CHAPTER 2 PIONEERING IDEAS IN MANAGEMENT

1. CHAPTER 2PIONEERING IDEAS IN MANAGEMENT © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

2. Lecture outline • Early management ideas • Classical theorists • Behavioural theorists • Quantitative approach • Contemporary ideas • Innovation & management theory © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

3. Early management ideas • Robert Owen (1771–1858) Identified the importance of working and social conditions for employees. • Charles Babbage (1792–1871) Ideas on work specialisation, production efficiency, incentive and profit-sharing plans. • Henry R. Towne(1844–1924) Called for a ‘management science’ that would establish ‘principles’ of management. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

4. Early management ideas Assessing the early contributions: • Uncoordinated efforts. • Contributions tended to relate to specific problems. • Did not see ‘management’ as a separate field or skill (until Towne). © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

5. Classical theorists ‘This viewpoint emphasises managing work and organisations more efficiently. It comprises three different management approaches: scientific, administrative and bureaucratic.’ © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

6. Classical theorists • Scientific management F. W. Taylor, F. & L. Gilbreth, H. Gantt • Bureaucratic management M. Weber • Administrative management H. Fayol © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

7. Scientific management ‘Scientific management is an approach within classical management theory emphasising the scientific study of work methods to improve worker efficiency.’ © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

8. Scientific management Frederick W. Taylor Four principles of ‘scientific management’: • Select & train the best. • Determine the most efficient work methods. • Co-operate with workers to ensure best method is used. • Divide work/responsibility between workers & managers. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

9. Scientific management • Frank & Lillian Gilbreth • Time & motion studies • Human implications of Scientific Management • Henry Gantt • Pay incentives • Gantt chart © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

10. Bureaucratic management ‘Approach emphasising the need for organisations to operate in a rational manner rather than relying on owner’s and manager’s arbitrary whims.’ © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

11. Bureaucratic management Weber’s Ideal Bureaucracy • Specialisation of labour • Formal rules & procedures • Impersonality • Well-defined hierarchy • Advancement on merit © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

12. Bureaucratic management Hierarchy of positions Advancement on merit Specialisation of labour Max Weber Formal rules & procedures © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

13. Administrative management ‘Approach focusing on principles used by managers to co-ordinate the organisation’s internal activities.’ © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

14. Henri Fayol’s Division of work Authority Discipline Unity of command/direction Primacy of general interest Remuneration Esprit de corps Principles of management Centralisation Scalar chain Order Equity Low turnover Initiative Administrative management © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

15. Administrative management Organising Planning Commanding Henri Fayol Co-ordinating Controlling © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

16. Behavioural theorists ‘Perspective on management emphasising the importance of attempting to understand various factors affecting human behaviour in organisations.’ © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

17. Behavioural theorists Early theorists: • Hugo Munsterberg Creating optimal psychological conditions, behaviour shaping • Mary Parker Follett Importance of group functioning • Hawthorne studies Importance of supervisory style © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

18. Behavioural theorists Human relations movement • Abraham Maslow Hierarchy of Needs • Douglas McGregor Theory X & Y © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

19. Maslow’s Hierarchy of Needs Self-actualisation Esteem Social Safety Physiological © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

20. McGregor’s Theory X & Y Theory Y Theory X Work is natural Work avoiding Need to control Capable of self-direction Avoid responsibility Seek responsibility Can make good decisions Workers seek security © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

21. Quantitative management viewpoint ‘Focuses on mathematics, statistics and information aids to support managerial decision making and organisational effectiveness.’ © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

22. Quantitative management viewpoint • Management science ‘Approach aimed at increasing decision effectiveness through use of sophisticated mathematical models & statistical methods.’ • Operations management ‘Function or field of expertise primarily responsible for managing production & delivery of an organisation’s products and services.’ • Management information systems ‘Field of management focused on designing & implementing computer-based information systems for use by management.’ © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

23. Contemporary viewpoints • Systems theory ‘Approach based on the idea that organisations can be viewed as systems.’ • Contingency theory ‘Viewpoint arguing that appropriate managerial action depends on the particular parameters of the situation.’ © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

24. Contemporary viewpoints • Theory Z ‘Concept combining positive aspects of American and Japanese management into a modified approach aimed at increasing managerial effectiveness while remaining compatible with the norms and values of American society and culture.’ • Total Quality approach ‘Approach highlighting collective responsibility for product and service quality, and encouraging individuals to work together to improve quality.’ © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

25. Promoting innovation Each management viewpoint provides a contribution to managing innovation: • Classical • Behavioural • Quantitative • Contemporary © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

26. Lecture summary • Early management ideas Generation of ideas leading to identification of management as a significant field of inquiry. • Classical theorists Emphasised finding ways to more efficiently manage work and organisations. • Behavioural theorists Emphasised the importance of trying to understand factors affecting human behaviour in organisations. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

27. Lecture summary • Quantitative approach Focuses on mathematics, statistics and information aids supporting managerial decision making and effectiveness. • Contemporary ideas Views of organisations as systems, importance of contingency factors & amalgamating Japanese & American management practices. • Innovation & management theory Each approach provides insights, knowledge & practice regarding the management of innovation in organisations. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.