EVOLUTION OF MANAGEMENT THEORY

SCIENTIFIC MANAGEMENT THEORY :
 Modern management began in the late 19th century.
 Organizations were seeking ways to better satisfy customer needs.
 Machinery was changing the way goods were produced.
 Managers had to increase the efficiency of the worker-task mix.

 Defined by Frederick Taylor, late 1800’s.
 The systematic study of the relationships between people and tasks to redesign the work for higher efficiency.
 Taylor sought to reduce the time a worker spent on each task by optimizing the way the task was done.

 Four Principles to increase efficiency:
1. Study the way the job is performed now & determine new ways to do it.
Gather detailed, time and motion information.
 Try different methods to see which is best.
2. Codify the new method into rules.
 Teach to all workers.
3. Select workers whose skills match the rules set in Step 2.
4. Establish a fair level of performance and pay for higher performance.
 Workers should benefit from higher output.
PROBLEMS OF SCIENTIFIC MANAGEMENT :
 Managers often implemented only the increased output side of Taylor’s plan.
 They did not allow workers to share in increased output.
 Specialized jobs became very boring, dull.
 Workers ended up distrusting Scientific Management.
 Workers could purposely “under-perform”
 Management responded with increased use of machines.
BEHAVIOURAL MANAGEMENT THEORY:
 Focuses on the way a manager should personally manage to motivate employees.
 Mary Parker Follett: an influential leader in early managerial theory.
 Suggested workers help in analyzing their jobs for improvements.
 The worker knows the best way to improve the job.
 If workers have the knowledge of the task, then they should control the task.

THEORY X AND Y:
 Douglas McGregor proposed the two different sets of worker assumptions.
 Theory X: Assumes the average worker is lazy, dislikes work and will do as little as possible.
 Managers must closely supervise and control through reward and punishment.
 Theory Y: Assumes workers are not lazy, want to do a good job and the job itself will determine if the worker likes the work.
 Managers should allow the worker great latitude, and create an organization to stimulate the worker

THEORY Z:
William Ouchi researched the cultural differences between Japan and USA.
USA culture emphasizes the individual, and managers tend to feel workers follow the Theory X model.
Japan culture expects worker committed to the organization first and thus behave differently than USA workers.
Theory Z combines parts of both the USA and Japan structure.
Managers stress long-term employment, work-group, and organizational focus.
MANAGEMENT SCIENCE THEORY :
Uses rigorous quantitative techniques to maximize resources.
Quantitative management: utilizes linear programming, modeling, simulation systems.
Operations management: techniques to analyze all aspects of the production system.
Total Quality Management (TQM): focuses on improved quality.
Management Information Systems (MIS): provides information about the organization
ORGANISATION-ENVIRONMENT THEORY :
Considers relationships inside and outside the organization.
The environment consists of forces, conditions, and influences outside the organization.
Systems theory considers the impact of stages:
Input: acquire external resources.
Conversion: inputs are processed into goods and services.
Output: finished goods are released into the environment.