Why study History?

Our understanding of the real world (Subjective reality) is influenced by external knowledge. Knowledge has evolved over a period of time. Understanding the historical context will help us reduce bias.

Industrial Revolution
Social impact Specialization of labour Machines and mass production Organizing resources for efficiency

Evolution of OT
Time Frame Systems perspective Ends perspective 1900-1930 Closed Rational 1930-1960 Closed Social 1960-1975 Open Rational 1975 Open Social

Central theme Mechanical People and efficiency human relations Theoretical classification Type 1 Type 2

Contingency Power and designs politics Type 3 Type 4

Type 1 Theorists

Fredrick Taylor and Scientific Management

1. Scientifically study each part of the job and

develop best method (time-and-motion study) 2. Select and train workers using scientifically developed methods 3. Cooperate with workers to ensure that they use the proper method 4. Divide work and responsibility among management and workers http://www.youtube.com/watch?v=8PdmNbqtDdI

Type 1 Theorists

Henry Fayol and Principles of Organization

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

Division of work Authority Discipline Unity of command Unity of direction Subordination of individual interests to general interests Remuneration Centralization Scalar chain Order Equity Stability of personnel tenure Initiative Esprit de corps

Type 1 Theorists

Max Weber (1864-1920) and Bureaucracy

Bureaucracy to avoid nepotism and class

consciousness To improve rationality and objectivity Characteristics of an ideal bureaucracy 1. Specialization of labor 2. Formal rules and procedures 3. Impersonality 4. Well-defined hierarchy 5. Career advancement based on merit

Type 1 Theorists

Ralph Davis and Rational Planning

Rational planning perspective: structure is

the logical outcomes of the organizations objectives. Structure is contingent upon the organizations objectives. Management planning determines the organizations objectives. These objectives, then, in logical fashion, determines the development of organization structure.

Type 2 Theorists

Elton Mayo and Hawthorne Studies

Group of studies conducted at the Hawthorne

plant of the Western Electric Company during the late 1920s and early 1930s. Led to the human relations view of management Role of social aspects on productivity First set of studies (1924-27): illumination studies Second set of studies (1927-1933): relay assembly test room study Third set of studies (1931-1932): bank wiring observation room study

Type 2 Theorists

Chester Barnard and Cooperative Systems

The functions of the Executive. Tasks and people have to be maintained at

an equilibrium state. The role of the informal organization. Managers major roles were to facilitate communication and motivate subordinates.

Type 2 Theorists
Douglas McGregor and Theory X Theory Warren Bennis and the Death of the Bureaucracy

Type 3 Theorists
Herbert Simon and contingency approach Katz and Kahns environmental perspective Woodward and Perrows model (1960s)

Type 4 Theorists
March and Simons cognitive limits to rationality. Pfeffers organizations as political arenas

http://www.youtube.com/watch?v=I jarLbD9r30&feature=related