The Evolution of Management Thingking

© 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.

Chapter 2The 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.2

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 centuriesRise of the factory systemIssues regarding structure, training, and

employee satisfaction Large, complex organizations required

new approaches to coordination and control


Classical Perspective Three subfields:

Scientific managementBureaucratic organizationsAdministrative 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


Scientific Management 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 Scientific Management


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


2.3 - Characteristics of Weberian Bureaucracy


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 commandDivision of workUnity of directionScalar chain


Administrative Principles Identified five functions of management:

PlanningOrganizingCommandingCoordinating Controlling


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


Humanistic Perspective: Early Advocates

Empowerment: facilitating instead of controlling

Recognition of the informal organization

Introduced acceptance theory of authority


Humanistic Perspective: 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


Humanistic Perspective: 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 theoriesMaslow’s HierarchyTheory X and Theory Y


2.4 - Theory X and Theory Y


Humanistic Perspective: 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


Humanistic Perspective: Behavioral Sciences Approach

Other strategies based on behavioral science:Matrix organizationsSelf-managed teamsCorporate cultureManagement by wandering around


Quantitative Perspective Also referred to as management

science Use of mathematics and statistics to aid

management decision makingEnhanced by development and perfection

of the computer Operations management focuses on

the physical production of goods and services


Quantitative Perspective Information technology – focuses on

technology and software to aid managers Quants – financial managers who base

their decisions on complex quantitative analysis


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 partsManagers must understand subsystem

interdependence and synergy


Exhibit 2.5 Circles of Causality


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


2.6 - Contingency View of Management


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


Elements of Quality Management

Employee involvement

Focus on the customer

Benchmarking

Continuous improvement


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


Managing the Technology- Driven 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

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The Evolution of Management Thingking