History: 20th century management theories

1900s: Scientific management

1920s: Bureaucracy, Universalism

1930s: Human relations

1950s: Motivation

1960s: Complex man, Management by objectives

1980s: Populist approaches, Empirical approaches

1990s: Empowerment

2000 ???

Time and motion

Scientific Management: Frederick W Taylor, 1900s

Each task scientifically and rationally optimised to improve productivity, eg shoveling coal

optimum shovel size
best surface
ideal coal size and type

Monetary incentives (piece work)

Ford Motor Company embraced Taylor's work

production lines
high wages
lines moved increasingly quickly
workers could stand the pace for only a couple of years
many others ready to take their place

See Doray, 1988

A record of a discussion thread about using money as an incentive for software developers

Process approach

Universalism: Henri Fayol, 1920s

Planning
Organising
Commanding
Coordinating
Controlling

Gulick: Planning, organising, staffing, directing, coordinating, reporting, budgeting

Terry: Planning, organising, directing, coordinating, controlling, leading

Note: Studies by Mintzberg and Kotter found successful managers spend little time doing these. Instead they cultivate networks and personal contacts

Other principles

Specialisation
Chain of command
Unity of command (one boss)
Span of control (optimum subordinates)
Minimum authority levels
Line and staff

Hierarchy diagram

Rule sets

Bureaucracy: Max Weber, 1920s

The need to achieve consistency gave rise to need for rules and regulations

All tasks routine, each person expert, all transactions written

Regular activities distributed as fixed official duties
All activities follow the organisational hierarchy
Operations receive equal treatment under consistent system of abstract rules
Officials operate as formalistic personalities without becoming emotionally involved

Invented before bureaucracy became a bad word!

This approach has become discredited due to its own success !!

Organisations find bureaucracy so appealing that it grows uncontrollably. The organisation becomes more important than its purpose

Once, the Italian government had 20 bureaus studying how to cut out much of its unnecessary bureaucracy

Question: How does this compare with growth in use of methodologies?

Read summaries of Weber's books produced by students at The University of Chicago. (Long document.)

Human Relations

Hawthorne experiments: Elton Mayo, 1930s and 40s

Experiments with consulting workers about work-place lighting levels improved productivity for both the experimental and the control groups. Similar experiments found productivity always improved, no matter what one changed

Conclusion:

People are not the rational and economic beings assumed by classical theorists
Social interaction is important, and people work well if they feel valued

Read an account of the Hawthorne Experiments by Accel-Team.

Motivation

Hierarchy of needs: A H Maslow, 1950s and 60s

1. Biological: Hunger, warmth, rest

2. Safety: Protection from danger

3. Socialization: Love, affection, affiliation

4. Self-esteem: Autonomy, dignity, respect

5. Self-actualization: Realise one's potential through competence, creativity, and achievement

Complex man

We have looked at people from economic, social and self actualising stand-points

All of these approaches may be considered too simplistic

No single management style can succeed in improving the performance of all workers
The motives of an individual may be extremely complex, and liable to change over time
A high level of satisfaction does not necessarily lead to increased productivity (the other way round?)

Complex man: EH Schein, 1960s

Management by objectives

Management fundamentals: Peter Drucker, 1960s and 70s

Strategic management

Setting objectives for staff, and assessing achievement

Decentralisation

Managing in turbulent times

Preparing to deal with sudden changes and take advantage of new situations
Cf. Competitive advantage