The Evolution of Management ThinkingPresentation Transcript
The Evolution of Management Thinking CHAPTER 2 0
Understand how historical forces influence the practice of management.
Identify and explain major developments in the history of management thought.
Describe the major components of the classical and humanistic management perspectives.
Discuss the management science perspective and its current use in organizations.
Learning Objectives (contd.)
Explain the major components of systems theory, the contingency view, and total quality management.
Describe the learning organization and the changes in structure, empowerment, and information sharing that managers make to support it.
Discuss the technology-driven workplace and the role of outsourcing, supply chain management, enterprise resource planning, knowledge management systems, and customer relationship management.
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
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
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
Management Perspectives Over Time Exhibit 2.1 0
Classical Perspective: 3000 B.C.
Rational, scientific approach to management – make organizations efficient operating machines
Scientific Management: Taylor 1856-1915
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.
Demonstrated the importance of compensation for performance.
Initiated the careful study of tasks and jobs.
Demonstrated the importance of personnel and their training .
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
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
Characteristics of Weberian Bureaucracy Positions organized in a hierarchy of authority Managers subject to Rules and procedures that will ensure reliable predictable behavior Personnel are selected and promoted based on technical qualifications Administrative acts and decisions recorded in writing Management separate from the ownership of the organization Division of labor with Clear definitions of authority and responsibility Exhibit 2.3 0
Contributors : Henri Fayol, Mary Parker Follett, and Chester I. Barnard
Organization rather than the individual
Delineated the management functions of planning, organizing, commanding, coordinating, and controlling
Henri Fayol 1841-1925 Examples of General Principles of Management
Division of work
Unity of command
Unity of direction
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 0
Chester Barnard 1886-1961
Naturally occurring social groupings
Acceptance Theory of Authority
Can choose to follow management orders
Emphasized understanding human behavior, needs, and attitudes in the workplace
Human Relations Movement
Human Resources Perspective
Behavioral Sciences Approach
Human Relations Movement
Emphasized satisfaction of employees’ basic needs as the key to increased worker productivity
Started in 1895
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
Hawthorne Studies 0
Human Resource Perspective
Suggests jobs should be designed to meet higher-level needs by allowing workers to use their full potential
Abraham Maslow 1908-1970
Identified a hierarchy of needs
Problems stem from an inability to satisfy one’s needs
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
Imagination, creativity widely distributed
Intellectual potential only partially utilized
Douglas McGregor Theory X & Y 1906-1964 Theory X Assumptions Theory Y Assumptions 0
Behavioral Sciences Approach
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
Sub-field of the Humanistic Management Perspective 0
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
Recent Historical Trends
Total Quality Management (TQM)
Systems View of Organizations Exhibit 2.5 0
Contingency View of Management Exhibit 2.6 0
Focuses on managing the total organization to deliver quality to customers.
Four significant elements are
Focus on the customer
Elements of a Learning Organization Learning Organization Open Information Empowered Employees Team-Based Structure Exhibit 2.7 0
Types of E-Commerce Business-to-Consumer B2C Selling Products and Services Online Business-to-Business B2B Transactions Between Organizations Consumer-to-Consumer C2C Electronic Markets Created by Web-Based Intermediaries Exhibit 2.8 0