Modern Management Theory

1
Modern Management Theory

• INF387C - Managing Information Services and
  Organizations

Stephanie BeenePasquale FestaKaren HoltAnne
PetrimoulxAllison Steger
2
Introductions and Outline

• Karen Holt The historical context of Henri
  Fayols writings, his biography, publication
  activities and dates
• Anne Petrimoulx Analysis of Fayols main
  principles and explanation of his theory so that
  we may know why his thoughts influenced so many
• Allison Steger A comparative approach, looking
  at Henri Fayol and Mary Parker Follett
  complements or opposites?
• Pasquale Festa Can we apply Fayols theories to
  todays digital, postindustrial era? What unique
  contemporary problems make it difficult to adapt
  this modern theorist to todays work environment?

3
What is Modern Management?
What we call Modern Management today came into
existence with the boom of the Industrial
Revolution and several key theorists, such as
Fayol, Taylor, Mayo, Weber, and Follett, some of
which will be discussed here today. Modern
Management encompasses the Scientific school of
thought, the Behavioralists, the Human Relations
school of thought, and others which are then
grouped together based on the time period in
which they arose Turn of the last
century. Modern Management theory emerged in the
early 1900s and remains dominant in contemporary
times, despite new approaches to problems and
societal evolution over the decades. The basic
premise of Modern Management theory is still, to
this day, at the heart of human enterprise. Some
of its main effects centralization, chain of
command, hierarchy, specialization, rising
through the ranks.
4
Modern Management Facets

• Structure, Authority and Control
• Science, Technology and Skill
• Administration, Communication and Human
  Interaction

• Modern Management is best understood as a
  collection of ideas relating to all aspects of
  work organization. While each figure may have
  concentrated on just one facet of the management
  spectrum, the theory, as a whole, should be
  conceptualized as a collective set of issues.
  Main areas of investigation included

5
Aspects of Modern Management

• Industrialization and Bureaucratic Structure -
  addressed by Group 3
• Scientific Management and Optimizing Efficiency
  in Tasks - addressed by Group 4
• Administration and the Role of the Manager -
  addressed by Group 5
• Human Relations and Interactions - Addressed by
  Group 6

6
Historical Background
Modern Management Theory can be conceptualized as
a direct reaction to the technological and
economic breakthroughs of the Industrial
Revolution. As Industrialization brought about
the need to increase production, so too did it
create a need for an ample work force, one which
could be trained and managed at each step through
a chain of command. As the enterprise increased,
theories on the best way to manage such a robust
work force abounded. These theories focused on
the end goals of the organization, the tasks and
projects which must be completed for company
success.
7
Administrative ManagementKey Figures

• Henry Fayol
• Born 1841 - Istanbul
• Died 1925 - France
• Classical School ofManagement Theory
• The Father of ModernManagement

8
Henri Fayol Background

• Education
• Lycée in Lyon
• National School of Mines at Saint-Etienne
• Career
• 1860 - 1918 Comambault
• 1860 - 1865 Engineer at the Commentry
  pits
• 1866 - 1872 Manager of the Commentry
  pits
• 1872 - 1888 Manager of a group of coal
  mines
• 1888 - 1918 Managing Director

9
Development of Administrative Management Theory

• 1900 - First spoke publicly on administration and
• management at the closing session of the
  International
• Mining and Metallurgical Congress in Paris.
• 1908 - Proposed general management principles in
  a
• presentation at the Saint-Etienne School of
  Mines.
• 1916 - Published General and Administrative
  Management
• (Administration, industrielle et générale).
• 1917 - Formed the Center for Administrative
  Studies.

10
Fayols Approach

• 5 Principles/Functions
• Prevoyance
• To organize
• To command
• To coordinate
• To control

• 14 points
• Division of Work
• Authority
• Unity of Command
• Unity of Direction
• Subordination of Individual Interest
• Remuneration
• Centralization
• Scalar Chain
• Order
• Equity
• Stability of Tenure Personnel
• Initiative
• Esprit de Corps

11
Fayols Theory

• Administrative Management
• The technical and commercial functions of a
  business are clearly defined, but the same cannot
  be said of the administrative function.
• Wanted to define administration bring it to
  light as its own professional function
• Administration is the most predominant function
  within a business
• In a physiological analogy, administration is the
  brain
• One best way
• From scientific management
• As clear as laws of nature
• Authoritarian
• But all have some administrative duties
  proportionate to level in top-down hierarchy
• Task-oriented, not people-oriented

12
The Shape of Fayols Hierarchy
Image 1 Graphical representation of a Fayol
business structure
13
Administrative ManagementKey Figures
Mary Parker Follett Born 1868 -
Massachusetts Died 1933 Political Theorist and
Social Worker Pioneered CommunityCenters
14
Folletts Theory

• Introduced Community Focused Concepts
  Conflict Resolution The Task of Leadership
• Emphasized Power with versus Power over
• Stressed the need for reciprocal relationships
  and sharing power in Management.
• Importance of community

15
Folletts Writings

• The New State (1918)
• Community is a Process (1919)
• Creative Experience (1924)
• The Teacher-Student Relation (1928)

16
Follett Before her time?
I am sometimes told that mine is a counsel of
perfection only to be realized AD the millennium,
but we can not even take the first step until we
have chosen our path.
Folletts ideas, while recognized and heard in
her own time, have only just recently started to
gain more attention from Management Theorists and
Academia at large.
17
Modern Management in a Post-Modern World
As Modern Management, and more specifically
Administrative Management, was the bi-product of
socioeconomic changes brought about by the
Industrial Revolution, does it hold that
Management Theory will again change with the
advent of the Digital and Telecommunication Era?
18
A Comparison
19
Questions to Ponder

• Is there a way to be comfortable with the
  contradiction between Fayol and Follett and, if
  so, what can we learn from each in terms of
  Management Theory?
• Is one theory better than another or is it a
  matter of context in terms of choosing ones
  approach to Management?
• Can you think of any examples of organizations
  based on the Fayol model? How about the Follett
  model?

20
In Closing
Modern and Administrative Management has been, to
this day, the dominant methodology for organizing
and controlling works groups. However, as the
model put forward by Fayol took precedent for so
long and only recently have the diverging
theories of Follett come into the debate, is it
safe to assume the Father of Modern Management
is here to stay, or has society changed in ways
that require us to reevaluate the manner in which
we interact with one another when joining
together in a work enterprise? As Group 6 will
focus on how Human Interaction enters into the
equation, think about the consequences such an
investigation will have on the Fayol Model and
try to imagine, based upon the recent emergence
of new technologies, just how the future of
Management may transpire.