The Evolution of Management Thingking

Chapter 2
The Evolution of Management Thinking
2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Management and
Organization
Studying management history helps
your conceptual skills
Social forces aspects of a culture that
guide and influence relationships among
people
Political forces influence of political
and legal institutions on people and
organizations
Economic forces the availability,
production, and distribution of resources
2.1 - Management Perspectives

over Time
Classical Perspective
Emerged during the nineteenth and early

twentieth centuries
Rise of the factory system
Issues regarding structure, training, and
employee satisfaction
Large, complex organizations required

new approaches to coordination and
control
Classical Perspective
Three subfields:
Scientific management
Bureaucratic organizations
Administrative principles
Scientific Management
Improve efficiency and labor productivity

through scientific methods
Frederick Winslow Taylor proposed that
workers could be retooled like machines
Management decisions would be based on
precise procedures based on study
Henry Gantt developed the Gantt chart

to measure and plan work
The Gilbreths pioneered time and
motion studies to promote efficiency
2.2 - Characteristics of
Bureaucratic Organizations
Max Weber, a German theorist,

introduced the concepts
Manage organizations on impersonal,

rational basis
Organization depends on rules and

records
Bureaucratic Organizations
Managers use power instead of

personality to delegate
Although important productivity gains
come from this foundation, bureaucracy
has taken on a negative tone
10
2.3 - Characteristics of
Weberian Bureaucracy
11
Administrative Principles
Focused on the entire organization

Henri Fayol, a French mining engineer,
was a major contributor
14 general principles of management;
many still used today:
Unity of command
Division of work
Unity of direction
Scalar chain
12
Administrative Principles
Identified five functions of management:

Planning
Organizing
Commanding
Coordinating
Controlling
13
Humanistic Perspective:
Early Advocates
Understand human behaviors, needs,

and attitudes in the workplace
Mary Parker Follett and Chester
Barnard
Contrast to scientific management Importance of people rather than
engineering techniques
14
Early Advocates
Empowerment: facilitating instead of

controlling
Recognition of the informal
organization
Introduced acceptance theory of
authority
15
Human Relations Movement
Effective control comes from within the

employee
Hawthorne studies were key contributor
Human relations played key variable in
increasing performance
Employees performed better when
managers treated them positively
Strongly shaped management
practice and research
16
Human Resources Perspective
From worker participation and considerate

leadership to managing work performance
Combine motivation with job design
Maslow and McGregor extended and
challenged current theories
Maslows Hierarchy
Theory X and Theory Y
17
2.4 - Theory X and Theory Y
18
Behavioral Sciences Approach
Scientific methods + sociology,

psychology, anthropology, economics to
develop theories about human behavior
and interaction in an organizational
setting
Organizational development field that
uses behavioral sciences to improve
organization
19
Behavioral Sciences Approach
Other strategies based on behavioral

science:
Matrix organizations
Self-managed teams
Corporate culture
Management by wandering around
20
Quantitative Perspective
Also referred to as management

science
Use of mathematics and statistics to aid
management decision making
Enhanced by development and perfection
of the computer
Operations management focuses on

the physical production of goods and
services
21
Quantitative Perspective
Information technology focuses on

technology and software to aid managers
Quants financial managers who base
their decisions on complex quantitative
analysis
22
Recent Trends: Systems

Thinking
The ability to see the distinct elements of a

situation as well as the complexities
System set of interrelated parts that function
as a whole to achieve a common purpose
Subsystems are parts of the system that are
all interconnected
Synergy the whole is greater than the sum of
its parts
Managers must understand subsystem
interdependence and synergy
23
Exhibit 2.5 Circles of

Causality
24
Recent Trends:
Contingency View
Every situation is unique

Managers must determine what method
will work
Managers must identify key contingencies
for the current situation
Organizational structure should depend
upon industry and other variables
25
2.6 - Contingency View

of Management
26
Recent Trends: Total Quality

Management
Quality movement is strongly associated

with Japan
The U.S. ignored the ideas of W. Edwards

Deming, Father of the Quality
Movement
Total Quality Management (TQM) became

popular in the 1980s and 1990s
Integrate high-quality values in every

activity
27
Elements of Quality
Management
Employee involvement
Focus on the customer
Benchmarking
Continuous improvement
28
Innovative Management:
Thinking for a Changing World
Management ideas trace their roots to

historical perspectives
New ideas continue to emerge to meet

the changing needs and difficult times
The shelf life of trends is getting shorter

and new ideas peak in fewer than three
years
29
Managing the TechnologyDriven Workplace

Social media programs Company online
community pages, social media sites,
microblogging platforms and online forums
Customer relationship management
technology used to build relationships with
customers
Outsourcing contracting functions or
activities to other organizations to cut costs
Supply chain management managing
supplier and purchaser relationships to get
goods to consumers
30

The Evolution of Management Thingking

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Chapter 2

The Evolution of Management Thinking

2.1 - Management Perspectives

Emerged during the nineteenth and early

Large, complex organizations required

Improve efficiency and labor productivity

Henry Gantt developed the Gantt chart

Max Weber, a German theorist,

Manage organizations on impersonal,

Organization depends on rules and

Managers use power instead of

Focused on the entire organization

Identified five functions of management:

Understand human behaviors, needs,

Empowerment: facilitating instead of

Effective control comes from within the

From worker participation and considerate

2.4 - Theory X and Theory Y

Scientific methods + sociology,

Other strategies based on behavioral

Also referred to as management

Operations management focuses on

Information technology focuses on

Recent Trends: Systems

The ability to see the distinct elements of a

Exhibit 2.5 Circles of

Every situation is unique

2.6 - Contingency View

Recent Trends: Total Quality

Quality movement is strongly associated

The U.S. ignored the ideas of W. Edwards

Total Quality Management (TQM) became

Integrate high-quality values in every

Management ideas trace their roots to

New ideas continue to emerge to meet

The shelf life of trends is getting shorter

Managing the TechnologyDriven Workplace

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