The Evolution of Management Thinking Chapter 2. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 2 New Approach.

The Evolution of Management Thinking

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pter

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Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

New Approach to Management

Success accrues 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

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

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 have influenced organizations and the practice of management

5


Forces Influencing Organizations and Management

Social Forces - values, needs, and standards of behavior

Political Forces - influence of political and legal institutions on people & organizations

Economic Forces - forces that affect the availability, production, & distribution of a society’s resources among competing users

6


Management Perspectives Over Time

1930Humanistic Perspective

19901890Classical 1940

1950

2000Systems Theory

2000

2010The Technology-Driven Workplace

1990

2010The Learning Organization

1970Contingency Views

2000

1980Total Quality Management

2000

1940Management Science Perspective

1990

20101870

Exhibit 2.1, p.44

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Classical Perspective: 3000 B.C.

● Rational, scientific approach to management – make organizations efficient operating machines

● Scientific Management● Bureaucratic Organizations● Administrative Principles

8


Scientific Management: Taylor 1856-1915

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 and

eliminating interruptions. Provided wage incentives to workers for

increased output.

9


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

10


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 rather than organizational goals

Systematic approach –looked at organization as a whole

Ethical Dilemma: The Supervisor

11


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

12


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

13


Henri Fayol 1841-1925

Division of labor Authority Discipline Unity of command Unity of direction Subordination of

individual interest Remuneration

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

Centralization Scalar chain Order Equity Stability and

tenure of staff Initiative Esprit de corps

14 General Principles of Management

14


Mary Parker Follett 1868-1933

Importance of common super-ordinate goals for reducing 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 in

global environment

Leadership – importance of people vs. engineering techniques

Ethics - Power - Empowerment

15


Chester Barnard 1886-1961

Informal Organization– Cliques– Naturally occurring social groupings

Acceptance Theory of Authority– Free will– Can choose to follow management orders

16


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

18


Hawthorne Studies

Ten year study Four experimental & three control groups Five different tests Test pointed to factors other than illumination for

productivity 1st Relay Assembly Test Room experiment, was

controversial, test lasted 6 years Interpretation, money not cause of increased output Factor that increased output, Human Relations

19


Human Resource Perspective

Suggests jobs should be designed to meet

higher-level needs by allowing workers to

use their full potential

20


Physiological

Safety

Belongingness

Esteem

Self-actualization

Abraham Maslow’s Hierarchy of Needs

Based on needs satisfaction

1908-1970

Chapter 16 – Maslow in more detail

21


Dislike work –will 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, creativity widely

distributed Intellectual potential only

partially utilized

Douglas McGregor Theory X & Y

Theory X Assumptions Theory Y Assumptions

1906-1964

22


Douglas McGregor Theory X & Y

Few companies today still use Theory X

Many are trying Theory Y techniques

Experiential Exercise: Theory X and Theory Y Scale

23


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– OD – Organization Development

Sub-field of the Humanistic Management Perspective

24


Management Science Perspective

Emerged after WW II Applied mathematics, statistics, and other quantitative

techniques to managerial problems Operations Research – mathematical modeling

Operations Management – specializes in physical production of goods or services

Information Technology – reflected in management information systems

25


Recent Historical Trends

● Systems Theory

● Contingency View

● Total Quality Management (TQM)

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Systems View of Organizations

Exhibit 2.5, p. 58

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Contingency View of Management

Exhibit 2.6, p. 59

Successful resolution of organizational problems is thought to depend on managers’ identification of key variations in the situation at hand

28


Elements of a Learning Organization

Learning Organization

Open Information

Empowered Employees

Team-Based Structure

Exhibit 2.7, p. 61

29


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

Exhibit 2.8, p. 63

The Evolution of Management Thinking Chapter 2. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 2 New Approach.

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