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  • 1. Chapter 2 The Evolution of Management© SB InstitutE
  • 2. 2.1 Learning ObjectivesAfter reading this chapter, you should be able to: Describe the three branches of the traditional viewpoint of management: • Bureaucratic • Scientific • Administrative Explain the behavioral viewpoint’s contribution to management Describe how managers can use systems and quantitative techniques to improve employee performance State the two major components of the contingency viewpoint Explain the impact of the need for quality on management practices© SB InstitutE
  • 3. 2.2 History of Management Thought Quality Viewpoint Contingency Viewpoint Systems Viewpoint Behavioral ViewpointTraditional Viewpoint 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000© SB InstitutE Adapted from Figure 2.1
  • 4. 2.3 Hierarchical Organization Chart Top Manager Middle Manager Middle Manager First-Line Manager First-Line Manager First-Line Manager First-Line Manager Work Work Work Work Work Work Work Work Group Group Group Group Group Group Group Group© SB InstitutE Adapted from Figure 2.2
  • 5. 2.4 Continuum of Bureaucratic Orientation Pepsi-Cola IRS Cisco Systems Procter & Gamble Blockbuster Video Starbucks Sony McDonald’sLow HighBureaucratic Mid-Range BureaucraticStructure Bureaucracy Orientation© SB InstitutE Adapted from Figure 2.3
  • 6. 2.5 Characteristics of Traditional ManagementBureaucratic Traditional ScientificManagement Management ManagementAdministrative Administrative AdministrativeCharacteristics Characteristics Characteristics• Rules • Training in routines and rules • Defining of management• Impersonality • “One Best Way” functions• Division of Labor • Financial Motivation • Division of Labor• Hierarchy • Hierarchy• Authority Structure • Authority• Lifelong Career Commitment • Equity• RationalityFocus Focus• Whole Organization • Employee Focus • Manager© SB InstitutE Adapted from Table 2.1
  • 7. 2.6 Characteristics of Traditional Management (cont.)Bureaucratic Traditional ScientificManagement Management ManagementBenefits Benefits Benefits Consistency Productivity Clear structure Efficiency Efficiency Professionalization of managerial rolesDrawbacks Drawbacks Drawbacks Rigidity Overlooks social needs Internal focus Slowness Overemphasizes rational behavior of managers© SB InstitutE Adapted from Table 2.1
  • 8. 2.7 Basic Systems View of Organization Environment INPUTS Human, physical, TRANS- OUTPUTS financial, and FORMATION Products information and resources PROCESS Services Feedback© SB InstitutE loops Adapted from Figure 2.4
  • 9. 2.8 Contingency Viewpoint Behavioral Viewpoint How managers influence others: • Informal Group • Cooperation among employees • Employees’ social needs Systems Viewpoint Traditional Viewpoint How the parts fit together: What managers do: • Inputs • Plan • Transformations • Organize • Outputs • Lead • Control Contingency Viewpoint Managers’ use of other viewpoints to solve problems involving: • External environment • Technology© SB InstitutE • Individuals Adapted from Figure 2.5
  • 10. 2.09 Importance of Quality Lower Costs & Positive Higher Company Market Image Share QUALITY Decreased Product Liability© SB InstitutE Adapted from Figure 2.6
  • 11. 2.10 Integration of Management Viewpoints and Competencies Managerial Management Viewpoint Competency Traditional Behavioral Systems Contingency Quality Communication X X X X Planning and X X administration Strategic action X X Self-management X Global awareness X X Teamwork X X X© SB InstitutE X = relatively high importance Adapted from Table 2.3