Ch02

Management Thought: Past and Present

MultiMedia by Stephen M. Peters © 2002 South-Western

The Value of History

• People who ignore the past are destined to relive
it.
• Orang yang mengabaikan masa lalu ditakdirkan
• Hence the study of Management Thought: Past
and Present.


Theory

Attempts to explain the relationships
Attempts to explain the relationships
between and among its underlying principles.
between and among its underlying principles.

Gives people aareason for doing things.
Gives people reason for doing things.


Time Line of Management Thought


Classical Management Theory
 Originated during England’s Industrial Revolution.
 First-time manufacturers could mass-produce goods
in factories.
 Textile industry was among the first to capitalize on
the new technology.
 Allowed manufacturers to make standardized goods.
 Depended on a constant flow of labor and materials.
 Needed to plan, organize, lead, control.
 Focused on finding the “one best way.”


Two Classical Schools of Thought

Focused on the manufacturing
Focused on the manufacturing
Classical Scientific School environment.
environment.

Emphasized the flow of
Emphasized the flow of
Classical Administrative School information
information
and how organizations should operate.
and how organizations should operate.


Classical Scientific School
Charles Babbage

 Published On the Economy of Machinery and
Manufactures.
 Concluded that definite management principles
existed.
 Thought most important principle was “division
of labor.”


Frederick W. Taylor
 Called the Father of Scientific Management, applied scientific
methods to factory problems.
 Urged proper use of human labor, tools, and time.
 Pursued four key goals:
 –To develop a science of management.
 – To select workers scientifically.
 – To educate and train workers scientifically.
 – To create cooperation between management and labor.
 Developed the core ideas of scientific management time and
motion studies.
 Introduced work breaks.
 Piece-rate system

Henry Gantt

Moved away from
Invented the
authoritarian
Gantt Chart.
management.

Advocated a bonus
system to reward
workers.


Classical Scientific Thinkers
Taught Managers to

Analyze everything Teach effective methods

Constantly monitor
workers

Organize and control the
Plan responsibly
work and the workers


Classical Administrative School
 Henri Fayol
 Henri Fayol
Believed that:
Believed that:
- specific skills could be learned and taught
- specific skills could be learned and taught
 Fayol’s Universal Management Functions:
 Fayol’s Universal Management Functions:
- Planning
- Planning
- Organizing
- Organizing
- Commanding
- Commanding
- Coordinating
- Coordinating
- Controlling
- Controlling

 Mary Parker Follett
 Focused on how organizations cope with:
- Conflict and the importance of goal sharing among
managers.
- Emphasized the human element.
- Emphasized the need to discover and enlist
individual and group motivation.



 Chester Barnard
- Argued that managers must gain acceptance for
their authority.
- Advocated the use of basic management
principles.
- Cautioned managers to issue no order that could
not or would not be obeyed.


Limitations

1. Rigid and 2. Lack of
unresponsive commitment
decision making. among workers.


Abraham Maslow

1. Developed a needs-based theory of motivation.

2. Theory is now considered central to understanding human
motivations and behavior.


Behavioral Management School
The Results Today
Managers work hard to
discover what employees
want from work.

Enlist cooperation and
commitment.

Unleash talents, energy, and
creativity.


Quantitative School of
Management Theory

1. Mathematical approaches to management problems.

2. Was born in World War II era.

3. Applied to every aspect of business.


Management Science

Study of:
--Complex systems of:
Complex systems of:
--People
People
--Money
Money
--Equipment
Equipment
--Procedures
Procedures
--Is aafacet of quantitative management theory
Is facet of quantitative management theory
--Enables managers to design specific measures
Enables managers to design specific measures


Area of Management Science
Operations Research

Models Games

Simulations


Common Tools of Operations
Management

Inventory Models

Break-even Analyses Production Scheduling

Production Routing


The Organization as a System


Contingency School
 Approaches depend on the variables of the situations.
 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 options before choosing.
 Encourages managers to stay flexible.


Reengineering Approach
The fundamental rethinking and radical
Reengineering redesign of business processes to achieve
dramatic improvements in critical,
contemporary measures of performance.

Reengineering What a company must do.
determines How to do it.

To sense the need for change.
Greatest challenges
To see change coming.
facing managers
To react effectively to it when it
comes.

Quality School of Management
Has its roots most directly in the behavioral, quantitative,
systems, and contingency schools.

People key to both commitments and performance.

What is done must be measured and evaluated quantitatively
and qualitatively.

Quality school is the most current and is embraced worldwide.


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