The History of Management Thought

1
The History of Management Thought

• By
• Julia Teahen and Regina Greenwood

Based on The History of Management Thought, 5th
edition, 2005 by Daniel A. Wren
2
Part Four

• The Modern Era

3
Chapter Twenty

• Organizational Behavior
• and Theory

4
Organizational Behavior and Theory

• People and Organizations
• Organizations and People

5
Gordon Howell Report 1959

• Triggered more interest in the behavioral and
  social sciences
• The behavioral/social scientists were trained
  differently in research methods and drew on a
  different body of literature.
• Human relations thought was modified by these
  behavioral scientists, providing for a transition
  from human relations to organizational behavior.

6
Keith Davis (1918-2002) Mr. Human Relations

• Acts as a transition point for human relations
  and organizational behavior.
• Defined human relations as the integration of
  people into a work situation in a way that
  motivates them to work together productively,
  cooperatively, and with economic, psychological,
  and social satisfaction.
• Modern Human Relations Two Facets
• Organizational behavior
• Human relations

7
Chris Argyris (1923 -

• Influenced by the humanist approach of Abraham
  Maslow and the socio-technical process of E.
  Wight Bakke.
• Indicated his feelings about how organizations
  neglected human needs.

Chris Argyris
courtesy of the University of Western Ontario
8
Chris Argyris Personality vs. Organization

• Certain organizational practices, such as the
  division of labor, interfered with the
  development of health human personalities.
• These practices promoted immature, not mature
  behavior.
• In an attempt to self-actualize, individuals ran
  into the obstacles posed by formal organizations.
• The result was defensive behaviors, with
  management reacting by becoming more autocratic
  or by turning to sugar-coated human relations.

9
Chris Argyris
10
Douglas McGregor (1906-1964)

• Taught psychology at MIT.
• At Antioch College, McGregor found that his
  classroom teaching of human relations did not
  always work in practice.
• From these experiences, his ideas evolve and lead
  him to recognize the influence of assumptions we
  make about people and our managerial style.

Douglas McGregor Courtesy of University of
Western Ontario
11
Theory X

• Management is responsible for organizing the
  elements of productive enterprise money,
  materials, equipment, people in the interest of
  economic ends.
• With respect to people, this is a process of
  directing their efforts, motivating them,
  controlling their actions, modifying their
  behavior to fit the needs of the organization.
• Without this active intervention by management,
  people would be passive even resistant to
  organizational needs. They must, therefore, be
  persuaded, rewarded, punished, controlled their
  activities must be directed. This is
  managements task -- in managing subordinate
  managers or workers. We often sum it up by
  saying that management consists of getting things
  done through other people.

12
Theory X (continued)

• Behind this conventional theory there are several
  additional beliefs less explicit, but
  widespread
• The average man is by nature indolent he works
  as little as possible.
• He lacks ambition, dislikes responsibility,
  prefers to be led.
• He is inherently self-centered, indifferent to
  organizational needs.
• He is by nature resistant to change.
• He is gullible, not very bright the ready dupe
  of the charlatan and the demagogue.

13
Theory Y

• Management is responsible for organizing the
  elements of productive enterprise money,
  materials, equipment, people in the interest of
  economic ends.
• People are not by nature passive or resistant to
  organizational needs. They have become so as a
  result of experience in organizations.
• The motivation, the potential for development,
  the capacity for assuming responsibility, the
  readiness to direct behavior toward
  organizational goals are all present in people.
  Management does not put them there. It is a
  responsibility of management to make it possible
  for people to recognize and develop these human
  characteristics for themselves.
• The essential task of management is to arrange
  organizational conditions and methods of
  operation so that people can achieve their own
  goals best by directing their own efforts toward
  organizational objectives.

14
Theory X Theory Y

• Work is inherently distasteful to most people.
• Most people are not ambitious, have little desire
  for responsibility, and prefer to be directed.
• Most people have little capacity for creativity
  in solving organizational problems.
• Motivation occurs only at the physiological and
  safety levels.
• Most people must be closely controlled and often
  coerced to achieve organizational objectives.

• Work is as natural as play, if the conditions are
  favorable.
• Self-control is often indispensable in achieving
  organizational goals.
• The capacity for creativity in solving
  organizational problems is widely distributed in
  the population.
• Motivation occurs at the social, esteem, and
  self-actualization levels, as well as
  physiological and security levels.
• People can be self-directed and creative at work
  if properly motivated.

15
Personnel/Human Resource Management

• Human Resource Management did not always receive
  the attention it deserved. An example is the
  Gordon and Howells 1959 assessment of personnel
  management.
• John R. commons was the first to use the phrase
  human resource.
• E. Wight Bakke appears to be the first person to
  cast personnel in a human resources framework.

16
Personnel/Human Resource Management

• Wendell French was the first to add human
  resources to a personnel management text.
• The contributions of George Strauss, Leonard
  Sayles, and Thomas Kochan have enriched human
  resource management literature by noting it is
  complementary to industrial relations.

17
Frederick Herzberg (1923-2000)

• His research emphasized job enrichment (depth)
  rather than job enlargement
• Job context (hygiene factors) needed to be
  optimal to prevent job dissatisfaction. These
  factors (according to Herzberg) did not motivate.
• Job content (motivators) factors that did lead
  to motivation
• Money (according to Herzberg) could motivate if
  it was seen as a reward for accomplishment but
  if money was given without regard for merit, then
  it was a hygiene factor.

Frederick Herzberg
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Motivation and Hygiene Factors
HYGIENE FACTORS ENVIRONMENT
MOTIVATORS WHAT THEY DO
Achievement Recognition for Accomplishment Challen
ging Work Increased Responsibility Growth and
Development
Policies and Administration Supervision Working
Conditions Interpersonal Relations Money, Status,
Security
19
Frederick Herzberg
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Motivation and Hygiene Factors
THE JOB SURROUNDINGS AND THE HYGIENE FACTORS
SUPERVISION
WORKING CONDITIONS
RESPONSIBILITY
ACHIEVEMENT
BENEFITS
THE JOB ITSELF AND THE MOTIVATOR FACTORS
COMPANY POLICY AND ADMINIS- TRATION
INTER- PERSONAL RELATION- SHIPS
WORK ITSELF
RECOGNITION
GROWTH
ADVANCEMENT
SECURITY
STATUS
SALARY
21
Work Design

• Richard Hackman, Edward Lawler, and Greg Oldhams
  work extended Herzbergs notions by adding a
  situational (it depends) dimension
• Key job characteristics
• Depending on an individuals growth-need
  strength, these characteristics could be
  amplified to make the job more meaningful.

22
Motivation Expectancy Theory Victor Vroom

• The expectancy theory of Victor Vroom helps
  explain the choosing process among individuals in
  terms of the value (valence) of the reward and
  the expectancy of receiving the reward.

Victor Vroom
23
Expectancy Theory
24
Expectancy Theory

• Lyman Porter and Edward Lawler extended Vrooms
  work with their model of expectancy.

25
Expectancy Theory (Lyman W. Porter Edward E.
Lawler III)
Revised Diagram of the Theoretical Model
SOURCE Managerial Attitudes and Performance,
1968, Richard D. Irwin Inc.
26
Equity Theory

• Equity theory is not a new one but focuses on how
  individuals perceive their reward or pay compared
  to what others are receiving.
• Issues of social justice and distributive justice
  are involved in the theories of Stacy Adams and
  Elliot Jaques.

Elliot Jacques
27
Edwin Locke Goal Setting Theory

• Over a 35 year period, research has demonstrated
  its practical and theoretical value.
• Money is a motivator because of its
  instrumentality or as an economist would say,
  money is a medium of exchange for the things we
  want.
• Goal setting theory is rooted in the work of
  Taylor, the Gilbreths, Drucker, Cecil Mace, and
  Thomas Ryan.
• Individuals need specific rather than general
  goals.

Edwin Locke
History of Management Thought by D. Wren
28
Edwin Locke Goal Setting Theory

• The goals should be challenging but not exceed
  the persons ability.
• Performance feedback is essential.
• Goal-setting by management works best when people
  are already internally motivated by a need to
  achieve.
• Participative goal-setting works best for
  individuals with a lower need for achievement,
  and when they are familiar and at ease with
  participative management techniques.
• Goal-setting is related to self-efficacy in terms
  of how goals are chosen and how results are fed
  back.

29
LeadershipRensis Likert (1903-1981)

• Leadership is a part of general management theory
• Likert proposed four types of leadership termed
  System 1-4.

Rensis Likert
30
LeadershipRensis Likert

• The key to good leadership, according to Likert,
  is to move toward System 4 by
• The principle of supportive relationships
• The use of group decision making and supervision.
  Link pins is important here.
• Setting high performance goals
• System 5 was further developed by Jane Gibson
  Likert influenced by Mary Parker Follett.

31
Fred Fiedler Situational or Contingent
Leadership Theories

• Fiedler suggested that leadership style "depends"
  or is contingent upon certain leader orientations
  and situational characteristics
• LPC scale to measure leadership style
• Situational factors of
• Leader-member relation
• Task structure
• Position power, meaning formal authority

Fred Fielder
32
Situational Leadership
33
Situational Leadership

• Depending on the situation, high LPC or
  relationships-oriented leaders fared best in
  situations that were intermediate in
  favorableness.
• Low LPC leaders tended to perform better in
  either very favorable or very unfavorable
  situations.

34
(No Transcript)
35
Fiedler Investigations of Leadership
Group Situation
Leadership Style Correlating with Effectiveness
Task Structure
Position Power
Leader-Member Relations
Condition
1 Good Structured Strong Directive 2 Good Struct
ured Weak Directive 3 Good Unstructured Strong Di
rective 4 Good Unstructured Weak Permissive 5 Mo
derately poor Structured Strong Permissive 6 Mode
rately poor Structured Weak No data 7 Moderately
poor Unstructured Strong No relationship
found 8 Moderately poor Unstructured Weak Dir
ective
36
Leadership Theories

• Bob House and Gary Desslers path-goal theory
  focuses more on the role of the leader in
  identifying peoples needs and providing means
  for subordinates to satisfy those needs. The
  difference in this notion, contrasted with
  Fiedler, is that the same leader could be task or
  relationship oriented.

37
Leadership Theories

• Charisma re-emerges in modern theory.
• Charismatic leaders may attract followers for
  evil ends (Hitler, Bin Laden, etc.)
• Transformational leadership also reflects the
  trend toward personality traits of leaders.
• Is charisma too unstable for organizational
  continuity, as Max Weber suggests?

38
Leadership Theories

• James McGregor Burns transactional and
  transformational leadership also reflects the
  trend toward personality traits of leaders.
• George Graen and leader-member exchange theory
  has enriched our study of interpersonal
  relations.
• Leader-member exchange theory furthers
  understanding of intra-organizational
  connections.

39
Organizations and People

• Organizations as Open Systems
• Chester Barnards idea of the organization as
  including investors, suppliers, etc. was an early
  example of viewing the organization as an open
  system.
• Ludwig von Bertalanffys (1901-1972) system
  theory furthered the idea of organizations as
  open systems. He was a biologist.

40
Organizations as Open Systems - Joan Woodward

• Researched the impact of technology on
  organizational structure.
• Classified organizations by the complexity of the
  technology used.

Joan Woodward
41
Joan Woodward
42
Organizations as Open Systems

• The Aston Group also considered technology but
  arrived at different findings than Woodward.
• Paul Lawrence and Jay Lorsch's viewed the impact
  of environmental factors on structure
• Rate of change in environmental conditions
• Certainty of information available
• Time span of feedback of results from decisions.

43
Behavioral Theories of the Firm

• Emphasis on internal processes of coalitions,
  organizational learning, conflict resolution, and
  so forth was a new approach. Representatives of
  this approach are Richard Cyert James March,
  Daniel Katz Robert Kahn, and Karl Weick.
• Another emphasis was on external forces and
  factors as primary shapers of the organization.
  Jeffrey Pfeffer Gerald Salancik, Michael Hannan
  John Freeman, and John Meyer Richard Scott
  are cited as representatives.

44
The Paradigm Wars

• Paradigm, a model, example, or pattern to help
  us view organizations.
• Disagreements about the number of contemporary
  paradigms exist some indicating this as a sign
  of progress and others seeing this as creating an
  organization theory jungle.
• Miners analysis of 73 theories is important as
  he indicates no organization theory high in
  estimated scientific validity or usefulness in
  application.

45
Strategy and Structure

• Chandlers study led to the idea that structure
  follows strategy.
• Fayol saw the need for a fit between structure
  and the objectives, resources, and requirements
  of the firm.
• In the 1960s and 1970s, economic and political
  factors influenced many mergers and acquisitions
  as firms diversified outside of their industry.

46
Summary

• The influx of behavioral scientists into business
  schools brought different perspectives, research
  tools, and ideas.
• Their impact was felt on organization design and
  job design.
• Personnel management evolved into human resource
  management.
• Organizational theory evolved from a number of
  factors, internal and external.
• Better theory, it was suggested, can be built by
  examining successful practice.

47
Internet Resources

• Academy of Management Management History
  Division Websitehttp//www.aomhistory.baker.edu/d
  epartments/leadership/mgthistory/links.html
• List of Internet Resources compiled by Charles
  Booth http//www.jiscmail.ac.uk/files/MANAGEMENT-H
  ISTORY/links.htm
• Western Libraries Business Library Biographies
  of Gurus
• http//www.lib.uwo.ca/business/gurus.html
• Henry Mintzberg
• http//www.henrymintzberg.com/
• Thought Leaders Forum Mintzberg
• http//www.pfdf.org/leaderbooks/mintzberg/
• Rensis Likert http//www.accel-team.com/human_rel
  ations/hrels_04_likert.html
• David C. McClelland http//www.accel-team.com/hum
  an_relations/hrels_06_mcclelland.html
• Peter Drucker Interview http//www.cio.com/archiv
  e/091597_interview_content.html

48
Internet Resources

• Drucker - Leader to Leader Institute
  http//www.leadertoleader.org/
• Ludwig von Bertalanffy (1901--1972)
• http//www.isss.org/lumLVB.htm
• Chris Argyris http//www.accel-team.com/motivatio
  n/chris_argyris_00.html
• Douglas McGregor http//www.accel-team.com/human_
  relations/hrels_03_mcgregor.html
• Frederick Herzberg
• http//www.accel-team.com/human_relations/hrels_05
  _herzberg.html
• Victor Vroom http//www.som.yale.edu/Faculty/vhv1
  /
• Edwin A. Locke http//www.edwinlocke.com/
  http//www.rhsmith.umd.edu/mao/faculty/elocke/
• Fred Fiedler http//www.thoemmes.com/dictionaries
  /bdm_fiedler.htm
• Joan Woodward http//www.lib.uwo.ca/business/WOOD
  WARD.html

49
Internet Resources

• Joan Woodward http//www.lib.uwo.ca/business/WOOD
  WARD.html
• P.M.S. Blackett http//www.nobel.se/physics/laure
  ates/1948/blackett-bio.html
• Deming Institute
• http//www.deming.org/
• Ludwig von Bertalanffy http//www.isss.org/lumLVB
  .htm
• Norbert Wiener http//www-groups.dcs.st-and.ac.uk
  /history/Mathematicians/Wiener_Norbert.html
• What are Cybernetics? http//pespmc1.vub.ac.be/CY
  BSWHAT.html
• Death of the Slide Rule http//www.xnumber.com/xn
  umber/hp.htm
• John Vincent Atanasoff http//www.cs.iastate.edu/
  jva/jva-archive.shtml
• David Ricardo http//socserv2.socsci.mcmaster.ca/
  econ/ugcm/3ll3/ricardo/

50
Internet Resources

• Geert Hofstede
• http//spitswww.uvt.nl/web/iric/hofstede/
• Managing Oneself by Peter F. Drucker
  http//www.pfdf.org/conferences/drucker99.html
• Ansoff Matrix http//www.quickmba.com/strategy/ma
  trix/ansoff/