling complex
manufacturing operations Increased labor
dissatisfaction; strikes
Classical Approaches
Scientific Management Frederick Winslow Taylor (1856-
1915) Henry Gantt Frank B. and Lillian M. Gilbreth
Bureaucratic Organizations Max Weber (1864-1920)
Administrative Principles Henri Fayol (1841-1925) Mary Parker Follett (1868 – 1933) Chester I. Barnard (1886-1961)
Frederick Taylor, Engineer Father of Scientific Management
Problem in labor productivity lies with poor management practices, not labor.
Manner of change can be determined only by scientific study.
Replace rules of thumb and tradition with precise procedures developed after careful study.
Work with Bethlehem Steel plant in 1898
Henry Gantt
Gantt Chart – a bar graph that measures planned and completed work along each stage of production by time elapsed.
Frank B. Gilbreth(1868 – 1924)
Pioneered time and motion study
Stressed efficiency; “one best way” to do work.
Early work with bricklayers Greatest impact on medical
surgery by drastically reducing the time patients spent on the operating table.
Lillian M. Gilbreth1878-1972
Widowed in 1924 with 12 children, ages 2 – 19.
“First Lady of Management”
Pioneered in the field of industrial psychology and made substantial contributions to human resource management.
Max Weber, German Theorist
Envisioned organizations managed on an impersonal, rational basis.
An organization based on rational authority would be more efficient and adaptable to change.
Employee selection and advancement based on competence.
Rely on rules and written records for continuity.
Manager relies on legal power of his/her position instead of personality.
Elements of a Bureaucracy Labor is divided
with clear definitions of authority and responsibility.
Positions are organized in a hierarchy of authority.
All personnel are selected and promoted based on technical qualifications, which are assessed by examination.
Administrative acts and decisions are recorded in writing.
Management is separate from the ownership of the organization.
Managers are subject to rules and procedures. Rules are impersonal and uniformly applied.
Henri Fayol, French Engineer
General and Industrial Management
Proposed 14 general principles of management Unity of command (one
supervisor) Division of work
(specialization) Unity of direction (group
similar activities) Scalar chain (chain of
authority)
Mary Parker Follett
Trained in philosophy and political science
Stressed the importance of people rather than engineering techniques
“Don’t Hug Your Blueprints” Analyzed dynamics of
management-organization interactions
Addressed ethics, power and leadership
Proposed concept of empowerment
Chester I. Barnard
Studied Economics at Harvard; no degree
President of New Jersey Bell in 1927
Proposed the concept of the informal organization
Includes cliques and naturally occurring social groupings
Acceptance theory of authority – people have free will and can choose whether to follow management orders.
Humanistic Perspective
Human Relations Movement Hawthorne Studies (1927-1932),
Western Electric Hawthorne Works in Chicago
CIL, Thomas Edison, Honorary Chair, 1924-1927
Elton Mayo, Harvard Business School examined productivity and work conditions
Human Resources Perspective Abraham Maslow (1908-1970) Douglas McGregor (1906-1964)
Behavioral Sciences Approach
The Hawthorne Effect
The rewards you reap when you pay attention to people. The mere act of showing people that you’re concerned about them usually spurs them to better job performance.
When people spend a large portion of their time at work, they must have a sense of belonging, of being part of a team.
Hawthorne Studies 1895 – struggle develops
between manufacturers of gas and electric lighting fixtures for control of the residential and industrial market.
More light results in more productivity, they say
RATR 6 year Study Result: Money was not the cause of the increased output. Employees’ output increased sharply when managers treated them in a positive manner.
Started a revolution in worker treatment for improving organizational productivity.
The Human Relations Movement
Humanistic PerspectiveThe human relations school of thought considers that truly effective control comes from within the individual workers rather than from strict, authoritarian control.
Behavioural Approaches to Management
Hawthorne Studies
Elton Mayo
Hawthorne Studies
Elton Mayo
Theory of Human Needs
Abraham Maslow
Theory of Human Needs
Abraham Maslow
Human Resources
Approaches
Assumption: People are social and
self-actualizing
Human Resources
Approaches
Assumption: People are social and
self-actualizing
Personality and
Organization
Chris Argyris
Personality and
Organization
Chris Argyris
Theory X and Theory Y
Douglas McGregor
Theory X and Theory Y
Douglas McGregor
Abraham Maslow, Psychologist
Observed that patients’ problems stemmed from inability to satisfy their needs.
Proposed a hierarchy of needs Physiological needs Safety Belongingness Esteem Self-actualization
Basis for motivational techniques
Douglas McGregor, College President
Challenged assumptions about human behavior based on his experiences as a manager, consultant, his training as a psychologist, and Maslow’s work.
Theory X and Theory Y Workers are best described
by Theory Y Take advantage of the
imagination and intellect of all employees.
Behavioral Sciences Approach
Develops theories about human behavior based on scientific methods and study. Draws from sociology, psychology, anthropology, economics and other disciplines to understand employee behavior and interaction in an organizational setting.
Impacts motivation, communication, leadership and human resource management.
Management Science Perspective
World War II created sophisticated tools for modern global warfare.
Applies mathematics, statistics and other quantitative techniques to management decision-making and problem-solving.
Operations Research Operations Management Management Information
Systems Queuing Theory
Fourth Perspective: Emerging Trends
Systems TheoryContingency ViewTotal Quality Management (Deming)
Systems Theory
A set of interrelated parts that function as a whole to achieve a common purpose. Inputs Transformation process Outputs Feedback Environment
Contingency View
Universalist View (classical perspective) – management concepts are universal
Case View – Each situation is unique.
Contingency View – A manager’s response depends on identifying key variables in an organizational situation. What works in one setting may not work in another. Contingencies include the environment, industry, technology and international cultures.
Total Quality Management
Shift from inspection approach to quality control to an approach emphasizing employee involvement in the prevention of quality problems.
Managing the total organization to deliver quality to customers.
Significant Elements of TQM Employee involvement Focus on the customer Benchmarking Continuous improvement
Dr. W. Edwards Deming (1900-1993)
“Father of Quality Movement”
Developed theory and methods to improve the quality an dependability of manufactured products.
Out of the Crisis, 14 points Application of his work in
Japan sparked the Japanese Industrial Miracle-the transformation of Japanese business
www.deming.org/deminghtml/wedi.html
