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  • 1. The Evolution of Management Thinking CHAPTER 2 0
  • 2. <ul><li>Understand how historical forces influences the practice of management. </li></ul><ul><li>Identify and explain major developments in the history of management thought. </li></ul><ul><li>Describe the major components of the classical and humanistic management perspectives. </li></ul><ul><li>Discuss the management science perspective and its current use in organizations. </li></ul><ul><li>Explain the major concepts of systems theory, the contingency view, and total quality management. </li></ul><ul><li>Explain what a learning organization is and why this approach has become important in recent years. </li></ul><ul><li>Describe the management changes brought about by a technology-driven workplace, including the role of supply chain management, customer relationship management, and outsourcing. </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0 Learning Outcomes
  • 3. Management and Organization <ul><li>Managers must “see the big picture” </li></ul><ul><ul><li>Social Forces: culture and values </li></ul></ul><ul><ul><li>Political Forces : political and legal institutions and systems </li></ul></ul><ul><ul><li>Economic Forces : availability and distribution of resources </li></ul></ul><ul><li>Mangers must face environmental turbulence </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  • 4. Management Perspectives Over Time Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  • 5. Classical Perspective <ul><li>The early study of management. </li></ul><ul><li>19 th – late 20 th Century </li></ul><ul><ul><li>Scientific Management </li></ul></ul><ul><ul><li>Bureaucratic Organizations </li></ul></ul><ul><ul><li>Administrative Principles </li></ul></ul><ul><li>Very powerful, gave companies fundamental skill for high productivity </li></ul><ul><ul><li>Helped US surge in management techniques </li></ul></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  • 6. Scientific Management <ul><li>Frederick Winslow Taylor (1856-1915), father of scientific management </li></ul><ul><li>Focus on improving efficiency and labor productivity </li></ul><ul><li>Workers could be retooled like machines </li></ul><ul><li>Managers would need to change </li></ul><ul><li>Incentive systems for meeting standards </li></ul><ul><li>Others added to the theories </li></ul><ul><li>Lillian M. Gilbreth added a human component to the study </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  • 7. Characteristics of Scientific Management Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  • 8. Bureaucratic Organizations <ul><li>Max Weber (1864-1920), a German theorist introduced the bureaucratic theories </li></ul><ul><li>Rational authority—more efficient and adaptable to change </li></ul><ul><li>Selection and advancement would be focused on competence and technical qualifications </li></ul><ul><li>The term bureaucracy has taken on a negative tone, associated with endless “red tape” </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  • 9. Characteristics of Weberian Bureaucracy Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  • 10. Administrative Principles <ul><li>Henri Foyal (1841-1925), French mining engineer and other contributors led the ideas </li></ul><ul><li>Foyal wrote down his own management practices </li></ul><ul><li>In the text, General and Industrial Management; 14 general principles were outlined </li></ul><ul><li>Several of the principles include: </li></ul><ul><ul><li>Unity of Command </li></ul></ul><ul><ul><li>Division of Work </li></ul></ul><ul><ul><li>Unity of Direction </li></ul></ul><ul><ul><li>Scalar Chain </li></ul></ul><ul><li>Foyal identified five functions of management: Planning, Organizing, Commanding, Coordinating, and Controlling </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  • 11. Humanistic Perspective <ul><li>Led by Mary Parker Follett and Chester Barnard </li></ul><ul><li>Importance of understanding human behaviors: needs, attitudes and social interactions </li></ul><ul><ul><li>Human Relations Movement </li></ul></ul><ul><ul><li>Human Resources Perspective </li></ul></ul><ul><ul><li>Behavioral Sciences </li></ul></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  • 12. Human Relations Movement <ul><li>Control comes from the individual worker rather than authoritarian control </li></ul><ul><li>The Hawthorne studies found increased output due to managers’ better treatment of employees </li></ul><ul><ul><li>Money mattered a great deal </li></ul></ul><ul><ul><li>Productivity increased from feelings of importance </li></ul></ul><ul><li>Created a focus on positive treatment of employees </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  • 13. Human Resources Perspective <ul><li>Focus on job tasks and theories of motivation </li></ul><ul><ul><li>Reduce dehumanizing or demeaning work </li></ul></ul><ul><ul><li>Allow workers to use full potential </li></ul></ul><ul><ul><li>Main contributors: Abraham Maslow and Douglas McGregor </li></ul></ul><ul><ul><ul><li>Maslow’s Hierarchy of Needs </li></ul></ul></ul><ul><ul><ul><li>McGregor’s Theory X/Theory Y </li></ul></ul></ul><ul><li>Perspective came from the idea that cows gave more milk when they were more satisfied </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  • 14. Theory X and Theory Y Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  • 15. Behavioral Sciences Approach <ul><li>Scientific methods that draw from sociology, psychology, anthropology, economics and other disciplines </li></ul><ul><li>Focus on human behavior and interaction </li></ul><ul><li>Organizational development came from behavioral sciences approach </li></ul><ul><ul><li>Applied behavioral sciences to improve organizational health and effectiveness </li></ul></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  • 16. Management Science Perspective <ul><li>Developed to meet changing and dynamic environment created from WWII </li></ul><ul><li>Engaged mathematics, statistics and quantitative techniques to aid in decision making </li></ul><ul><li>Increased study of management led by Peter Drucker </li></ul><ul><li>Use of technology and programming for optimizing operations </li></ul><ul><li>Introduced new subsets of management: </li></ul><ul><ul><li>Operations Research </li></ul></ul><ul><ul><li>Operations Management </li></ul></ul><ul><ul><li>Information Technology </li></ul></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  • 17. Recent Historical Trends <ul><li>Systems Theory. A holistic view of management as a interrelated parts to achieve a common purpose. </li></ul><ul><li>Contingency View. Successful resolution of organizational problems depends on situations. </li></ul><ul><li>Total Quality Management. Management of the total organization to deliver quality. </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  • 18. The Systems View of Organizations Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  • 19. Contingency View of Management Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  • 20. Total Quality Management <ul><li>W. Edward Deming, known as the father of the quality movement </li></ul><ul><ul><li>US initially scoffed at Deming </li></ul></ul><ul><li>During the 1980s and 1990s, quality became a focus to meet global competition </li></ul><ul><li>Four key elements of quality management: </li></ul><ul><ul><ul><li>Employee involvement </li></ul></ul></ul><ul><ul><ul><li>Focus on customer </li></ul></ul></ul><ul><ul><ul><li>Benchmarking </li></ul></ul></ul><ul><ul><ul><li>Continuous improvement </li></ul></ul></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  • 21. The Learning Organization <ul><li>Learning aids in the adaptation to change </li></ul><ul><li>Peter Senge began the discussion about the learning organization </li></ul><ul><li>All employees are engaged in identifying and solving problems </li></ul><ul><li>Learning increases the capacity to learn and grow </li></ul><ul><li>Move from efficiency to solving problems </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  • 22. Managing the Technology-Driven Workplace <ul><li>Most work is performed on computers in today’s workplace </li></ul><ul><li>Companies use technology to communicate and collaborate </li></ul><ul><li>Key technologies in today’s workplace: </li></ul><ul><ul><li>Supply Chain Management </li></ul></ul><ul><ul><li>Customer Relationship Management </li></ul></ul><ul><ul><li>Outsourcing </li></ul></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  • 23. Supply Chain for a Retail Organization Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0

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