Ch 02 for exam.ppt

8/10/2019 Ch 02 for exam.ppt

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The Evolution ofManagement Thinking


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2

New Approach to Management

Successaccrues to those who learn how To be leaders

To Initiate change

To participate in and create organizations

with fewer managers

With less hierarchy that can change quickly


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3

Management and Organization

Management philosophies and organization

forms change over time to meet new needs

Some ideas and practices from the past are

still relevant and applicable to management

today


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4

Historical Perspective

Provides a context or environment

Develops an understanding of societal impact

Achieves strategic thinking

Improves conceptual skills

Social, political, and economic forces haveinfluenced organizations and the practice of

management


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Forces Influencing

Organizations and Management

Social Forces- values, needs, and

standards of behavior

Political Forces- influence of political andlegal institutions on people & organizations

Economic Forces- forces that affect theavailability, production, & distribution of asocietys resources among competing users


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Management Perspectives Over Time

1930

Humanistic Perspective19901890

Classical1940

1950

2000

Systems Theory

2000

2010

The Technology-DrivenWorkplace

1990

2010

The Learning Organization

1970Contingency Views

2000

1980

Total Quality Management2000

1940

Management Science Perspective1990

20101870

Exhibit 2.1, p.44


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Classical Perspective: 3000 B.C.

Rational, scientific approach to

managementmake organizations

efficient operating machines

Scientific Management

Bureaucratic Organizations

Administrative Principles


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Scientific Management: Taylor1856-1915

General Approach

Developed standard method for performing each

job. Selected workers with appropriate abilities for

each job.

Trained workers in standard method.

Supported workers by planning work andeliminating interruptions.

Provided wage incentives to workers forincreased output.


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Scientific Management

Contributions Demonstrated the importance of compensation for performance.

Initiated the careful study of tasks and jobs. Demonstrated the importance of personnel and their training.

Criticisms Did not appreciate social context of work and higher needs of

workers.

Did not acknowledge variance among individuals.

Tended to regard workers as uninformed and ignored their ideas


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Bureaucracy Organizations

Max Weber 1864-1920

Prior to Bureaucracy Organizations European employees were loyal to a single individual

rather than to the organization or its mission

Resources used to realize individual desires ratherthan organizational goals

Systematic approachlooked at organizationas a whole


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Bureaucracy Organizations

Positions organized

in a hierarchy of authority

Managers subject to

Rules and procedures

that will ensure reliable

predictable behavior

Personnel are selected

and promoted based

on technical

qualifications

Administrative acts

and decisions recorded

in writing

Management separate

from the ownership

of the organization

Division of labor

with Clear definitions of

authority and responsibility

Exhibit 2.3, p. 49


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Administrative Principles

Contributors: Henri Fayol, Mary Parker,

and Chester I. Barnard Focus:

Organization rather than the individual

Delineated the management functions of

planning, organizing, commanding,coordinating, and controlling


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Henri Fayol 1841-1925

Division of labor

Authority

Discipline

Unity of command

Unity of direction

Subordination of

individual interest

Remuneration

Centralization

Scalar chain

Order

Equity

Stability and

tenure of staff

Initiative

Esprit de corps

14 General Principles of Management


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Mary Parker Follett 1868-1933

Importance of common super-ordinate goals forreducing conflict in organizations

Popular with businesspeople of her day Overlooked by management scholars

Contrast to scientific management

Reemerging as applicable in dealing with rapid change inglobal environment

Leadershipimportance of people vs. engineeringtechniques

Ethics - Power - Empowerment


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Chester Barnard 1886-1961

Informal Organization

Cliques Naturally occurring social groupings

Acceptance Theory of Authority

Free will

Can choose to follow management orders


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Humanistic Perspective

Emphasized understanding human behavior,

needs, and attitudes in the workplace

Human Relations Movement

Human Resources Perspective

Behavioral Sciences Approach


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Human Relations Movement

Emphasized satisfaction of employees

basic needs as the key to increased

worker productivity


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Hawthorne Studies

Ten year study

Four experimental & three control groups Five different tests

Test pointed to factors other than illumination forproductivity

1st Relay Assembly Test Room experiment, wascontroversial, test lasted 6 years

Interpretation, money not cause of increasedoutput

Factor that increased output, Human Relations


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Human Resource Perspective

Suggests jobs should be designed to meet

higher-level needs by allowing workers to

use their full potential


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Physiological

SafetyBelongingness

Esteem

Self-

actualization

Abraham Maslows

Hierarchy of Needs

Based on needs satisfaction

1908-1970


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Dislike workwill avoid it Must be coerced,

controlled, directed, or

threatened with

punishment Prefer direction, avoid

responsibility, little

ambition, want security

Do not dislike work Self direction and self

control

Seek responsibility

Imagination, creativitywidely distributed

Intellectual potential

only partially utilized

Douglas McGregor

Theory X & YTheory X Assumptions Theory Y Assumptions

1906-1964


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Douglas McGregor Theory X & Y

Few companies today still use Theory X

Many are trying Theory Y techniques


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Behavioral Sciences Approach

Applies social science in an organizational

context Draws from economics, psychology,

sociology, anthropology, and other

disciplines

Understand employee behavior and interaction

in an organizational setting

ODOrganization Development

Sub-field of the Humanistic Management Perspective


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Management Science Perspective

Emerged after WW II

Applied mathematics, statistics, and otherquantitative techniques to managerial

problems

Operations Researchmathematical modeling

Operations Managementspecializes in physicalproduction of goods or services

Information Technologyreflected in managementinformation systems


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Recent Historical Trends

Systems Theory

Contingency View

Total Quality Management (TQM)


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Systems View of Organizations


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Contingency View of Management

Successful resolution of organizational problems is thought to

depend on managers identification of key variations in the

situation at hand


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Elements of a Learning Organization

Learning

Organization

OpenInformation

EmpoweredEmployees

Team-Based Structure


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Types of E-Commerce

Business-to-Consumer B2C

Selling Products and

Services Online

Business-to-Business B2B

Transactions Between

Organizations

Consumer-to-Consumer C2C

Electronic Markets

Created by Web-Based

Intermediaries

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