Historical Foundations of Management Classical

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Chapter 2

• Historical Foundations of Management Classical
  Behavioral Approaches

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Understanding the historical context of
management provides a sense of heritage and can
help managers avoid the mistakes of
others. Ricky W. Griffin Author
of Management Texas A M University
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The History of Management Theory1900 - 2002

• Scientific Management
• Bureaucratic Theory
• Administrative Theory
• Hawthorne Studies
• Contemporary Models

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Scientific Management

• Frederick Taylor
• System for placing order into production process
• Study people like machines
• Find the simplest best way
• Train the people

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Example Bethlehem Steel

• Studies the layout of the plant
• Studies activities of workers
• Specifically looks at loading unloading of steel

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Findings

• Productivity increased
• Incentive pay was a factor
• Jobs simplified
• People were trained

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Henri Fayol

• Administrative management
• Identified mgt. Functions
• Planning
• Organizing
• Leading
• Controlling

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Fayols Principles

• Scalar Chain clear unbroken line of
  communication from top to bottom
• Unity of Command orders come from one boss
• Unity of direction one person in charge of all
  activities that have the same objective
• Actually there are 14 principles. Dated but
  relevant critical for organization structures

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Administrative principles - Mary Parker Follett

• Employee ownership leads to collective
  responsibility
• Business problems must be viewed in relationship
  to other problems
• Profits should be considered in the context of
  the public good

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Bureaucratic Theory

• Max Weber modeled after German government
• 6 principles
• Jurisdictional areas
• Hierarchy levels of authority
• Official documents
• Thorough expert training
• Requires full time work
• Management follows the rules

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Implications of a bureaucracy

• Rules insure fairness
• Bad image
• Speed motivation problems

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Weber was misunderstood

• He really believed that a rational organization
  would (and should) reward competence.

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Hawthorne Studies

• Elton Mayo
• 1927 1932
• Hawthorne plant of West. Elec.
• Productivity Experiment

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Illumination Studies

• Vary light in the room
• Control vs. experiment group
• What happened to productivity?
• What does that mean?

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Bank wiring room

• Jobs wireman, solder man, inspector, foreman
• Modified incentive pay system
• What happened?
• Managements reaction?

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Hawthorne is now considered to be the beginning
of the humanistic approach or human relations.
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Maslows Hierarchy of Needs

• Physiological
• Safety
• Social
• Esteem
• Self-actualization

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2 Others You Should Know

• McGregors Theory X Theory Y
• Argyriss Theory of Adult Personality

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Systems Theory Principles

• Define company as a system
• Establish objectives
• Identify wider systems
• Create formal subsystems
• Integrate subsystems with the whole

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Contingency Theory

• Fred Fielder
• Believed in Situational Leadership
• No single approach is best
• The best is contingent upon the situation

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Implication for Management

• Management must react to all types of
  personalities, legal issues, and environmental
  changes.

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Quantitative Approaches

• Management science or operations management
• If a problem exists or a decision is to be made
  use
• Linear Programming
• Modeling
• Simulation
• Forecasting

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Now There is Theory Z

• Based on the Japanese model of management
• Long-term employment
• Career planning development
• Teamwork
• Two-way loyalty
• Consensus decision making

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Learning Organization

• An organization skilled at creating, acquiring,
  and transferring knowledge, and at modifying its
  behavior to reflect new knowledge and insights.

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Features

• Examine challenge scared cows
• Structures designed for testing
• Potentially negative messages dont shoot the
  messenger
• Exhibit new capabilities
• Is your knowledge qualitatively different
  value added
• Is knowledge accessible knowledge is power

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Any Questions?

• For next class be prepared for Exam 1 over
  chapters 1 4.