8eDaftChapter02 the evolution of thinking

The Evolution of Management ThinkingCHAPTER 20

Developed by Velma E. McCuiston - The University of Tampa

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

Learning ObjectivesUnderstand how historical forces influence 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.0



Learning Objectives (contd.)Explain the major components of systems theory, the contingency view, and total quality management.Describe the learning organization and the changes in structure, empowerment, and information sharing that managers make to support it.Discuss the technology-driven workplace and the role of outsourcing, supply chain management, enterprise resource planning, knowledge management systems, and customer relationship management.0



Management and OrganizationManagement 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 today0



Historical PerspectiveProvides a context or environmentDevelops an understanding of societal impactAchieves strategic thinkingImproves conceptual skillsSocial, political, and economic forces have influenced organizations and the practice of management0



Forces Influencing Organizations and Management Social Forces - values, needs, and standards of behaviorPolitical Forces - influence of political and legal institutions on people & organizationsEconomic Forces - forces that affect the availability, production, & distribution of a societys resources among competing users0



Management Perspectives Over TimeExhibit 2.10



Classical Perspective: 3000 B.C.Rational, scientific approach to management make organizations efficient operating machines Scientific ManagementBureaucratic OrganizationsAdministrative Principles0



Scientific Management: Taylor 1856-1915General ApproachDeveloped 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.0



Scientific ManagementContributionsDemonstrated the importance of compensation for performance.Initiated the careful study of tasks and jobs.Demonstrated the importance of personnel and their training.

CriticismsDid 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 ideas0



Bureaucratic OrganizationsMax Weber 1864-1920Prior to Bureaucracy OrganizationsEuropean employees were loyal to a single individual rather than to the organization or its missionResources used to realize individual desires rather than organizational goalsSystematic approach looked at organization as a whole0



Characteristics of Weberian BureaucracyPositions organized in a hierarchy of authorityManagers subject to Rules and procedures that will ensure reliable predictable behaviorPersonnel are selected and promoted based on technical qualifications

Administrative acts and decisions recorded in writing

Management separate from the ownership of the organization

Division of labor with Clear definitions of authority and responsibilityExhibit 2.30



Administrative PrinciplesContributors: Henri Fayol, Mary Parker Follett, and Chester I. BarnardFocus: Organization rather than the individualDelineated the management functions of planning, organizing, commanding, coordinating, and controlling0



Henri Fayol 1841-1925Examples of General Principles of ManagementDivision of workUnity of commandUnity of directionScalar chain0



Mary Parker Follett 1868-1933Importance of common super-ordinate goals for reducing conflict in organizationsPopular with businesspeople of her dayOverlooked by management scholarsContrast to scientific managementReemerging as applicable in dealing with rapid change in global environment

Leadership importance of people vs. engineering techniques

Ethics - Power - Empowerment0



Chester Barnard 1886-1961Informal OrganizationCliquesNaturally occurring social groupings

Acceptance Theory of AuthorityFree willCan choose to follow management orders

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Humanistic PerspectiveEmphasized understanding human behavior, needs, and attitudes in the workplace

Human Relations MovementHuman Resources PerspectiveBehavioral Sciences Approach

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Human Relations MovementEmphasized satisfaction of employees basic needs as the key to increased worker productivity



Hawthorne StudiesStarted in 1895Four experimental & three control groupsFive different testsTest pointed to factors other than illumination for productivity1st Relay Assembly Test Room experiment, was controversial, test lasted 6 yearsInterpretation, money not cause of increased outputFactor that increased output, Human Relations0



Human Resource PerspectiveSuggests jobs should be designed to meet higher-level needs by allowing workers to use their full potential0



Abraham Maslow 1908-1970Identified a hierarchy of needsProblems stem from an inability to satisfy ones needs0



Dislike work will avoid itMust be coerced, controlled, directed, or threatened with punishment Prefer direction, avoid responsibility, little ambition, want securityDo not dislike workSelf direction and self controlSeek responsibilityImagination, creativity widely distributedIntellectual potential only partially utilizedDouglas McGregor Theory X & Y1906-1964Theory X AssumptionsTheory Y Assumptions0



Behavioral Sciences ApproachApplies social science in an organizational contextDraws from economics, psychology, sociology, anthropology, and other disciplinesUnderstand employee behavior and interaction in an organizational settingOD Organization Development

Sub-field of the Humanistic Management Perspective0



Management Science PerspectiveEmerged after WW IIApplied mathematics, statistics, and other quantitative techniques to managerial problemsOperations Research mathematical modelingOperations Management specializes in physical production of goods or servicesInformation Technology reflected in management information systems0



Recent Historical TrendsSystems Theory

Contingency View

Total Quality Management (TQM)0



Systems View of OrganizationsExhibit 2.50



Contingency View of ManagementExhibit 2.60



TQMFocuses on managing the total organization to deliver quality to customers.Four significant elements areEmployee involvementFocus on the customerBenchmarkingContinuous improvement0



Elements of a Learning OrganizationLearning OrganizationOpen InformationEmpowered EmployeesTeam-Based StructureExhibit 2.70



Types of E-CommerceBusiness-to-Consumer B2C Selling Products andServices OnlineBusiness-to-Business B2B Transactions Between OrganizationsConsumer-to-Consumer C2C Electronic Markets Created by Web-Based IntermediariesExhibit 2.80


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8eDaftChapter02 the evolution of thinking