SCHOOLS OF MANAGEMENT THOUGHT
Formative years: early 1900's to 1930'sHuman Relations
Was called "scientific management"
Focus on the management of work and organizations
Important contributors: Taylor, Gilbreths, Gantt, Weber, Fayol, Barnard
Formative years: 1920's to 1940'sManagement Science
Focus on the management of people
Hawthorne a nd pajama factory studies were significant events
Important contributors: Mayo, Maslow, French, McGregor, Skinner (later)
Different from "scientific management"Systems Approach
Formative years: 1940's to 1960's
Quantitative basis for decision making - uses mathematical models
Emphasis on managing production and operations
Rooted in classical
Formative years: 1950's to 197 0'sNeoclassical
Views an organization as a group of inter-dependent functions
contributing to a single purpose
"Black box" concept and input/output
Important contributor: U.S. Department of Defense
Formative years: 1950's to 1980'sSituational (Contingency)
Challenged the rigidity of classical organizations - more people oriented
Emphasis on inter-relationships of people - motivation,
leadership, communications Important contributors: Lewin, Likert, Argyris
Formative years: 1970's to 1990's
Appropriate theory depends on the situation - in certain situations, some management
practices work better than others
Important contributors: Follett (earlier), Woodward, Fry
Practicing managers were first contributors t o the field. Did not have academic recognition at the time.
Management of Work
1. Frederick W. Taylor
2. Frank and Lillian Gilbretha. Replace rule-of-thumb with science
b. Select, train, and develop workers
c. Cooperate with workers to make sure work is done
according to scientific procedures
d. Recognize that managers do "an equal division" of the work
Time and motion studies of bricklaying3. Henry L. Gantt
Focused on the shop floor4. Harrington Emerson
Gantt chart for scheduling work
Efficiency programs based on scientific principlesManagement of Organizationsa. Use scientific, factual, and objective analyses
b. Define the aims of the undertaking
c. Relate each part to the whole
d. Provide standardized procedures and met hods
e. Reward individuals for successful execution of the task
Two lasting contributions of classical organization theory: (a) principles of management, and (b) principles of organization. Bureaucracy is one form of classical organization.
1. Henri Fayol
Identified 5 functions in which managers must engagea. Planning2. James D. Mooney
e. Controlling< /blockquote> Proposed 14 principles for the management of organizationsa. Division of labor
b. Parity of authority and responsibility
d. Unity of command
e. Unity of direction - combine activities that have the same purpose
f. Subordination of the individual to the general interest
g. Fair remuneration
i. Chain of command
j. Order - define each job and its relationship to others
k. Equity - enforce the rules fai rly
l. Stability of personnel
m. Initiative - encourage employees within bounds of their authority
n. Esprit de corps - individual interests are equal to the organization'sManagement is the technique of directing and inspiring other people.
Organization is the technique of relating specific duties or functions into a coordinated whole.
Primary purpose of management is to devise an appropriate organization.
F our principles of organization:a. Authority - define job duties and responsibilities
and the chain of command
b. Leadership - delegation of authority
c. Specialization - necessary in all organizations
d. Coordination - specialization requires it
Early approaches to management (i.e. classical) were built on the concept that, if managers could properly plan, organize, and co ntrol jobs and organizations, then productivity would increase. These early approaches also emphasized the technical aspects of work.
Theories began to emerge which challenged the earlier approaches. These new theories pointed out the need for managers to use "people skills."
The emphasis shifted for managers. They are called upon to communicate, lead, create a positive motivational environment, and resolve conflicts.
The Hawthorne Studies
The earliest insights into the nee d for a new approach are attributed to the Hawthorne Studies. These were a series of studies done in Western Electric's Hawthorne plant in Cicero, Illinois during the period 1924-33.
Two of these studies will be described: (a.) experiments to determine the effect of illumination on productivity, and (b.) wiring room experiment to determine the effect of group piece rate incentives.
Conclusion: human element and social behavior dominated the workplace.
Term: "The Hawthorne Effect"
T he Pajama Factory
Studies in the pajama factory (Harwood Manufacturing Corporation) in the 1940's investigated the reasons why workers resist changes
It was found that productivity-reducing resistance could be overcome by telling workers about the change beforehand and by explaining the reasons for the change
Findings led to formulation of approaches to worker participation at various levels of involvement
The aim of management s cience is to provide managers with quantitative bases for decisions. Development of management science is traced to World War II, when operations researchers successfully solved a number of military problems including many of a logistical nature (equipment and troop movements) and strategy for submarine warfare. After the War, companies such as Dupont and Heinz pioneered the use of operations research in business applications.
1. Characteristics of management sciencePrimary foc us is decision making2. Some useful types of models
Relies on economic effectiveness criteria
Uses formal mathematical models
Depends on computersAllocation models - enable allocation of resources3. Some types of models
to optimize the attainment of an objective
Network models - assist in planning and controlling complex projects
Inventory models - address the questions: how much? and when?
Optimize the attainment of an objectivePERT (Program Evaluation and Review Technique)
Key terms: objective function (maximize or minimize)
and constraintsMinimize conflicts, delays, and interruptions in a projectInv entory planning and control
Most useful for non-repetitive projects
Developed by the U.S. Navy for Polaris program (1958)
Key terms: critical path and activitiesTypes of inventories: raw materials, supplies,
work-in-process, finished goods
Purposes of inventoriesCustomer service
Manufacturing flexibility and smoothing
Economic Order Quantity (EOQ)
This is really a way of thinking about management problems.
It views an organization as a group of inter-dependent parts, each with a single purpose.
Because the action of one part influences the others, managers cannot deal separately with the individual parts.
In solving problems, managers must view the organization as a dynamic whole and must try to anticipate the intended as well as the unintended impacts of their decisions.
The purpose is to provide a holistic view of the management of an organization that will integrate all other approaches.
Often, the result of a systems approach is a computer model.
The neoclassical approach is built upon the social sciences: psychology, sociology, and anthropology. While the Human Relations School introduced the human side as a part to be considered, the Neoclassical School created a full approach of management based upon the human side.
Arguments supporting the neoclassical approach are: (1) classical theory
is inherently flawed, and (2) classical theory is irrelevant con
a. Classical theory is inherently flawed
Classical approaches worked best in the early period of industrialization, where production processes determined organization forms.Hawthorne and subsequent studies showed the importanceb. Classical theory is irrelevant to contemporary society
of the human element
Others (e.g., Chris Argyris) believe that classical organizations tend to
suppress the individual, making them passive, dependent, and
noncreative, and thereby waste a considerable portion of
; their human resources.A considerable body of evidence supports the thesis that classically
designed organizations are not compatible with contemporary society.
Today, advancing technology and other changes require organizations to be adaptable and flexible so that new ways of doing work can be quickly implemented.
A leading advocate of the neoclassical approach is Rensis Likert.
He stated that neoclassical organizations utilize human and technicalCharacteristic s of neoclassical design
resources more fully than classical ones.
Neoclassical emphasizes the importance of decentralized authority and
nondirective, participative management behavior.
Very different organizational approach than classicalThe neoclassical organization
Classical tries to maximize efficiency and production;
neoclassical stresses flexibility and adaptability
Job designs stress personal growth and responsibility
Decentralization of decision making, control and goal-setting
Communications flow throughout the organization and not just
along a chain of command
Is relatively simple - de-emphasizes specialization and emphasizes a wide range
of responsibilities in each job
Is relatively decentralized - emphasizes delegation of authority and increasing job depth
Is relatively informal - emphasizes the product and customer as bases for departments
This approach states that the best way to organize depends on the nature of underlying factors such as the organization's strategy, environment, and technology. It recognizes that classical organizations are more efficient and productive, but less adaptive and flexible than neoclassical organizations. A particular organization - or part of an organization - should be structured on the basis of whether is must be (1) efficient and productive, or (2) adaptive and flexible.
Those who have contributed to this theory have suggested a number of
circumstances, or variables, that influence the desi
gn of the organization.
Among these variables are:
|Age of the organization||Strategic choice|
|Size of the organization||Employee needs|
|Form of ownership||Current fashion|
It is now recognized that large organizations require a combination of classical and neoclassical departments, depending on the nature of the department's function.
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