Daft-Ch. 02.ppt

The Evolution of
Management Thinking
CHAPTER 2

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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

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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

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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

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Management Perspectives
Over Time

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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

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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

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Characteristics of
Scientific Management

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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”

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Characteristics of
Weberian Bureaucracy

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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

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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

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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

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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

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Theory X and Theory Y

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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

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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

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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.

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The Systems View of
Organizations

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Contingency View of
Management

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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

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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

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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

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Supply Chain for a
Retail Organization

Daft-Ch. 02.ppt

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