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2nd Lecture - Evolution of Management theory

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University of Toronto Mississauga
Dave Swanston

Chapter 2: Evolution of Management Theory (page 26-34) Lecture 2  Management theory concerning appropriate management practices has evolved in modern times.  The so-called classical management theories emerged around the start of the 20th century.  These include scientific management, which focuses on matching people and tasks to maximize efficiency,  And administrative management, which focuses on identifying the principles that will lead to the creation of the most efficient system of organization and management.  Behavioral management theories, developed both before and after the Second World War, focus on how managers should lead and control their workforces to increase performance.  Management science theory, developed during the Second World War, has become more important as researchers have developed rigorous analytical and quantitative techniques to help managers measure and control organizational performance.  Finally, theories were developed during the 1960s and 1970s to help explain how the external environment affects the way organizations and managers operate. Scientific Management: The systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency (Frederick W. Taylor)  Scientific management brought many employees more hardship than gain, and left them with a distrust of managers who did not seem to care about their well- being. The Gilbreths (based on Taylor’s work) Their aims were to: (1) Break up a particular task into individual actions, and analyze each step needed to perform the task (2) Find better ways to perform each step (3) Reorganize each of the steps so that the action as a whole could be performed more efficiently—at less cost in time and effort. Administrative Management : The study of how to create an organizational structure that leads to high efficiency and effectiveness. The Theory of Bureaucracy: (Max Weber) A formal system of organization and administration designed to ensure efficiency and effectiveness. Created at the start of the 20th century, when Germany was undergoing its Industrial Revolution. To help Germany manage its growing industrial enterprises at a time when it was striving to become a world power, • Principle 1: In a bureaucracy, a manager’s formal authority derives from the position he or she holds in the organization. • Principle 2: In a bureaucracy, people should occupy positions because of their performance, not because of their social standing or personal contacts. • Principle 3: The extent of each position’s formal authority and task responsibilities, and its relationship to other positions in an organization, should be clearly specified. • Principle 4: For authority to be exercised effectively in an organization, positions should be arranged hierarchically. This helps employees know whom to report to and who reports to them. • Principle 5: Managers must create a well-defined system of rules, standard operating procedures (SOPs), and norms so that they can effectively control behavior within an organization. Henri Fayol’s Principles of Management : Behavioral Management: The study of how managers should behave in order to motivate employees and encourage them to perform at high levels and be committed to achieving organizational goals The Work of Mary Parker Follett:  Much of her writing about management and about the way managers should behave toward employees was a response to her concern that Taylor was ignoring the human side of organization.  Follett also proposed that knowledge and expertise, and not managers’ formal authority deriving from their position in the hierarchy, should decide who would lead at any particular moment.  She believed, as do many management theorists today, that power is fluid and should flow to the person who can best help the organization achieve its goals.  Follett took a horizontal view of power and authority, in contrast to Fayol, who saw the formal line of authority and vertical chain of command as being most essential to effective management.  Follett’s behavioral approach to management was radical for its time. The Hawthorne Studies and Human Relations: One series of studies was conducted from 1924 to 1932 at the Hawthorne Works of the Western Electric Company. This research, now known as the Hawthorne studies, began as an attempt to investigate how characteristics of the work setting—specifically the level of lighting or illumination— affect employee fatigue and performance. The researchers conducted an experiment in which they systematically measured employee productivity at various level
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