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 – influence of culture that guides people and relationships
Political Forces – influence of political and legal institutions
Economic Forces – the availability, production, and distribution of resources
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

3. 2.1 Management Perspectives over Time
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

4. Classical Perspective
Emerged during the nineteenth and early twentieth centuries
Rise of the factory system
Issues regarding structure, training, and schedule complex manufacturing operations
Large, complex organizations required new approaches to coordination and control
Three subfields: scientific management, bureaucratic organizations, and administrative principles
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

5. 1. 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
Henry Gantt developed the Gantt Chart to measure and plan work
The Gilbreth’s pioneered time and motion studies to promote efficiency
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

6. 2.2 Characteristics of Scientific Management
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

7. 2.Bureaucratic Organizations
Max Weber, a German theorist, introduced the concepts
Manage organized on an impersonal, rational basis
Organization depends on rules and records
Managers use power instead of personality to delegate
Although important productivity gains
come from this foundation, bureaucracy
has taken on a negative tone
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

8. 2.3 Characteristics of Weberian Bureaucracy
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

9. 3.Administrative Principles
Focused on the entire organization
Henri Fayol, a French mining engineer, was a major contributor
Identified five functions of management: planning, organizing, commanding, coordinating, and controlling
14 general principles of management; many still used today:
Unity of command-receive orders form one superior
Division of work
Unity of direction-group similar activities under one manager
Scalar chain
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

10. Humanistic Perspective: Early Advocates
Mary Parker Follett and Chester Barnard
Understand human behaviors, needs, and attitudes in the workplace
Importance of people rather than engineering techniques: contrast to scientific management
Empowerment: facilitating instead of controlling
Recognition of the informal organization
Introduced acceptance theory of authority-choice to choose to follow or otherwise
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

11. Humanistic Perspective: Human Relations Movement
Effective control comes from within the employee than authoritarian control
Hawthorne studies were key contributor
Human relations key variable in increasing performance
Employees performed better when managers treated them positively
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

12. 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
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

13. 2.4 Theory X and Theory Y
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

14. Humanistic Perspective: Behavioral Sciences Approach
Uses Scientific methods + sociology, psychology, anthropology, economics…etc to develop theories on behavior & interaction in organization
Organizational Development – field that uses behavioral sciences to improve organization
e.g. coping with change, improve internal r/ship, increase problem solving capabilities
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

15. Quantitative Perspective
Also referred to as management science
Use of mathematics and statistics to aid management decision making
Enhanced by development and growth of the computer
Operations Management focuses on the physical production of goods and services
Information technology focuses on technology and software to aid managers
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

16. Recent Trends: Systems Thinking
The ability to see the distinct elements of a situation as well as the complexities
The relationship among the parts form the whole system
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
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

17. 2.5 Systems Thinking and Circles of Causality
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

18. Recent Trends: Contingency View
Every situation is unique, there is no universal management theory
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
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

19. 2.6 Contingency View of Management
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

20. Recent Trends: Total Quality Management
Quality movement is strongly associated with Japan
The US ignored the ideas of W. Edwards Deming, “Father of the Quality Movement”
Total Quality Management (TQM) became popular in the 1980s and 90s
Integrate high-quality values in every activity
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

21. Elements of Quality Management
Employee involvement
Focus on the customer
Benchmarking
Continuous improvement
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

22. Innovative Management: Thinking for a Changing World
Management ideas trace their roots to historical perspectives
New ideas continue to emerge to meet the changing needs and difficult times
The shelf life of trends is getting shorter and new ideas peak in fewer than three years
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

23. Managing the Technology- Driven Workplace
Customer Relationship Management – technology used to build relationship with customers
Outsourcing – contracting functions or activities to other organizations to cut costs
Supply Chain Management – managing supplier and purchaser relationships to get goods to consumers
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

24. 2.7 Supply Chain for a Retail Organization
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.