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