A Prelude to Behaviorism (or, “American Economic History in one lecture”) Wayne Smith, Ph.D. Department of Management CSU Northridge

Transitions since ~1850 Agricultural Economy Manufacturing Economy Service Economy

Management Transitions Agriculture Manufacturing Service Planning weather markets networks Leading by land size by plant size by example Organizing clans and neighbors many hierarchies mostly networks Coordinating physical distance one-to-many many-to-many Motivating survival extrinsic needs intrinsic needs Staffing children workers associates Controlling no other choices wage/piecework salary/bonus

Key Trends in (Economic) Capital 1850 1875 1900 1925 1950 1975 2000 Key Trends in (Economic) Capital Specialization Optimize for efficiency Regional Economies/Power Financial Markets Key Trends in (Social) Labor Immigration Gender Urbanization Public Education

Management Science (Operations Research) 1850 1875 1900 1925 1950 1975 2000 Classical Approach How do we do the thing right (efficiency)? Management Science (Operations Research) Can we model (and therefore, automate) all inputs, processes, and outputs (optimization)? Do we know all, or nearly all, of the constraints? Behavioral Approach How do we do the right thing (effectiveness)? Contingency Approach “dirty little secret” Successful managers apply, often silently and quickly, among each of the other three approaches as needed