1. History of Management Thought

2. Management Thought Has Been Grouped Into Three Approaches:
Classical
Behavioral
Management Science/Quantitative
Modern Approaches

3. Classical Approach
Late 18th century effort to understand work and how workers can be more productive and efficient
Two perspectives:
Scientific management
Classical organization theory/General Administrative Theory

4. Scientific Management
Focus is on the management of work
Focus on the physical environment
Concentrate on the problems of lower-level managers dealing with the everyday problems of the work force
Study work processes to make them more efficient in order to better use labor at that time—unskilled, no formal education, largely immigrant
Primary contributors—engineers

5. TAYLOR’S FOUR PRINCIPLES OF MANAGEMENT

6. Scientific Management—Contributors
Frederick W. Taylor, “father of scientific management,” developed 4 principles based on his beliefs that the interests of both management & labor can be combined:
1 best way to do a job
Optimum work pace
Train people to do a job
Reward using incentive pay system
Frank & Lillian Gilbreth, “time & motion studies,” break down job motions into elementary parts and find better ways to perform each part. I7 hand motions called as therbligs.

7. Classical Organization Theory
Focus is on the management of organizations
Concentrate on the problems top-level managers face in managing the organization as a whole
Two major purposes:
Develop basic principles to create, and maintain large organizations
Identify basic functions of managing organizations
Primary contributors—practicing executives

8. Classical Organization Theory -Contributors
Max Weber, “theory of bureaucracy,” thought an organization should be based on 5 principles:
Formal authority of managers
Jobs based on qualifications
Authority and responsibility clearly defined
Hierarchical positions
Rules and SOPs control organization
Modern ideas based on Weber: TQM, process specialization, competency testing

9. Classical Organization Theory—Contributors (cont)
Henri Fayol developed 14 principles essential to effective management:
1. Division of labor
2. Management authority and responsibility
3. Unity of command
Line of Authority
Centralization
6. Unity of direction
7. Equity
8. Order
9. Initiative
10. Discipline
11. Remuneration
12. Tenure Stability
13. Common Interest
14. Esprit De Corps

10. Classical Approach—Pros & Cons
Limitations
Too simplistic for today’s complex organizations
More appropriate for stable & predictable environments
Shallow understanding of human nature and how people interact
Contributions
Identify management as an important element of organized society
Basis for training new managers
Acknowledge importance of managers
Many current techniques are direct outgrowths

11. Behavioral Approach
Developed because (a) classical approach didn’t achieve total efficiency and workplace harmony and (b) managers still encountered problems because workers didn’t always behave as they were supposed to
Two branches:
Human Relations Approach
Behavioral Sciences Approach

12. Human Relations Approach
Focus on the social environment of a job
Refers to the manner in which managers interact with subordinates
Managers must know why subordinates behave as they do
Importance of individuals in success or failure of an organization

13. Human Relations Approach—(cont.)
Management should recognize employees’ need for recognition and social acceptance
Management should look on work group as a positive force
Managers should be trained in human relations skills as well as in technical skills

14. Behavioral Sciences Approach
Focus is on the nature of work itself
Individuals are motivated to work for reasons other than money and social relationships— recognition, societal contributions, personal fulfillment.

15. Behavioral Sciences Approach—Contributors
Mary Parker Follett viewed organizations from the perspective of individual or group behavior, i.e., people-centered view. Managers’ job is to harmonize and coordinate group efforts
Hawthorne Studies varied lighting levels at the Western Electric Company; productivity increased regardless of the illumination level
Elton Mayo replicated Hawthorne Studies and the results; workers enjoyed the attention and produced the results they believed researchers wanted

16. Behavioral Sciences Approach—Pros & Cons
Limitations
Doesn’t always help managers in problem situations
Difficulty in translating technical findings into useful tools and policies
Variety of viewpoints complicates the problem
Contributions
Contribute to people—managing aspect of management
Use of teams
Focus on training & development
Use of reward & incentive systems

17. Management Science/Quantitative Approach Management
Developed to solve complex military problems in World War II, American business firms began to use a similar approach to deal with operating issues
Formerly called operations research, this approach uses mathematics and statistics to aid in resolving production and operations problems
Solve technical rather than human behavior problems; analyze the problem and often develop a mathematical representation of it
Provide management with quantitative bases for decisions

18. Management Science Approach—Pros & Cons
Contributions
Techniques that help with production management—scheduling, budgeting, inventory
Techniques that help with operations management— development programs, aircraft scheduling
Limitations
Not a substitute for management
Doesn’t deal with the people aspect of a organization

19. Integrating the 3 Approaches— Classical, Behavioral, and Management Science
Systems Approach
Contingency Approach

20. Systems Approach
Views an organization as interrelated parts with a unified purpose: surviving and ideally thriving in its environment
Management should focus on efficiency and effectiveness in each part of the organization
Elements of an organization are interconnected
Organization is linked to its environment
Open Systems vs. Closed Systems

21. Contingency Approach
Helps in better understanding the interactions of an organization’s components. Views an organization as interrelated parts with a unified purpose: surviving and ideally thriving in its environment
Workplace situations are too complex to analyze and control; thus, instead of focusing on trying to find the one best way to arrange workplace variables, managers focus on adapting their behavior to match the demands of the situation