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The Evolution of Management Thinking
CHAPTER 2
chapter2
Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
2
• 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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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 came 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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17
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 1980s 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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21
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