CHAPTER PIONEERING IDEAS IN MANAGEMENT © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Lecture outline • • • • • • Early management ideas Classical theorists Behavioural theorists Quantitative approach Contemporary ideas Innovation & management theory © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Early management ideas • Robert Owen (1771–1858) Identified the importance of working and social conditions for employees • Charles Babbage (1792–1871) Ideas on work specialisation, production efficiency, incentive and profit-sharing plans • Henry R Towne (1844–1924) Called for a ‘management science’ that would establish ‘principles’ of management © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Early management ideas Assessing the early contributions: • Uncoordinated efforts • Contributions tended to relate to specific problems • Did not see ‘management’ as a separate field or skill (until Towne) © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Classical theorists ‘This viewpoint emphasises managing work and organisations more efficiently It comprises three different management approaches: scientific, administrative and bureaucratic.’ © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Classical theorists • Scientific management F W Taylor, F & L Gilbreth, H Gantt • Bureaucratic management M Weber • Administrative management H Fayol © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Scientific management ‘Scientific management is an approach within classical management theory emphasising the scientific study of work methods to improve worker efficiency.’ © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Scientific management Frederick W Taylor Four principles of ‘scientific management’: • Select & train the best • Determine the most efficient work methods • Co-operate with workers to ensure best method is used • Divide work/responsibility between workers & managers © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Scientific management • Frank & Lillian Gilbreth – – Time & motion studies Human implications of Scientific Management • Henry Gantt – – Pay incentives Gantt chart © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Bureaucratic management ‘Approach emphasising the need for organisations to operate in a rational manner rather than relying on owner’s and manager’s arbitrary whims.’ © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 10 Administrative management ‘Approach focusing on principles used by managers to co-ordinate the organisation’s internal activities.’ © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 13 Administrative management Henri Fayol’s • • • • Principles of management • Division of work Authority • Discipline • Unity of • command/direction • • Primacy of general interest • • Remuneration • Esprit de corps Centralisation Scalar chain Order Equity Low turnover Initiative © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 14 Administrative management Organising Planning Commanding Henri Fayol Controlling Co-ordinating © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 15 Behavioural theorists ‘Perspective on management emphasising the importance of attempting to understand various factors affecting human behaviour in organisations.’ © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 16 Behavioural theorists Early theorists: • Hugo Munsterberg Creating optimal psychological conditions, behaviour shaping • Mary Parker Follett Importance of group functioning • Hawthorne studies Importance of supervisory style © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 17 Behavioural theorists Human relations movement • Abraham Maslow Hierarchy of Needs • Douglas McGregor Theory X & Y © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 18 Maslow’s Hierarchy of Needs Self-actualisation Esteem Social Safety Physiological © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 19 McGregor’s Theory X & Y Theory X Theory Y Work Workavoiding avoiding Work Workis isnatural natural Need Needto tocontrol control Capable Capableof ofself-direction self-direction Avoid Avoidresponsibility responsibility Seek Seekresponsibility responsibility Workers Workersseek seeksecurity security Can Canmake makegood gooddecisions decisions © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 20 Quantitative management viewpoint ‘Focuses on mathematics, statistics and information aids to support managerial decision making and organisational effectiveness.’ © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 21 Quantitative management viewpoint • Management science ‘Approach aimed at increasing decision effectiveness through use of sophisticated mathematical models & statistical methods.’ • Operations management ‘Function or field of expertise primarily responsible for managing production & delivery of an organisation’s products and services.’ • Management information systems ‘Field of management focused on designing & implementing computer-based information systems for use by management.’ © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 22 Contemporary viewpoints • Systems theory ‘Approach based on the idea that organisations can be viewed as systems.’ • Contingency theory ‘Viewpoint arguing that appropriate managerial action depends on the particular parameters of the situation.’ © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 23 Contemporary viewpoints • Theory Z ‘Concept combining positive aspects of American and Japanese management into a modified approach aimed at increasing managerial effectiveness while remaining compatible with the norms and values of American society and culture.’ • Total Quality approach ‘Approach highlighting collective responsibility for product and service quality, and encouraging individuals to work together to improve quality.’ © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 24 Promoting innovation • • • • Each management viewpoint provides a contribution to managing innovation: Classical Behavioural Quantitative Contemporary © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 25 Lecture summary • Early management ideas Generation of ideas leading to identification of management as a significant field of inquiry • Classical theorists Emphasised finding ways to more efficiently manage work and organisations • Behavioural theorists Emphasised the importance of trying to understand factors affecting human behaviour in organisations © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 26 Lecture summary • Quantitative approach Focuses on mathematics, statistics and information aids supporting managerial decision making and effectiveness • Contemporary ideas Views of organisations as systems, importance of contingency factors & amalgamating Japanese & American management practices • Innovation & management theory Each approach provides insights, knowledge & practice regarding the management of innovation in organisations © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 27 [...]... statistics and information aids supporting managerial decision making and effectiveness • Contemporary ideas Views of organisations as systems, importance of contingency factors & amalgamating Japanese & American management practices • Innovation & management theory Each approach provides insights, knowledge & practice regarding the management of innovation in organisations © 20 03 McGraw-Hill Australia Pty... service quality, and encouraging individuals to work together to improve quality.’ © 20 03 McGraw-Hill Australia Pty Ltd PowerPoint 24 Promoting innovation • • • • Each management viewpoint provides a contribution to managing innovation: Classical Behavioural Quantitative Contemporary © 20 03 McGraw-Hill Australia Pty Ltd PowerPoint 25 Lecture summary • Early management ideas Generation of ideas leading to... Scalar chain Order Equity Low turnover Initiative © 20 03 McGraw-Hill Australia Pty Ltd PowerPoint 14 Administrative management Organising Planning Commanding Henri Fayol Controlling Co-ordinating © 20 03 McGraw-Hill Australia Pty Ltd PowerPoint 15 Behavioural theorists ‘Perspective on management emphasising the importance of attempting to understand various factors affecting human behaviour in organisations.’... identification of management as a significant field of inquiry • Classical theorists Emphasised finding ways to more efficiently manage work and organisations • Behavioural theorists Emphasised the importance of trying to understand factors affecting human behaviour in organisations © 20 03 McGraw-Hill Australia Pty Ltd PowerPoint 26 Lecture summary • Quantitative approach Focuses on mathematics, statistics... © 20 03 McGraw-Hill Australia Pty Ltd PowerPoint 23 Contemporary viewpoints • Theory Z ‘Concept combining positive aspects of American and Japanese management into a modified approach aimed at increasing managerial effectiveness while remaining compatible with the norms and values of American society and culture.’ • Total Quality approach ‘Approach highlighting collective responsibility for product and... of management focused on designing & implementing computer-based information systems for use by management. ’ © 20 03 McGraw-Hill Australia Pty Ltd PowerPoint 22 Contemporary viewpoints • Systems theory ‘Approach based on the idea that organisations can be viewed as systems.’ • Contingency theory ‘Viewpoint arguing that appropriate managerial action depends on the particular parameters of the situation.’... McGraw-Hill Australia Pty Ltd PowerPoint 21 Quantitative management viewpoint • Management science ‘Approach aimed at increasing decision effectiveness through use of sophisticated mathematical models & statistical methods.’ • Operations management ‘Function or field of expertise primarily responsible for managing production & delivery of an organisation’s products and services.’ • Management information... Administrative management ‘Approach focusing on principles used by managers to co-ordinate the organisation’s internal activities.’ © 20 03 McGraw-Hill Australia Pty Ltd PowerPoint 13 Administrative management Henri Fayol’s • • • • Principles of management • Division of work Authority • Discipline • Unity of • command/direction • • Primacy of general interest • • Remuneration • Esprit de corps Centralisation...Bureaucratic management Weber’s Ideal Bureaucracy • Specialisation of labour • Formal rules & procedures • Impersonality • Well-defined hierarchy • Advancement on merit © 20 03 McGraw-Hill Australia Pty Ltd PowerPoint 11 Bureaucratic management Hierarchy of positions Advancement on merit Max Weber Specialisation of labour Formal rules & procedures © 20 03 McGraw-Hill Australia Pty Ltd PowerPoint 12 Administrative... self-direction Avoid Avoidresponsibility responsibility Seek Seekresponsibility responsibility Workers Workersseek seeksecurity security Can Canmake makegood gooddecisions decisions © 20 03 McGraw-Hill Australia Pty Ltd PowerPoint 20 Quantitative management viewpoint ‘Focuses on mathematics, statistics and information aids to support managerial decision making and organisational effectiveness.’ © 20 03 McGraw-Hill