Management Thought: Past and Present

1. Management Thought: Past and Present 2002 South-Western

2. The Value of History • People who ignore the past are destined to relive it. • Hence the study of Management Thought: Past and Present. 2002 South-Western

3. Theory Attempts to explain the relationships between and among its underlying principles. Gives people a reason for doing things. 2002 South-Western

4. Time Line of Management Thought 2002 South-Western

5. Classical Management Theory • Originated during England’s Industrial Revolution. • First-time manufacturers could mass-produce goods in factories. • Textile industry was among the first to capitalize on the new technology. • Allowed manufacturers to make standardized goods. • Depended on a constant flow of labor and materials. • Needed to plan, organize, lead, control. • Focused on finding the “one best way.” 2002 South-Western

6. Two Classical Schools of Thought Focused on the manufacturing environment. Classical Scientific School Emphasized the flow of information and how organizations should operate. Classical Administrative School 2002 South-Western

7. Classical Scientific SchoolCharles Babbage • Published On the Economy of Machinery and Manufactures. • Concluded that definite management principles existed. • Thought most important principle was “division of labor.” 2002 South-Western

8. Classical Scientific School Frederick W. Taylor • Called the Father of Scientific Management, applied scientific methods to factory problems. • Urged proper use of human labor, tools, and time. • Pursued four key goals: • –To develop a science of management. • – To select workers scientifically. • – To educate and train workers scientifically. • – To create cooperation between management and labor. • Developed the core ideas of scientific management time and motion studies. • Introduced work breaks. • Piece-rate system 2002 South-Western

9. Classical Scientific School Henry Gantt Moved away from authoritarian management. Invented the Gantt Chart. Advocated a bonus system to reward workers. 2002 South-Western

10. Classical Scientific Thinkers Taught Managers to Analyze everything Teach effective methods Constantly monitor workers Organize and control the work and the workers Plan responsibly 2002 South-Western

11. Classical Administrative School • Henri Fayol Believed that: • specific skills could be learned and taught • Fayol’s Universal Management Functions: - Planning - Organizing - Commanding - Coordinating - Controlling 2002 South-Western

12. Classical Administrative School • Mary Parker Follett • Focused on how organizations cope with: - Conflict and the importance of goal sharing among managers. - Emphasized the human element. - Emphasized the need to discover and enlist individual and group motivation. 2002 South-Western

13. Classical Administrative School • Chester Barnard - Argued that managers must gain acceptance for their authority. - Advocated the use of basic management principles. - Cautioned managers to issue no order that could not or would not be obeyed. 2002 South-Western

14. Classical Administrative School Limitations 1. Rigid and unresponsive decision making. 2. Lack of commitment among workers. 2002 South-Western

15. Abraham Maslow 1. Developed a needs-based theory of motivation. 2. Theory is now considered central to understanding human motivations and behavior. 2002 South-Western

16. Behavioral Management SchoolThe Results Today Managers work hard to discover what employees want from work. Enlist cooperation and commitment. Unleash talents, energy, and creativity. 2002 South-Western

17. Quantitative School ofManagement Theory 1. Mathematical approaches to management problems. 2. Was born in World War II era. 3. Applied to every aspect of business. 2002 South-Western

18. Management Science - Complex systems of: - People - Money - Equipment - Procedures - Is a facet of quantitative management theory - Enables managers to design specific measures Study of: 2002 South-Western

19. Area of Management Science Operations Research Models Games Simulations 2002 South-Western

20. Common Tools of Operations Management Inventory Models Break-even Analyses Production Scheduling Production Routing 2002 South-Western

21. The Organization as a System 2002 South-Western

22. Contingency School • Approaches depend on the variables of the situations. • Draws on all past theories in attempting to analyze and solve problems. • Is integrative. • Summarized as an “it all depends” device. • Tells managers to look to their experiences and the past and to consider many options before choosing. • Encourages managers to stay flexible. 2002 South-Western

23. Reengineering Approach The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance. Reengineering What a company must do. How to do it. Reengineering determines To sense the need for change. To see change coming. To react effectively to it when it comes. Greatest challenges facing managers 2002 South-Western

24. Quality School of Management Has its roots most directly in the behavioral, quantitative, systems, and contingency schools. People key to both commitments and performance. What is done must be measured and evaluated quantitatively and qualitatively. Quality school is the most current and is embraced worldwide. 2002 South-Western