1. History of Management Thought
Lecture #3

2. Schools of Management Thought

3. Schools of Management Thought
Classical School
Behavioral School
Management Science School

4. Classical School “One best way to manage”
It is management’s job to ascertain the best way to perform a job, then teach that method to workers. The same philosophy applies to running the organization
(the manager’s job)

5. Scientific Management
The Scientific Method applied to work

6. Scientific Management
Observation
Measurement
Logic
Analysis

7. Frederick Taylor
The “Father of Scientific Management”

8. Taylor & Scientific Management
Experiment in Iron Foundry
Shoveling Coal

9. Taylor & Shoveling Coal
Standard Operating Procedure:
Hire the man with the
shovel

10. Taylor & Shoveling Coal
New Idea: Use standardized shovels!!!

11. Taylor & Shoveling Coal
Optimal shovel size for the average worker:
21 ½ pounds

12. Loading Pig Iron
Intermediate product in the processing of iron ore into steel

13. Taylor & Loading Pig Iron
Before: Average load of 12 ½ tons per day
After: Average load of _____ tons per day
Wages increased ____%

14. Taylor & Loading Pig Iron
Productivity gain for company
More money for worker
Worker was less fatigued at end of day

15. Scientific Management
Frank & Lillian Gilbreth
Motion & Time Studies
Therbligs

16. Gilbreths
Brick-laying

17. Gilbreths Cheaper By the Dozen
World War I telegram to President Wilson:
Arriving Washington 7:03 pm. If you don’t know how to use me, I’ll tell you.

18. Scientific Management
Application of the Scientific Method to work
Selection of the most capable workers
Provide resources to workers

19. Scientific Management
Train the workers
Provide fair pay incentives to workers
(share productivity gains)

20. Scientific Management: Bastardized Version
Application of the Scientific Method to work
Selection of the most capable workers
Provide resources to workers
Train the workers

21. Behavioral School aka Human Relations School
Genesis was in an experiment in
Scientific Management

22. Behavioral School Western Electric Hawthorne plant in Cicero, Illinois
Hawthorne Studies

23. Hawthorne Studies Experiment in lighting conditions Experimental group
Control group

24. Hawthorne Studies (storybook version)
Increased lighting associated with
increased productivity!!
Decreased lighting associated with _________ productivity??
Who ya’ gonna call?

25. Hawthorne Studies Elton Mayo Researcher from Harvard
Workers were not reacting to the changes in lighting

26. Hawthorne Studies
Workers were not reacting to the conditions of the experiment
Workers were reacting to being in an experiment
“Hawthorne Effect”

27. Classical vs. Behavioral
Two diametrically opposed views
Which view do you hold?

28. Management Science School
Management Science is NOT the same as Scientific Management
Originated in the Polaris missile project

29. Management Science
A problem is defined, and a model of the situation is developed
The model simplifies reality or represents reality in an abstract manner

30. Management Science
Step One: Develop a model of the problem or situation
Step Two: Quantify the variables

31. Management Science
A politically incorrect example

32. Management Science
No underage!
No drink and drive!