Week 3 Evolution of Management .pdf

MANAGEMENT

RICHARD L. DAFT

The Evolution of Management Thinking

CHAPTER 2

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

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• 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 involvement2. Focus on customer3. Benchmarking4. 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

Documents

Week 3 Evolution of Management .pdf