THE EVOLUTION OF MANAGEMENT THINKING

GROUP 1: Caisido, Costes, Stefanowitz, Te

In today’s marketplace, change is rapid and managers are expected to deal with a broad set of issues and needs .

Creative, dynamic management is a driving force behind the success of any business.

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Management Perspectives Over Time

1930Humanistic Perspective

19901890Classical 1940

1950

2000Systems Theory

2000

2010

The Technology-Driven Workplace

1990

2010The Learning Organization

1970Contingency Views

2000

1980Total Quality Management

2000

1940Management Science Perspective

1990

20101870

Exhibit 2.1, p.44

Classical perspective (emerged in the 19th and early 20th century)

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In response to a problem businesses grapple with today:

how to make businesses efficient operating machines.

In the factory system, managers had the challenge of..

coordinating a huge, unskilled labor force complex production systems wide-ranging manufacturing operation.

Scientific Management: Frederick Winslow Taylor

Productivity could be improved only by a series of precise procedures developed from a scientific observation of a situation

1. Develop precise, standardized procedures for doing each job

2. Select workers with appropriate abilities3. Train workers in the standard procedures 4. Plan work5. Provide wage incentives for increased

output

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Scientific Management

While highly successful, this approach did not take into consideration the diversity of abilities and needs within the workforce.

1. Did not appreciate social context of work and higher needs of workers.

2. Did not acknowledge variance among individuals.

3. Tended to regard workers as uninformed and ignored their ideas.

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Administrative Principles

Organization rather than the individual

Contributed to the development of bureaucratic organization

Bureaucracy Organizations

Division of labor with clear definitions of authority and responsibilities

Positions organized in a hierarchy of authority

Personnel are selected and promoted based on technical qualifications

Administrative acts and decisions recorded in writing

Management is separate from the ownership of the organization

Managers subject to rules and procedures that will ensure reliable predictable behavior

Humanistic Perspective: Mark Parker Follett and Chester Barnard Emphasis on human behaviors, needs

and attitudes in the workplace over the economy and efficiency of production

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Humanistic Perspective:Human Relations Movement

Emphasized

satisfaction of

employees’ basic needs

as the key to increased

worker productivity

Humanistic Perspective:Human Resource Perspective

Suggests jobs should be

designed to meet higher-

level needs by allowing

workers to use their full

potential

Humanistic Perspective:Behavioral Sciences Approach

Sub-field of the Humanistic

Management Perspective

Understand employee

behavior and interaction in

an organizational setting

Physiological

Safety

Belongingness

Esteem

Self-actualization

Abraham Maslow’s Hierarchy of Needs

Based on needs satisfaction

Theory X & Y: Douglas McGregor THEORY X

ASSUMPTIONS

Dislike work –will avoid it

Must be coerced, controlled, directed, or threatened with punishment

Prefer direction, avoid responsibility, little ambition, want security

THEORY Y ASSUMPTIONS

Do not dislike work Self direction and self

control Seek responsibility Imagination,

creativity widely distributed

Intellectual potential only partially utilized

Theory X & Y: Douglas McGregor

Few companies today still use Theory X

Many are trying Theory Y techniques

Management Science Perspective Emerged after WW II Applied mathematics, statistics, and

other quantitative techniques to managerial problems Operations Research – mathematical

modeling Operations Management – specializes in

physical production of goods or services Information Technology – reflected in

management information systems

Recent Historical Trends

● Systems Theory

● Contingency View

● Total Quality Management (TQM)

Systems Theory

views an organization as a series of interconnected systems that affect and are effected by each other

Contingency View of Management

addresses one of the weaknesses of the classical perspective by viewing all employees and situations as unique, as opposed to uniform and generalizable.

Successful resolution of organizational problems is thought to depend on managers’ identification of key variations in the situation at hand

Total Quality Management (TQM) Focus on managing the total

organization to deliver customer quality1. Employee involvement2. Focus on the customer3. Benchmarking4. Continuous improvement

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Learning Organization (Elements)

Learning Organization

Open Information

Empowered Employees

Team-Based Structure

Exhibit 2.7, p. 61

The Technology-Driven WorkplaceTypes of E-Commerce

Business-to-Consumer B2C Selling Products and

Services Online

Business-to-Business B2B Transactions Between

Organizations

Consumer-to-Consumer C2C Electronic Markets

Created by Web-Based Intermediaries

Exhibit 2.8, p. 63

References

Wikipedia.com Swlearning.com Prinman handouts

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