By the end of the class, students will have gained an understanding of the evolution of management theories from scientific management to modern approaches. The document examines the major historical schools of thought in management theory including classical, human relations, systems, and behavioral approaches. It emphasizes that management ideas have changed over time in response to organizational needs and contexts, and that current approaches may need to evolve further to address 21st century challenges.

2. By the end of the class you will have had an
opportunity to:
Gain an understanding of how our ideas about
management have evolved
Examine the major schools of thought: Classical,
Human Relations, Systems, Behavioural
Examine the ‘one best way’ versus ‘contingency’ view

3. Why should we care about the history
of management ideas?
Ideas that changed our world e.g Taylorism
They are around us every day e.g the factory system,
McDonald’s
We need to know our ‘turf’, where our ideas came
from

4. Concepts, models and theories
What is a concept? Words that help us organise and
sort knowledge e.g job satisfaction
A model: a ‘half-way’ house to a theory
A theory: a set of concepts and ideas that
systematically attempt to explain, understand and
predict outcomes
We operate in the social sciences; we can ‘prove
‘nothing

9. The evolution of management theory
First came the practitioners: early attempts by
entreprenuers to find better ways of doing things e.g.
John Kay’s Flying Shuttle
Then much later came the academics: knowledge
from research about management and organisations
Now it has become an industry

10. Systems (Org. Environment)
Management Science (Quantitative)
Human Relations
Behavioral Management
Administrative Management
Bureaucratic Management
Scientific Management
1890 1940 2000

12. Classical Management Theory
Organizations seeking ways to improve efficiency
(Capitalist mode of production)
Led to surplus value
Satisfied (manipulated?) customers
Application of technology/machinery which changed
the way goods were produced (Industrial Revolution)
Managers had to increase the efficiency of the worker-
task mix

13. The Principles of Scientific Management
1911
Taylor was an engineer interested in improving efficiency
 How to reduce the time spent on each task by optimizing the
way the task was done
 Develop rules of motion, standardized work implementation,
proper working conditions
 Careful select ion of workers with right abilities for the job
 Train them to do the job and give proper incentives
 Support workers by carefully planning their work
 ‘One best way’

14. Application: Fordism
Henry Ford revolutionized car manufacture
By 1914, his Highland Park (Michigan) plant could
turn out a complete chassis every 93 minutes!
This was a stunning improvement over the earlier
production time of 728 minutes [783% improvement!]
Using a constantly-moving assembly line, subdivision
of labour, and coordination of operations, Ford
realized huge gains in productivity
Founded the Ford empire

15. The assembly line at Ford’s 1914

16. Ford’s Dearborne plant 1914

17. Another cog in the wheel . .

18. Fordism
What images are symbolic of
Scientific Management (and Fordism)?
 How are people portrayed?
 How is management portrayed?
 What drives work?
 What are the limitations of this management
approach?
What is the legacy today of this means of production?

19. Problems with this approach
Managers often implemented the increased output
side of Taylor’s plan
They did not allow workers to share in increased output
Specialized jobs became very VERY boring
Workers ended up distrusting Scientific Management
Workers could purposely “under-perform” (known as
“soldiering” )
Management responded with increased use of
controls and later, machines

20. What do these organisation have in common?
Oxfam NZ
NZ Police
BNZ
Waikato Multiple Sclerosis Trust
Fraser Tech Rugby Club
East Street Apostolic Church
Hamilton East Primary School
Answer: to one degree or another all are
bureaucracies

21. Classical Management Theory
Bureaucracy
Bureaucratic Organization (Max Weber)
Ideal-type, intentionally rational and efficient form of
organization
Based on principles of logic, order and legitimate
authority
Bpecialisation of labour
 Formal rules and procedures
 Impersonality of process
 Well defined hierarchy of
authority
 Career advancement based on merit

22. Key points of Bureaucracy
Authority is the power to hold people accountable for
their actions
Positions should be based on performance not social
contacts
Position duties are clearly identified. People should
know what is expected of them
Lines of authority should be clearly identified.
Workers know who reports to who
Rules, Standard Operating Procedures (SOPs), &
norms used to determine how the firm operates

23. Critical Review: Classical Management
Theories
+ Encouraged managers to think rationally and
systematically about the organisation of work
Increased productivity through efficiency (work
+ specialisation of simple tasks)
People selected for tasks which they are best suited and
+ can be learned easily

24. Human Relations Movement: managers who use
good human relations will achieve productivity

25. Human Relations Approaches to
Management
Hawthorne studies (Elton Mayo 1924-1932)
initial study to examine the relationship of economic
incentives and physical conditions on worker output
 “psychological factors” interfered with experiment
Relay Assembly Test-Room Studies
 designed to minimize the “psychological factors” of previous
experiment
 productivity increased regardless of changes made
 factors that accounted for increased productivity
 group atmosphere
 participative supervision

26. Hawthorne Studies
Lessons in Behaviour
Shift toward social and human concerns as keys to
productivity
Hawthorne effect
 people who are singled out for special attention perform as
expected
 workers are social beings driven by the need for belonging
and acceptance

27. Hawthorne Effects
The major finding was that almost regardless of the
experimental manipulation (brightness of lights,
humidity, breaks, group pressure, working hours,
managerial leadership), the production of the workers
seemed to improve.
One reasonable conclusion is that the workers were
pleased to receive attention from the researchers who
expressed an interest in them.
Work-group norms affect productivity.
The workplace is also a social system.

28. Human Relations Movement
Theory X and Y (McGregor, 1960)
Managers assumptions about workers differ:
Theory X: Assumes the average worker is lazy, dislikes
work and will do as little as possible.
 Managers must closely supervise and control through reward
and punishment
Theory Y: Assumes workers are not lazy, want to do a
good job and the job itself will determine if the worker
likes the work.
 Managers should allow the worker great latitude, and create
an organization to stimulate the worker

29. Human Relations Movement
Maslow’s Theory of Human Needs
need is a physiological or psychological deficiency a
person feels the compulsion to satisfy
 satisfied need is not a motivator of behavior
progression principle: Hierarchy of needs
 a need becomes a motivator once the need below it is
satisfied

31. Critical Review: HR Management
Theories
Attempted to explain the psychological and sociological
+ processes which influence performance
Recognised workers’ needs
+ Developments in motivation theory, social & personal
interests in work
+

32. Behaviouralists
What is it that effective managers do?
 Are there behaviours associated with them?
Ohio & Michigan Studies
Identified two dimensions: Task and People
Blake & Mouton’s Managerial Grid
Ground breaking New Zealand research (2008)
‘A Day in the Life of a Manager’
Mintzberg

33. Some questions to ponder….
How relevant are these models and theories to 21 st
century organisations?
We moved through stages: agricultural, pre-
industrial, industrial, post-industrial, to a digital-
knowledge economy, so how relevant are these 20th
century theories now?
Are our ideas about managing rooted in ‘pre-history’?
What sort of models do we need to ‘invent’ for this
century?
What metaphors?

34. Conclusion: why we can’t continue to rely on
the way we have done things in the past
A combination of very rapid population growth
over the last 50 years and reckless economic
growth during the same time has stored up
massive problems for societies the world over. No
nation is immune. The scientific evidence tells us
all we need to know: carry on with business-as-
usual growth-at-all-costs, and we’re stuffed -
Jonathon Porritt, www.forumforthefuture.org
article 'Living within our means' (21 March 2009)