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
 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
 2.2

History of Management
Thought
Quality Viewpoint

Contingency Viewpoint

Systems Viewpoint

Behavioral Viewpoint

Traditional Viewpoint

1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2

Adapted from Figure 2.1

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
Bureaucratic Management
 Max Weber wanted to eliminate
nepotism, and favoritism in
organizations

 A rational method-scientific and logical

approach to business
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
 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
 2.3

Hierarchical Organization Chart

Top Manager

Middle Manager Middle Manager

First-Line Manager First-Line Manager First-Line Manager First-Line Manager

Work Work Work Work Work Work Work Work

Group Group Group Group Group Group Group Group

Adapted from Figure 2.2

 2.4

Continuum of Bureaucratic
Orientation U.S
Dreamworks Postal
SKG Coca-Cola Service

Construction Hoechst-Celanese UPS

Firms
Low High
Bureaucratic Mid-Range Bureaucratic
Structure Bureaucracy Orientation

Adapted from Figure 2.3

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
 Scientific Management
 Fred Taylor
 Time and Motion studies
 Proposed “One most efficient way” for
completing a task
 Employees are economically motivated
 Formen
 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
Administrative Management
 Management is a science that can be
learned
 Division of Labor
 Authority of Managers
 Discipline
 Unity of Command
 Centralization of power
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
 Major Players
 Follet
– Involvement of workers
– Continuous aspect of management
 Barnard
– Organizations are social systems
– Acceptance theory of authority
 understand, believe, see benefits
 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
 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
 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
 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,
 2.7

Basic Systems View of

Organization
Environment

INPUTS
Human, physical, TRANS- OUTPUTS
financial, and FORMATION Products
information and
PROCESS Services
resources

Feedback Loops

Adapted from Figure 2.4

 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”
 2.9

Contingency Viewpoint

Behavioral Viewpoint
 How managers influence others:
 Informal Group
 Cooperation among employees
 Employees’ social needs

Systems Viewpoint Traditional Viewpoint

How the parts fit together: What managers do:
 Inputs  Plan
 Transformations  Organize
 Outputs  Lead
 Control

Contingency Viewpoint
Managers’ use of other viewpoints
to solve problems involving:
 External environment
 Technology
 Individuals
Adapted from Figure 2.6
 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
 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
 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
 2.10

Importance of Quality
Lower
Costs &
Positive Higher
Company Market
Image Share
QUALITY

Decreased
Product
Liability

Adapted from Figure 2.7