Management Theories

Overview Know the history of management before the modern era Know the classical contributions to modern management Late 1800’s Weaving Shed Chapter 2 Lesson 1 Courtesy of Photos.com

Quick Write Do you know someone who isn’t called a manager but who works like one? Explain. Chapter 2 Lesson 1 Courtesy of Goodshoot images

History of Management Before the Modern Era Frederick Taylor Michelangelo Courtesy of Clipart.com Adapted from Fundamentals of Management, 5th Ed. By Robbins/DeCenzo, p. .17 Pearson Prentice Hall, 2005 Chapter 2 Lesson 1

Adam Smith Division of labor—the breakdown of jobs into narrow, repetitive tasks Workers become very skilled at the one task they are doing Saves time because workers are not moving from one task to the next Helped pave the way for mechanization of work Led to automation and computerization Chapter 2 Lesson 1

The Industrial Revolution The advent of machine power, mass production, and efficient transportation, which began in Britain in the late eighteenth century Watt Steam Engine Chapter 2 Lesson 1 Courtesy of Photos.com

The Industrial Revolution Machine Power Mass Production Relatively Cheap Transportation Lack of Governmental Regulation Large Organizations Chapter 2 Lesson 1

The Industrial Revolution John D. Rockefeller – Standard Oil Andrew Carnegie – Carnegie Steel Chapter 2 Lesson 1 Taken from Wikipedia.com

The Industrial Revolution Large Labor Forces New-Style Corporations Formal Structures Formal Management Practices Chapter 2 Lesson 1

What Do You Think? What are some examples of large, modern corporations? How are these organizations organized? What kind of departments do these organizations have? How does this relate to Adam Smith’s theory of the division of labor? Chapter 2 Lesson 1

Classical Contributions to Modern Management Chapter 2 Lesson 1 Courtesy of Photos.com

Frederick Taylor Published The Principles of Scientific Management in 1911 Used the scientific method to determine the “one best way” to do a job, and to train workers to do it that way Demonstrated to workers and managers that both would benefit by improved production efficiency Chapter 2 Lesson 1

Frank & Lillian Gilbreth Students of Frederick Taylor Studied work arrangements to eliminate wasteful hand and body motions Examined the design and use of tools and equipment to determine how these could contribute to work performance Chapter 2 Lesson 1

Henry Gantt Devised a bonus system that gave workers extra money if they finished their work in less time than the standard Studied the efficiency of managers and workers Created the Gantt chart ~ a graphic device managers use to plan and control work Chapter 2 Lesson 1

A Gantt Chart 1 2 3 4 Copy/edit manuscript Design sample pages 1 2 3 4 Copy/edit manuscript Design sample pages Draw Artwork Print Galley Proofs Print Page Proofs Design Cover Adapted from Fundamentals of Management, 5th Ed. By Robbins/DeCenzo, p. 474 Pearson Prentice Hall, 2005 Chapter 2 Lesson 1

Why Scientific Management? Productivity was low in the world of work in the early twentieth century Better productivity by manual laborers could make a real difference Chapter 2 Lesson 1

Henri Fayol Designated management as a universal set of activities Looked at the activities of all kinds of managers Wrote from personal experience as a manager Stated 14 principles of management—fundamental or universal truths of management practice Chapter 2 Lesson 1

Fayol’s 14 Principles Divison of work Authority of managers to give orders Discipline of employees Unity of command Unity of direction Subordination of individual interests to the general interest Chapter 2 Lesson 1

Fayol’s 14 Principles Remuneration of workers Centralization of decision-making Scalar Chain ~ authority from top to bottom Order of people and materials Equity of treatment Stability of tenure of personnel Initiative of employees encouraged Esprit de Corps Chapter 2 Lesson 1

Max Weber Described bureaucracy ~ an ideal type of organization with a division of labor, clearly defined hierarchy, detailed rules and regulations, and impersonal relationships Model of the way work could be done in large groups Model used in many large organizations today Chapter 2 Lesson 1

Today’s Applications Matching people to jobs and training workers to be more effective are ideas Taylor introduced Industrial engineering, which is all about the details of processes, is a field with its roots in scientific management Chapter 2 Lesson 1

Today’s Applications Football coach who shows his team the tapes of last week’s game to get them to do better next week is picking up on an idea the Gilbreths introduced Chapter 2 Lesson 1 Courtesy of BrandX Images

What Do You Think? What are some examples of the division of labor, scientific management, or bureaucracy that we see at work in the Air Force or in our Air Force JROTC unit? Chapter 2 Lesson 1

Review Adam Smith introduced the concept of division of labor—the breakdown of jobs into narrow, repetitive tasks One of the most important developments influencing management practice before the twentieth century was the Industrial Revolution—the advent of machine power, mass production, and efficient transportation, which began in Britain in the late eighteenth century Modern management theory began with a group of managers and writers who tried to come up with some basic principles for companies to follow to work more efficiently Chapter 2 Lesson 1

Review The classical approach to management introduced the ideas of the scientific management theorists and the general administrative theorists General administrative theorists—writers who developed general theories of what managers do and what good management practice is—were concerned with the overall organization and how to make it more effective Frederick Taylor described the theory of scientific management—the use of the scientific method to determine the “one best way” to do a job, and to train workers to do it that way Chapter 2 Lesson 1

Review Frank and Lillian Gilbreth studied work arrangements to eliminate wasteful hand and body motions and the design and use of tools and equipment to determine how these could contribute to work performance Henry L. Gantt devised a bonus system that gave workers extra money if they finished their work in less time than the standard Scientific theory got so much attention because productivity was low in the world of work in the early twentieth century and better productivity could make a real economic difference Chapter 2 Lesson 1

Review Henri Fayol stated 14 principles of management—fundamental or universal truths of management practice Max Weber described what he called a bureaucracy—an ideal type of organization with a division of labor, clearly defined hierarchy, detailed rules and regulations, and impersonal relationships The football coach who shows his team the tapes of last week’s game to get them to do better next week is picking up on an idea introduced by the classical approach to management Chapter 2 Lesson 1

Summary Management before the modern era Classical contributions to modern management Chapter 2 Lesson 1

Management Approaches What’s Next… Management Approaches Chapter 2 Lesson 1 Courtesy of Clipart.com