Schools of Management (1)

7/29/2019 Schools of Management (1)

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The industrial revolution and rise of the

factory (England, 1750)

Small entrepreneurial organization before

industrial revolution

Advances in technology fueled the Industrial

Revolution in England

The invention of the steam power was particularly

important Steam power enabled the opening of large textile

mills where the cloth was made on powered looms

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Industrial revolution (contd)

The introduction of factory led to the need

to organize work through specialized tasksworkers

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Industrial revolution (contd)

The growth of factories also required the

organization and supervision of workers

Workers came to work in factories instead of

working at home

Small factories could be managed by the owners,

but larger factories required hiring supervisors

Supervisors were generally promoted from the ranks

of workers due to their technical skills as well as

there peacekeeping skills.

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20th Century: Age of modern

management

An era of great scientific advances, and

of social change

There was tremendous excitement about

what the new century would bring

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The Setting America at the turn of the

20th century

The typical worker has less than a 6th grade

education

in a population of 58 million, there were only about

15000 college graduates each year

the industrial emphasis in the US was now on

manufacturing rather than agriculture

There was a surfeit of available labor.

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when new problems related to the

factory system began to appear.

Managers were unsure of how to train

employees (many of them non-English

speaking immigrants) or deal with increased

labor dissatisfaction, so they began to test

solutions. As a result, the classicalmanagement theory developed from efforts to

find the one best way to perform and

manage tasks.

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CLASSICAL SCHOOL OF MGMT EMERGED

As the companies grew, and as

competition became more intense,

managers needed new ways to cut costs

and boost efficiency

People needed better management

theories and so the classical school of

management emerged


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Classical Management Theory

Classical

Management

Theory

A theory that focused on finding

the one best way to perform

and manage tasks

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father of scientific management. Hebelieved that organizations should study

tasks and develop precise procedures.

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Frederick W. Taylor

Classical Scientific School


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As an example, in 1898, Taylor

calculated how much iron from rail cars

Bethlehem Steel plant workers could be

unloading if they were using the correctmovements, tools, and steps. The result

was an amazing 47.5 tons per day

instead of the mere 12.5 tons eachworker had been averaging.

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He also developed an incentive system

that paid workers more money for

meeting the new standard. Productivity

at Bethlehem Steel shot up overnight. Asa result, many theorists followed Taylor's

philosophy when developing their own

principles of management.

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Classical Scientific School

The Father of Scientific Management

Pursued four key goals:

Develop a science of management Select workers scientifically

Develop and train workers scientifically

Create cooperation between management

and labor

Determined the quickest ways to perform

tasks

Frederick W. Taylor

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In 1920s business environment changed

People moved from farms to cities and become

more depend on each other (social)

Jobs became more specialized and interdependent Government become more involved in economic

matters

Reformers established minimum wage and

encouraging trade unions Hard work , individualism and maximizing profit

questioned?-building blocks of classical mgmt!


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The Foundations Of Modern

Management (contd)

The Behavioral School

The Hawthorne plant Studies-in 1927(Western Electric Co)

Harvard university researchers isolatedemployees and they change lunch brakes,ventilation , lightning etc Researchers found

it was the social situations of the workers, not justthe working conditions, that influenced behavior atwork.

performance depend on other factors than rate ofpay and working conditions


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Hawthorne effect and changing

environment

The researchers discover that the employees were

feeling themselves special under observation-called

Hawthorne effect!

Employees behavior at work can not be

programmed

Companies started to make more R&D activities

diversify and increase their product lines(produce

different products)

forced them to set up separate divisions and

empower lower level managers

Motivate their employees


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The Human Relations Movement

Because of the Hawthorne findings and the

other social changes taking place after World

War II, managers started taking a much more

people oriented approach to managing

employees

workers were not just givens in the system.

Workers have needs and desires that

organizations have to accommodate.


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The Quantitative/Management

Science School

The Management Science Approach

Operations Research/ Management Science

Seeks optimal solutions to management problems

through research and the use of scientific analysisand tools.

(e.g.) Industrial engineers solve inventory control

problems.


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Systems Management Theory

Systems

School

The theory that an organizationcomprises various parts that

must perform tasks necessary

for the survival and proper

functioning of the system


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The Organization as a System


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Contingency Management

Theory

Contingency

School

A theory based on the premisethat managers preferred actions

or approaches depend on the

variables of the situation they

face


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Contingency Management

Theory

Approaches depend on the variables of thesituations

Draws on all past theories in attempting to

analyze and solve problems Is integrative

Summarized as an it all depends device

Tells managers to look to their experiences

and the past and to consider many optionsbefore choosing

Encourages managers to stay flexible


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Schools of Management (1)