1. Evolution of Management Theories
Evolution of Management Theories

2. Learning Outcomes
Understand how historical forces influences the practice of management.
Identify and explain major developments in the evolution of management thought.
Describe the major components of the classical and humanistic management perspectives.
Discuss the management science perspective and its current use in organizations.
Explain the major concepts of systems theory, the contingency view, and total quality management.
Explain what a learning organization is and why this approach has become important in recent years.

3. Are You a New-Style or an Old-Style Manager?
Management and managers are undergoing tremendous change.
Past strategies are no longer effective in today’s dynamic business environment.
History provides perspective and a broader view.
Manager can find patterns and insight from history.

4. Management and Organization
Managers must “see the big picture”
Social Forces: culture and values
Political Forces: political and legal institutions and systems
Economic Forces: availability and distribution of resources
Mangers must face environmental turbulence

5. Management Perspectives Over Time

6. Classical Perspective
The early study of management.
19th – late 20th Century
Scientific Management
Bureaucratic Organizations
Administrative Principles
Very powerful, gave companies fundamental skills for high productivity.

7. Scientific Management
Frederick Winslow Taylor ( ), father of scientific management
Focus on improving efficiency and labor productivity
Workers could be retooled like machines
Managers would need to change
Incentive systems for meeting standards
Others added to the theories
Lillian M. Gilbreth added a human component

8. Scientific Management at UPS
“Each job has a policy manual detailing the rules that a person needs to follow to ensure efficiency. Drivers are told to walk to a customer’s door at a brisk pace of 3 feet per second, carrying the package in the right hand and clipboard in the left. They should knock on the door so as not to lose valuable seconds searching for a doorbell.”
Michael Eskew
Chairman and CEO, UPS

9. Characteristics of Scientific Management

10. Bureaucratic Organizations
Max Weber ( ), a German theorist introduced the bureaucratic theories
Rational authority—more efficient and adaptable to change
Selection and advancement would be focused on competence and technical qualifications
The term bureaucracy has taken on a negative tone, associated with endless “red tape”

11. Characteristics of Weberian Bureaucracy

12. Bureaucratic Continuum
LOW
MIDRANGE
HIGH

13. Potential Benefits of Bureaucracy Most effective when:
Large amounts of standard information have to be processed
The needs of the customer are known and are unlikely to change
The technology is routine and stable
The organization has to coordinate the activities of employees in order to deliver a standardized service/product to the customer

14. Potential Costs of Bureaucracy Protection of authority
Slow decision making
Rigid rules
and red tape
Incompatible with changing technology
Incompatible with 21st century workers’ values

15. Administrative Principles
Henri Fayol ( ), French mining engineer and other contributors led the ideas
Fayol wrote down his own management practices
In the text, General and Industrial Management; 14 general principles were outlined
Several of the principles include:
Unity of Command
Division of Work
Unity of Direction
Scalar Chain
Fayol identified five functions of management: Planning, Organizing, Commanding, Coordinating, and Controlling

16. Humanistic Perspective
Led by Mary Parker Follett and Chester Barnard
Importance of understanding human behaviors: needs, attitudes and social interactions
Human Relations Movement
Human Resources Perspective
Behavioral Sciences

17. Mary Parker Follett’s Contributions
Managers need to communicate with workers
Workers should participate in solving problems
Goal: Improve
Coordination
Managers need to establish good working relationships with employees

18. Barnard’s Contributions
People should continuously communicate and cooperate with one another.
Acceptance theory of authority holds that employees have free will and, thus, choose whether to follow management’s orders. Employees will follow orders if they:
Understand what is required
Believe the orders are consistent with organization goals
See positive benefits to themselves in carrying out the orders

19. Human Relations Movement
Control comes from the individual worker rather than authoritarian control
The Hawthorne studies found increased output due to managers’ better treatment of employees
Productivity increased from feelings of importance?
Money mattered too?
Created a focus on positive treatment of employees

20. Human Resources Perspective
Focus on job tasks and theories of motivation
Reduce dehumanizing or demeaning work
Allow workers to use full potential
Main contributors: Abraham Maslow and Douglas McGregor
Maslow’s Hierarchy of Needs
McGregor’s Theory X/Theory Y
Perspective came from the idea that cows gave more milk when they were more satisfied

21. Theory X and Theory Y

22. Behavioral Sciences Approach
Scientific methods that draw from sociology, psychology, anthropology, economics and other disciplines
Focus on human behavior and interaction
Organizational development came from behavioral sciences approach
Applied behavioral sciences to improve organizational health and effectiveness

23. Management Science Perspective
Developed to meet changing and dynamic environment created from WWII
Engaged mathematics, statistics and quantitative techniques to aid in decision making
Increased study of management led by Peter Drucker
Use of technology and programming for optimizing operations
Introduced new subsets of management:
Operations Research
Operations Management
Information Technology

24. Recent Historical Trends
Systems Theory. A holistic view of management as a interrelated parts to achieve a common purpose.
Contingency View. Successful resolution of organizational problems depends on situations.
Total Quality Management. Management of the total organization to deliver quality.

25. The Systems View of Organizations

26. Contingency View of Management

27. Total Quality Management
W. Edward Deming, known as the father of the quality movement
US initially scoffed at Deming
During the 1908s and 1990s, quality became a focus to meet global competition
Four key elements of quality management:
Employee involvement
Focus on customer
Benchmarking
Continuous improvement