Chapter 2 the evolution of management thinking

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Chapter 2 the evolution of management thinking

  1. 1. The Evolution ofManagement Thinking Chapter 2
  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 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.2
  3. 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 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.3
  4. 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 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.4
  5. 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 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.5
  6. 6. Management Perspectives Over Time Exhibit 2.1, p.44 2000 The Technology-Driven Workplace 1990 2010 The Learning Organization 1980 2010 Total Quality Management 2000 1970 Contingency Views 1950 2000 Systems Theory 2000 1940 Management Science Perspective 1930 1990 Humanistic Perspective 1890 1990 Classical 1940 2010 1870 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.6
  7. 7. Classical Perspective: 3000 B.C. ● Rational, scientific approach to management – make organizations efficient operating machines ● Scientific Management ● Bureaucratic Organizations ● Administrative Principles Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.7
  8. 8. Scientific Management: Frederick 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. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.8
  9. 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 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.9
  10. 10. Bureaucracy Organizations  Max Weber 1864-1920  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 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.10
  11. 11. Bureaucracy Organizations Division of labor with Clear definitions of authority and responsibility Personnel are selected and promoted based Positions organized on technical in a hierarchy of authority qualifications Managers subject to Administrative acts Rules and procedures and decisions recorded that will ensure reliable in writing predictable behavior Management separate from the ownership of the organization Exhibit 2.3, p. 49 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.11
  12. 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 (Henri Fayol) Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.12
  13. 13. Henri Fayol 1841-1925 14 General Principles of Management  Division of labor  Centralization  Authority  Scalar chain  Discipline  Order  Unity of command  Equity  Unity of direction  Stability and  Subordination of tenure of staff individual interest  Initiative  Remuneration  Esprit de corps Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.13
  14. 14. Mary Parker Follett 1868-1933  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 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.14
  15. 15. Chester Barnard 1886-1961  Informal Organization – Cliques – Naturally occurring social groupings  Acceptance Theory of Authority – Free will – Can choose to follow management orders Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.15
  16. 16. Humanistic Perspective Emphasized understanding human behavior, needs, and attitudes in the workplace ●Human Relations Movement ●Human Resources Perspective ●Behavioral Sciences Approach Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.16
  17. 17. Human Relations Movement Emphasized satisfaction of employees’ basic needs as the key to increased worker productivity Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.17
  18. 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 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.18
  19. 19. Human Resource Perspective Suggests jobs should be designed to meet higher-level needs by allowing workers to use their full potential Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.19
  20. 20. Abraham Maslow’s Hierarchy of Needs 1908-1970 Self- actualization Esteem Belongingness Chapter 16 – Maslow in more detail Safety Physiological Based on needs satisfaction Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.20
  21. 21. Douglas McGregor Theory X & Y 1906-1964 Theory X Assumptions Theory Y Assumptions  Dislike work –will avoid it  Do not dislike work  Must be coerced,  Self direction and self controlled, directed, or control threatened with  Seek responsibility punishment  Imagination, creativity  Prefer direction, avoid widely distributed responsibility, little  Intellectual potential ambition, want security only partially utilized Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.21
  22. 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 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.22
  23. 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 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.23
  24. 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 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.24
  25. 25. Recent Historical Trends ● Systems Theory ● Contingency View ● Total Quality Management (TQM) Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.25
  26. 26. Systems Theory  Open systems that are characterized by entropy, synergy and subsystem interdependence  System – a set of interrelated parts that function as a whole to achieve a common purpose Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.26
  27. 27. Systems View of Organizations Exhibit 2.5, p. 58 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.27
  28. 28. Contingency View of Management Exhibit 2.6, p. 59 Successful resolution of organizational problems is thought to depend on managers’ identification of key variations in the situation at hand Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.28
  29. 29. Total Quality Management  W.Edwards Deming – “father of the quality movement”  A concept that focuses on managing the total organization to delivery quality to customers – Employee involvement – Focus on the customer – Benchmarking – Continuous improvement Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.29
  30. 30. Learning Organizations  An organization in which everyone is engaged in identifying and solving problems, enabling the organization to continuously experiment, improve and increase its capability. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.30
  31. 31. Elements of a Learning Organization Team-Based Structure Learning Organization Empowered Open Employees Information Exhibit 2.7, p. 61 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.31
  32. 32. Technology-Driven Workplace  E-Business – work an organization does by using electronic linkages  E-Commerce – business exchanges or transactions done electronically Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.32
  33. 33. Types of E-Commerce Business-to-Consumer B2C Selling Products and Services Online Consumer-to-Consumer C2C Business-to-Business B2B Electronic Markets Transactions Between Created by Web-Based Organizations Intermediaries Exhibit 2.8, p. 63 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.33

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