Class 02: the Management Movement

Development of Management Thought

Scientific General Human Relations Management

Management Administrative Thrust/ Process School
Theory Organizational
Behavior

Systems Contingency Contemporary approaches:

Approach Approach Quality Management
Theory Z
Search for Excellence
Knowledge Management
and The Learning Organization
1. Division of work: concept of specialization of work.
2. Authority: formal (positional) authority versus
personal authority.
3. Discipline: based on obedience and respect.
4. Unity of command: each employee should receive
orders from only one superior.
5. Unity of direction: one boss and one plan for a group
of activities having the same objective.
6. Subordination of individual interests to the general
interest: a plea to abolish a tendency to place
individual interest ahead of the group interest.
7. Remuneration: the mode of payment of wages
dependent on many factors.
8. Centralization: the degree to which subordinates are
involved in decision making.
9. Scalar chain (line of authority, chain of command):
shows the routing of the line of authority and formal
communication channels.
10. Order: ensured a place for everything.
11. Equity: resulted from kindness and justice.
12. Stability of tenured personnel: called for orderly
personnel planning.
13. Initiative: employees who are allowed to originate
and carry out plans will exert high levels of effort.
14. Esprit de corps: stressed the building of harmony and
unity within the organization.
 Division of Labor
Career Authority
orientation Hierarchy

A bureaucracy
should have

Impersonality Formal
Formal rules Selection
and Regulations
 Problem: employee motivation.
 Focus: the human factor in the organization.
 Achievements: conclusions on the impact of
psychological and social conditions at work
(informal group pressures, individual
recognition, participating in decision making,
delegation) on the employee productivity.
 Important names: Elton Mayo, Mary Parker
Follett, Ch. Barnard
 Problem: identification of basic management
tasks (functions) and rules governing them.
 Focus: management process of planning,
organizing, motivating and leading, and
controlling.
 Achievements: basic rules/principles of
management.
 Important names: H. Fayol, O. Sheldon, R. C.
Davies
 The contingency approach assumes that
different situations and conditions require
different management approaches.
 American-Type Organization
1. Short-term employment.
2. Individual decision making.
3. Individual responsibility.
4. Rapid evaluation and promotion.
5. Explicit control mechanism.
6. Specialized career path.
7. Segmented concern for employee as
an employee.

Theory Z-Type Organization

1. Long-term employment.
2. Consensual, participative decision making.
3. Individual responsibility.
4. Slow evaluation and promotion.
5. Implicit, informal control with explicit, formalized
measures.
6. Moderately specialized career paths.
7. Holistic concern, including family.
1. A bias for action.
2. Close to the customer.
3. Autonomy and entrepreneurship.
4. Productivity through people.
5. Hands on; value driven.
6. Stick to the knitting.
7. Simple form; lean staff.
8. Simultaneous loose-tight properties.
 Organizational Design
•Boundaryless
•Teams
•Empowerment

Organizational Culture
•Strong mutual Information sharing
relationships THE LEARNING •Open
•Sense of community ORGANIZATION •Timely
•Caring •Accurate
•Trust

An organization that has Leadership

developed the capacity to •Shared vision
continuously adapt and change •Collaboration
because all members take
an active role in identifying
and resolving work-related issues.