The History of Management Appendix Chapter One Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

F.W. TAYLOR and SCIENTIFIC MANAGEMENT Scientific Management -- Studying workers to determine the most efficient ways of doing things and then teaching those techniques. Three Key Elements to Increase Productivity 1. Time 2. Methods of Work 3. Rules of Work 1-2

F.W. TAYLOR and SCIENTIFIC MANAGEMENT 1. Study how a job is performed. Gather time & motion information. Check different methods. 2. Codify the best method into rules. 3. Choose workers whose skill matches the rules. 4. Establish a fair level of performance and pay. 1-3

WEBER’S BUREACRATIC THEORY 1. In a bureaucracy, a manager’s formal authority derives from the position he or she holds in the organization. 2. In a bureaucracy, people should occupy positions because of their performance, not because of their social standing or personal contacts. 3. Each position’s formal authority and task responsibilities should be clearly defined. 1-4

WEBER’S BUREACRATIC THEORY 4.Authority can be exercised efficiently when positions are arranged in a clear organizational hierarchy, so employees know who to report to and who reports to them. 5.Managers must create a well defined system of rules and standard operating procedures, so that they can effectively control behavior within an organization 1-5

TIME-MOTION STUDIES Frank & Lillian Gilbreth Time-Motion Studies -- Studies of which tasks must be performed to complete a job and the time needed to do each task. Led to the development of the Principle of Motion Economy -- Every job can be broken down into a series of elementary motions; developed by Frank and Lillian Gilbreth. 1-6

MARY PARKER FOLLETT “Authority should go with knowledge… whether it is up the line or down.” Humanized Taylor’s work Advocated Self-Managed Teams Anticipated Empowerment

HAWTHORNE STUDIES: PURPOSE AND RESULTS Researchers studied worker efficiency under different levels of light. Productivity increased regardless of light condition. Researchers decided it was a human or psychological factor Hawthorne Effect- People act differently when they know they are being studied.

THEORY X AND THEORY Y Douglas McGregor proposed managers had two different sets of assumptions concerning workers. Their attitudes about motivating workers was tied to these assumptions. McGregor called them Theory X and Theory Y.

ASSUMPTIONS of THEORY X MANAGERS Workers dislike work and seek to avoid it. Workers must be forced or threatened with punishment to get them to perform. Workers prefer to be directed and avoid responsibility Only effective motivators are fear and money.

ASSUMPTIONS of THEORY Y MANAGERS People like work, it’s a part of life. Workers seek goals they are committed to. Commitment to goals depends on perceived rewards. People can use creativity to solve problems. Intellectual capacity is only partially realized. People are motivated by a variety of rewards.

THEORY Z William Ouchi researched cultural differences between the U.S. (Type A) & Japan (Type J) Type J is committed to the organization and the group, while Type A is focused on the individual Theory Z is the hybrid approach of both types