Early Modern Org Theory:
                                        “Classic” Organization Theory
Bill Adams, FEA, University...
Similar Perspectives…

                                             sometimes called…
                                    ...
Adam Smith’s Wealth of Nations

                                         ● “Beginning of modern organizational theory as
 ...
Adam Smith’s Wealth of Nations

                                         How free markets work so effectively
           ...
McCallum Runs the Railroad…

                                                       Mid-1800s with larger
                ...
H. Towne: Moving toward Scientific Mgt.


                                         Importance of good management
        ...
Frederick Winslow Taylor:
                                              Scientific Management
Bill Adams, FEA, University ...
Frederick Winslow Taylor:
                                          Scientific Management

                               ...
Taylor & Scientific Management

                                           Compare alternatives with
                    ...
Taylor & Scientific Management

                                               Controversial stereotype: Mean guy
        ...
Max Weber

                                        Famous pioneering
                                        German sociol...
Bureau = desk (French)

                                        Bureau = the office(s)

                                  ...
Adam Smith        (1776)

                                        specialization helps production
                        ...
Some of Weber’s Core
                                        Features of Bureaucracy

                                    ...
Henri Fayol   (“Onri’ Fayo,” French engineer)


                                                                      Tech...
Division        Henri Fayol’s General Principles of Mgt
                                           of work
               ...
Fayol Linked Mgt Levels to Types of Skills


                                              Top level              Concep-
...
Luther Gulick        (1937)


                                           Like others, concerned with…
                   ...
P    • Planning future org. goals

                                        O    • Organizing work subdivisions

          ...
Some Very “Big Names” Tonight


                                        F. W. Taylor – scientific management

            ...
Criticisms claimed about
                                        these early approaches…

                                ...
Enduring contributions?




                                        We will see many echoes of these
                     ...
Upcoming SlideShare
Loading in …5
×

UM 2 Classics

545 views

Published on

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
545
On SlideShare
0
From Embeds
0
Number of Embeds
57
Actions
Shares
0
Downloads
28
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

UM 2 Classics

  1. 1. Early Modern Org Theory: “Classic” Organization Theory Bill Adams, FEA, University of Malaya
  2. 2. Similar Perspectives… sometimes called…  theories  schools  traditions  approaches Bill Adams, FEA, University of Malaya  paradigms  frameworks  models
  3. 3. Adam Smith’s Wealth of Nations ● “Beginning of modern organizational theory as an applied science and academic discipline.” Published 1776 “Father of economics” Bill Adams, FEA, University of Malaya “Foundational defense of free-market capitalism”
  4. 4. Adam Smith’s Wealth of Nations  How free markets work so effectively  Need for limiting govt. intervention  Importance of economic freedom to individual liberty Answered the question: why have Bill Adams, FEA, University of Malaya large complex organizations?  Efficiency of “division of labor” (i.e., specialization) in factories.
  5. 5. McCallum Runs the Railroad… Mid-1800s with larger business enterprises. Still focus on division of responsibilities, but: Bill Adams, FEA, University of Malaya  More admin. levels  Power/control over subordinates  Regular reporting
  6. 6. H. Towne: Moving toward Scientific Mgt.  Importance of good management of engineering shops as something worthy of attention and careful deliberation.  A good engineer is not necessarily a good manager! Bill Adams, FEA, University of Malaya  Ought to exchange experiences with different mgt. approaches. (Today: finding “best practices”)
  7. 7. Frederick Winslow Taylor: Scientific Management Bill Adams, FEA, University of Malaya Late 1800s- early 1900s Book: 1911
  8. 8. Frederick Winslow Taylor: Scientific Management Key concept: Study ways to improve efficiency by rigorously test alternatives! Bill Adams, FEA, University of Malaya
  9. 9. Taylor & Scientific Management  Compare alternatives with time-and-motion studies, then  Standardize the one best way and enforce that productivity level;  Hire the best workers for that job; Bill Adams, FEA, University of Malaya  Teach them the system fully;  And give them raises and incentives for higher productivity.
  10. 10. Taylor & Scientific Management Controversial stereotype: Mean guy who saw workers as lazy unless forced to be productive by time- motion studies that overwork them. He did think many do only the bare minimum. Bill Adams, FEA, University of Malaya “A man who is fit to handle pig iron as a regular occupation is that he shall be so stupid… that he more nearly resembles in his mental make-up the ox…”
  11. 11. Max Weber Famous pioneering German sociologist; wrote on many topics related to modernization. Bill Adams, FEA, University of Malaya
  12. 12. Bureau = desk (French) Bureau = the office(s) Bureau = often a name for a large division within a Malaysian Ministry or within a U.S. Department. Bureaucracy = entire formal organizational Bill Adams, FEA, University of Malaya apparatus of offices and procedures Bureaucracy = lots of paperwork and “red tape”
  13. 13. Adam Smith (1776) specialization helps production (in manufacturing). Bill Adams, FEA, University of Malaya Max Weber (1922) specialization helps processes (in institutions).
  14. 14. Some of Weber’s Core Features of Bureaucracy A formal, fixed Each level controls levels below hierarchy & is controlled by level above. Formal rules for Written policies to be executed org. processes consistently by all lower levels. Organized Specialists organized into units by function based on the type of work. Bill Adams, FEA, University of Malaya Run by full-time Merit hiring, job security, and professionals no arbitrary dismissal. Intentionally Rules set up to treat everyone impersonal equally and impartially.
  15. 15. Henri Fayol (“Onri’ Fayo,” French engineer) Tech- nical Com- Security mercial Mana- gerial Bill Adams, FEA, University of Malaya Account Finan- -ing cial
  16. 16. Division Henri Fayol’s General Principles of Mgt of work (specialization) Structure Fairness Unity of command Cohesion Order Clear Needed social Unity of authority & Fair discipline & physical direction responsibility order Bill Adams, FEA, University of Malaya Proper The Personnel degree of organization Fair pay stability centralization comes first Promoting Equity/fair Jumping the Encouraging esprit de treatment of scalar chain initiative corps employees
  17. 17. Fayol Linked Mgt Levels to Types of Skills Top level Concep- manage- tual ment Skills Middle level Human Management Skills Bill Adams, FEA, University of Malaya Lower level Technical Skills Management
  18. 18. Luther Gulick (1937)  Like others, concerned with…  division of work (specialization)  organization structure, including “span of control” & unitary command Bill Adams, FEA, University of Malaya  Most famous for POSDCoRB!
  19. 19. P • Planning future org. goals O • Organizing work subdivisions S • Staffing to hire, train, keep staff D • Directing by decisions & orders Co • Coordinating interrelated parts Bill Adams, FEA, University of Malaya R • Reporting info. to/from others B • Budgeting plans, accounts, controls
  20. 20. Some Very “Big Names” Tonight F. W. Taylor – scientific management Max Weber – described bureaucracy Henri Fayol – broad recommendations Bill Adams, FEA, University of Malaya Luther Gulick – POSDCoRB [Adam Smith – famous as an economist]
  21. 21. Criticisms claimed about these early approaches…  Too simplistic  Imagined “one best way” that the boss could impose and enforce.  Obsessed with structure & rules. Bill Adams, FEA, University of Malaya  Ignored the human dimension, cultural factors, contextual limits.  [Entirely fair criticisms?]
  22. 22. Enduring contributions? We will see many echoes of these early concerns and priorities in the later literature. Bill Adams, FEA, University of Malaya

×