The Evolution of Management Thought

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Chapter 2

• The Evolution of Management Thought

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The Evolution of Management Theory
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Job Specialization and the Division of Labor

• Adam Smith 2 different ways to manufacture pins
• Craft-style each worker did all steps
• Production each worker specialized in one step
• Job Specialization
• Different workers specialize in specific tasks
  over time

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F.W. Taylor and Scientific Management

• Systematic study of the relationships between
  people and tasks to redesign the work process to
  increase efficiency
• Consists of 4 principles
• Study tasks to identify improvements
• Create written rules and SOPs
• Select and train workers carefully
• Establish fair performance standards and reward
  accordingly

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Problems with Scientific Management

• Managers frequently implemented only the
  increased output side of Taylors plan
• Workers did not share in the increased output
• Specialized jobs became very boring, dull
• Workers ended up distrusting the Scientific
  Management method
• Workers could purposely under-perform
• Management responded with increased use of
  machines and conveyors belts

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The Gilbreths

1. Break up and analyze each action of a task into
   its component actions
2. Find better ways to perform each component action
3. Reorganize the component actions to be more
   efficient, at less cost in time and effort

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Administrative Management Theory

• Study of how organizational structure affects
  efficiency and effectiveness
• Max Weber
• Developed the principles of bureaucracy as a
  formal system designed to ensure efficiency and
  effectiveness

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Webers Principles of Bureaucracy
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Fayols Principles of Management

• Division of Labor
• Jobs can have too much specialization leading to
  poor quality and worker dissatisfaction
• Authority and Responsibility
• Both formal and informal authority
• Unity of Command
• Employees should have only one boss
• Line of Authority
• A clear chain of command from top to bottom

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Fayols Principles of Management

• Centralization
• The degree to which authority rests at the top
• Unity of Direction
• A single plan of action to guide the organization
• Equity
• The justice and fairness in the treatment of all
  employees
• Order
• Arranging employees to be of the most value and
  to provide career opportunities

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Fayols Principles of Management

• Initiative
• Fostering creativity and innovation by
  encouraging employees to act on their own
• 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

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Fayols Principles of Management

• Stability of Tenure of Personnel
• Long-term employment develops skills that improve
  organizational performance
• Subordination of Individual Interest
• The interest of the organization takes precedence
  
• Esprit de corps
• Foster comradeship, shared enthusiasm, and
  devotion to the common cause

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Behavioral Management Theory

• The study of how managers should behave to
• Motivate employees
• Encourage them to perform at high levels
• Be committed to the achievement of organizational
  goals
• Mary Parker Follett
• Concerned that Taylor ignored the human side of
  the organization

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The Hawthorne Studies

• How work setting characteristics affect fatigue
  and performance
• Regardless of whether the light levels were
  raised or lowered, worker productivity increased
• Hawthorne effect workers attitudes toward
  their managers affect performance
• Implications behavior of managers and workers
  is as important in explaining the level of
  performance as the technical aspects of the task

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Douglas McGregors Theory X and Y
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Management Science Theory

• Utilizes quantitative techniques to help managers
  maximize the use of organizational resources
• Quantitative management
• Operations management
• Total Quality Management (TQM)
• Management Information Systems (MIS)

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Organizational Environment Theory

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

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The Open-Systems View
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Contingency Theory