Evolution of Management Thought Prof. Dr. Rana ÖZEN KUTANİS 1

WHAT IS MANAGEMENT? Some common definitions of management; Management is the process of accomplishing an organization’s goals by working with and through people, utilizing the resources available to it. 2Prof. Dr. Rana ÖZEN KUTANİS

WHAT IS MANAGEMENT? Management is attainment of organizational goals in an effective and efficient manner through planning, organizing, leading and controlling. Management is getting things done by coordinating and motivating other people. 3Prof. Dr. Rana ÖZEN KUTANİS

WHAT IS AN ORGANIZATION? Organization is a social entity that is goal directed and deliberately structured. Social entity: being made up of two or more people. Goal directed: designed to achieve some outcomes such as profit or social satisfaction. Deliberatelty structured: tasks are divided and responsibility for their performance assigned to organization members. 4Prof. Dr. Rana ÖZEN KUTANİS

The Evolution of Management Thougt Classical Management Neo Classical Management Modern Management Post-Modern Management Taylor Fayol Weber Mayo Mc Gregor Likert Contingency Approach System Approach Theory Z TQM New Management Techniques EconomicsHuman Environment Knowledge 5

CLASSICAL MANAGEMENT ERA ( ) “ECONOMICS” 6Prof. Dr. Rana ÖZEN KUTANİS

CLASSICAL MANAGEMENT ERA ( ) “ECONOMICS” Technology,economy and efficiency were the featured concepts. We can refer to three important people in that era: F. W. TAYLOR H. FAYOLM. WEBER 7Prof. Dr. Rana ÖZEN KUTANİS

CLASSICAL MANAGEMENT ERA ( ) “ECONOMICS” Frederick Taylor: Son of a rich American family.Then he leaves the law school due to heavy myopia. He starts to work as a lathe worker.He improved productivity by 400% in his first year. He thought and worked on productivity(output/input) all his life. While working at factory he gets a degree in mechanical engineering and writes a book named “ Principles of Scientific Management”.He cited production techniques and their effects on productivity in his book. Taylor thougt people as a working being only and classified peoplee as first class and second class. He enabled workers to earn more by producing more using pierce rate wage. 8Prof. Dr. Rana ÖZEN KUTANİS

CLASSICAL MANAGEMENT ERA ( ) “ECONOMICS” Henry Fayol: French,management theorist. He published a book about management process and he defined management functions that are still spoken today. His perspective of management was through top management to lower stages. He outlined 14 general principles of management. (principles that could be used by managers to coordinate the internal activities of organizations). 9Prof. Dr. Rana ÖZEN KUTANİS

CLASSICAL MANAGEMENT ERA ( ) “ECONOMICS” Max Weber: Weber was a German sociologist basicly advocated bureaucracy approach and he emphasized the need of bureaucracy for the systemization of organizations.His ideas grounded organization theory that is still valid today. Various events occured at the end of this era bring about a new era in management period.Whether efects of war or world economic crisis or results of scientific studies called for this new era. 10Prof. Dr. Rana ÖZEN KUTANİS

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NEO-CLASSICAL MANAGEMENT ERA ( ) “HUMAN” ELTON MAYOHAWTHORNE STUDIES 12Prof. Dr. Rana ÖZEN KUTANİS

NEO-CLASSICAL MANAGEMENT ERA ( ) “HUMAN” This concept came on scene about 30 years after the Classical Management Era. The human factor gained importance,labour unions against Taylor established and the new era called Neo-Classical Management began.The terms like economics and technology were neglected. With the declines in quality of production and productivity many problems have occured with quality and labour unions.Human factor gained importance due to these events. 13Prof. Dr. Rana ÖZEN KUTANİS

Elton Mayo: Mayo and his friends made some experiments in a factory named Hawthorne.They firstly investigated how the changes in physical conditions of work place affect production. They made some experiments to determine how the changes in light,humidity,tempreture of work place affect the production. For instance in Relay Assembly Test Room Experiment when the level of illumination raised the output had gone up also when the level of illumination decreased the output had gone up too. As a result of similar various experiments it is concluded that not only physical conditions affect production but also group and human psychology. NEO-CLASSICAL MANAGEMENT ERA ( ) “HUMAN” 14Prof. Dr. Rana ÖZEN KUTANİS

NEO-CLASSICAL MANAGEMENT ERA ( ) “HUMAN” Mc Gregor’s Theories X and Y:Theory X’s assumptions were;human beings dislike work and will avoid if they can.To set them in motion, threat and direction is required.Theory Y ‘s assumptions were;human beings like work and appreciate being productive.The point is to create work conditions and find the suitible position for them. Mc Gregor married a woman when he was a monk and took the head of her wife’s company.At first he was defending X-Type person but he noticed Y-Type in action and defended Type-Y. Besides these researches Likert,Mc Millan and Peter Drucker’s Behavioral approach named this era. 15Prof. Dr. Rana ÖZEN KUTANİS

MODERN MANAGEMENT ERA ( ) “ENVIRONMENT AND BALANCE” Due to showing much interest on human;scientific improvements could not be followed and as very important factors for organizations economics and technology were neglected. To balance the situation, Modern Approach was developed.With regard to this approach,it is thought that focusing just on human is not efficient.To be efficient human factor and technology must be brought together. Examples of Modern Organization Theories:Theory-Z,Systems Approach,Contingency Approach,TQM… 16Prof. Dr. Rana ÖZEN KUTANİS

POSTMODERN ERA (2000 +) “KNOWLEDGE” Information stand out during this era. The idea espoused in this era was not to be a slave of information but to rule using information. There was a concern about ‘mechanization of human’ Aim of this approach is not just ‘machine’,besides this not to let people forget their humanity.In other words,it is about producing and using the information which helps us to use machines more efficiently. 17Prof. Dr. Rana ÖZEN KUTANİS

THANK YOU… 18