1. The Evolution of Management Thinking
Chapter 2

2. New Approach to Management
Success accrues to those who learn how
To be leaders
To Initiate change
To participate in and create organizations
with fewer managers
With less hierarchy that can change quickly

3. Management and Organization
Management philosophies and organization forms change over time to meet new needs
Some ideas and practices from the past are still relevant and applicable to management today

4. Historical Perspective
Provides a context or environment
Develops an understanding of societal impact
Achieves strategic thinking
Improves conceptual skills
Social, political, and economic forces have influenced organizations and the practice of management

5. Forces Influencing Organizations and Management
Social Forces - values, needs, and standards of behavior
Political Forces - influence of political and legal institutions on people & organizations
Economic Forces - forces that affect the availability, production, & distribution of a society’s resources among competing users

6. Management Perspectives Over Time
Exhibit 2.1, p.44
2000
2010
The Technology-Driven Workplace
1990
2010
The Learning Organization
1980
Total Quality Management
2000
1970
Contingency Views
2000
1950
2000
Systems Theory
1940
Management Science Perspective
1990
1930
Humanistic Perspective
1990
1890
Classical
1940
2010
1870

7. Classical Perspective: 3000 B.C.
Rational, scientific approach to management – make organizations efficient operating machines
Scientific Management
Bureaucratic Organizations
Administrative Principles

8. Scientific Management: Taylor 1856-1915
General Approach
Developed standard method for performing each job.
Selected workers with appropriate abilities for each job.
Trained workers in standard method.
Supported workers by planning work and eliminating interruptions.
Provided wage incentives to workers for increased output.

9. Scientific Management
Contributions
Demonstrated the importance of compensation for performance.
Initiated the careful study of tasks and jobs.
Demonstrated the importance of personnel and their training.
Criticisms
Did not appreciate social context of work and higher needs of workers.
Did not acknowledge variance among individuals.
Tended to regard workers as uninformed and ignored their ideas

10. Bureaucracy Organizations
Max Weber
Prior to Bureaucracy Organizations
European employees were loyal to a single individual rather than to the organization or its mission
Resources used to realize individual desires rather than organizational goals
Systematic approach –looked at organization as a whole
Ethical Dilemma: The Supervisor

11. Bureaucracy Organizations
Division of labor
with Clear definitions of
authority and responsibility
Personnel are selected
and promoted based
on technical
qualifications
Positions organized
in a hierarchy of authority
Managers subject to
Rules and procedures
that will ensure reliable
predictable behavior
Administrative acts
and decisions recorded
in writing
Management separate
from the ownership
of the organization
Exhibit 2.3, p. 49

12. Administrative Principles
Contributors: Henri Fayol, Mary Parker, and Chester I. Barnard
Focus:
Organization rather than the individual
Delineated the management functions of planning, organizing, commanding, coordinating, and controlling

13. Henri Fayol 1841-1925 Division of labor Centralization Authority
14 General Principles of Management
Division of labor
Authority
Discipline
Unity of command
Unity of direction
Subordination of individual interest
Remuneration
Centralization
Scalar chain
Order
Equity
Stability and tenure of staff
Initiative
Esprit de corps

14. Ethics - Power - Empowerment
Mary Parker Follett
Importance of common super-ordinate goals for reducing conflict in organizations
Popular with businesspeople of her day
Overlooked by management scholars
Contrast to scientific management
Reemerging as applicable in dealing with rapid change in global environment
Leadership – importance of people vs. engineering techniques
Ethics - Power - Empowerment

15. Chester Barnard 1886-1961 Informal Organization
Cliques
Naturally occurring social groupings
Acceptance Theory of Authority
Free will
Can choose to follow management orders

16. Humanistic Perspective
Emphasized understanding human behavior, needs, and attitudes in the workplace
Human Relations Movement
Human Resources Perspective
Behavioral Sciences Approach

17. Human Relations Movement
Emphasized satisfaction of employees’ basic needs as the key to increased worker productivity

18. Hawthorne Studies Ten year study
Four experimental & three control groups
Five different tests
Test pointed to factors other than illumination for productivity
1st Relay Assembly Test Room experiment, was controversial, test lasted 6 years
Interpretation, money not cause of increased output
Factor that increased output, Human Relations

19. Human Resource Perspective
Suggests jobs should be designed to meet higher-level needs by allowing workers to use their full potential

20. Based on needs satisfaction
Abraham Maslow’s
Hierarchy of Needs
Self-actualization
Esteem
Belongingness
Safety
Physiological
Based on needs satisfaction

21. Douglas McGregor Theory X & Y
Theory X Assumptions
Theory Y Assumptions
Dislike work –will avoid it
Must be coerced, controlled, directed, or threatened with punishment
Prefer direction, avoid responsibility, little ambition, want security
Do not dislike work
Self direction and self control
Seek responsibility
Imagination, creativity widely distributed
Intellectual potential only partially utilized

22. Douglas McGregor Theory X & Y
Few companies today still use Theory X
Many are trying Theory Y techniques
Experiential Exercise: Theory X and Theory Y Scale

23. Behavioral Sciences Approach
Sub-field of the Humanistic Management Perspective
Applies social science in an organizational context
Draws from economics, psychology, sociology, anthropology, and other disciplines
Understand employee behavior and interaction in an organizational setting
OD – Organization Development

24. Management Science Perspective
Emerged after WW II
Applied mathematics, statistics, and other quantitative techniques to managerial problems
Operations Research – mathematical modeling
Operations Management – specializes in physical production of goods or services
Information Technology – reflected in management information systems

25. Recent Historical Trends
Systems Theory
Contingency View
Total Quality Management (TQM)

26. Systems View of Organizations
Exhibit 2.5, p. 58

27. Contingency View of Management
Successful resolution of organizational problems is thought to depend on managers’ identification of key variations in the situation at hand

28. Elements of a Learning Organization
Team-Based Structure
Learning Organization
Empowered Employees
Open Information
Exhibit 2.7, p. 61

29. Types of E-Commerce Business-to-Consumer B2C Selling Products and
Services Online
Consumer-to-Consumer C2C
Electronic Markets
Created by Web-Based Intermediaries
Business-to-Business B2B
Transactions Between Organizations
Exhibit 2.8, p. 63