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Management Theories (organizations as machines)

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Pre-Industrial Revolution:

Organizations functioned like empires

Ben Franklin- independence, hard work, planning, organization, control

Frederick the Great – organized armies on principles of mechanics

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Adam Smith (1776) – Wealth of Nations – division of labor

Karl Marx – 1u32 – division of labor

Blueprint for organizational form:

Organization

Chart

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Civil War - conflict of social values – hierarchy of race vs. hierarchy of social class

Industrial Revolution – rise of the modern factory

Concepts of division of labor, hierarchy, scientific methods solidified

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Scientific Management – Frederick Taylor

Management as a science, clearly defined laws, rules, principles

Time and motion studies – improved organizational efficiency

Division of labor, chain of command, communication limited to orders, instructions

Management-oriented, production centered view of org. comms.

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Managers think; workers work

Efforts to improve efficiency (sometimes backfired)

Henri Fayol (1949) Theory of administrative science

5 elements of classical management: planning, organizing, goal setting, coordinating, controlling (evaluating)

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Fayol advocated centralized decision making, respect for authority

Principles of management:

• Division of work

• Discipline

• Unity of command

• Subordination of individual to general interest

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•Fair remuneration for effort

•Centralization

•Hierarchy

•Equitable treatment of employees

•Esprit de corps

•Stability of tenure of employees

•Initiative on part of managers

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Bureaucracy (Max Weber):

•Fixed division of labor

•Hierarchy of offices

•General rules for performance

•Separation of personal/work life

•Selection of personnel based on technical qualifications

•Equal treatment

•Employment as a career

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Influence of traditional management theories on businesses today:

Management authority

Rational behavior model

Money as motivator

Hierarchical thinking

Machinelike, prescriptive management of behavior

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Criticism:

Rigid, unadaptive, structures

“red tape” inefficiencies

Failure to understand social/ psychological dynamics of organizational behavior

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Transitional: Chester Barnard

Attempted to provide comprehensive theory of cooperative behavior in formal organizations

Individual as basic strategic factor in organizations

Compliance and “zone of indifference”

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Barnard: first function of the executive is to establish and maintain a system of communication

Organizations made up of individual humans with individual motivations

Larger organizations contain smaller sub-grouping – consider their goals

Efficiency vs. effectiveness

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Authority in organization only exists if people willing to accept it

Principles for ensuring effectiveness of communications:

1.Everyone should know channels

2.Everyone should have access to a formal channel of communications

3.Lines of communic s/b as short as possible

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Beginnings of Human Relations movement (reaction against traditional management theories)

1927-1932 Hawthorne Plant of Western Electric in Illinois –

Elton Mayo and others studying relationship between lighting conditions and worker productivity

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Found that increased attention paid to workers increased productivity

First glimpse of workers as complex beings, sensitive to group norms, possessing multiple values, motives, emotions

Does positive employee morale foster productivity? Little basis for this theory

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Conclusions of Mayo’s studies:

•Work is a group activity

•Social world of adults primarily patterned about work activity

•Need for recognition, security, sense of belonging is more important in determining worker morale than physical conditions

•Complaints are symptoms of disturbance of status position

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Worker as person whose attitudes, effectiveness conditioned by social demands from inside/outside plant

Informal groups exercise strong social controls over individual workers

Group collaboration m/b planned, developed

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Human Relations movement became concerned with discovering how to harness motivation and commitment of individuals to corporate goals

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Importance of Mayo’s work:

Importance of recognizing human emotions in managing people

Demonstrated that success in leadership depends on acceptance of that leadership

Showed that relationship of workers to management was fundamental problem of industry

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