By the end of the class you will have had an opportunity to:

Gain an understanding of how our ideas about management have evolved

Examine the major schools of thought: Classical, Human Relations, Systems, Behavioural

Examine the ‘one best way’ versus ‘contingency’ view

Why should we care about the history of management ideas?

Ideas that changed our world e.g TaylorismThey are around us every day e.g the factory

system, McDonald’sWe need to know our ‘turf’, where our ideas

came from

Concepts, models and theoriesWhat is a concept? Words that help us organise

and sort knowledge e.g job satisfactionA model: a ‘half-way’ house to a theoryA theory: a set of concepts and ideas that

systematically attempt to explain, understand and predict outcomes

We operate in the social sciences; we can ‘prove ‘nothing

The evolution of management theory

First came the practitioners: early attempts by entreprenuers to find better ways of doing things e.g. John Kay’s Flying Shuttle

Then much later came the academics: knowledge from research about management and organisations

Now it has become an industry

1890 1940 2000

Administrative Management

Behavioral Management

Scientific Management

Management Science (Quantitative)

SystemsSystems (Org. Environment)

Bureaucratic Management

Human Relations

Classical Management Theory Organizations seeking ways to improve efficiency

(Capitalist mode of production) Led to surplus value Satisfied (manipulated?) customers Application of technology/machinery which

changed the way goods were produced (Industrial Revolution)

Managers had to increase the efficiency of the worker-task mix

The Principles of Scientific Management1911

Taylor was an engineer interested in improving efficiency

How to reduce the time spent on each task by optimizing the way the task was done

Develop rules of motion, standardized work implementation, proper working conditions

Careful select ion of workers with right abilities for the job

Train them to do the job and give proper incentivesSupport workers by carefully planning their work ‘One best way’

Application: Fordism

Henry Ford revolutionized car manufactureBy 1914, his Highland Park (Michigan) plant could

turn out a complete chassis every 93 minutes!This was a stunning improvement over the earlier

production time of 728 minutes [783% improvement!]

Using a constantly-moving assembly line, subdivision of labour, and coordination of operations, Ford realized huge gains in productivity

Founded the Ford empire

The assembly line at Ford’s 1914

Ford’s Dearborne plant 1914

Another cog in the wheel . .

Fordism

What images are symbolic of Scientific Management (and Fordism)? How are people portrayed? How is management portrayed? What drives work?

What are the limitations of this management approach?

What is the legacy today of this means of production?

Problems with this approach

Managers often implemented the increased output side of Taylor’s planThey did not allow workers to share in increased

outputSpecialized jobs became very VERY boringWorkers ended up distrusting Scientific

ManagementWorkers could purposely “under-perform” (known

as “soldiering” )Management responded with increased use of

controls and later, machines

What do these organisation have in common?Oxfam NZNZ PoliceBNZWaikato Multiple Sclerosis TrustFraser Tech Rugby ClubEast Street Apostolic ChurchHamilton East Primary School

Answer: to one degree or another all are bureaucracies

Classical Management TheoryBureaucracy

Bureaucratic Organization (Max Weber)Ideal-type, intentionally rational and efficient

form of organizationBased on principles of logic, order and

legitimate authorityBpecialisation of labour Formal rules and procedures Impersonality of process Well defined hierarchy of

authority Career advancement based on merit

Key points of Bureaucracy

Authority is the power to hold people accountable for their actions

Positions should be based on performance not social contacts

Position duties are clearly identified. People should know what is expected of them

Lines of authority should be clearly identified. Workers know who reports to who

Rules, Standard Operating Procedures (SOPs), & norms used to determine how the firm operates

Critical Review: Classical Management Theories

Encouraged managers to think rationally and systematically about the organisation of work

Increased productivity through efficiency (work specialisation of simple tasks)

People selected for tasks which they are best suited and can be learned easily

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Human Relations Movement: managers who use good human relations will achieve productivity

Human Relations Approaches to Management

Hawthorne studies (Elton Mayo 1924-1932)initial study to examine the relationship of

economic incentives and physical conditions on worker output “psychological factors” interfered with experiment

Relay Assembly Test-Room Studies designed to minimize the “psychological factors” of

previous experiment productivity increased regardless of changes made factors that accounted for increased productivity

group atmosphere participative supervision

Hawthorne Studies

Lessons in BehaviourShift toward social and human concerns as

keys to productivityHawthorne effect

people who are singled out for special attention perform as expected

workers are social beings driven by the need for belonging and acceptance

Hawthorne Effects

The major finding was that almost regardless of the experimental manipulation (brightness of lights, humidity, breaks, group pressure, working hours, managerial leadership), the production of the workers seemed to improve.

One reasonable conclusion is that the workers were pleased to receive attention from the researchers who expressed an interest in them.

Work-group norms affect productivity. The workplace is also a social system.

Human Relations Movement

Theory X and Y (McGregor, 1960)Managers assumptions about workers differ:

Theory X: Assumes the average worker is lazy, dislikes work and will do as little as possible. Managers must closely supervise and control through

reward and punishmentTheory Y: Assumes workers are not lazy, want to

do a good job and the job itself will determine if the worker likes the work. Managers should allow the worker great latitude, and

create an organization to stimulate the worker

Human Relations Movement

Maslow’s Theory of Human Needs need is a physiological or psychological

deficiency a person feels the compulsion to satisfy satisfied need is not a motivator of behavior

progression principle: Hierarchy of needs a need becomes a motivator once the need below it

is satisfied

Critical Review: HR Management Theories

Attempted to explain the psychological and sociological processes which influence performance

Recognised workers’ needs

Developments in motivation theory, social & personal interests in work

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Behaviouralists

What is it that effective managers do? Are there behaviours associated with them?Ohio & Michigan StudiesIdentified two dimensions: Task and PeopleBlake & Mouton’s Managerial GridGround breaking New Zealand research

(2008) ‘A Day in the Life of a Manager’ Mintzberg

Some questions to ponder….

How relevant are these models and theories to 21st century organisations?

We moved through stages: agricultural, pre-industrial, industrial, post-industrial, to a digital-knowledge economy, so how relevant are these 20th century theories now?

Are our ideas about managing rooted in ‘pre-history’?

What sort of models do we need to ‘invent’ for this century?

What metaphors?

Conclusion: why we can’t continue to rely on the way we have done things in the past

A combination of very rapid population growth over the last 50 years and reckless economic growth during the same time has stored up massive problems for societies the world over. No nation is immune. The scientific evidence tells us all we need to know: carry on with business-as-usual growth-at-all-costs, and we’re stuffed - Jonathon Porritt, www.forumforthefuture.org article 'Living within our means' (21 March 2009)