Chapter

Chapter 22 Outline
Outline
Scientific Management Theory
Job Specialization and the Division of Labor
F. W. Taylor and Scientific Management
The Gilbreths

Administrative Management Theory

The Theory of Bureaucracy
Fayols Principles of Management

Behavioral Management Theory

The Work of Mary Parker Follett
The Hawthorne Studies and Human Relations

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21

Chapter
Chapter Outline
Outline (contd)
(contd)
Behavioral Management Theory (contd)
Theory X and Theory Y

Management Science Theory

Organizational Environment Theory
The Open Systems View
Contingency Theory

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22

The
The Evolution
Evolution of
of Management
Management Theory
Theory

Source:

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Figure 2.1

23

Scientific
Scientific Management
Management Theory
Theory
Evolution of Modern Management
Began in the industrial revolution in the late
19th century as:
Managers of organizations began seeking ways to
better satisfy customer needs.
Large-scale mechanized manufacturing began to
supplanting small-scale craft production in the ways
in which goods were produced.
Social problems developed in the large groups of
workers employed under the factory system.
Managers began to focus on increasing the efficiency
of the worker-task mix.

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24

F.W.
F.W. Taylor
Taylor and
and Scientific
Scientific Management
Management
Scientific Management
The systematic study of the relationships
between people and tasks for the purpose of
redesigning the work process for higher
efficiency.
Defined by Frederick Taylor in the late 1800s to
replace informal rule of thumb knowledge.
Taylor sought to reduce the time a worker spent on
each task by optimizing the way the task was done.
Taylor: increase specialization & division of labor to
make production process more efficient

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25

F.W.
F.W. Taylor
Taylor and
and Scientific
Scientific Management
Management
Scientific Management (Taylor) Principles
Gather data about ways workers perform their
tasks; experiment with different ways to
improve performance
Codify methods into written rules and standards
Select people who have skills/abilities needed
in the task and train them on the particular task
Establish acceptable level of performance and
reward for performance above that level
Organizations chose to select some, rather than all,
of these principles.

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Henry
Henry Ford:
Ford: AA matter
matter of
of ethics
ethics
Reduced work day and
more pay
along with
Extreme control

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Frank
Frank and
and Lillian
Lillian Gilbreth
Gilbreth
Refined Taylors work and made many
improvements to the methodologies of time
and motion studies.
Time and motion studies
Break up each job action into its component actions.
Find better ways to perform the action.
Reorganize each job action to be more efficient.

Also studied worker-related fatigue problems

caused by lighting, heating, and the design of
tools and machines.
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Scientific
Scientific Management
Management Principles:
Principles:
the
the result
result

Jobs were more repetitive, boring, monotonous

Workers increasingly dissatisfied
Workers tried to hide the potential efficiency of
the work environment

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Administrative
Administrative Management
Management Theory
Theory
Administrative Management
The study of how to create an organizational
structure that leads to high efficiency and
effectiveness.

Max Weber
Developed the concept of bureaucracy as a
formal system of organization and
administration designed to ensure efficiency
and effectiveness.

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210

Webers
Webers
Principles
Principlesof
of
Bureaucracy
Bureaucracy

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Figure 2.2

211

Bureaucracy
Bureaucracy
Strengths
Claimed to improve organizational performance
Easier for managers to organize and control
Fair and equitable raises and promotion
Improves feeling of security
Reduces stress
Encourage ethical behavior

Weaknesses
What if poorly managed?
Decisions and changes are slow
Inflexibility

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212

Fayols
Fayols Principles
Principles of
of Management
Management
Division of Labor: allows for job specialization.
Fayol noted jobs can have too much
specialization leading to poor quality and
worker dissatisfaction.

Authority and Responsibility

Fayol included both formal and informal
authority resulting from special expertise.

Unity of Command
Employees should have only one boss.

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213

Fayols
Fayols Principles
Principles of
of Management
Management
(contd)
(contd)
Line of Authority
A clear chain of command from top to bottom
of the firm.

Centralization
The degree to which authority rests at the
top of the organization.

Unity of Direction
Employee should receive orders and report to
only one supervisor.

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214

Fayols
Fayols Principles
Principles of
of Management
Management
(contd)
(contd)
Equity
The provision of justice and the fair and
impartial treatment of all employees.

Order
The arrangement of employees where they
will be of the most value to the organization
and to provide career opportunities.

Initiative
The fostering of creativity and innovation by
encouraging employees to act on their own.
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215

Fayols
Fayols Principles
Principles of
of Management
Management
(contd)
(contd)
Discipline
Obedient, applied, respectful employees are
necessary for the organization to function.

Remuneration of Personnel
An equitable uniform payment system that
motivates contributes to organizational
success.

Stability of Tenure of Personnel

Long-term employment is important for the
development of skills that improve the
organizations performance.
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216

Fayols
Fayols Principles
Principles of
of Management
Management
(contd)
(contd)
Subordination of Individual Interest to the
Common Interest
The interest of the organization takes
precedence over that of the individual
employee.

Esprit de corps
Comradeship, shared enthusiasm foster
devotion to the common cause
(organization).

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217

Why
Why do
do companies
companies perform
perform better
better than
than
their
their rivals?
rivals?
(62
(62 companies)
companies)

Emphasize management autonomy and entrepreneurship

Encourage risk taking and initiative
Top managers closely involved in daily operations
Unity of command and unity of direction
Decisions are not made in an isolated tower
Decentralized authority
Organizational goals guide everyones actions
Division of work and authority given with individual
interests towards the common interest

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218

Behavioral
Behavioral Management
Management Theory
Theory
Behavioral Management
The study of how managers should behave to
motivate employees and encourage them to
perform at high levels and be committed to
the achievement of organizational goals.
Focuses on the way a manager should
personally manage to motivate employees.

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219

Behavioral
Behavioral Management
Management
Mary Parker Follett

(1868-1933)

An influential leader in early managerial theory

Concerned that Taylor was ignoring the human
side of the organization and the number of
ways employees can help managers
Held a horizontal view of power and authority
Authority should go with knowledge
Managers should be facilitators rather than monitors or
supervisors
Root of the work in self-managed teams, empowerment,
and cross-functioning

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220

The
The Hawthorne
Hawthorne Studies
Studies
Studies of how characteristics of the work
setting affected worker fatigue and
performance at the Hawthorne Works of the
Western Electric Company from 1924-1932.
Worker productivity was measured at various
levels of light illumination.
Productivity increased regardless of whether
the light levels were raised or lowered.
Why? the presence of the researchers
Implication human relations movement

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221

Human
Human Relations
Relations Movement
Movement
Sparked by the Hawthorne Studies
Workers attitude towards their managers affect their
work performance

Train supervisors to elicit cooperative behavior from

subordinates so productivity will increase
Workers making telephone switching equipment
The norm of output vs. ratebusters vs. chiselers
Workers influence can be as great as the managers

Managers must understand the informal organization

The beginning of Organizational Behavior

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222

Theory
Theory XX versus
versus Theory
Theory YY
(Douglas
(Douglas McGregor)
McGregor)

Source:

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Figure 2.3

223

Management
Management Science
Science Theory
Theory
An approach to management that uses rigorous
quantitative techniques to maximize the use of
organizational resources.
Quantitative managementutilizes linear
programming, modeling, simulation systems.
Operations managementtechniques to
analyze all aspects of the production system.
Total Quality Management (TQM)focuses
on improving quality throughout an organization.
Management Information Systems (MIS)
manage information throughout the organization
so that it gets to the right people at the right
time.

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224

Organizational
Organizational Environment
Environment Theory
Theory
Organizational Environment
The set of forces and conditions that operate
beyond an organizations boundaries but
affect a managers ability to acquire and
utilize resources.

What forces are presently in the

environment that affect the managers ability
to acquire and utilize resources?

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225

The
The Open-Systems
Open-Systems View
View
(Katz,
(Katz,Kahn,
Kahn,Thompson,
Thompson,1960s)
1960s)

Organization takes resources from the external

environment and transforms them into goods and
services that are sent back out to environment
Organization interacts with environment in order to
survive
Not a closed system, which is:
self contained
likely to experience entropy

The whole is greater than the sum of its parts

Synergy: gains acquired when entities coordinate
their efforts
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226

Contingency
Contingency Theory
Theory

(Burns
(Burns&&Stalker,
Stalker,Britain,
Britain,1960s)
1960s)

No one best way to organize because the

external environment (ability to gain
resources) influences the organizational
structures and controls
A quickly changing environment works against
this why?
Mechanic vs. Organic structure

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Summary
Summary of
of Theories
Theories
Scientific Management Theory
Job specialization and division of labor
Taylor (Scientific Management)
Gilbreths

Administrative Management Theory

Theory of Bureaucracy
Fayol (14 principles of management)
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228

Summary
Summary of
of Theories
Theories
(continued)
(continued)

Behavioral Management Theory

Follett
Hawthorne Studies and Human Relations
McGregor (Theory X & Theory Y)

Management Science Theory

Quantitative management

Organizational Environment Theory

Open-systems View
Contingency Theory
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