1. Chapter 2 The Evolution of Management

2. Management 1e 2 - 2 Learning Objectives  Describe the historical foundation of management  Explain the beginnings of modern management theory and education  Outline the progression of the quantitative approach to management  Outline the progression of the humanistic approach to management  Interpret the factors that led to a balanced approach to management - 2

3. Management 1e 2 - 3 The Historical Foundations of Management (p. 32)  “Wealth of a Nation” – Adam Smith (p. 33) Division of labor – workers specialize on a task  Corporation Legal entity formed and structured to achieve goals with special protections for owners  Dartmouth College v. Woodward

4. Management 1e 2 - 4 Discovering and Teaching Management Theory (p. 33)  Bureaucratic management – Max Weber (p. 34) Bureaucracy – an organization marked by:  Division of labor  Managerial hierarchy  Formal selection  Career orientation  Formal rules and controls  Impersonality

5. Management 1e 2 - 5 Discovering and Teaching Management Theory (cont.)  Administrative management – Henri Fayol (p. 35) Administrative theory  Identifies the functions of management  Successful management linked to satisfied and motivated employees  “Art of management”  Management principles must be adapted to every need  Provided the basis for management education  Principles of management

6. Management 1e 2 - 6 The Quantitative Approach (p. 37)  Soldiering Workers tested management by performing as slowly as possible, while creating the impression that they were working fast  Natural soldiering  Systemic soldiering  Quantitative approach Applying objective methods to enhance decision making  Management science Using statistics, mathematics, and other quantitative methods to improve efficiencies

7. Management 1e 2 - 7 The Quantitative Approach (cont.)  Scientific management – Frederick Taylor (p. 37) Classical perspective – make organizations and workers operate as efficiently as possible Used quantitative approach to analyze and synthesize the flow of work to maximize productivity Task-management system – combination of setting performance standards, selecting the best worker for the job, and building good relations between managers and employees (p. 38)  Harrington Emerson – principles of efficiency  Blueprint for the art and science of management

8. Management 1e 2 - 8 The Quantitative Approach (cont.)  Motion studies – Frank B. Gilbreth (p. 39) Motion picture cameras captured the step-by-step movements taken to complete a task Sought efficiencies by orchestrating the maximum results for the least worker effort  Scientific management and the mind – Lillian Gilbreth (p. 40) Studied how managerial perceptions, emotions, and thoughts affected work and employees Three historical types of management  Traditional  Transitory  Scientific

9. Management 1e 2 - 9 The Quantitative Approach (cont.)  Visualizing management – Henry Gantt (p. 40) Habits of industry  Training converted invisible internal forces into visible behaviors such as industriousness and cooperation Developed methods for visualizing performance standards  Importance of time  Gantt progress chart Figure 2.1

10. Management 1e 2 - 10 The Quantitative Approach (cont.)  Quality movement (p. 42) Ford Motor Company  Assembly line – parts added sequentially to manufacture a product more quickly  Interchangeable parts Operations research – established a quantitative rationale for decisions that lead to goal attainment Edwards Deming  Continuous improvement (p. 43)  Quality circles  Lean manufacturing  Total quality management  Six sigma

11. Management 1e 2 - 11 The Humanistic Approach (p. 43)  Focused on the human side of management  Hawthorne studies (p. 44) Employees motivated by more than money Group dynamics have an impact on worker morale and performance  Illumination study – performance increased when lighting increased or decreased  Relay assembly test room – productivity increased following various changes in work conditions  Interviewing program – non-directive interviewing (p. 45) Managers encouraged to treat workers as people and to approach groups informally, thereby increasing productivity

12. Management 1e 2 - 12 The Humanistic Approach (cont.)  Conflict: Mary Parker Follett (p. 45) Constructive conflict – positive outcomes from group conflict emerge when individual ideals remain intact and become part of a “single whole” (p. 46) Figure 2.2

13. Management 1e 2 - 13 The Humanistic Approach (cont.)  Conflict: Mary Parker Follett (cont.) “Power with people,” not “power over people” (p. 47)  Motivation: Douglas McGregor Theory X – negative assumptions about worker motivation  People do not like work; must be coerced or intimidated Theory Y – positive view about worker motivation  People enjoy the mental and physical purpose of work; try to expand their personal contributions Behavioral management – relies on understanding individual behaviors, decisions, and attitudes to motivate employees

14. Management 1e 2 - 14 The Balanced Approach (p. 48)  Contingency (situational) theory Different organizations, situations, and contexts require different approaches  Cooperation: Chester I. Barnard (p. 49) Entropy – inefficient organizations lose social and market-based energy leading to the decline of the system Negative entropy – social and market-based energy that builds or maintains a system Managers must maintain an equilibrium of internal and external forces and their relationship to the organization  Cooperative system – managers of effective and efficient organizations control and influence people’s behavior by modifying their motives

15. Management 1e 2 - 15 The Balanced Approach (cont.)  Systems: Jay W. Forrester (p. 49) System dynamics – enable managers to achieve “equilibrium” and stability in their organizations von Bertalanffy – general systems theory  Organizations are open systems  Have the power to change and be changed by external and internal forces  Organizational whole comprised of interdependent subsystems

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