Lesson 2: Historical Theories of Management

Historical Forces of Management

Forces that influence how management develops and operates.

Social Forces

Aspects of culture that guide and influence relationships among people.

Political Forces

Influences of political and legal institutions on people and organizations.

Economic Forces

Factors that influence business operations, profit, and efficiency.

Charles Babbage

Advocated specialization of mental work and emphasized the necessity of profit sharing.

Robert Owen

Considered a pioneer in human resource management; advocated concern for worker welfare.

Henry Robinson Towne

Outlined the importance of management as a science and called for management principles.

Contemporary Management Theories

Theories that encourage staff participation in decision making and improve interpersonal relations.

Peter Drucker

Name associated with the contempoarary management theory.

Hawthorne Effect

The more attention an employee receives, the higher their effort and productivity may become.

McGregor Theory X & Y

Management theories describing different assumptions managers can have about workers.

Theory X

A pessimistic view of worker; assumes they are naturally unmotivated and dislike work.

Theory Y

An optimistic view of workers that encourages participation, responsibility, trust, and collaboration.

Theory A - American management style

Characterized by an individualistic approach.

Theory Z - Modified American management style

Emphasizing long-term job security, consensual decision making, and group responsibility.

Theory Y — Japanese management style

Promotes stable employment, high productivity, high morality, and employee satisfaction.

Behavioral Viewpoint

A management viewpoint focused on understanding the human aspect of workers.