1. Management Thought: Past and Present
MultiMedia by Stephen M. Peters
2002 South-Western

2. The Value of History
People who ignore the past are destined to relive it.
Hence the study of Management Thought: Past and Present.
MultiMedia by Stephen M. Peters
2002 South-Western

3. Theory Attempts to explain the relationships
between and among its underlying principles.
Gives people a reason for doing things.
MultiMedia by Stephen M. Peters
2002 South-Western

4. Time Line of Management Thought
MultiMedia by Stephen M. Peters
2002 South-Western

5. Classical Management Theory
Originated during England’s Industrial Revolution.
First-time manufacturers could mass-produce goods in factories.
Textile industry was among the first to capitalize on the new technology.
Allowed manufacturers to make standardized goods.
Depended on a constant flow of labor and materials.
Needed to plan, organize, lead, control.
Focused on finding the “one best way.”
MultiMedia by Stephen M. Peters
2002 South-Western

6. Two Classical Schools of Thought
Focused on the manufacturing
environment.
Classical Scientific School
Emphasized the flow of
information
and how organizations should operate.
Classical Administrative School
MultiMedia by Stephen M. Peters
2002 South-Western

7. Classical Scientific School Charles Babbage
Published On the Economy of Machinery and Manufactures.
Concluded that definite management principles existed.
Thought most important principle was “division of labor.”
MultiMedia by Stephen M. Peters
2002 South-Western

8. Classical Scientific School Frederick W. Taylor
Called the Father of Scientific Management, applied scientific methods to factory problems.
Urged proper use of human labor, tools, and time.
Pursued four key goals:
–To develop a science of management.
– To select workers scientifically.
– To educate and train workers scientifically.
– To create cooperation between management and labor.
Developed the core ideas of scientific management time and motion studies.
Introduced work breaks.
Piece-rate system
MultiMedia by Stephen M. Peters
2002 South-Western

9. Classical Scientific School Henry Gantt
Moved away from authoritarian management.
Invented the Gantt Chart.
Advocated a bonus system to reward workers.
MultiMedia by Stephen M. Peters
2002 South-Western

10. Classical Scientific Thinkers Taught Managers to
Analyze everything
Teach effective methods
Constantly monitor workers
Organize and control the work and the workers
Plan responsibly
MultiMedia by Stephen M. Peters
2002 South-Western

11. Classical Administrative School
Henri Fayol
Believed that:
specific skills could be learned and taught
Fayol’s Universal Management Functions:
- Planning
- Organizing
- Commanding
- Coordinating
- Controlling
MultiMedia by Stephen M. Peters
2002 South-Western

12. Classical Administrative School
Mary Parker Follett
Focused on how organizations cope with:
- Conflict and the importance of goal sharing among managers.
- Emphasized the human element.
- Emphasized the need to discover and enlist individual and group motivation.
MultiMedia by Stephen M. Peters
2002 South-Western

13. Classical Administrative School
Chester Barnard
- Argued that managers must gain acceptance for their authority.
- Advocated the use of basic management principles.
- Cautioned managers to issue no order that could not or would not be obeyed.
MultiMedia by Stephen M. Peters
2002 South-Western

14. Classical Administrative School Limitations
1. Rigid and unresponsive decision making.
2. Lack of commitment among workers.
MultiMedia by Stephen M. Peters
2002 South-Western

15. Abraham Maslow 1. Developed a needs-based theory of motivation.
2. Theory is now considered central to understanding human motivations and behavior.
MultiMedia by Stephen M. Peters
2002 South-Western

16. Behavioral Management School The Results Today
Managers work hard to discover what employees want from work.
Enlist cooperation and commitment.
Unleash talents, energy, and creativity.
MultiMedia by Stephen M. Peters
2002 South-Western

17. Quantitative School of Management Theory1.
Mathematical approaches to management problems. 2.
Was born in World War II era. 3.
Applied to every aspect of business.
MultiMedia by Stephen M. Peters
2002 South-Western

18. Management Science Study of: - Complex systems of: - People - Money
- Equipment
- Procedures
- Is a facet of quantitative management theory
- Enables managers to design specific measures
Study of:
MultiMedia by Stephen M. Peters
2002 South-Western

19. Area of Management Science Operations Research
Models
Games
Simulations
MultiMedia by Stephen M. Peters
2002 South-Western

20. Common Tools of Operations Management
Inventory Models
Break-even Analyses
Production Scheduling
Production Routing
MultiMedia by Stephen M. Peters
2002 South-Western

21. The Organization as a System
MultiMedia by Stephen M. Peters
2002 South-Western

22. Contingency School
Approaches depend on the variables of the situations.
Draws on all past theories in attempting to analyze and solve problems.
Is integrative.
Summarized as an “it all depends” device.
Tells managers to look to their experiences and the past and to consider many options before choosing.
Encourages managers to stay flexible.
MultiMedia by Stephen M. Peters
2002 South-Western

23. Reengineering Approach
The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance.
Reengineering
What a company must do.
How to do it.
Reengineering determines
To sense the need for change.
To see change coming.
To react effectively to it when it comes.
Greatest challenges facing managers
MultiMedia by Stephen M. Peters
2002 South-Western

24. Quality School of Management
Has its roots most directly in the behavioral, quantitative,
systems, and contingency schools.
People key to both commitments and performance.
What is done must be measured and evaluated quantitatively
and qualitatively.
Quality school is the most current and is embraced worldwide.
MultiMedia by Stephen M. Peters
2002 South-Western