1. Chapter 2
The Evolution of
Management Thinking

2. New Approach to Management
Success accrues to those who learn how
 To be leaders
 To Initiate change
 To participate in and create organizations
–
–
2
with fewer managers
With less hierarchy that can change quickly
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3. 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
3
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4. Historical Perspective





4
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
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5. 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
5
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6. Management Perspectives Over Time
Exhibit 2.1, p.44
2000
The Technology-Driven Workplace
2010
1990
The Learning Organization
2010
1980
Total Quality Management
2000
1970
Contingency Views
2000
1950
Systems Theory
2000
1940
Management Science Perspective
1990
1930
Humanistic Perspective
1990
1890
Classical
1940
2010
1870
6
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7. Classical Perspective: 3000 B.C.
●
●
●
●
7
Rational, scientific approach to
management – make organizations
efficient operating machines
Scientific Management
Bureaucratic Organizations
Administrative Principles
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8. Scientific Management:
Taylor 1856-1915
General Approach
 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.
8
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9. Scientific Management
Contributions



Demonstrated the importance of compensation for performance.
Initiated the careful study of tasks and jobs.
Demonstrated the importance of personnel and their training .
Criticisms



9
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
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10. Bureaucracy Organizations
 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
as a whole
approach –looked at organization
Ethical Dilemma: The Supervisor
10
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11. Bureaucracy Organizations
Division of labor
with Clear definitions of
authority and responsibility
Personnel are selected
and promoted based
on technical
qualifications
Positions organized
in a hierarchy of authority
Managers subject to
Rules and procedures
that will ensure reliable
predictable behavior
Administrative acts
and decisions recorded
in writing
Management separate
from the ownership
of the organization
Exhibit 2.3, p. 49
11
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12. Administrative Principles
 Contributors:
Henri Fayol, Mary Parker,
and Chester I. Barnard
 Focus:
–
–
12
Organization rather than the individual
Delineated the management functions of
planning, organizing, commanding,
coordinating, and controlling
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13. Henri Fayol 1841-1925
14 General Principles of Management

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

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
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13
Division of labor
Authority
Discipline
Unity of command
Unity of direction
Subordination of
individual interest
Remuneration







Centralization
Scalar chain
Order
Equity
Stability and
tenure of staff
Initiative
Esprit de corps
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14. 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
14
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15. Chester Barnard 1886-1961
 Informal
–
–
Organization
Cliques
Naturally occurring social groupings
 Acceptance
–
–
15
Theory of Authority
Free will
Can choose to follow management orders
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16. Humanistic Perspective
Emphasized understanding human behavior,
needs, and attitudes in the workplace
●Human
Relations Movement
●Human
Resources Perspective
●Behavioral
16
Sciences Approach
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17. Human Relations Movement
Emphasized satisfaction of employees’
basic needs as the key to increased
worker productivity
17
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18. Hawthorne Studies


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

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18
Ten year study
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
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19. Human Resource Perspective
Suggests jobs should be designed to meet
higher-level needs by allowing workers to
use their full potential
19
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20. Abraham Maslow’s
Hierarchy of Needs
1908-1970
Selfactualization
Esteem
Belongingness
Safety
Physiological
Based on needs satisfaction
20
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Chapter 16 – Maslow in more detail

21. Douglas McGregor
Theory X & Y
Theory X Assumptions



21
Dislike work –will avoid it
Must be coerced,
controlled, directed, or
threatened with
punishment
Prefer direction, avoid
responsibility, little
ambition, want security
1906-1964
Theory Y Assumptions


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Do not dislike work
Self direction and self
control
Seek responsibility
Imagination, creativity
widely distributed
Intellectual potential
only partially utilized
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22. Douglas McGregor Theory X & Y
 Few
companies today still use Theory X
 Many
are trying Theory Y techniques
Experiential Exercise: Theory X and Theory Y Scale
22
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23. Behavioral Sciences Approach
Sub-field of the Humanistic Management Perspective
 Applies
social science in an organizational
context
 Draws from economics, psychology,
sociology, anthropology, and other
disciplines
–
–
23
Understand employee behavior and interaction
in an organizational setting
OD – Organization Development
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24. 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
24
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25. Recent Historical Trends
●
●
Contingency View
●
25
Systems Theory
Total Quality Management (TQM)
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26. Systems View of Organizations
Exhibit 2.5, p. 58
26
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27. Contingency View of Management
Exhibit 2.6, p. 59
Successful resolution of organizational problems is thought to
depend on managers’ identification of key variations in the
situation at hand
27
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28. Elements of a Learning Organization
Team-Based Structure
Learning
Organization
Empowered
Employees
Open
Information
Exhibit 2.7, p. 61
28
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29. 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, p. 63
29
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