Evolution of management thinking

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Evolution of management thinking

  1. 1. Chapter 2 The Evolution of Management Thinking
  2. 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. 2
  3. 3. 2.1 Management Perspectives over Time Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 3
  4. 4. Classical Perspective • Emerged during the nineteenth and early twentieth centuries – Rise of the factory system – Issues regarding structure, training, and employee satisfaction • 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. 4
  5. 5. 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. 5
  6. 6. 2.2 Characteristics of Scientific Management Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 6
  7. 7. 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. 7
  8. 8. 2.3 Characteristics of Weberian Bureaucracy Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 8
  9. 9. 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, an d controlling • 14 general principles of management; many still used today: – – – – Unity of command Division of work Unity of direction Scalar chain Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 9
  10. 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 Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 10
  11. 11. Humanistic Perspective: Human Relations Movement • Effective work comes from within the employee • Hawthorne studies were key contributor • Human relations paid key variable in increasing performance • Employees performed better when managers treated them positively • Strongly shaped management practice and research Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 11
  12. 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. 12
  13. 13. 2.4 Theory X and Theory Y Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 13
  14. 14. Humanistic Perspective: Behavioral Sciences Approach • Scientific methods + sociology, psychology, anthropology, economics… • Organizational Development – field that uses behavioral sciences to improve organization • Other strategies based on behavioral science: – Matrix Organizations – Self-Managed Teams – Corporate Culture – Management by Wandering Around Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 14
  15. 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. 15
  16. 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. 16
  17. 17. 2.5 Systems Thinking and Circles of Causality Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 17
  18. 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. 18
  19. 19. 2.6 Contingency View of Management Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 19
  20. 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. 20
  21. 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. 21
  22. 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. 22
  23. 23. Managing the TechnologyDriven 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. 23
  24. 24. 2.7 Supply Chain for a Retail Organization Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 24

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