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

2. Transitions since ~1850 Agricultural Economy Manufacturing Economy
Service
Economy

3. 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

4. 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

5. 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