Management thought has developed over time through different viewpoints, beginning with the classical viewpoint in the late 1800s as organizations grew larger during the Industrial Revolution. Later viewpoints include behavioral in the 1930s focusing on individuals, systems in the 1950s viewing organizations as systems, contingency in the 1960s stressing that there is no single best way and the approach depends on factors like the environment, and quality in the 1980s championed by Deming focusing on quality to reduce costs and drive performance. Each viewpoint built on those before but had a different focus, and current approaches may incorporate aspects of multiple viewpoints.

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
1890 1900 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
 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. Hierarchical Organization Chart
Adapted from 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
Adapted from 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 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,

20. Basic Systems View of
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
 “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. 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
2.9

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