A History of Management Thought

1. A History of Management Thought Stuart A. Umpleby The George Washington University Washington, DC

2. On theories • In order to understand a theory, one needs to understand the theory that preceded it, and in order to understand that theory, one needs to understand the theory that preceded it • A theory is an answer to a question. To understand a theory, one must first understand the question that it answers

3. On theories and common sense • A theory should not be evaluated in relation to common sense, for three reasons • Different people have different conceptions of common sense • Common sense changes in time • Common sense is not well-formulated and clearly stated

4. How to evaluate a theory • Common sense is an unstable reference frame for evaluating a theory • Instead, evaluate a theory in relation to the previous, well-tested, widely accepted theory

5. Very early writings on management • Writings on law and military organization -- Hamurabi, Roman Senate, Sun Tsu, Marcus Aurelius, Machievelli • The industrial revolution altered working conditions and created large organizations; Adam Smith on the division of labor, 1776

6. Early modern writings on management 1900 to 1930s • Functions of management, Henri Fayol -- planning, organizing, staffing, directing, controlling, coordinating, budgeting • Scientific management, Frederick Taylor -- time and motion studies • Statistical quality control, Walter Shewhart • Human relations movement, Elton Mayo, Mary Parker Follett

7. Hawthorne experiments 1930s • Illumination study -- tested the impact of various working conditions on productivity, uncovered the idea that paying attention to people improves their performance • Wiring room study -- tested the influence of individual and group behavior, worker output is influenced by group norms, social pressures, informal organizations

8. After World War II • Operations research and systems analysis • Management information systems • Management by objectives • Quality or process improvement • Reengineering • Knowledge management

9. Issues in organizational behavior • Leadership styles suitable for various kinds of organizations • Motivation -- people respond to different rewards • Group behavior -- forming, storming, norming, performing, adjourning • Personality differences • Cultural differences

10. Organizational behavior • Includes individuals, groups, organizations • Is multi-disciplinary – psychology, sociology, anthropology • Has a humanistic orientation • Is performance oriented • Uses the scientific method • Is applications oriented

11. Motivation • Physiological needs – food, water • Psychological needs – self-esteem • Sociological needs – social interaction

12. Maslow’s hierarchy of needs • Self-actualization – advancement, challenges, opportunities to use skills • Esteem – job title, compliments • Belongingness – compatible work groups, friends, parties • Safety and security – salary increases, pension plan, medical plans, insurance • Physiological – salary, office, co. cafeteria