2. 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
3. Why should we care about the history
of management ideas?
Ideas that changed our world e.g Taylorism
They are around us every day e.g the factory system,
McDonald’s
We need to know our ‘turf’, where our ideas came
from
4. Concepts, models and theories
What is a concept? Words that help us organise and
sort knowledge e.g job satisfaction
A model: a ‘half-way’ house to a theory
A 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
9. 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
10. Systems (Org. Environment)
Management Science (Quantitative)
Human Relations
Behavioral Management
Administrative Management
Bureaucratic Management
Scientific Management
1890 1940 2000
12. 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
13. The Principles of Scientific Management
1911
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 incentives
Support workers by carefully planning their work
‘One best way’
14. Application: Fordism
Henry Ford revolutionized car manufacture
By 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
18. 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?
19. Problems with this approach
Managers often implemented the increased output
side of Taylor’s plan
They did not allow workers to share in increased output
Specialized jobs became very VERY boring
Workers ended up distrusting Scientific Management
Workers could purposely “under-perform” (known as
“soldiering” )
Management responded with increased use of
controls and later, machines
20. What do these organisation have in common?
Oxfam NZ
NZ Police
BNZ
Waikato Multiple Sclerosis Trust
Fraser Tech Rugby Club
East Street Apostolic Church
Hamilton East Primary School
Answer: to one degree or another all are
bureaucracies
21. Classical Management Theory
Bureaucracy
Bureaucratic Organization (Max Weber)
Ideal-type, intentionally rational and efficient form of
organization
Based on principles of logic, order and legitimate
authority
Bpecialisation of labour
Formal rules and procedures
Impersonality of process
Well defined hierarchy of
authority
Career advancement based on merit
22. 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
23. 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
25. 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
26. Hawthorne Studies
Lessons in Behaviour
Shift toward social and human concerns as keys to
productivity
Hawthorne effect
people who are singled out for special attention perform as
expected
workers are social beings driven by the need for belonging
and acceptance
27. 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.
28. 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 punishment
Theory 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
29. 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
31. 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
+
32. Behaviouralists
What is it that effective managers do?
Are there behaviours associated with them?
Ohio & Michigan Studies
Identified two dimensions: Task and People
Blake & Mouton’s Managerial Grid
Ground breaking New Zealand research (2008)
‘A Day in the Life of a Manager’
Mintzberg
33. Some questions to ponder….
How relevant are these models and theories to 21 st
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?
34. 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)