the evolution and development of management thinking

8/13/2019 The Evolution and Development of Management Thinking

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Management philosophies and organization

forms change over time to meet new needs

Some ideas and practices from the past are stillrelevant and applicable to management today

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Provides a context or environment

Develops an understanding ofsocietal impact

Achieves strategic thinking Improves conceptual skills

Social, political, and economic forces

have influenced organizations andthe practice of management

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Social Forces - values, needs, andstandards of behavior

Political Forces - influence of politicaland legal institutions on people &organizations

Economic Forces - forces that affect theavailability, production, & distributionof a societys resources amongcompeting users

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5

Management Perspectives Over Time

Exhibit 2.1


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Rational, scientific approach to

management make organizationsefficient operating machines

Scientific Management

Bureaucratic Organizations

Administrative Principles

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General Approach

Developed standard method forperforming each job.

Selected workers with appropriateabilities for each job.

Trained workers in standard method.

Supported workers by planningwork and eliminating interruptions.

Provided wage incentives to workersfor increased output.

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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 ofworkers. Did not acknowledge variance among individuals. Tended to regard workers as uninformed and ignored their

ideas

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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 organizationas a whole

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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


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Contributors: Henri Fayol, MaryParker Follett, 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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Division of work

Unity of command Unity of direction

Scalar chain

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Importance of common super-ordinate goals for reducing conflictin organizations

Popular with businesspeople of her day Overlooked by management scholars

Contrast to scientific management

Reemerging as applicable in dealing with rapidchange in global environment

Leadership importance of people vs. engineering techniques

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Ethics - Power - Empowerment


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Emphasized understanding human behavior,

needs, and attitudes in the workplace

Human Relations Movement

Human Resources Perspective

Behavioral Sciences Approach

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Emphasized satisfaction of employees basic

needs as the key to increased worker

productivity

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Started in 1895

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

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Suggests jobs should be designed to meet

higher-level needs by allowing workers to use

their full potential

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Identified a hierarchy of needs

Problems stem from an inability to satisfy onesneeds

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Dislike work will avoidit

Must be coerced,controlled, directed, orthreatened with

punishment Prefer direction, avoid

responsibility, littleambition, want security

Do not dislike work Self direction and self

control Seek responsibility Imagination, creativity

widely distributed Intellectual potential only

partially utilized

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Douglas McGregor Theory X & Y

1906-1964Theory X Assumptions Theory Y Assumptions


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Applies social science in an

organizational context Draws from economics, psychology,

sociology, anthropology, and otherdisciplines Understand employee behavior and

interaction in an organizational setting

OD Organization Development

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Sub-field of the Humanistic Management Perspective


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Emerged after WW II

Applied mathematics, statistics, and otherquantitative techniques to managerialproblems Operations Research mathematical modeling

Operations Management specializes in physicalproduction of goods or services

Information Technology reflected in managementinformation systems

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Systems Theory

Contingency View

Total Quality Management (TQM)

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Exhibit 2.5


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Exhibit 2.6


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Focuses on managing the total organization to deliverquality to customers.

Four significant elements are Employee involvement

Focus on the customer

Benchmarking

Continuous improvement

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Learning

Organization

OpenInformation

EmpoweredEmployees

Team-Based Structure

Exhibit 2.7


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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

the evolution and development of management thinking

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