1. The Evolution of Management Thinking
Chapter 2
The Evolution of Management Thinking

2. Management and Organization
Studying management history helps your conceptual skills
Social forces – aspects of a culture that guide and influence relationships among people
Political forces – influence of political and legal institutions on people and organizations
Economic forces – the availability, production, and distribution of resources

3. 2.1 Management Perspectives over Time

4. Classical Perspective
Emerged during the nineteenth and early twentieth centuries
Rise of the factory system
Issues regarding structure, training, and employee satisfaction
Large, complex organizations required new approaches to coordination and control

5. Classical Perspective
Three subfields:
Scientific management
Bureaucratic organizations
Administrative principles

6. Scientific Management
Improve efficiency and labor productivity through scientific methods
Frederick Winslow Taylor proposed that workers “could be retooled like machines”
Management decisions would be based on precise procedures based on study

7. Scientific Management
Henry Gantt developed the Gantt chart to measure and plan work
The Gilbreths pioneered time and motion studies to promote efficiency

8. 2.2 Characteristics of Scientific Management

9. Bureaucratic Organizations
Max Weber, a German theorist, introduced the concepts
Manage organizations on impersonal, rational basis
Organization depends on rules and records

10. Bureaucratic Organizations
Managers use power instead of personality to delegate
Although important productivity gains
come from this foundation, bureaucracy
has taken on a negative tone

11. 2.3 Characteristics of Weberian Bureaucracy

12. Administrative Principles
Focused on the entire organization
Henri Fayol, a French mining engineer, was a major contributor
14 general principles of management; many still used today:
Unity of command
Division of work
Unity of direction
Scalar chain

13. Administrative Principles
Identified five functions of management:
Planning
Organizing
Commanding
Coordinating
Controlling

14. Humanistic Perspective: Early Advocates
Understand human behaviors, needs, and attitudes in the workplace
Mary Parker Follett and Chester Barnard
Contrast to scientific management - Importance of people rather than engineering techniques

15. Humanistic Perspective: Early Advocates
Empowerment: facilitating instead of controlling
Recognition of the informal organization
Introduced acceptance theory of authority

16. Humanistic Perspective: Human Relations Movement
Effective control comes from within the employee
Hawthorne studies were key contributor
Human relations played key variable in increasing performance
Employees performed better when managers treated them positively
Strongly shaped management practice and research

17. Humanistic Perspective: Human Resources Perspective
From worker participation and considerate leadership to managing work performance
Combine motivation with job design
Maslow and McGregor extended and challenged current theories
Maslow’s Hierarchy
Theory X and Theory Y

18. 2.4 Theory X and Theory Y

19. Humanistic Perspective: Behavioral Sciences Approach
Scientific methods + sociology, psychology, anthropology, economics to develop theories about human behavior and interaction in an organizational setting
Organizational development – field that uses behavioral sciences to improve organization

20. Humanistic Perspective: Behavioral Sciences Approach
Other strategies based on behavioral science:
Matrix organizations
Self-managed teams
Corporate culture
Management by wandering around

21. Quantitative Perspective
Also referred to as management science
Use of mathematics and statistics to aid management decision making
Enhanced by development and perfection of the computer
Operations management focuses on the physical production of goods and services

22. Quantitative Perspective
Information technology – focuses on technology and software to aid managers
Quants – financial managers who base their decisions on complex quantitative analysis

23. Recent Trends: Systems Thinking
The ability to see the distinct elements of a situation as well as the complexities
System – set of interrelated parts that function as a whole to achieve a common purpose
Subsystems – are parts of the system that are all interconnected
Synergy – the whole is greater than the sum of its parts
Managers must understand subsystem interdependence and synergy

24. Exhibit 2.5 Circles of Causality

25. Recent Trends: Contingency View
Every situation is unique
Managers must determine what method will work
Managers must identify key contingencies for the current situation
Organizational structure should depend upon industry and other variables

26. 2.6 Contingency View of Management

27. Managing the Technology-Driven Workplace
Big data analysis
Technologies, skills, and processes for searching and examining massive, complex sets of data
Uncovers hidden patterns and correlations
Supply Chain Management
Managing the sequence of suppliers and
purchasers

28. 2.7 Supply Chain for Retailers

29. Managing the People-Driven Workplace
The Bossless Workplace
 work from home
 accountability to the customers and team
Employee Engagement
 emotional involvement in the job
 satisfaction with work conditions
 enthusiastic contribution to the team