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History of Management Thought

Lecture #3

Schools of Management Thought

Schools of Management Thought


Classical School

Behavioral School
Management Science School

Classical School
One best way to manage

It is managements job to ascertain the best way to perform a job, then teach that method to workers. The same philosophy applies to running the organization (the managers job)

Scientific Management
The Scientific Method applied to work

Scientific Management
Observation

Measurement
Logic Analysis

Frederick Taylor
The Father of Scientific Management

Taylor & Scientific Management


Experiment in Iron Foundry

Shoveling Coal

Taylor & Shoveling Coal


Standard Operating Procedure: Hire the man with the shovel

Taylor & Shoveling Coal


New Idea: Use standardized shovels!!!

Taylor & Shoveling Coal


Optimal shovel size for the average worker:

21 pounds

Loading Pig Iron


Intermediate product in the processing of iron ore into steel

Taylor & Loading Pig Iron


Before: Average load of 12 tons per day

After: Average load of _____ tons per day


Wages increased ____%

Taylor & Loading Pig Iron


Productivity gain for company

More money for worker


Worker was less fatigued at end of day

Scientific Management
Frank & Lillian Gilbreth

Motion & Time Studies


Therbligs

Gilbreths
Brick-laying

Gilbreths
Cheaper By the Dozen

World War I telegram to President Wilson: Arriving Washington 7:03 pm. If you dont know how to use me, Ill tell you.

Scientific Management
Application of the Scientific Method to work Selection of the most capable workers

Provide resources to workers

Scientific Management
Train the workers

Provide fair pay incentives to workers (share productivity gains)

Scientific Management: Bastardized Version


Application of the Scientific Method to work Selection of the most capable workers Provide resources to workers Train the workers

Behavioral School
aka Human Relations School

Genesis was in an experiment in Scientific Management

Behavioral School
Western Electric Hawthorne plant in Cicero, Illinois Hawthorne Studies

Hawthorne Studies
Experiment in lighting conditions

Experimental group
Control group

Hawthorne Studies (storybook version)


Increased lighting associated with increased productivity!! Decreased lighting associated with _________ productivity?? Who ya gonna call?

Hawthorne Studies
Elton Mayo

Researcher from Harvard


Workers were not reacting to the changes in lighting

Hawthorne Studies
Workers were not reacting to the conditions of the experiment Workers were reacting to being in an experiment Hawthorne Effect

Classical vs. Behavioral


Two diametrically opposed views

Which view do you hold?

Management Science School


Management Science is NOT the same as Scientific Management Originated in the Polaris missile project

Management Science
A problem is defined, and a model of the situation is developed The model simplifies reality or represents reality in an abstract manner

Management Science
Step One: Develop a model of the problem or situation Quantify the variables

Step Two:

Management Science
A politically incorrect example

Management Science
No underage!

No drink and drive!