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History of Management

Management thought developed in the


mid-late 1800s
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 1800s
Bureaucratic, Scientific, Administrative
Behavioral- 1930s, 40s, 50s
Systems-50s, 60s, 70s
Contingency-60s, 70s, 80s
Quality-80s, 90s
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
cant 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
Demmings 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 1980s
Demmings 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

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