MANAGEMENT THOUGHT: PAST AND PRESENT CHAPTER TWO MANAGEMENT THOUGHT: PAST AND PRESENT

EVOLUTION OF MANAGEMENT THEORIES Traditional/Classical Theory Human Relations/Universal Principles Theory Open Systems/Contingency Approach

CLASSICAL MANAGEMENT THEORY Scientific Approach One Best Way to Get Work Done on Manufacturing Floor Engineer People Like Machines Time and Motion Studies the Dominant Paradigm Administrative Approach Pertains to Flow of Information and Power Fayol’s Administrative Principles Chain of Command/Span of Control

HUMAN RELATIONS THEORY Behavioral Management Theory Hawthorne Studies--Elton Mayo Work a Social Activity --Not Just Physical Increasing Emphasis on Employee Input Quantitative Management Theory Information Used to Improve Quality of Operations Beginnings of Quality Movement and Statistical Quality Control (SPC)

SYSTEMS/CONTINGENCY THEORY Management Approach is Predicated on Situation at Hand Blending of all Approaches Based on Contingency Views the Organization as an Open System Focuses Organizational Resources on Customer Satisfaction Creates Continuous Improvement Culture

THE MANAGER’S ENVIRONMENT Closed and Open System Organic versus Mechanistic Culture Internal and External Environmental Influences