Title: Historical Foundations of Management Classical
1Chapter 2
- Historical Foundations of Management Classical
Behavioral Approaches
2Understanding the historical context of
management provides a sense of heritage and can
help managers avoid the mistakes of
others. Ricky W. Griffin Author
of Management Texas A M University
3The History of Management Theory1900 - 2002
- Scientific Management
- Bureaucratic Theory
- Administrative Theory
- Hawthorne Studies
- Contemporary Models
4Scientific Management
- Frederick Taylor
- System for placing order into production process
- Study people like machines
- Find the simplest best way
- Train the people
5Example Bethlehem Steel
- Studies the layout of the plant
- Studies activities of workers
- Specifically looks at loading unloading of steel
6Findings
- Productivity increased
- Incentive pay was a factor
- Jobs simplified
- People were trained
7Henri Fayol
- Administrative management
- Identified mgt. Functions
- Planning
- Organizing
- Leading
- Controlling
-
8Fayols Principles
- Scalar Chain clear unbroken line of
communication from top to bottom - Unity of Command orders come from one boss
- Unity of direction one person in charge of all
activities that have the same objective - Actually there are 14 principles. Dated but
relevant critical for organization structures
9Administrative principles - Mary Parker Follett
- Employee ownership leads to collective
responsibility - Business problems must be viewed in relationship
to other problems - Profits should be considered in the context of
the public good
10Bureaucratic Theory
- Max Weber modeled after German government
- 6 principles
- Jurisdictional areas
- Hierarchy levels of authority
- Official documents
- Thorough expert training
- Requires full time work
- Management follows the rules
11Implications of a bureaucracy
- Rules insure fairness
- Bad image
- Speed motivation problems
12Weber was misunderstood
- He really believed that a rational organization
would (and should) reward competence.
13Hawthorne Studies
- Elton Mayo
- 1927 1932
- Hawthorne plant of West. Elec.
- Productivity Experiment
14Illumination Studies
- Vary light in the room
- Control vs. experiment group
- What happened to productivity?
- What does that mean?
15Bank wiring room
- Jobs wireman, solder man, inspector, foreman
- Modified incentive pay system
- What happened?
- Managements reaction?
16Hawthorne is now considered to be the beginning
of the humanistic approach or human relations.
17Maslows Hierarchy of Needs
- Physiological
- Safety
- Social
- Esteem
- Self-actualization
182 Others You Should Know
- McGregors Theory X Theory Y
- Argyriss Theory of Adult Personality
19Systems Theory Principles
- Define company as a system
- Establish objectives
- Identify wider systems
- Create formal subsystems
- Integrate subsystems with the whole
20Contingency Theory
- Fred Fielder
- Believed in Situational Leadership
- No single approach is best
- The best is contingent upon the situation
21Implication for Management
- Management must react to all types of
personalities, legal issues, and environmental
changes.
22Quantitative Approaches
- Management science or operations management
- If a problem exists or a decision is to be made
use - Linear Programming
- Modeling
- Simulation
- Forecasting
23Now There is Theory Z
- Based on the Japanese model of management
- Long-term employment
- Career planning development
- Teamwork
- Two-way loyalty
- Consensus decision making
24Learning Organization
- An organization skilled at creating, acquiring,
and transferring knowledge, and at modifying its
behavior to reflect new knowledge and insights.
25Features
- Examine challenge scared cows
- Structures designed for testing
- Potentially negative messages dont shoot the
messenger - Exhibit new capabilities
- Is your knowledge qualitatively different
value added - Is knowledge accessible knowledge is power
26Any Questions?
- For next class be prepared for Exam 1 over
chapters 1 4.