Management Thought: Past and Present

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Management ThoughtPast and Present
Prepared by Deborah Baker Texas Christian
University
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learning objectives

• Discuss why knowledge of the evolution of
  management theories is important to managers
• Explain the contributions of the following
• Classical schools of management thought
• Behavioral school of management thought
• Quantitative school of management thought
• Systems school of management thought
• Contingency school of management thought
• Quality school of management thought

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History and Theory of Management
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The Value of History

• People who ignore the past are destined to relive
  it.

A person unaware of mistakes made by others is
likely to repeat them.
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Time Line of Management Thought
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Classical Management Theory
2a
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Classical Management Theory
2a

• Originated during Englands Industrial Revolution
• Manufacturers began mass-producing goods in
  factories
• Textile industry was among the first
• Allowed production of standardized goods
• Depended on a constant flow of labor and
  materials
• Owners needed to plan, organize, lead, control
• Focused on finding the one best way

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Classical Management Theory
2a
ClassicalScientificSchool
Focused on the manufacturing environment
Emphasized the flow of information and how
organizations should operate
ClassicalAdministrativeSchool
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Classical Scientific School
2a
Charles Babbage

• In 1832, published On the Economy of Machinery
  and Manufactures
• Concluded that definite management principles
  existed
• with broad applications
• determined by experience
• Principle of the division of labor amongst the
  persons who perform the work

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Classical Scientific School
2a
Frederick W. Taylor

• The Father of Scientific Management
• Pursued four key goals
• Develop a science of management
• Select workers scientifically
• Develop and train workers scientifically
• Create cooperation between management and labor
• Determined the quickest ways to perform tasks

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Classical Scientific School
2a
Henry Gantt

• Invented the Gantt chart
• Moved away from authoritarian management
• Advocated a bonus system to reward workers

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Lessons from Classical Scientific Thinkers
2a
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Classical Administrative School
2a
Henri Fayol

• Believed specific management skills could be
  learned and taught
• Fayols universal management functions
• Planning
• Organizing
• Leading
• Controlling

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Classical Administrative School
2a
Mary Parker Follett

• Focused on how organizations cope with conflict
  and the importance of sharing goals
• Emphasized the need to discover and enlist
  individual and group motivation
• The first principle for individual and group
  success is the capacity for organized thinking

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Classical Administrative School
2a
Chester Barnard

• Argued that managers must gain acceptance for
  their authority
• Advocated the use of basic management principles
• Cautioned managers to issue no order that could
  not or would not be obeyed

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Behavioral Management Theory
2b
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Behavioral Management Theory
2b
Robert Owen

• The father of modern personnel management
• The quality and quantity of workers output
  influenced by conditions on and off the job

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Behavioral Management Theory
2b
Abraham Maslow

• Needs-based theory of motivation
• physiology
• security
• affiliation
• esteem
• self-actualization

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Behavioral Management Theory Results
2b
Managers discover
What employees want from work
How to enlist cooperation and commitment
How to unleash talents, energy, and creativity
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Quantitative Management Theory
2c
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Quantitative Management Theory
2c

• Mathematical approaches to management problems
• Developed during World War II
• Applied to every aspect of business

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Tools of Operations Management
2c
Inventory models
Beak-even analyses
Production scheduling
Production routing
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Systems Management Theory
2d
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The Organization as a System
2d
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Contingency Management Theory
2e
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Contingency Management Theory
2e

• Approaches depend on the variables of the
  situations
• Draws on all past theories in attempting to
  analyze and solve problems
• Is integrative
• Summarized as an it all depends device
• Tells managers to look to their experiences and
  the past and to consider many options before
  choosing
• Encourages managers to stay flexible

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Quality Management Theory
2f
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Quality Management Theory
2f
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Reengineering Approach
2f
Reengineering determines

• What a company must do
• How to do it

Managerial Challenges

• To sense the need for change
• To see change coming
• To react effectively to change

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Quality School of Management
2f

• Quality school is the most current and is
  worldwide
• Its roots are in the behavioral, quantitative,
  systems, and contingency schools of management
  theory
• People are key to commitments and performance
• What is done must be evaluated quantitatively
  and qualitatively