CHAPTER 2

PIONEERING IDEAS
IN MANAGEMENT

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LECTURE OUTLINE
Early management ideas
Classical theorists
Behavioural theorists
Quantitative approach
Contemporary ideas
Innovation & management theory
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EARLY MANAGEMENT IDEAS

Robert Owen (17711858)
Identified the importance of working and social conditions
for employees.

Charles Babbage (17921871)

Ideas on work specialisation, production efficiency, incentive
and profit-sharing plans.

Henry R. Towne (18441924)

Called for a management science that would establish
principles of management.

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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).

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CLASSICAL THEORISTS
This viewpoint emphasises efficiently
managing work and organisations.
It comprises three different
management approaches: scientific,
administrative and bureaucratic.

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CLASSICAL THEORISTS
Scientific management
F. W. Taylor, F. & L. Gilbreth, H. Gantt

Bureaucratic management
M. Weber

Administrative management
H. Fayol, C. Barnard
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SCIENTIFIC MANAGEMENT
Scientific management is an
approach in classical
management theory focusing on
the scientific study of work
methods to improve worker
efficiency.
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SCIENTIFIC MANAGEMENT
Frederick W. Taylor
Four principles of scientific management:
Select and train the best.
Determine the most efficient work methods.
Co-operate with workers to ensure best method is

used.

Divide work/responsibility between workers and

managers.

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SCIENTIFIC MANAGEMENT
Frank & Lillian Gilbreth

Time and motion studies

Human implications of Scientific Management

Henry Gantt

Pay incentives
Gantt chart

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BUREAUCRATIC MANAGEMENT
An Approach which saw the need
of an organisation to operate
rationally rather than relying on
the arbitrary whims of owners and
managers.

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BUREAUCRATIC MANAGEMENT
Webers Ideal Bureaucracy
Specialisation of labour
Formal rules & procedures
Impersonality
Well-defined hierarchy
Advancement on merit

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BUREAUCRATIC MANAGEMENT
Hierarchy
of
positions

Advancement
on merit

Max Weber

Specialisation
of labour

Formal rules &

procedures
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ADMINISTRATIVE MANAGEMENT

Approach focused on principles

for managers to co-ordinate
organisations internal activities.

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ADMINISTRATIVE MANAGEMENT
Henri Fayols Principles of
Management

Division of work
Authority
Discipline
Unity of command/direction
Primacy of general interest
Remuneration
Esprit de corps

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ADMINISTRATIVE MANAGEMENT
Henri Fayols Principles of
Management (cont.)
Centralisation
Scalar chain
Order
Equity
Low turnover
Initiative

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ADMINISTRATIVE MANAGEMENT
Organising

Planning

Commanding

Henri Fayol
Controlling

Co-ordinating

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BEHAVIOURAL THEORISTS
Perspective on management
emphasising the need to
understand the effect of different
factors on human behaviour in
organisations.

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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

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BEHAVIOURAL THEORISTS
Human relations movement
Abraham Maslow
Hierarchy of needs

Douglas McGregor
Theory X & Y

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MASLOWS HIERARCHY OF
NEEDS
Self-actualisation
Esteem
Social
Safety
Physiological
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McGREGORS THEORY X & Y

THEORY X

THEORY Y

Work
Workavoiding
avoiding

Work
Workis
isnatural
natural

Need
Needto
tocontrol
control

Capable
Capableof
ofself-direction
self-direction

Avoid
Avoidresponsibility
responsibility

Seek
Seekresponsibility
responsibility

Workers
Workersseek
seeksecurity
security

Can
Canmake
makegood
gooddecisions
decisions

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QUANTITATIVE MANAGEMENT
VIEWPOINT
Focused on mathematics,
statistics and information aids
supporting managerial decision
making and organisational
effectiveness.

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QUANTITATIVE MANAGEMENT
VIEWPOINT
Management science
Approach aimed at increasing decision effectiveness through
use of sophisticated mathematical models and statistical
methods.

Operations management
Function or field of expertise primarily responsible for managing
production and delivery of an organisations products and
services.

Management information systems

Field of management focused on designing and implementing
computer-based information systems for use by management.
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CONTEMPORARY VIEWPOINTS
Systems theory
Approach based on the idea that organisations
can be visualised as systems.

Contingency theory
Viewpoint arguing that appropriate managerial
action depends on the particular parameters of
the situation.
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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.

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CONTEMPORARY VIEWPOINTS
Total Quality Management (TQM)
Approach highlighting collective
responsibility for product and service
quality, and encouraging individuals to work
together to improve quality.

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PROMOTING INNOVATION
Each management viewpoint provides a
contribution to managing innovation:

Classical
Behavioural
Quantitative
Contemporary

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PROMOTING INNOVATION
CASE: Web on menu at McDonalds
The McDonalds restaurant in Dunedin, New
Zealand, took the innovative step of introducing a
Cyber Caf into their restaurant.
What type of management approach best
describes their innovative action?

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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.

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LECTURE SUMMARY
Behavioural theorists
Emphasised the importance of trying to
understand factors affecting human
behaviour in organisations.

Quantitative approach
Focuses on mathematics, statistics and
information aids supporting managerial
decision making and effectiveness.
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LECTURE SUMMARY
Contemporary ideas
Views of organisations as systems,
importance of contingency factors &
amalgamating Japanese & American
management practices.

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LECTURE SUMMARY
Innovation & management theory
Each approach provides insights,
knowledge & practice regarding the
management of innovation in
organisations.

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