Job Specialization Adam Smith (1723-1790) –Realized that job specialization resulted in much higher efficiency and productivity Breaking down the total job allowed for the division of labor in which workers became very skilled at their specific tasks.
Scientific Management Characterized by a worker-task relationship, with efficiency as its primary goal Associated with the industrial era in Europe and the U.S. Defined by Fredrick W. Taylor (1856-1915)
Taylor’s Principles: 1.Study the way workers perform tasks and experiment with ways of improving them 2.Determine rules and SOPs that govern task performance 3.Select and train (according to the rules) the worker for the task 4.Establish a performance standard, and develop a pay system that rewards above-standard performance
How were these applied? What were some side-effects? Managers didn’t always reward increased output Jobs became dull or stressful Increased turnover Workers restricted output (sandbagging)
Followers of Taylor Frank (1868-1924) and Lillian (1878-1972) Gilbreth Time-and-motion study Also studied job fatigue
Administrative Management Theory Concerned with how to design the organizational structure for high efficiency and effectiveness
Max Weber (1864-1920): Principles of Bureaucracy 1.Manager’s formal authority derives from his position 2.People should occupy positions because of performance, not social standing 3.Each person’s formal authority and responsibilities should be clearly specified 4.Positions should be arranged hierarchically 5.Managers should create a well- defined system of rules, SOPs, and norms
Henri Fayol (1841-1925) Principles of Management Division of labor Authority and responsibility Unity of command Line of authority Centralization Unity of direction Equity Order Initiative Discipline Remuneration of personnel Stability of tenure of personnel Subordination of personal interest Esprit de corps
Behavioral Management Theory Mary Parker Follett (1868-1933) “Authority should go with knowledge” First advocate of empowerment, self-managed teams
Behavioral Management Theory Hawthorne studies Human relations movement The workings of the informal organization (norms) Organizational behavior
Theory X and Theory Y Douglas McGregor (1906-1964) Theory X/Theory Y Believed that one or the other assumption tended to drive managerial behavior in a particular organization What are examples?
Management Science Theory Generally, a quantitative approach Quantitative management (modeling, simulation, queuing theory) Operations management (production) Total quality management (TQM) Management Information Systems (MIS)
Organizational Environment Theory (1960s) : Open Systems View
Closed System System that operates as though it is self-contained Likely to experience entropy and disintegrate
Contingency Theory The idea that the organizational structures and control systems are contingent on characteristics of the external environment
Contingency Theory Mechanistic structures: Central authority Clear tasks and rules Close supervision Organic structures: Decentralized More authority to middle and line managers More cross-functioning and empowerment