1. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 1 CHAPTER 2 PIONEERING IDEAS IN MANAGEMENT

2. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 2 Lecture outline Early management ideas Classical theorists Behavioural theorists Quantitative approach Contemporary ideas Innovation & management theory

3. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 3 Early management ideas Robert Owen (1771–1858) Identified the importance of working and social conditions for employees. Charles Babbage (1792–1871) Ideas on work specialisation, production efficiency, incentive and profit-sharing plans. Henry R. Towne (1844–1924) Called for a ‘management science’ that would establish ‘principles’ of management.

4. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 4 Early management ideas Assessing the early contributions: Uncoordinated efforts. Contributions tended to relate to specific problems. Did not see ‘management’ as a separate field or skill (until Towne).

5. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 5 Classical theorists ‘This viewpoint emphasises managing work and organisations more efficiently. It comprises three different management approaches: scientific, administrative and bureaucratic.’

6. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 6 Classical theorists Scientific management F. W. Taylor, F. & L. Gilbreth, H. Gantt Bureaucratic management M. Weber Administrative management H. Fayol

7. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 7 Scientific management ‘Scientific management is an approach within classical management theory emphasising the scientific study of work methods to improve worker efficiency.’

8. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 8 Scientific management Frederick W. Taylor Four principles of ‘scientific management’: Select & train the best. Determine the most efficient work methods. Co-operate with workers to ensure best method is used. Divide work/responsibility between workers & managers.

9. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 9 Scientific management Frank & Lillian Gilbreth –Time & motion studies –Human implications of Scientific Management Henry Gantt –Pay incentives –Gantt chart

10. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 10 Bureaucratic management ‘Approach emphasising the need for organisations to operate in a rational manner rather than relying on owner’s and manager’s arbitrary whims.’

11. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 11 Bureaucratic management Weber’s Ideal Bureaucracy Specialisation of labour Formal rules & procedures Impersonality Well-defined hierarchy Advancement on merit

12. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 12 Bureaucratic management Max Weber Formal rules & procedures Specialisation of labour Hierarchy of positions Advancement on merit

13. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 13 Administrative management ‘Approach focusing on principles used by managers to co-ordinate the organisation’s internal activities.’

14. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 14 Administrative management Henri Fayol’s Division of work Authority Discipline Unity of command/direction Primacy of general interest Remuneration Esprit de corps Principles of management Centralisation Scalar chain Order Equity Low turnover Initiative

15. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 15 Administrative management Henri Fayol Co-ordinating Commanding Controlling Planning Organising

16. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 16 Behavioural theorists ‘Perspective on management emphasising the importance of attempting to understand various factors affecting human behaviour in organisations.’

17. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 17 Behavioural theorists Early theorists: Hugo Munsterberg Creating optimal psychological conditions, behaviour shaping Mary Parker Follett Importance of group functioning Hawthorne studies Importance of supervisory style

18. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 18 Behavioural theorists Human relations movement Abraham Maslow Hierarchy of Needs Douglas McGregor Theory X & Y

19. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 19 Maslow’s Hierarchy of Needs Physiological Safety Social Esteem Self-actualisation

20. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 20 McGregor’s Theory X & Y Theory X Work is natural Capable of self-direction Seek responsibility Can make good decisions Work avoiding Need to control Avoid responsibility Workers seek security Theory Y

21. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 21 Quantitative management viewpoint ‘Focuses on mathematics, statistics and information aids to support managerial decision making and organisational effectiveness.’

22. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 22 Quantitative management viewpoint Management science ‘Approach aimed at increasing decision effectiveness through use of sophisticated mathematical models & statistical methods.’ Operations management ‘Function or field of expertise primarily responsible for managing production & delivery of an organisation’s products and services.’ Management information systems ‘Field of management focused on designing & implementing computer-based information systems for use by management.’

23. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 23 Contemporary viewpoints Systems theory ‘Approach based on the idea that organisations can be viewed as systems.’ Contingency theory ‘Viewpoint arguing that appropriate managerial action depends on the particular parameters of the situation.’

24. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 24 Contemporary viewpoints Theory Z ‘Concept combining positive aspects of American and Japanese management into a modified approach aimed at increasing managerial effectiveness while remaining compatible with the norms and values of American society and culture.’ Total Quality approach ‘Approach highlighting collective responsibility for product and service quality, and encouraging individuals to work together to improve quality.’

25. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 25 Promoting innovation Each management viewpoint provides a contribution to managing innovation: Classical Behavioural Quantitative Contemporary

26. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 26 Lecture summary Early management ideas Generation of ideas leading to identification of management as a significant field of inquiry. Classical theorists Emphasised finding ways to more efficiently manage work and organisations. Behavioural theorists Emphasised the importance of trying to understand factors affecting human behaviour in organisations.

27. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 27 Lecture summary Quantitative approach Focuses on mathematics, statistics and information aids supporting managerial decision making and effectiveness. Contemporary ideas Views of organisations as systems, importance of contingency factors & amalgamating Japanese & American management practices. Innovation & management theory Each approach provides insights, knowledge & practice regarding the management of innovation in organisations.