A History of Management Thought Stuart A. Umpleby The George Washington University Washington, DC

On theories In order to understand a theory, one needs to understand the theory that preceded it, and in order to understand that theory, one needs to understand the theory that preceded it A theory is an answer to a question. To understand a theory, one must first understand the question that it answers

On theories and common sense A theory should not be evaluated in relation to common sense, for three reasons –Different people have different conceptions of common sense –Common sense changes in time –Common sense is not well-formulated and clearly stated

How to evaluate a theory Common sense is an unstable reference frame for evaluating a theory Instead, evaluate a theory in relation to the previous, well-tested, widely accepted theory

Very early writings on management Writings on law and military organization -- Hamurabi, Roman Senate, Sun Tsu, Marcus Aurelius, Machievelli The industrial revolution altered working conditions and created large organizations; Adam Smith on the division of labor, 1776

Early modern writings on management 1900 to 1930s Functions of management, Henri Fayol -- planning, organizing, staffing, directing, controlling, coordinating, budgeting Scientific management, Frederick Taylor -- time and motion studies Statistical quality control, Walter Shewhart Human relations movement, Elton Mayo, Mary Parker Follett

Hawthorne experiments 1930s Illumination study -- tested the impact of various working conditions on productivity, uncovered the idea that paying attention to people improves their performance Wiring room study -- tested the influence of individual and group behavior, worker output is influenced by group norms, social pressures, informal organizations

After World War II Operations research and systems analysis Management information systems Management by objectives Quality or process improvement Reengineering Knowledge management

Issues in organizational behavior Leadership styles suitable for various kinds of organizations Motivation -- people respond to different rewards Group behavior -- forming, storming, norming, performing, adjourning Personality differences Cultural differences

Organizational behavior Includes individuals, groups, organizations Is multi-disciplinary – psychology, sociology, anthropology Has a humanistic orientation Is performance oriented Uses the scientific method Is applications oriented

Motivation Physiological needs – food, water Psychological needs – self-esteem Sociological needs – social interaction

Maslow’s hierarchy of needs Self-actualization – advancement, challenges, opportunities to use skills Esteem – job title, compliments Belongingness – compatible work groups, friends, parties Safety and security – salary increases, pension plan, medical plans, insurance Physiological – salary, office, co. cafeteria