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The Evolution of Management Thinking

CHAPTER 2

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Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.

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• Understand how historical forces influences the practice of management.

• Identify and explain major developments in the history of management thought.

• Describe the major components of the classical and humanistic management perspectives.

• Discuss the management science perspective and its current use in organizations.

• Explain the major concepts of systems theory, the contingency view, and total quality management.

• Explain what a learning organization is and why this approach has become important in recent years.

• Describe the management changes brought about by a technology-driven workplace, including the role of supply chain management, customer relationship management, and outsourcing.

Learning Outcomes

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Management and Organization

• Managers must “see the big picture”

– Social Forces: culture and values

– Political Forces: political and legal institutions and systems

– Economic Forces: availability and distribution of resources

• Mangers must face environmental turbulence

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Management Perspectives Over Time

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Classical Perspective

• The early study of management.

• 19th – late 20th Century

– Scientific Management

– Bureaucratic Organizations

– Administrative Principles

• Very powerful, gave companies fundamental skill for high productivity

– Helped US surge in management techniques

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Scientific Management

• Frederick Winslow Taylor (1856-1915), father of scientific management

• Focus on improving efficiency and labor productivity

• Workers could be retooled like machines

• Managers would need to change

• Incentive systems for meeting standards

• Others added to the theories

• Lillian M. Gilbreth added a human component to the study

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Characteristics of Scientific Management

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Bureaucratic Organizations

• Max Weber (1864-1920), a German theorist introduced the bureaucratic theories

• Rational authority—more efficient and adaptable to change

• Selection and advancement would be focused on competence and technical qualifications

• The term bureaucracy has taken on a negative tone, associated with endless “red tape”

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Characteristics of Weberian Bureaucracy

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Administrative Principles

• Henri Foyal (1841-1925), French mining engineer and other contributors led the ideas

• Foyal wrote down his own management practices

• In the text, General and Industrial Management; 14 general principles were outlined

• Several of the principles include:

– Unity of Command

– Division of Work

– Unity of Direction

– Scalar Chain

• Foyal identified five functions of management: Planning, Organizing, Commanding, Coordinating, and Controlling

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Humanistic Perspective

• Led by Mary Parker Follett and Chester Barnard

• Importance of understanding human behaviors: needs, attitudes and social interactions

– Human Relations Movement

– Human Resources Perspective

– Behavioral Sciences

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Human Relations Movement

• Control comes from the individual worker rather than authoritarian control

• The Hawthorne studies found increased output due to managers’ better treatment of employees

– Money mattered a great deal

– Productivity increased from feelings of importance

• Created a focus on positive treatment of employees

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Human Resources Perspective

• Focus on job tasks and theories of motivation– Reduce dehumanizing or demeaning work– Allow workers to use full potential – Main contributors: Abraham Maslow and

Douglas McGregor• Maslow’s Hierarchy of Needs• McGregor’s Theory X/Theory Y

• Perspective came from the idea that cows gave more milk when they were more satisfied

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Theory X and Theory Y

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Behavioral Sciences Approach

• Scientific methods that draw from sociology, psychology, anthropology, economics and other disciplines

• Focus on human behavior and interaction

• Organizational development came from behavioral sciences approach

– Applied behavioral sciences to improve organizational health and effectiveness

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Management Science Perspective

• Developed to meet changing and dynamic environment created from WWII

• Engaged mathematics, statistics and quantitative techniques to aid in decision making

• Increased study of management led by Peter Drucker

• Use of technology and programming for optimizing operations

• Introduced new subsets of management:– Operations Research

– Operations Management

– Information Technology

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Recent Historical Trends

• Systems Theory. A holistic view of management as a interrelated parts to achieve a common purpose.

• Contingency View. Successful resolution of organizational problems depends on situations.

• Total Quality Management. Management of the total organization to deliver quality.

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The Systems View of Organizations

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Contingency View of Management

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Total Quality Management

• W. Edward Deming, known as the father of the quality movement

– US initially scoffed at Deming

• During the 1980s and 1990s, quality became a focus to meet global competition

• Four key elements of quality management:1. Employee involvement

2. Focus on customer

3. Benchmarking

4. Continuous improvement

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The Learning Organization

• Learning aids in the adaptation to change

• Peter Senge began the discussion about the learning organization

• All employees are engaged in identifying and solving problems

• Learning increases the capacity to learn and grow

• Move from efficiency to solving problems

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Managing the Technology-Driven

Workplace• Most work is performed on computers in

today’s workplace

• Companies use technology to communicate and collaborate

• Key technologies in today’s workplace:

– Supply Chain Management

– Customer Relationship Management

– Outsourcing

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Supply Chain for a Retail Organization

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Business

division ofcengage learning

functions of management

industrial management

management practices

practice of management

management changes

study copyright

learning outcomes