The Evolution of Management Chapter 2 The Evolution of Management Hellriegel, Jackson, and Slocum MANAGEMENT: A Competency-Based Approach South-Western College Publishing Copyright © 2002

Learning Objectives After reading this chapter, you should be able to: 2.1 Learning Objectives After reading this chapter, you should be able to: Describe the three branches of the traditional viewpoint of management: Bureaucratic Scientific Administrative Explain the behavioral viewpoint’s contribution to management Describe how managers can use systems and quantitative techniques to improve employee performance State the two major components of the contingency viewpoint Explain the impact of the need for quality on management practices

History of Management Thought 2.2 History of Management Thought Quality Viewpoint Contingency Viewpoint Systems Viewpoint Behavioral Viewpoint Traditional Viewpoint 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 Adapted from Figure 2.1

Hierarchical Organization Chart 2.3 Hierarchical Organization Chart Top Manager Middle Manager Middle Manager First-Line Manager First-Line Manager First-Line Manager First-Line Manager Work Group Work Group Work Group Work Group Work Group Work Group Work Group Work Group Adapted from Figure 2.2

Continuum of Bureaucratic Orientation 2.4 Continuum of Bureaucratic Orientation Amazon.com Pepsi-Cola IRS Blockbuster Video Cisco Systems Procter & Gamble Sony McDonald’s Starbucks Low Bureaucratic Structure High Bureaucratic Orientation Mid-Range Bureaucracy Adapted from Figure 2.3

Characteristics of Traditional Management 2.5 Characteristics of Traditional Management Bureaucratic Management Traditional Management Scientific Management Administrative Characteristics Rules Impersonality Division of Labor Hierarchy Authority Structure Lifelong Career Commitment Rationality Focus Whole Organization Administrative Characteristics Training in routines and rules “One Best Way” Financial Motivation Focus Employee Administrative Characteristics Defining of management functions Division of Labor Hierarchy Authority Equity Focus Manager Adapted from Table 2.1

Characteristics of Traditional Management (cont.) 2.6 Characteristics of Traditional Management (cont.) Bureaucratic Management Traditional Management Scientific Management Benefits Consistency Efficiency Drawbacks Rigidity Slowness Benefits Productivity Efficiency Drawbacks Overlooks social needs Benefits Clear structure Professionalization of managerial roles Drawbacks Internal focus Overemphasizes rational behavior of managers Adapted from Table 2.1

Basic Systems View of Organization 2.7 Basic Systems View of Organization Environment INPUTS Human, physical, financial, and information resources TRANS-FORMATION PROCESS OUTPUTS Products and Services Feedback loops Adapted from Figure 2.4

Contingency Viewpoint 2.8 Contingency Viewpoint Behavioral Viewpoint How managers influence others: Informal Group Cooperation among employees Employees’ social needs Traditional Viewpoint What managers do: Plan Organize Lead Control Systems Viewpoint How the parts fit together: Inputs Transformations Outputs Contingency Viewpoint Managers’ use of other viewpoints to solve problems involving: External environment Technology Individuals Adapted from Figure 2.5

Importance of Quality Lower Costs & Higher Market Positive Company 2.09 Importance of Quality Lower Costs & Higher Market Share Positive Company Image QUALITY Decreased Product Liability Adapted from Figure 2.6

Integration of Management Viewpoints and Competencies 2.10 Integration of Management Viewpoints and Competencies Managerial Competency Management Viewpoint Traditional Behavioral Systems Contingency Quality X X X X X X X X X X X X Communication Planning and administration Strategic action Self-management Global awareness Teamwork X = relatively high importance Adapted from Table 2.3