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- 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. History of Management Thought 18901900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2 Traditional Viewpoint Quality Viewpoint Contingency Viewpoint Systems Viewpoint Behavioral Viewpoint Adapted from Figure 2.1 2.2
- 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 MaxWeber wanted to eliminate nepotism, and favoritism in organizations A rational method-scientific and logical approach to business
- 6. Negative View ofBureacracy 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. Hierarchical Organization Chart Adaptedfrom Figure 2.2 Middle Manager Middle Manager Top 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 2.3
- 9. Continuum of Bureaucratic Orientation Adaptedfrom Figure 2.3 Low Bureaucratic Structure Mid-Range Bureaucracy High Bureaucratic Orientation Dreamworks SKG Construction Firms Coca-Cola Hoechst-Celanese U.S Postal Service UPS 2.4
- 10. Positive and NegativeAspects 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 FredTaylor 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 Managementis a science that can be learned Division of Labor Authority of Managers Discipline Unity of Command Centralization of power
- 14. Behavioral/Human Relations Peopleand 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 WesternElectric 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 Employeesare 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 Organizationsare 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 interactionwith 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,
- 20. Basic Systems Viewof Organization Environment Adapted from Figure 2.4 INPUTS Human, physical, financial, and information resources OUTPUTS Products and Services TRANS- FORMATION PROCESS Feedback Loops 2.7
- 21. Contingency Approach “ItDepends!” Must assess the environment and use aspects of the three previous approaches in combination to maximize performance No prescriptive “One best way”
- 22. Contingency Viewpoint Behavioral Viewpoint Howmanagers 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 2.9
- 23. Quality and EdDemming 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 Developedthe 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 Qualityat 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. Importance of Quality Adaptedfrom Figure 2.7 Positive Company Image Lower Costs & Higher Market Share Decreased Product Liability QUALITY 2.10