Presentation Schools of Management Thought

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SCHOOLS OF MANAGEMENT THOUGHT: AN HISTORICAL OVERVIEW
By Dr. Robert Finkelstein

HISTORICAL MANAGEMENT CONTEXT
 Ancient management history
 Between 7,000 and 2,500 years ago, the Sumerians, Egyptians, Hebrews, Greeks, and Chinese developed and implemented various management tools and techniques, including:  Script and record-keeping  Processes for planning, organizing, directing, controlling  Honesty and fairness in management  Organizational decentralization and centralization  Use of witnesses in conflicts  Minimum wage and wage incentives  Recognition that responsibility cannot be shifted  Concepts of organizational design  Exception principle in reporting to higher management  Production control and principle of specialization  Management as a separate art

HISTORICAL MANAGEMENT CONTEXT
 Some contributors to current (scientific and humanistic) management thought  Charles Babbage (1832)
 Emphasized scientific approach; division of labor and specialization; motion and time studies

 Frederick Taylor (1900)
 Defined scientific management; explored systems applications; personnel management; stressed cooperation between labor and management and higher wages; designed functional organizations; time studies; emphasized planning, research, and standards

 Henri Fayol (1916)
 Developed first complete theory of management; defined functions of management; developed principles of management; proposed that management be taught in schools

HISTORICAL MANAGEMENT CONTEXT
 Some contributors to current (scientific and humanistic) management thought  Elton Mayo (1927)
 Emphasized the sociology of groups and management

 Chester Barnard (1938)
 Developed a theory of organization; examined sociological aspects of management and communications in management

 Max Weber (1947)
 Emphasized the psychology and social psychology of management; researched human relations in organization theory; developed open system theory of organizations

 Norbert Wiener (1949)
 Emphasized systems analysis and information theory in management

 Herbert Simon (1955)
 Explored human behavior in decision-making

MANAGEMENT THOUGHT
 Manager: a definition
 A person responsible for setting and achieving objectives by influencing human behavior within a suitable environment  Responsible for the physical and conceptual environment needed to accomplish the objectives of the organization and the participating individuals

 Various aggregations of management thought labeled “schools”  Labels vary among management theorists  One taxonomy of “schools” of management     Scientific school Process school Behavioral school Quantitative school

SCIENTIFIC SCHOOL OF MANAGEMENT
 Emphasizes scientific analysis of work methods
 But does not ignore human element  Time and motion studies, piecework incentives  Has adverse effect of turning some workers into automatons

 Workers are not economically rational
 Need job satisfaction as well as wages

 Despite the intentions of the scientific school (e.g., Frederick Taylor, Henry Gantt, Frank and Lillian Gilbreth)  Labor and management remained adversaries

SCIENTIFIC SCHOOL OF MANAGEMENT
 Scientific analysis of work methods is still a valid approach  To enhance efficiency and productivity  But also for ergonomic analysis  To avoid injuring workers and to provide job satisfaction

 But some jobs are inherently with little satisfaction (e.g., eviscerating chickens, cleaning toilets)

PROCESS SCHOOL OF MANAGEMENT
 Also known as the “traditional school”  Holds that management is a process of getting things done through and with people operating in organized groups  Emphasizes:
 Analyzing the management process  Establishing conceptual frameworks  Performing research and testing principles empirically

 Focus on the manager and the management process, rather than specific activities of workers

 Tenets of the...
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