The document discusses the evolution of management thinking over time. It describes several major perspectives in management including classical, humanistic, management science, systems theory, contingency view, total quality management, and learning organization perspectives. It also discusses how technology has changed management with developments like supply chain management, customer relationship management, and outsourcing. The document provides an overview of the historical development of management theories and changing approaches to management over time.

1. MANAGEMENT
RICHARD L. DAFT

2. The Evolution of
Management Thinking
CHAPTER 2

3. chapter2
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
3
• 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.
Learning Outcomes

4. chapter2
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
4
Are You a New-Style or an
Old-Style Manager?
• Management and managers are
undergoing tremendous change
• Past strategies are no longer effective in
today’s dynamic business environment
• History provides perspective and a
broader view
• Manager can find patterns and insight
from history

5. chapter2
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
5
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

6. chapter2
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
6
Management Perspectives
Over Time

7. chapter2
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
7
Classical Perspective
• The early study of management.
• 19th – late 20th Century
– Scientific Management
– Bureaucratic Organizations
– Administrative Principles
• Very powerful, gave companies
fundamental skill for high productivity
– Helped US surge in management techniques

8. chapter2
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
8
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

9. chapter2
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
9
Characteristics of
Scientific Management

10. chapter2
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
10
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”

11. chapter2
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
11
Characteristics of
Weberian Bureaucracy

12. chapter2
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
12
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

13. chapter2
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
13
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

14. chapter2
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
14
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

15. chapter2
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
15
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 cam from the idea that cows
gave more milk when they were more
satisfied

16. chapter2
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
16
Theory X and Theory Y

17. chapter2
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
17
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

18. chapter2
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
18
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

19. chapter2
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
19
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.

20. chapter2
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
20
The Systems View of
Organizations

21. chapter2
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
21
Contingency View of
Management

22. chapter2
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
22
Total Quality Management
• W. Edward Deming, known as the father of the
quality movement
– US initially scoffed at Deming
• During the 1908s and 1990s, quality became a
focus to meet global competition
• Four key elements of quality management:
1. Employee involvement
2. Focus on customer
3. Benchmarking
4. Continuous improvement

23. chapter2
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
23
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

24. chapter2
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
24
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

25. chapter2
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
25
Supply Chain for a
Retail Organization