1. The Evolution Of Management
Chapter 2
The Evolution
Of Management
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2. Learning Objectives
Describe the three branches of the traditional viewpoint of management:
Bureaucratic
Scientific
Administrative
Explain the behavioral viewpoint’s contribution to management
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3. Learning Objectives (Cont)
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
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4. History of Management Thought
Quality Viewpoint
Contingency Viewpoint
Systems Viewpoint
Behavioral Viewpoint
Traditional Viewpoint
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5. Traditional (classical) Viewpoint
Bureaucratic Management
Scientific Management
Administrative Management
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6. Bureaucratic Management
Refers to the use of rules, a set of hierarchy, a clear division of labor, and detailed procedures.
- Rules- formal guidelines for the behavior of employees on the job.
- Impersonality- employees are evaluated according to rules and objective data.
- Division of labor- splitting work into specialized positions.
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7. Bureaucratic Management (cont.)
Hierarchical Structure- ranks jobs according to the amount of authority in each job.
Authority- who has the right to make decisions of varying importance at different organizational levels.
Traditional authority
Charismatic authority
Rational, legal authority
Lifelong Career Commitment- both the employee and the organization view themselves committed to each other over the working life of the employee.
Rationality- is the use of the most efficient means available to accomplish a goal.
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8. Mid-Range Bureaucracy
Range of Bureaucracy
Amazon.com
Pepsi-Cola
IRS
Blockbuster
Video
Cisco Systems
Procter & Gamble
Sony
McDonald’s
Starbucks
Low Bureaucratic Structure
High Bureaucratic Orientation
Mid-Range Bureaucracy
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9. Characteristics of Traditional Management
Bureaucratic Management
Scientific
Management
Administrative
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
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10. Characteristics of Traditional Management (cont.)
Bureaucratic Management
Scientific
Management
Administrative
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
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11. Behavioral Viewpoint
Focuses on dealing effectively with the human aspects of organizations.
Mary Parker Follett
- Coordination is best when people making a decision are in direct contact.
- Coordination during the early stages of planning and project implementation is essential.
- Coordination should address all factors in a situation.
- Coordination must be worked at continuously.
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12. Behavioral Viewpoint (cont.)
Chester Barnard
- Viewed organizations as social systems.
- People should continuously communicate with one another.
- “Acceptance” theory of authority
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
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13. Behavioral Viewpoint (cont.)
Hawthorne effect
- When employees are given special attention, productivity is likely to change regardless of whether working conditions change.
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14. System Viewpoint
A system is an association of interrelated and interdependent parts.
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15. Basic Systems View of Organization
Environment
INPUTS
Human, physical,
financial, and information resources
TRANS-FORMATION
PROCESS
OUTPUTS
Products and Services
Feedback loops
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16. System Types
A closed system limits its interactions with the environment.
An open system interacts with the external environment.
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17. Contingency Viewpoint
(Sometimes called the situational approach) indicates that management practices should be consistent with the requirements of the external environment.
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18. 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
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19. Quality Viewpoint
Quality is how well a product or service does what it is supposed to do.
Total Quality Management (TQM) is the continuous process of ensuring that every aspect of production builds quality into the product.
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20. 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
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21. 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
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Adapted from Table 2.3