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The Evolution of Management Thinking

C h a p

t e r

2


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New Approach to

Management

Success accrues to those who learn how

To be leadersTo Initiate changeTo participate in and create organizations

with fewer managersWith less hierarchy that can change quickly


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Management and

OrganizationManagement philosophies andorganization forms change over time tomeet new needsSome ideas and practices from thepast are still relevant and applicable tomanagement today


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Historical Perspective

Provides a context or environmentDevelops an understanding of societal

impactAchieves strategic thinkingImproves conceptual skillsSocial, political, and economic forces have

influenced organizations and the practice of management


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Forces Influencing

Organizations and Management Social Forces - values, needs, andstandards of behavior

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

Economic Forces - forces that affect theavailability, production, & distribution of a societys resources among competingusers


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Management Perspectives Over Time

1930Humanistic Perspective

19901890Classical 1940

1950

2000Systems Theory

2000

2010

The Technology-Driven Workplace1990

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 organizationsefficient operating machines

Scientific Management Bureaucratic Organizations Administrative Principles


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Scientific Management: Taylor 1856-1915General Approach

Developed standard method for performing each job.

Selected workers with appropriateabilities for each job.Trained workers in standard method.Supported workers by planning workand eliminating interruptions.Provided wage incentives to workersfor increased output .


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Scientific ManagementContributions

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 andignored their ideas


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Bureaucracy OrganizationsMax Weber 1864-1920Prior to Bureaucracy Organizations

European employees wereloyal to a single individualrather than to the organizationor its missionResources used to realizeindividual desires rather thanorganizational goals

Systematic approach looked atorganization as a whole

Ethical Dilemma: The Supervisor


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Bureaucracy Organizations

Positions organizedin a hierarchy of authority

Managers subject toRules and proceduresthat will ensure reliable

predictable behavior

Personnel are selectedand promoted based

on technicalqualifications

Administrative actsand decisions recorded

in writing

Management separatefrom the ownershipof the organization

Division of labor with Clear definitions of

authority and responsibility

Exhibit 2.3, p. 49


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Administrative PrinciplesContributors : Henri Fayol, Mary Parker, andChester I. BarnardFocus :

Organization rather than the individualDelineated the management functions of planning, organizing, commanding,coordinating, and controlling


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Henri Fayol 1841-1925

Division of labor AuthorityDisciplineUnity of command

Unity of directionSubordination of individual interest

Remuneration

CentralizationScalar chainOrder EquityStability andtenure of staff Initiative

Esprit de corps

14 General Principles of Management


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Mary Parker Follett 1868-

1933Importance of common super-ordinategoals for reducing conflict in organizations

Popular with businesspeople of her dayOverlooked by managementscholars

Contrast to scientificmanagementReemerging as applicable indealing with rapid change in

global environmentLeadershi im ortance of eo le vs.

Ethics - Power - Empowerment


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Chester Barnard 1886-1961

Informal OrganizationCliques

Naturally occurring social groupings

Acceptance Theory of AuthorityFree willCan choose to follow management orders


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Humanistic Perspective

Emphasized understandinghuman behavior, needs, andattitudes 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 StudiesTen year studyFour experimental & three controlgroupsFive different testsTest pointed to factors other thanillumination for productivity1st Relay Assembly Test Roomexperiment, was controversial, test lasted6 years

Interpretation, money not cause of increased outputFactor that increased output, HumanRelations


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Human Resource

PerspectiveSuggests jobs should be

designed to meet higher-levelneeds 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 work will avoid itMust be coerced, controlled,directed, or threatened withpunishmentPrefer direction, avoid

responsibility, little ambition,want security

Do not dislike workSelf direction and self controlSeek responsibilityImagination, creativitywidely distributedIntellectual potential onlypartially utilized

Douglas McGregor Theory X & Y

Theory X AssumptionsTheory Y Assumptions

1906-1964


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Douglas McGregor Theory

X & Y

Few companies today stilluse Theory X

Many are trying Theory Ytechniques

Experiential Exercise: Theory X and Theory Y Scale


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Behavioral Sciences Approach

Applies social science in an

organizational contextDraws from economics, psychology,sociology, anthropology, and other disciplines

Understand employee behavior and interaction in anorganizational settingOD Organization Development

Sub-field of the Humanistic Management Perspective


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Management Science Perspective

Emerged after WW IIApplied mathematics, statistics, and other quantitative techniques to managerial problems

Operations Research mathematicalmodelingOperations Management specializes inphysical production of goods or servicesInformation Technology reflected inmanagement information systems


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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

Successful resolution of organizational problems is thought todepend on managers identification of key variations in thesituation at hand


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Elements of a Learning

Organization

LearningOrganization

OpenInformation

EmpoweredEmployees

Team-Based Structure

Exhibit 2.7, p. 61


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Types of E-CommerceBusiness-to-Consumer B2C

Selling Products and

Services Online

Business-to-Business B2BTransactions Between

Organizations

Consumer-to-Consumer C2CElectronic Markets

Created by Web-BasedIntermediaries

Exhibit 2.8, p. 63

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