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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 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 . 2.

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 .

1982: 21)  How we view bureaucracy – School – Taxes – Government .Negative View of Bureacracy  Bureaucracies “strip all relations of content but that which is strictly applicable to the attainment of organizational ends” (Lincoln.

Aspects of Bureaucracy  Formal Rules for uniformity  Impersonality in hiring. evaluation. rather than social status. etc. 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 Work Work Work Work Work Work Work Group Group Group Group Group Group Group Group Adapted from Figure 2. 2.

4 Continuum of Bureaucratic Orientation U.3 . 2.S Dreamworks Postal SKG Coca-Cola Service Construction Hoechst-Celanese UPS Firms Low High Bureaucratic Mid-Range Bureaucratic Structure Bureaucracy Orientation Adapted from Figure 2.

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 .

see benefits . believe. Major Players  Follet – Involvement of workers – Continuous aspect of management  Barnard – Organizations are social systems – Acceptance theory of authority  understand.

– Found that the attention given to workers was the variable that affected performance . but..... Hawthorne Studies  Western Electric Studies  Mayo – Theorized that workers would be more productive if given favorable working conditions – Theory did not hold..

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 .

financial. Systems Viewpoint  Organizations are machines that operate within an environment – Inputs-human. physical. and info – Processes – Outputs-products and services  A change in one part of the system affects the whole system .

only at input and output portals  Open-systems.all parts of the organization interact with the environment  Subsystems. individuals. .parts within the organization – groups (formal and informal). Systems  Closed-limited interaction with the environment.

4 . TRANS. physical. 2. OUTPUTS financial.7 Basic Systems View of Organization Environment INPUTS Human. and FORMATION Products information and PROCESS Services resources Feedback Loops Adapted from Figure 2.

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” .

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: What managers do:  Inputs  Plan  Transformations  Organize  Outputs  Lead  Control Contingency Viewpoint Managers’ use of other viewpoints to solve problems involving:  External environment  Technology  Individuals Adapted from Figure 2. 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 maxed- out  Quality is now the issue when performance is discussed  Demming pioneered the quality movement. and was ignored in the US .

and technological quality  US companies had to play catch-up in the 1980’s . Demming’s Story  Developed the quality idea  Was rejected by US companies  Sold his ideas in Japan  Japan excelled in automobile.

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 .

10 Importance of Quality Lower Costs & Positive Higher Company Market Image Share QUALITY Decreased Product Liability Adapted from Figure 2. 2.7 .