Chapter 2 – Management – Past to Present
CLASSICAL MANAGEMENT APPROACHES
Frederick W. Taylor
o In 1911, he published The Principles of Scientific Management, that makes
the following statement: “the principal object of management should be to
secure maximum prosperity for the employee.
o He believed that those individuals who did work without clear specifications
lost efficiency and performed under stated capacities. Teaching and helping
was a method of avoiding this.
o His overall goal was to improve the productivity through the following
Develop rules of motion, standardized work implements, and proper
working conditions for every job.
Carefully select workers with the right abilities for the job.
Carefully train workers and provide proper incentives.
Support workers by carefully planning their work and removing
o Like Taylor they believed that there was an importance of studying the
motions involved in a talk in order to understand the most efficient way of
working (motion study)
o Based on one famous study the eliminated wasted motions to improve
performance ( number of motions used by brick layers were taken away and
therefore tripling their productivity)
Attempts to document and understand the experiences of successful managers
o He believed there were 14 principles of management that should be taught to
all aspiring managers:
Division of labour – specialization of work
Authority – managers have the right to give orders
Discipline – behaviour needs to be grounded with obedience and
Scalar chain — there should be a clear and unbroken line of
communication from the top to the bottom of the organization.
Unity of command — each person should receive orders from only one
Unity of direction — one person should be in charge of all activities
with the same performance objective.
www.notesolution.com Subordination of individual interests – only work matters should be
discussed at work
Remuneration – fair payment for work
Centralization – decisions are made at the top of the management
Order – there is a place for everything
Equity – managers should be kind and fair
Personal tenure – unnecessary turnover should be avoided.
Initiative – undertake work with zeal and energy
Esprit de corps – work to build harmony among personnel
o He also came up with rules of management that resemble the four functions
of management (organizing, leading, controlling and planning)
Foresight — to complete a plan of action for the future.
Organization — to provide and mobilize resources to implement the
Command — to lead, select, and evaluate workers to get the best work
toward the plan.
Coordination — to fit diverse efforts together and ensure information
is shared and problems solved.
Control — to make sure things happen according to plan and to take
necessary corrective action.
Mary Parker Follett
o Groups and human cooperation:
Groups are mechanisms through which individuals can combine their
talents for a greater good.
Organizations are cooperating “communities” of managers and
Manager’s job is to help people in the organization cooperate and
achieve an integration of interests.
o Forward-looking management insights:
Making every employee an owner creates a sense of collective
responsibility (precursor of employee ownership, profit sharing, and
Business problems involve a variety of inter-related factors (precursor
of systems thinking)
Private profits relative to public good (precursor of managerial ethics
and social responsibility)
o He believed the bureaucracy was the way to correct problems about failed
performance potential by only successful or of high rank individuals in the
country (authority > job capability)
o Bureaucracy : rational and efficient form of organization founded on logic,
order and legitimate authority.
o Characteristics of his bureaucracy:
www.notesolution.com Clear division of labor - jobs are well defined
Clear hierarchy of authority - authority for each position is given
Formal rules and procedures – written guidelines direct behaviour
Impersonality – rules and procedures are impartial and uniformly
Careers based on merit – workers are promoted based on ability to
o Disadvantages of Bureaucracy
Excessive paperwork or “red tape”
Slowness in handling problems
Rigidity in the face of shifting needs
Resistance to change
BEHAVIORAL MANAGEMENT APPROACHES
Behavioural approaches maintain that people are social and self-actualizing. People
at work are assumed to seek satisfying social relationships, respond to group
pressures, and search for personal fulfillment.
The Hawthorne Studies and Human Relations
Initial study examined how economic incentives and physical conditions affected
No consistent relationship found.
“Psychological factors” influenced results.
Relay Assembly Test- Room Studies
o Manipulated physical work conditions to assess impact on output. (more or
o Designed to minimize the “psychological factors” of previous experiment.
o Factors that accounted for increased productivity:
www.notesolution.com Employee attitudes, interpersonal relations, and group processes
o Work conditions and wages could be sources for some workers satisfaction
o People restricted output to adhere to group norms, vs. producing more output
and making more money
o Social and human concerns are keys to productivity.
o Human relations movement : managers who use good human relations will
o Hawthorne effect — people who are singled out for special attention perform