The Evolution Of Management Thought Chapter 3 & additional notes

Learning Outcomes Be familiar with some historical aspects of management and with the work of certain management theorists Describe current trends that are affecting management today Explain the value of studying management history

Management Challenge Toyota Motor Corporation is renowned worldwide for it many outstanding business accomplishments. Assessments of the company consistently show that Toyota’s successes can be attributed to finely tuned & coordinated work activities. How can a rigid system also be flexible? As Toyota has discovered over 50 years of business, it’s those very rigid manufacturing specifications that nourish & preserve employee’s work flexibility and creativity. However, the creativity and innovation behind Toyota’s manufacturing system pales in comparison to the project a fellow engineer pioneered – a project so momentous that it had the potential to transform Toyota into one of the new economy’s most daring players

Management Challenge The engineer, Tomoyama put together a simple computer network that allowed car dealers to display online photos of used Toyotas. Through their innovative approach, the number of consumers looking at used cars increased. Test marketing showed that the use of the computer reduced the average stay of a used car on dealer’s lots from 90 days to 10 days. From this simple beginning, the website, now called Gazoo.com, has become one of Japan’s most popular portals.

Management Challenge How can Tomoyama’ make sure that Gazoo.com maintains its innovation and flexibility – two important organizational characteristics needed for success in this new e-business venture?

History of Management Thought Traditional Viewpoint Quality Viewpoint Contingency Viewpoint Systems Viewpoint Behavioral Viewpoint Adapted from Figure 3.1 Hellriegel, Jackson, Slocum, Staude & Associates MANAGEMENT: SOUTH AFRICAN EDITION Oxford University Press Southern Africa Copyright © 2001

Lecture outline 1. The Classical / Traditional approach to management Bureaucratic, Scientific and administrative Lessons from the viewpoint Practical use for managers today 2. Behavioural Viewpoint Assumptions of the viewpoint, differences between classical and behavioural viewpoint Lessons from the viewpoint Practical use for managers today 3. Systems viewpoint Lessons from the viewpoint Quantitative techniques Practical use for managers today

Basic Systems View of Organization Environment INPUTS Human Physical Financial Information resources OUTPUTS Products & services, Profit & losses, Employee growth & satisfaction TRANS- FORMATION PROCESS P, O, L, C Technology Feedback Loops

Lecture outline 4. Contingency viewpoint Lessons from the viewpoint Practical use for managers today 5. Quality viewpoint Lessons from the viewpoint Practical use for managers today

Contingency Viewpoint Managers’ use of other viewpoints to solve problems involving:  External environment  Technology  Individuals Behavioral Viewpoint How managers influence others:  Informal Group  Cooperation among employees  Employees’ social needs Systems Viewpoint How the parts fit together:  Inputs  Transformations  Outputs Traditional Viewpoint What managers do:  Plan  Organize  Lead  Control Adapted from Figure 3.3 Hellriegel, Jackson, Slocum, Staude & Associates MANAGEMENT: SOUTH AFRICAN EDITION Oxford University Press Southern Africa Copyright © 2001

Integration of Management Viewpoints and Competencies X X X X X X X X Traditional Behavioral Systems Contingency Quality Adapted from Table 3.2 ManagerialCompetency Management Viewpoint  Communication  Planning & administration  Strategic action  Self-management  Global Awareness  Teamwork X X = relatively high importance Hellriegel, Jackson, Slocum, Staude & Associates MANAGEMENT: SOUTH AFRICAN EDITION Oxford University Press Southern Africa Copyright © 2001

Where to now? – current trends and issues So companies must be -Responsive & flexible -Flat organizations -Downsized -Quality conscious -Empowered -Smaller units -Decentralized -Human capital oriented -Team based -Values & vision oriented -Boundaryless Lead to -Increased competition -Rapid change -More consumer choice -Mergers & divestitures -Increased complexity -Short product life cycles -Market fragmentation -Increased business failures -Explosion of technological innovation -Ethics -Globalization of Markets & competitors -Deregulation -Changing demographics -New political systems -Diversity of workforce -Service & knowledge jobs -BEE, LRA -Entrepreneurship Fundamental changes facing managers Adapted from Dessler, G A framework for Management. Prentice Hall: New Jersey

Revisiting the learning outcomes: critical thinking questions Why should managers view modern organizations as open systems? Explain the practical significance of adopting a particular viewpoint in managing an organization. Explain the contributions from the quality viewpoint and its role for managers. How do today’s managers use classical, behavioural, etc management?