Ideas in Management

CHAPTER 2
PIONEERING IDEAS IN
MANAGEMENT
© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus 1
Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.
1.Preclassical Contributors
• Robert Owen (1771–1858)
Identified the importance of working and social conditions for employees.
• Charles Babbage (1792–1871)
Ideas on work specialisation, production efficiency, profit-sharing plans.
• Henry R. Towne (1844–1924)
Called for a ‘management science’ that would establish ‘principles’ of
management.
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).
2. Classical theorists
‘This viewpoint emphasises managing work and
organisations more efficiently.
• Scientific management
F. W. Taylor, F. & L. Gilbreth, H. Gantt
• Bureaucratic management
M. Weber
• Administrative management
H. Fayol
2.1 Scientific management
‘an approach emphasising the scientific study of work methods to
improve worker efficiency : Soldiering : Deliberately working at
less than full capacity
Four principles
1. Study the parts of work and determine the most efficient work methods
2. Select & train the best.
3. Co-operate with workers to ensure best method is used.
4. Divide work/responsibility between workers & managers.
• Frank & Lillian Gilbreth
– Time & motion studies
– Human implications of Scientific Management
• Henry Gantt
– Pay incentives
2.2 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.’
Major Characteristics:
1. Specialisation of labour
2. Formal rules & procedures
3. Impersonality
4. Well-defined hierarchy
5. Career Advancement on merit
2.3 Administrative management
‘Approach focusing on principles used by managers to
co-ordinate the organisation’s internal activities.’
Principles of
management
• Centralisation
1. Division of work
2. Authority • Scalar chain
3. Discipline • Order in Material
4. Unity of command/ • Equity for employees
5. direction • Stability of employees
6. Primacy of general interest • Encourage Initiative
7. Remuneration • Harmony with Union
Administrative management
A Functional Management Approach by Henry Fayol
Organising
Planning
Commanding
Henri Fayol
Co-ordinating
Controlling
3. Behavioural theorists
‘Perspective on management emphasising the importance of
attempting to understand various factors affecting human
behaviour in organisations.’
Early theorists:
Hugo Munsterberg
Creating optimal psychological conditions, behaviour shaping
Mary Parker Follett

Importance of group functioning
Hawthorne studies
Importance of supervisory style
Behavioural theorists
Human relations movement
• Abraham Maslow
Hierarchy of Needs
• Douglas McGregor
Theory X & Y
Maslow’s Hierarchy of Needs
Self-actualisation
Esteem
Social
Safety
Physiological
McGregor’s Theory X & Y
Theory X Theory Y
Work avoiding Work is natural
Need to control Capable of self-direction
Avoid responsibility Seek responsibility
Workers seek security Can make good decisions
Quantitative management
viewpoint
‘Focuses on mathematics, statistics and
information aids to support managerial
decision making and organisational
effectiveness.’
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.’
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.’
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.’
Promoting innovation
Each management viewpoint provides a
contribution to managing innovation:
• Classical
• Behavioural
• Quantitative
• Contemporary
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.
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.

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CHAPTER 2

Assessing the early contributions:

Mary Parker Follett

Work avoiding Work is natural

Need to control Capable of self-direction

Avoid responsibility Seek responsibility

Workers seek security Can make good decisions

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