1. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–1 CHAPTER 2 PIONEERING IDEAS IN MANAGEMENT

2. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–2 LECTURE OUTLINE Early management ideas Classical theorists Behavioural theorists Quantitative approach Contemporary ideas Innovation & management theory

3. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–3 EARLY MANAGEMENT IDEAS Robert Owen (1771–1858) Identified the importance of working and social conditions for employees. Charles Babbage (1792–1871) Ideas on work specialisation, production efficiency, incentive and profit-sharing plans. Henry R. Towne (1844–1924) Called for a ‘management science’ that would establish ‘principles’ of management.

4. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–4 EARLY MANAGEMENT IDEAS Assessing the early contributions: Uncoordinated efforts. Contributions tended to relate to specific problems. Did not see ‘management’ as a separate field or skill (until Towne).

5. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–5 CLASSICAL THEORISTS ‘This viewpoint emphasises efficiently managing work and organisations. It comprises three different management approaches: scientific, administrative and bureaucratic.’

6. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–6 CLASSICAL THEORISTS Scientific management F. W. Taylor, F. & L. Gilbreth, H. Gantt Bureaucratic management M. Weber Administrative management H. Fayol, C. Barnard

7. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–7 SCIENTIFIC MANAGEMENT ‘Scientific management is an approach in classical management theory focusing on the scientific study of work methods to improve worker efficiency.’

8. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–8 SCIENTIFIC MANAGEMENT Frederick W. Taylor Four principles of ‘scientific management’: Select and train the best. Determine the most efficient work methods. Co-operate with workers to ensure best method is used. Divide work/responsibility between workers and managers.

9. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–9 SCIENTIFIC MANAGEMENT Frank & Lillian Gilbreth – Time and motion studies – Human implications of Scientific Management Henry Gantt – Pay incentives – Gantt chart

10. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–10 BUREAUCRATIC MANAGEMENT An Approach which ‘saw the need of an organisation to operate rationally rather than relying on the arbitrary whims of owners and managers.’

11. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–11 BUREAUCRATIC MANAGEMENT Weber’s Ideal Bureaucracy Specialisation of labour Formal rules & procedures Impersonality Well-defined hierarchy Advancement on merit

12. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–12 BUREAUCRATIC MANAGEMENT Max Weber Formal rules & procedures Specialisation of labour Hierarchy of positions Advancement on merit

13. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–13 ADMINISTRATIVE MANAGEMENT ‘Approach focused on principles for managers to co-ordinate organisations’ internal activities.’

14. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–14 ADMINISTRATIVE MANAGEMENT Henri Fayol’s ‘Principles of Management’ Division of work Authority Discipline Unity of command/direction Primacy of general interest Remuneration Esprit de corps

15. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–15 ADMINISTRATIVE MANAGEMENT Henri Fayol’s ‘Principles of Management’ (cont.) Centralisation Scalar chain Order Equity Low turnover Initiative

16. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–16 ADMINISTRATIVE MANAGEMENT Henri Fayol Co-ordinating Commanding Controlling Planning Organising

17. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–17 BEHAVIOURAL THEORISTS Perspective on management emphasising ‘the need to understand the effect of different factors on human behaviour in organisations.’

18. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–18 BEHAVIOURAL THEORISTS Early theorists: Hugo Munsterberg Creating optimal psychological conditions, behaviour shaping Mary Parker Follett Importance of group functioning Hawthorne studies Importance of supervisory style

19. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–19 BEHAVIOURAL THEORISTS Human relations movement Abraham Maslow Hierarchy of needs Douglas McGregor Theory X & Y

20. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–20 MASLOW’S HIERARCHY OF NEEDS Physiological Safety Social Esteem Self-actualisation

21. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–21 McGREGOR’S THEORY X & Y THEORY X Work is natural Capable of self-direction Seek responsibility Can make good decisions Work avoiding Need to control Avoid responsibility Workers seek security THEORY Y

22. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–22 QUANTITATIVE MANAGEMENT VIEWPOINT ‘Focused on mathematics, statistics and information aids supporting managerial decision making and organisational effectiveness.’

23. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–23 QUANTITATIVE MANAGEMENT VIEWPOINT Management science ‘Approach aimed at increasing decision effectiveness through use of sophisticated mathematical models and statistical methods.’ Operations management ‘Function or field of expertise primarily responsible for managing production and delivery of an organisation’s products and services.’ Management information systems ‘Field of management focused on designing and implementing computer-based information systems for use by management.’

24. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–24 CONTEMPORARY VIEWPOINTS Systems theory ‘Approach based on the idea that organisations can be visualised as systems.’ Contingency theory ‘Viewpoint arguing that appropriate managerial action depends on the particular parameters of the situation.’

25. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–25 CONTEMPORARY VIEWPOINTS Theory Z ‘Concept combining positive aspects of American and Japanese management into a modified approach aimed at increasing managerial effectiveness while remaining compatible with the norms and values of American society and culture.’

26. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–26 CONTEMPORARY VIEWPOINTS Total Quality Management (TQM) ‘Approach highlighting collective responsibility for product and service quality, and encouraging individuals to work together to improve quality.’

27. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–27 PROMOTING INNOVATION Each management viewpoint provides a contribution to managing innovation: Classical Behavioural Quantitative Contemporary

28. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–28 PROMOTING INNOVATION CASE: ‘Web on menu at McDonald’s’ The McDonald’s restaurant in Dunedin, New Zealand, took the innovative step of introducing a ‘Cyber Café’ into their restaurant. What type of management approach best describes their innovative action?

29. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–29 LECTURE SUMMARY Early management ideas Generation of ideas leading to identification of management as a significant field of inquiry. Classical theorists Emphasised finding ways to more efficiently manage work and organisations.

30. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–30 LECTURE SUMMARY Behavioural theorists Emphasised the importance of trying to understand factors affecting human behaviour in organisations. Quantitative approach Focuses on mathematics, statistics and information aids supporting managerial decision making and effectiveness.

31. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–31 LECTURE SUMMARY Contemporary ideas Views of organisations as systems, importance of contingency factors & amalgamating Japanese & American management practices.

32. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 2–32 LECTURE SUMMARY Innovation & management theory Each approach provides insights, knowledge & practice regarding the management of innovation in organisations.