Management and

Organization
Management Approaches
Past to Present
2023-2024 Fall
3. week
Learning objectives
1. What can be learned from classical management
thinking?
2. What insights come from behavioral management
approaches?
3. What are the foundations of modern management
thinking?
 Learning Dashboard
1. Classical Management Approaches
1. Scientific management
2. Administrative principles
3. Bureaucratic organization
2. Behavioral Management Approaches
1. Follett’s organizations as communities
2. The Hawthorne studies
3. Maslow’s theory of human needs
4. McGregor’s Theory X and Theory Y
5. Argyris’s theory of adult personality
 Learning Dashboard
3. Modern Management Foundations
1. Quantitative analysis and tools
2. Organization as systems
3. Contingency thinking
4. Quality management
5. Knowledge management and organizational learning
6. Evidence-based management
 History of management thoughts

• History of management thoughts could be traced as far back as 5000

b.c., when ancient Sumerians used written records to assist in
governmental and business activities.

• Management was important to the construction of the Egyptian

pyramids, the rise of the Roman Empire, and the commercial success of
14th-century Venice.

• By the time of the Industrial Revolution in the 1700s, great social

changes had helped prompt a major leap forward in the manufacture
of basic staples and consumer goods.
 Historical context – classical management

Industrial revolution

• Big changes in the way people work

• Rapid explosion of big factories

• From farms to factories

• From small shops to large companies

• Steam and hydro power

• Innovations in machinery

• Developments in transportation
 Historical context – classical management

Industrial revolution

• Large groups working together

• People working alongside machinery

• Increasing pace of industry

• Companies were looking for answers

Major branches in the classical approach to
management
 Frederick W. Taylor
• American, mechanical engineer

• He published “The Principles of Scientific

Management” in 1911.

• The principal object of management should be

to secure maximum prosperity for the
employer, coupled with the maximum
prosperity for the employee.

• His goal was to improve the productivity of

people at work.
 Frederick W. Taylor
• Factories were springing up everywhere but standardized ways did
not yet exist to manage the large groups of people and handle
increasingly complex work.

• He noticed that many workers did their jobs their own ways and
without a clear and consistent approach.

• He believed this caused inefficiency and low performance.

• He also believed that this problem could be corrected if workers

were taught and then helped by supervisors to always do their jobs
in the right ways.

• Taylor wanted to make organizations more standardized,

productive, and efficient by studying their work process closely.
 Taylor’s Scientific Management

• Scientific management = applying science to work

• Studying tasks carefully and systematically to speed up work

• Breaking away from the common sense ’rules of thump’

that he sawas uproven and ineffiecient

• Scientific management also known as Taylorism

 Taylor’s Scientific Management

• Division of labour = dividing the work process into small,

simple and separate steps

• Each step or two was performed by a different person

• Wanted to determine the one best way, a standard to do

every part, every task to increase productivity
 Taylor’s Scientific Management

Hierarchy

• A clear chain of command that seperated managers from workers

• Managers would design work and process and enforce how the work
was performed

• Employees simply follow directions

 Taylor’s Scientific Management

Selection, Training, and Compensation

• Suggested to select and train high-performing workers and match

them to a job that best suits them

• Believed the most productive workers should be paid more

• Suggested to fire the employees who could not meet the new higher
standards
 Taylor’s Scientific Management

Method: Time & Motion studies

• Time: what is the least amount of time to perform each task?

• Motion: what were the fewest number of motions required to

perform each small task?

• Wanted employees to work as if they are machines.

 Classical Management Approaches
Taylor’s Principles of Scientific Management

• Four guiding principles of scientific management

(Frederick Taylor)
1. Develop for every job a “science” that includes rules of
motion, standardized work implements, and proper
working conditions.

2. Carefully select workers with the right abilities for the

job.

3. Carefully train workers to do the job and give them the

proper incentives to cooperate with the job “science.”

4. Support workers by carefully planning their work and

by smoothing the way as they go about their jobs.
16
 Taylor’s Scientific Management
• Taylor's pig iron experiment:
https://www.shutterstock.com/tr/video/clip-19628218-frederick-
taylor's-pig-iron-carrying-experiment-tests

• Kitchen stories: https://www.youtube.com/watch?v=I0Oan6gGnVI

• McDonald: https://www.youtube.com/watch?v=eYQgNDgs8kw
 Takeaway 1: Classical Management Approaches

• Practical lessons from scientific management

• Make results-based compensation a performance incentive

• Carefully design jobs with efficient work methods

• Carefully select workers with the abilities to do these jobs
• Train workers to perform jobs to the best of their abilities
• Train supervisors to support workers so they can perform jobs to the
best of their abilities
 Outcomes of Taylorism

• Increased productivity by 200% to 400%

• More work accomplished with fewer people

which meant for profit for companies

• More consistent products

 Outcomes of Taylorism
Companies often failed to pay employees more

“Managers think, employees do” philosophy became a normal

Separated workers from the greater meaning of the work
Deskilled employees and made them expandable
“Survival of the fittest” philosophy = harsh atmosphere
Employee burnout, dehumanization, mental anguish

Ford and Taylor: https://www.youtube.com/watch?v=8PdmNbqtDdI

Major branches in the classical approach to
management
 Henri Fayol
• French, mining engineer

• He published “General and Industrial

Administration” in 1916.

• He saw the need for management training and

education.

• He believed that management could be taught.

• His goal was to contribute to the management

theory.
 Classical Management Approaches
Henri Fayol’s General and Industrial Administration

6 activities of industry

• Technical : production and manufacturing

• Commercial : buying, selling, and exchanging goods and services

• Financial : searching for and using capital or money optimally

• Security : protection of the property and people

• Accounting : balance sheets, costs, and keeping track

• Managerial : planning, organizing, command, coordination, and control

 Classical Management Approaches
Henri Fayol’s General and Industrial Administration
 Classical Management Approaches
Henri Fayol’s General and Industrial Administration

Rules/duties of management:

Planning Organization Command Coordination Control

to fit diverse
to make sure
to lead, select, efforts
to provide and things happen
and evaluate together and
to complete a mobilize according to
workers to get ensure
plan of action resources to plan and to
the best work information is
for the future implement the take necessary
toward the shared and
plan corrective
plan problems
action
solved
Henri Fayol’s General and Industrial Administration

Principles of Management
1. Division of Work
2. Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of Individual Interest to the
general interest
7. Remuneration
8. Centralization
9. Scalar Chain
10. Order
11. Equity
12. Stability
13. Initiative
14. Esprit de Corps
 Fayol’s management principles
1. Division of Work: segregating work, task specialization to increase
productivity. This principle is appropriate for both the managerial as well as
a technical work level.
2. Authority and Responsibility: the right to give orders and exact
obedience. Also taking the responsibility for the work done under their
guidance or leadership. A good manager takes the responsibility for her
decisions and gives courage to those around her.
3. Discipline: obedience, energy, good behavior of employees. Also, it is the
order created by managers and they use warnings, fines, and suspensions
for enforcement. To ensure the discipline in organizations;
• Good managers at all levels
• Clear and just contracts as possible
• Application of fines fairly
 Fayol’s management principles
4. Unity of Command: an employee should receive orders from one
supervisor only. If an employee has to follow more than one boss,
there begins a conflict of interest and can create confusion.
5. Unity of Direction: one head and one plan for a group of activities
having the same direction.
6. Subordination of Individual Interest to the general interest:
This indicates a company should work unitedly towards the interest
of a company rather than personal interest. Be subordinate to the
purposes of an organization. This refers to the whole chain of
command in a company.
7. Remuneration: pay should be fair and should reward “well-
directed effort”. It is also important not paying more than a
reasonable level. Remuneration can be monetary or non-monetary.
 Fayol’s management principles
8. Centralization: establish the most effective balance between
centralization and decentralization/delegating the decision making
and power. This depends on the size of an organization.

9. Scalar chain: there should be a clear

and unbroken line of communication
from the top to the bottom of the
organization. The hierarchy steps
should be from the top to the lowest.

10. Order: right people at the right place to form an effective social
order. A company should maintain a well-defined work order to have
a favourable work culture.
 Fayol’s management principles
11. Equity: desire for equity and equality of treatment of employees, a
combination of kindliness and justice

12. Stability of tenure and personnel: employees should stay in

their jobs as long as they are good at it.

13. Initiative: should encourage and inspire the initiative of employees.

14. Esprit de Corps: seek to establish unity and harmony.

Major branches in the classical approach to
management
 Max Weber
• German, sociologist and political economist
(1864-1920)

• His contribution to the management field

introducing the concepts of authority and
bureaucracy.

• He saw the management problems during the

rise of factories and large companies.

• His suggested a rational approach to manage

organizations.
Classical Management Approaches
Max Weber
 Classical Management Approaches
Max Weber

Particularism
Employees were hired or fired for a variety of non-
organizational reasons such as religion, race, sex, and
relational or family connections (favoritism)

Particular group of people has dispropotionate influence on

decision-making.
 Classical Management Approaches
Max Weber
• Rational approach to manage organizations

• Clarified leadership structure

• Clarified rules for decision making

 Max Weber
Legal-Rational Authority

• The legitimate authority of leadership positions should be formalized

and fixed to those positions.

• Organizations should be run by formal rules and policies.

• Authority resides in the position or office.

 Classical Management Approaches
Max Weber
• Bureaucratic organization
• Bureaucracy
• An ideal, intentionally rational, and very efficient form of
organization
• Based on principles of logic,
order, and legitimate
authority
 Classical Management Approaches
Max Weber

Characteristics of bureaucratic organizations:

• Clear division of labor
• Clear hierarchy of authority
• Formal rules and procedures
• Impersonality (separation of personal life from work life)
• Careers based on merit (selection of personnel on the basis of
technical qualifications and equal treatment of employees)

• Employment as a career (tenure protects against unfair dismissal)

 Classical Management Approaches
Max Weber

• Possible disadvantages of bureaucracy:

• Excessive paperwork or “red tape”
• Slowness in handling problems
• Rigidity in the face of shifting needs
• Resistance to change
• Employee apathy
 Your assignment
• Modern Times (1936)

• You will watch the movie (Modern Times by

Charlie Chaplin) and write a ‘Reflection Paper’.
• One page – Word limit is 350-600 words
• Hand writing or print out, both acceptable
• Submission due 27 October, 2023 (class time).
• Your own thoughts about the movie and its
relations to the industrial revolution and classical
management approach.
 Be careful about plagiarism!
It is fraud and violation of moral rights!

• Submitting someone's work as their own.

• Verbatim copying without proper citation

• Relying too heavily on other people's work, failing to bring original

thought.