Chapter 2 The Evolution of Management Thinking. Studying management history helps your conceptual...

Chapter 2The Evolution of Management Thinking

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2.1 Management Perspectives

over Time

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

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• Emerged during the nineteenth and early twentieth centuries– Rise of the factory system– Issues regarding structure, training, and schedule

complex manufacturing operationsLarge, complex organizations required new approaches to coordination and control

• Three subfields: scientific management, bureaucratic organizations, and administrative principles

Classical Perspective


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• Improve efficiency and labor productivity through scientific methods

• Frederick Winslow Taylor proposed that workers “could be retooled like machines”

• Management decisions would be based on precise procedures based on study

• Henry Gantt developed the Gantt Chart to measure and plan work

• The Gilbreth’s pioneered time and motion studies to promote efficiency

1. Scientific Management


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2.2 Characteristics of Scientific Management


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• Max Weber, a German theorist, introduced the concepts

• Manage organized on an impersonal, rational basis

• Organization depends on rules and records

• Managers use power instead of personality to delegate

Although important productivity gains come from this foundation, bureaucracy

has taken on a negative tone

2.Bureaucratic Organizations


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2.3 Characteristics of Weberian Bureaucracy


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• Focused on the entire organization• Henri Fayol, a French mining engineer, was a major

contributor• Identified five functions of management: planning,

organizing, commanding, coordinating, and controlling• 14 general principles of management; many still used

today:– Unity of command-receive orders form one superior– Division of work– Unity of direction-group similar activities under one manager– Scalar chain

3.Administrative Principles


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• Mary Parker Follett and Chester Barnard• Understand human behaviors, needs, and

attitudes in the workplace• Importance of people rather than engineering

techniques: contrast to scientific management• Empowerment: facilitating instead of controlling• Recognition of the informal organization• Introduced acceptance theory of authority-

choice to choose to follow or otherwise

Humanistic Perspective: Early Advocates


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• Effective control comes from within the employee than authoritarian control

• Hawthorne studies were key contributor• Human relations key variable in increasing

performance• Employees performed better when managers

treated them positively

Humanistic Perspective: Human Relations Movement


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• From worker participation and considerate leadership to managing work performance

• Combine motivation with job design

• Maslow and McGregor extended and challenged current theories– Maslow’s Hierarchy– Theory X and Theory Y

Humanistic Perspective: Human Resources Perspective


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2.4 Theory X and Theory Y


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• Uses Scientific methods + sociology, psychology, anthropology, economics…etc to develop theories on behavior & interaction in organization

• Organizational Development – field that uses behavioral sciences to improve organization

• e.g. coping with change, improve internal r/ship, increase problem solving capabilities

Humanistic Perspective: Behavioral Sciences Approach


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• Also referred to as management science• Use of mathematics and statistics to aid

management decision making– Enhanced by development and growth of the

computer• Operations Management focuses on the physical

production of goods and services• Information technology focuses on technology

and software to aid managers

Quantitative Perspective


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• The ability to see the distinct elements of a situation as well as the complexities– The relationship among the parts form the whole

system• Subsystems are parts of the system that are all

interconnected• Synergy – the whole is greater than the sum of its

partsManagers must understand subsystem

interdependence and synergy

Recent Trends: Systems Thinking


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2.5 Systems Thinking and Circles of Causality


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• Every situation is unique, there is no universal management theory

• Managers must determine what method will work

• Managers must identify key contingencies for the current situation

• Organizational structure should depend upon industry and other variables

Recent Trends: Contingency View


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2.6 Contingency View of Management


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• Quality movement is strongly associated with Japan

• The US ignored the ideas of W. Edwards Deming, “Father of the Quality Movement”

• Total Quality Management (TQM) became popular in the 1980s and 90s

• Integrate high-quality values in every activity

Recent Trends: Total Quality Management


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Employee involvement

Focus on the customer

Benchmarking

Continuous improvement

Elements of Quality Management


Chapter 2 The Evolution of Management Thinking. Studying management history helps your conceptual...

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