History of Management

1. 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

2. 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

3. 2.2 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 2000 Adapted from Figure 2.1

4. 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

5. Bureaucratic Management • Max Weber wanted to eliminate nepotism, and favoritism in organizations • A rational method-scientific and logical approach to business

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

7. Aspects of Bureaucracy • Formal Rules for uniformity • Impersonality in hiring, evaluation, etc. rather than social status, or personality • Division of labor into specialized areas • Hierarchy • Set Decision/Power Structure

8. 2.3 Hierarchical Organization Chart Top Manager Middle Manager Middle Manager First-Line Manager First-Line Manager First-Line Manager First-Line Manager Work Group Work Group Work Group Work Group Work Group Work Group Work Group Work Group Adapted from Figure 2.2

9. 2.4 Continuum of Bureaucratic Orientation U.SPostalService Dreamworks SKG Coca-Cola Hoechst-Celanese Construction Firms UPS LowBureaucraticStructure HighBureaucraticOrientation Mid-RangeBureaucracy Adapted from Figure 2.3

10. 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

11. Scientific Management • Fred Taylor • Time and Motion studies • Proposed “One most efficient way” for completing a task • Employees are economically motivated • Formen

12. 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

13. Administrative Management • Management is a science that can be learned • Division of Labor • Authority of Managers • Discipline • Unity of Command • Centralization of power

14. 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

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

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

17. 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

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

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

20. 2.7 Basic Systems View of Organization Environment INPUTS Human, physical, financial, and information resources TRANS-FORMATION PROCESS OUTPUTS Products andServices Feedback Loops Adapted from Figure 2.4

21. 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”

22. 2.9 Contingency Viewpoint • Behavioral Viewpoint • How managers influence others: • Informal Group • Cooperation among employees • Employees’ social needs • Systems Viewpoint • How the parts fit together: • Inputs • Transformations • Outputs • Traditional Viewpoint • What managers do: • Plan • Organize • Lead • Control • Contingency Viewpoint • Managers’ use of other viewpoints • to solve problems involving: • External environment • Technology • Individuals Adapted from Figure 2.6

23. 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

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

25. 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

26. 2.10 Importance of Quality Lower Costs & Higher Market Share PositiveCompany Image QUALITY Decreased Product Liability Adapted from Figure 2.7