Management Theories (organizations as machines)

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Management Theories (organizations as machines)
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Pre-Industrial Revolution Organizations
functioned like empires Ben Franklin-
independence, hard work, planning, organization,
control Frederick the Great organized armies on
principles of mechanics
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Adam Smith (1776) Wealth of Nations division
of labor Karl Marx 1u32 division of
labor Blueprint for organizational
form Organization Chart
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Civil War - conflict of social values
hierarchy of race vs. hierarchy of social
class Industrial Revolution rise of the modern
factory Concepts of division of labor, hierarchy,
scientific methods solidified
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Scientific Management Frederick
Taylor Management as a science, clearly defined
laws, rules, principles Time and motion studies
improved organizational efficiency Division of
labor, chain of command, communication limited to
orders, instructions Management-oriented,
production centered view of org. comms.
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Managers think workers work Efforts to improve
efficiency (sometimes backfired) Henri Fayol
(1949) Theory of administrative science 5
elements of classical management planning,
organizing, goal setting, coordinating,
controlling (evaluating)
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• Fayol advocated centralized decision making,
  respect for authority
• Principles of management
• Division of work
• Discipline
• Unity of command
• Subordination of individual to general interest

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• Fair remuneration for effort
• Centralization
• Hierarchy
• Equitable treatment of employees
• Esprit de corps
• Stability of tenure of employees
• Initiative on part of managers

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• Bureaucracy (Max Weber)
• Fixed division of labor
• Hierarchy of offices
• General rules for performance
• Separation of personal/work life
• Selection of personnel based on technical
  qualifications
• Equal treatment
• Employment as a career

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Influence of traditional management theories on
businesses today Management authority Rational
behavior model Money as motivator Hierarchical
thinking Machinelike, prescriptive management of
behavior
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Criticism Rigid, unadaptive, structures red
tape inefficiencies Failure to understand
social/ psychological dynamics of organizational
behavior
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Transitional Chester Barnard Attempted to
provide comprehensive theory of cooperative
behavior in formal organizations Individual as
basic strategic factor in organizations Compliance
and zone of indifference
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Barnard first function of the executive is to
establish and maintain a system of
communication Organizations made up of individual
humans with individual motivations Larger
organizations contain smaller sub-grouping
consider their goals Efficiency vs. effectiveness
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• Authority in organization only exists if people
  willing to accept it
• Principles for ensuring effectiveness of
  communications
• Everyone should know channels
• Everyone should have access to a formal channel
  of communications
• Lines of communic s/b as short as possible

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Beginnings of Human Relations movement (reaction
against traditional management theories) 1927-1932
Hawthorne Plant of Western Electric in Illinois
Elton Mayo and others studying relationship
between lighting conditions and worker
productivity
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Found that increased attention paid to workers
increased productivity First glimpse of workers
as complex beings, sensitive to group norms,
possessing multiple values, motives,
emotions Does positive employee morale foster
productivity? Little basis for this theory
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• Conclusions of Mayos studies
• Work is a group activity
• Social world of adults primarily patterned about
  work activity
• Need for recognition, security, sense of
  belonging is more important in determining worker
  morale than physical conditions
• Complaints are symptoms of disturbance of status
  position

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Worker as person whose attitudes, effectiveness
conditioned by social demands from inside/outside
plant Informal groups exercise strong social
controls over individual workers Group
collaboration m/b planned, developed
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Human Relations movement became concerned with
discovering how to harness motivation and
commitment of individuals to corporate goals
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Importance of Mayos work Importance of
recognizing human emotions in managing
people Demonstrated that success in leadership
depends on acceptance of that leadership Showed
that relationship of workers to management was
fundamental problem of industry
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