Daft Am

1. The Evolution of Management
Thinking

2. Why history?
• Management philosophies and organization
forms change over time to meet new needs.
Knowing the history will
– give you a perspective
– Provide sense of contect and environment
– Enhance strategic thinking
• Some ideas and practices from the past are still
relevant and applicable to management today

3. Management perspectives over time

4. CLASSICAL PERSPECTIVE
Scientific Management (F. Taylor)
“The system rather than man should come first”
Bureaucratic Organizations (M. Weber)
Rational way to manage
Administrative Principles
( H. Fayol, Follett, C. Barnard)
Organizations are social

5. Scientific management: Efficiency is
everything
Context & challenges How to increase productivity?
How to be more efficient?
- Industrial revolution, division of How to de-skill the labour?
labour (A. Smith)- factory system
- US civil war & unification of the
country
- Mass transportation and railways SIMPLIFY THE
between East & West
PRODUCTION PROCESS
- Dev’t of national market: larger
size
- Opportunity for economies of
scale: growth pressure
- Conflicts with the labour force : Time & Motion studies (Gilbreath)
skilled workers control all. in order to establish standards and
- Control and management precise rules for production,
processes inadequate to cope with selection of workers, training.
this growth. Fordism: Assemly line(process)

6. Results of Scientific Management

7. Bureaucratic organizations (Max
Weber 1864-1920) : Impersonal entities
Context and Challenges Features: Rational way to
manage
European employees were loyal
to a single individual rather • Clear division of labour with
than to the organization or its clear definition of authority and
mission responsibility
Resources used to realize • Positions organized in a
individual desires rather than hierarchy of authority
organizational goals
• Formal record keeping
• Separation of ownership and
management
• Strict rules and procedure

8. Administrative principles: A general
perspective H. Fayol, Mary. F. Follett; Chester Barnard.
New managerial concepts introduced:
• Fayol: the management functions.
– Unity of command- one commander
– Division of work- specialisation
– Unity of direction – grouping similar activities
– Scalar Chain – chain of authority for everyone
– Span of control- limit to supervision
• Follett: Ethics-power-empowerment
• C. Barnard: Informal organizations- naturally
occuring groups. Organization is social. Mgt
should treat employees well.

9. HUMANISTIC PERSPECTIVE
Human relations Movement
Human Resource Perspective

10. Humanistic perspective Movement:
“Social scientific management”
Context and Challenges:
• Classical management increased efficiency and
productivity but ignored social and human context.
• 1929 Great Depression in USA. Wagner Act (1935)
about workers rights and unions.
• Hawthorne studies, experimental studies : Positive
treatment and motivation links:
• Emphasized understanding human behavior, needs, and
attitudes in the workplace
Human Resource management.

11. Human relations Movement
Human Relations Movement
Emphasized satisfaction of employees’
basic needs as the key to increased
worker productivity
Highly inspired by the results of Hawthorne
studies

12. Hawthorne studies by Elton Mayo
• Started in 1895
• Four experimental & three control groups
• Test pointed to factors other than illumination for
productivity
• Factor that increased output, Human Relations
– Social norms determine behaviour at work
– Group affects individual
– Money is less a factor for productivity

13. Human Resource Perspectiv
Human Resource Perspective
Suggests jobs should be designed to meet higher-level
needs by allowing workers to use their full potential:
Motivation and leadership theories
Maslow and hierarchy of needs
McGregor Theory X and Theory Y
Skinner: Operant conditioning
McClelland: Motivation theories
Herzberg: Motivation theories
Hackman & Oldham Task/job characteristics
Fiedler: leadership theories

14. MASLOW HIERARCHY OF NEEDS
Self-actualisation
Self-esteem
Social
Safety
Psysiological

15. Douglas McGregor Theory X & Y
1906-1964
Theory X Theory Y
• Men dislike work –will • Men do not dislike work
avoid it • Self direction and self
• Must be coerced, control
controlled, directed, or • Seek responsibility
threatened with • Imagination, creativity
punishment widely distributed
• Prefer direction, avoid • Intellectual potential only
responsibility, little partially utilized
ambition, want security

16. 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
• Socio technical approaches- participative mgt
• Structural approach – org design

17. Post-War management
approaches
Managerial Science approach
More recent developments-
Systems Theory
Contingency View
Total Quality Management
(TQM)

18. 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

19. Contingency View of Management:
Flexible approach
• Management is not universal and each situation is
unique.
• No universal principles
• Contingencies: Industry –technology- environment-
cultures- size: “Contingency for “goodness of fit”
between environment and organization structure.

20. TQM: Total Quality Management
(E. Deming)
• First time applied in Japan
• Focuses on managing the total
organization to deliver quality to
customers.
• Four significant elements are
– Employee involvement
– Focus on the customer
– Benchmarking
– Continuous improvement ( 0% defect)

21. •
Recent trends: Flexible solutions
Innovative management thinking
Learning organizations
Technology driven workplace
Knowledge management

22. Learning Organizations
OPEN
INFORMATION
LEARNING
ORGANIZATION
TEAM BASED EMPOWERED
STRUCTURE EMPLOYEES
No ready remedies- innovative thinking
Everybody engaged in solving problem- empowerment
Continous change- information and transparency

23. Technology Driven Workplace:
Example: E-commerce
Business-to-Consumer B2C
Selling Products and
Services Online ( Dell)
Business-to-Business B2B Consumer-to-Consumer C2C
Transactions Between Electronic Markets
Organizations(supply chain) Created by Web-Based
Intermediaries (arabam.com)

24. Knowledge management
Technology offers and supports information gathering
and disseminating. Examples of positive
consequences:
- CRM- Customer Relationship Management (Turkcell)
- Outsourcing
- Banks and credit cards
- i.e. Call centers, leaflets
- Other international examples
- Arup
- Tetra Pak

25. The term “Knowledge management”
(Peter Drucker)
According to Drucker:
• There is NO one right organizational structure
• There is NO one right way to manage people
• Technical markets are NOT given
• Management is NOT internally focused
• Management scope is NOT defined legally:
• Therefore, the management should seek to get
information and acquire knowledge, manage and use
this knowledge in order to survive and succeed. For that
to happen, the management should foster a culture of
continuous learning and knowledge sharing.

26. On the overall ..
• All approaches may co-exist
• All approaches are still valid in the
workplace
• However, trends are towards more flexible
structures and balance between efficiency
and effectiveness.
Focus on
Focus on Learning
Efficiency organizations

27. New organizational paradigms:
Flexibility is the rule
Mechanistic Organic
organizations organizations
Learning organizations:
Iron Cage experiment
Departments
risk taking
Highly formal
sharing knowledge
Little participation
Full participation in problem
Limited information network solving
Less formalization
X-functional hierarchical teams

28. General Trends in organizations
Industrial Post industrial
Labour Knowledge
Predictable environment Uncertainty & Speed
Mass production Flexibility
Routine technology Innovation
Hierarchical structures Networks/Horizontal
Growth-efficiency-control Outsourcing
Centralised decision making Decentralization

29. What happened?
Why this shift?

30. What forces organizations and
management to change?
SOCIAL Values, needs ,
FORCES standards of behavior
MANAGEMENT &
ORGANIZATIONS
forces that affect the
availability, production,
& distribution of a ECONOMIC POLITICAL influence of political
society’s resources FORCES FORCES and legal institutions
among competing on people &
users organizations
& TECHNOLOGICAL CHANGES......

31. External environment change
•Globalization
•Technology
InStability/
•Economic /political
diversity turbulances
Uncertainty curves
complexity
The biggest challenge: Increasing Uncertainty