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Transcript of Chapter 2 The Evolution of Management Thought Leanne Powers MHR301 From McGraw-Hill Irwin...
Chapter 2
The Evolution of Management Thought
Leanne PowersMHR301
From McGraw-Hill Irwin
Contemporary Management
Evolution of Management Theory
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 supervisionOrganic structures:• Decentralized• More authority to middle and line
managers• More cross-functioning and
empowerment