Chapter TwoThe History of Management TheorySun Tsu QuotesTwo Overarching Perspectives about ManagementClassical Viewpoint: Scientific & Administrative ManagementScientific Management: Pioneered by Taylor & the GilbrethsSlide 7Administrative Management: Pioneered by Fayol & WeberMax Weber and the BureaucracyFive Positive Bureaucratic FeaturesThe Problem with the Classical ViewpointWhy the Classical Viewpoint is Important?Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral ScienceEarly Behaviorism: Pioneered by Munsterberg, Follett, & MayoSlide 15Slide 16Slide 17Maslow’s Hierarchy of NeedsDouglas McGregor – Theory X versus Theory YWhy Theory X/Theory Y Is ImportantThe Behavioral Science ApproachQuantitative Viewpoints: Management Science & Operations ResearchManagement Science and Operations ManagementSystems ViewpointThe Four Parts of a SystemContingency ViewpointChapter TwoManagement Theory:Essential Background for the Successful ManagerMcGraw-Hill/IrwinCopyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.2-2-22The History of Management TheorySun Tsu-The Art of Warhttp://www.youtube.com/watch?v=qBduuL-DZ24Machiavelli- The Princehttp://www.youtube.com/watch?v=5IGBKu6qM7YEgyptians- Planning, Organizing, ControlNebuchadnezzar-Wage IncentivesSumerians-Written records1-22-2-33Sun Tsu QuotesKnow thy self, know thy enemy. A thousand battles, a thousand victoriesThe general who wins the battle makes many calculations in his temple before the battle is fought. The general who loses makes but few calculations beforehand.If ignorant both of your enemy and yourself, you are certain to be in peril1-32-2-44Two Overarching Perspectives about ManagementHistorical perspective classical, behavioral, and quantitativeContemporary perspective systems, contingency, and quality-management2-2-55Classical Viewpoint: Scientific & Administrative ManagementFigure 2.12-2-66Scientific Management: Pioneered by Taylor & the GilbrethsScientific management emphasized the scientific study of work methods to improve the productivity of individual workersFrederick W. Taylor, Frank and Lillian GilbrethHenry Ford and Scientific Managementhttp://www.youtube.com/watch?v=8PdmNbqtDdI2-2-77Scientific Management: Pioneered by Taylor & the GilbrethsPrinciples of Scientific Management1. Scientifically study each part of the task2. Carefully select workers with the right abilities 3. Give workers the training and incentives to do the task4. Use scientific principles to plan the work methods2-2-88Administrative Management: Pioneered by Fayol & WeberAdministrative management concerned with managing the total organizationHenri Fayol French engineer and industrialistfirst to identify the major functions of managementhttp://managementinnovations.wordpress.com/2008/12/04/henri-fayols-14-principles-of-management/2-2-99Max Weber and the BureaucracyMax Weber believed that a bureaucracy was a rational, efficient, ideal organization based on the principles of logicGrew out of German military led by incompetent officers who had position based on family and connections1-92-2-1010Five Positive Bureaucratic Features1. A well-defined hierarchy of authority2. Formal rules and procedures3. A clear division of labor4. Impersonality5. Careers based on merit2-2-1111The Problem with the Classical ViewpointMechanisticTends to view humans as cogs within a machine, not taking into account the importance of human needs2-2-1212Why the Classical Viewpoint is Important?Work activity was amenable to a rational approachThrough the application of scientific methods, time and motion studies, and job specialization it was possible to boost productivityStill works in some companies2-2-1313Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral ScienceBehavioral viewpoint emphasized the importance of understanding human behavior and of motivating employees toward achievementThe behavioral viewpoint developed over three phases: Early behaviorismThe human relations movementBehavioral science.2-2-1414Early Behaviorism: Pioneered by Munsterberg, Follett, & MayoHugo Munsterberg father of industrial psychology1. Study jobs and determine which people are best suited to specific jobs2. Identify the psychological conditions under which employees do their best work3. Devise management strategies to influence employees to follow management’s interests2-2-1515Early Behaviorism: Pioneered by Munsterberg, Follett, & MayoMary Parker Follett social worker and social philosopher1. Organizations should be operated as “communities”2. Conflicts should be resolved by having managers and workers talk over differences and find solutions that would satisfy both parties3. The work process should be under control of workers with relevant knowledge2-2-1616Early Behaviorism: Pioneered by Munsterberg, Follett, & MayoHawthorne effect employees worked harder if they received added attention, thought that managers cared about their welfare and that supervisors paid special attention to themElton Mayohttp://education-portal.com/academy/lesson/the-hawthorne-effect-the-study-of-employee-productivity.html2-2-1717Early Behaviorism: Pioneered by Munsterberg, Follett, & MayoHuman relations movementproposed that better human relations could increase worker productivityAbraham Maslow and Douglas McGregor1-172-2-1818Maslow’s Hierarchy of Needs5) Self-actualization4) Esteem3) Love- Belonging2) Safety1) Physiological1-182-2-1919Douglas McGregor – Theory X versus Theory YTheory X represents a pessimistic, negative view of workersworkers are irresponsible, resistant to change, lack ambition, hate work, and want to be ledTheory Y represents an optimistic, positive view of workersWorkers are considered capable of accepting responsibility, self-direction, self control and being creative2-2-2020Why Theory X/Theory Y Is ImportantHelps managers understand how their beliefs affect their behavior.Managers can be more effective by considering how their behavior is shaped by their expectations about human nature2-2-2121The Behavioral Science ApproachBehavioral science relies on scientific research for developing theories about human behavior that can be used to provide practical tools for managers2-2-2222Quantitative Viewpoints: Management Science & Operations