Lecture The evolution of management thought (6th edition) - Chapter 16: Organizations and People

Contributors in this chapter were concerned with structuring activities and relationships for productivity and satisfaction at work: Mooney and Reiley presented rules of organization from history. Dennison’s work built on compatible work groups. Gulick, Urwick, and Graicunas focused on formalizing relationships. Davis focused on top management.

THE EVOLUTION OF MANAGEMENT

THOUGHT, 6TH

EDITION

Electronic Resource by:

Regina Greenwood and Julia Teahen

Organizations and People

Chapter Sixteen

Organizations and People

 James D Mooney (1869-1947) and Alan C Reiley (1884-1957)

(1910-James Mooney and Alan

Reiley

principles of organization both in historical examples and

in large-scale enterprise

 Objectives – “profit through service”

 Efficiency resided in organized group effort

 Formalism, the basis of

an efficient organization, involved the “efficient coordination of all relationships”

 Management actuates, plans, and controls the plans and procedure of the organization.

James Mooney and Alan Reiley

– Onward Industry

 Coordination – rested on authority

 Authority was in the organization, while power was an individual possession

 “Doctrine” – Objectives

 Scalar principle, which was founded in

leadership

 Delegation – conferring authority

 Functional principle – difference in duties

performed (such as line-staff)

 Staff – represented the authority of ideas

 Line – represented the “authority of man.”

Administrative Theory

Luther Gulick (1892-1993)

 Luther Gulick is better

known for his work in

public administration

 POSDCORB – his view

of the functions of the

Administrative Theory

Lyndall Urwick (1891-1984)

 Lt Col Urwick attempted to synthesize a number of contributors to develop a general theory of

organization and management.

 8 Principles of organization

 Along with Gulick, brought Fayol into the picture long before Fayol was recognized in the U.S.

for a narrow span of control due to “span of attention” and the

relationships that managers must deal with.

different types of relationships indicated a geometric growth of

relationships with an arithmetic increase in the number of

subordinates

Span of Control – Graicunas

keeping the span of control narrow,

Graicunas also includes a qualifier:

 Exceptions could be made if the work was routine, was done independently of others, and where supervisory responsibilities

were less complex.

Graicunas: A Biographical Note,”

Academy of Management Journal 17, no

2 (June 1974) for fascinating account of Graicunas’ unusual life

V A Graicunas

Papers on the Science of Administration by Urwick and Gulick.

Pay

special attention

to the authors

Toward a Top Management

Viewpoint

(1894-1986) was educated as a mechanical engineer, took an early shop

management approach, encountered the Coubrough

translation of Fayol, leading him to his top management contributions.

management:

planning, organizing, and controlling.

Renewed interest in managerial work and seminal work in

transaction costs and the nature of the firm is discussed here This section is important as preparing the way for later

developments in strategic management and organization theory Toward a Top Management Viewpoint

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Ralph C Davis

executive leadership.”

 Unique insights into controlling with

respect to its timing:

 Preliminary – trying to design in advance what would promote the planned

performance.

 Concurrent – supervising, comparing, and taking corrective action as needed.

Toward a Top Management

Viewpoint

by Taylor and applied these ideas in a more general management setting

executive compensation, while others had focused on blue-collar workers

compensation to performance (still an important issue today)

Was Harry Hopf ahead of A D Chandler Jr.’s “structure follows strategy?” Optimology is a view of the firm as a whole…serve society to maximize profits How could this idea be used in strategy formulation?

Harry Hopf – Form Follows Function &

Optimology

The study found the need for clearer objectives and plans

Do we still face the same issues?

Holden, Fish, and Smith’s 1941 Study

Other Studies of Top

Management

occupied a major portion of a manager's time (1951)

management audit

 a search for excellence before Tom Peters and Bob Waterman.

What did Adam Smith say about those who manage “other peoples’ money?”

Ownership and Control

 Adolph Berle and

Robert Gordon’s criticism was much the same, seeing top

management as a self-perpetuating oligarchy serving their own interests Why is ownership and control an ever recurring

problem?

Ownership and Control

Visible and Invisible Hands

that the transactions

were smallest unit of

Visible and Invisible Hands

 Ronald H Coase (1910-)

wrote his seminal work

during this time about the

nature of the firm

 He saw the firm as the

“visible hand” and

superior, in most cases, to

the market in allocating

resources

 Coase was continuing the

tradition of J.B Say and

Alfred Marshall but his

work received belated

 Contributors in this chapter were concerned with structuring activities and relationships for productivity and satisfaction at work:

from history.

relationships.

whole firm.

economics.