MultiMedia by Stephen M. Peters © 2002 South-Western

Management Thought: Past and Present

MultiMedia by Stephen M. Peters © 2002 South-Western

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

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

Time Line of Management Thought

MultiMedia by Stephen M. Peters © 2002 South-Western

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

Two Classical Schools of Thought

Focused on the manufacturing environment.

Classical Administrative School

Classical Scientific School

Emphasized the flow of information

and how organizations should operate.

MultiMedia by Stephen M. Peters © 2002 South-Western

Classical Scientific SchoolCharles 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

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

Advocated a bonus system to reward

workers.

Moved away from authoritarian management.

Invented the Gantt Chart.

Classical Scientific School Henry Gantt

MultiMedia by Stephen M. Peters © 2002 South-Western

Classical Scientific Thinkers Taught Managers to

Analyze everything Teach effective methods

Constantly monitor workers

Plan responsibly Organize and control the work and the workers

MultiMedia by Stephen M. Peters © 2002 South-Western

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

Classical Administrative SchoolMary 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

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

Classical Administrative School Limitations

1. Rigid and unresponsive

decision making.

2. Lack of commitment

among workers.

MultiMedia by Stephen M. Peters © 2002 South-Western

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

Behavioral Management SchoolThe 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

Quantitative School ofManagement Theory

Mathematical approaches to management problems.

Was born in World War II era.

Applied to every aspect of business.

1.

3.

2.

MultiMedia by Stephen M. Peters © 2002 South-Western

Management Science

- 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

Area of Management Science Operations Research

Models

Simulations

Games

MultiMedia by Stephen M. Peters © 2002 South-Western

Common Tools of Operations Management

Inventory Models

Production Scheduling

Production Routing

Break-even Analyses

MultiMedia by Stephen M. Peters © 2002 South-Western

The Organization as a System

MultiMedia by Stephen M. Peters © 2002 South-Western

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

Reengineering Approach

ReengineeringThe fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance.

Reengineering determines

What a company must do.

How to do it.

Greatest challenges facing managers

To sense the need for change.

To see change coming.

To react effectively to it when it comes.

MultiMedia by Stephen M. Peters © 2002 South-Western

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.