Chapter 2 The Evolution of Management Thinking Jeffrey Chung jbcventures@gmail.com

Assignment #1 Visit caribbeanjobs.com and find a managerial job that you might be interested in the future. What are the key skills, qualifications, knowledge and experiences needed to be successful in this job? “What bad managers, good managers and great managers do. http://www.entrepreneur.com/article/237470 Managing in Turbulent Times http://www.youtube.com/watch?v=zXFeimYjkik&feature=related 3. Read Chapters 2 & 3

Learning Objectives Understand the historical forces that influenced management Identify and understand the different management perspectives that were popular in the 19th and 20th centuries, namely: classical, humanistic and management science. Explore the newer concepts of systems thinking, TQM, contingency planning Describe the management changes brought about by a technological-driven workplace including the role of CRM, social media and supply chain management

Management & Organization Understanding management history helps your conceptual skills. Discuss Social forces – aspects of a culture that guide and influence relationships among people e.g. industrialisation, social networking Political forces – influence of political and legal institutions on people and organizations e.g. elections Economic forces – the availability, production, and distribution of resources e.g. depressions

2.1 - Management Perspectives over Time

2.1 - Management Perspectives over Time

Classical Perspective Emerged during the nineteenth and early twentieth centuries Rise of the factory system and industrialisation Issues regarding structure, training and employee satisfaction and safety 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

Scientific Management Henry Gantt developed the Gantt chart to measure and plan work WBS in project Management 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 command Division of work Unity of direction Scalar chain

Administrative Principles Identified five functions of management: Planning Organizing Commanding Coordinating 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 theories Maslow’s Hierarchy Theory X and Theory Y

2.4 - Theory X and Theory Y

Theory X vs 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 organizations Self-managed teams Corporate culture Management by wandering around

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

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 parts Managers 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 Total 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 and integrate systems Outsourcing – contracting functions or activities to other organizations to cut costs Supply chain management – managing supplier and purchaser relationships to get goods to consumers

Conclusion What are the main takeaways of this session?