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Management ch 02 the evolution of management thinking

Chapter 2

The Evolution of
Management Thinking


New Approach to Management
Success accrues to those who learn how
 To be leaders
 To Initiate change
 To participate in and create organizations

2



with fewer managers



With less hierarchy that can change quickly


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Management and Organization
 Management

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
today

3

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Historical Perspective







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Provides a context or environment
Develops an understanding of societal impact
Achieves strategic thinking
Improves conceptual skills
Social, political, and economic forces have
influenced organizations and the practice of
management

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Forces Influencing
Organizations and Management
 Social

Forces - values, needs, and standards of

behavior

 Political

Forces - influence of political and legal

institutions on people & organizations

 Economic

Forces - forces that affect the availability,

production, & distribution of a society’s resources among
competing users

5

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Management Perspectives Over Time
Exhibit 2.1, p.44

2000
The Technology-Driven Workplace
2010
1990
The Learning Organization
2010
1980
Total Quality Management
2000
1970
Contingency Views
2000
1950
Systems Theory
2000
1940
Management Science Perspective
1990
1930
Humanistic Perspective
1990
1890
Classical
1940
2010
1870

6

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Classical Perspective: 3000 B.C.






7

Rational, scientific approach to
management – make organizations
efficient operating machines
Scientific Management
Bureaucratic Organizations
Administrative Principles

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Scientific Management:

Taylor 1856-1915

General Approach
 Developed 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.
8

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Scientific Management
Contributions




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

Criticisms




9

Did 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 ideas

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Bureaucracy Organizations
 Max

Weber 1864-1920
 Prior to Bureaucracy Organizations



European employees were loyal to a single individual rather than
to the organization or its mission
Resources used to realize individual desires rather than
organizational goals

 Systematic

a whole

approach –looked at organization as
Ethical Dilemma: The Supervisor

10

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Bureaucracy Organizations
Division of labor
with Clear definitions of
authority and responsibility
Personnel are selected
and promoted based
on technical
qualifications

Positions organized
in a hierarchy of authority

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

Administrative acts
and decisions recorded
in writing
Management separate
from the ownership
of the organization

Exhibit 2.3, p. 49

11

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Administrative Principles
 Contributors:

Henri Fayol, Mary Parker,
and Chester I. Barnard
 Focus:

12



Organization rather than the individual



Delineated the management functions of planning,
organizing, commanding, coordinating, and controlling

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Henri Fayol 1841-1925
14 General Principles of Management









13

Division of labor
Authority
Discipline
Unity of command
Unity of direction
Subordination of
individual interest
Remuneration









Centralization
Scalar chain
Order
Equity
Stability and
tenure of staff
Initiative
Esprit de corps

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Mary Parker Follett 1868-1933


Importance of common super-ordinate goals for
reducing conflict in organizations







Popular with businesspeople of her day
Overlooked by management scholars
Contrast to scientific management
Reemerging as applicable in dealing with rapid change in
global environment

Leadership – importance of people vs. engineering
techniques
Ethics - Power - Empowerment

14

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Chester Barnard 1886-1961
 Informal

Organization



Cliques



Naturally occurring social groupings

 Acceptance

15

Theory of Authority



Free will



Can choose to follow management orders

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Humanistic Perspective
Emphasized understanding human behavior,
needs, and attitudes in the workplace
●Human

Relations Movement

●Human

Resources Perspective

●Behavioral

16

Sciences Approach

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Human Relations Movement
Emphasized satisfaction of employees’
basic needs as the key to increased
worker productivity

17

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Hawthorne Studies








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Ten year study
Four experimental & three control groups
Five different tests
Test pointed to factors other than illumination for
productivity
1st Relay Assembly Test Room experiment, was
controversial, test lasted 6 years
Interpretation, money not cause of increased output
Factor that increased output, Human Relations

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Human Resource Perspective
Suggests jobs should be designed to meet
higher-level needs by allowing workers to
use their full potential

19

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Abraham Maslow’s
Hierarchy of Needs

1908-1970

Selfactualization
Esteem
Belongingness
Safety
Physiological
Based on needs satisfaction

20

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Chapter 16 – Maslow in more detail


Douglas McGregor
Theory X & Y
Theory X Assumptions






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Dislike work –will avoid it
Must be coerced, controlled,
directed, or threatened with
punishment
Prefer direction, avoid
responsibility, little ambition,
want security

1906-1964
Theory Y Assumptions








Do not dislike work
Self direction and self control
Seek responsibility
Imagination, creativity widely
distributed
Intellectual potential only
partially utilized

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Douglas McGregor Theory X & Y

 Few

companies today still use Theory X

 Many

are trying Theory Y techniques

Experiential Exercise: Theory X and Theory Y Scale

22

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Behavioral Sciences Approach
Sub-field of the Humanistic Management Perspective

 Applies

social science in an organizational

context
 Draws from economics, psychology,
sociology, anthropology, and other
disciplines

23



Understand employee behavior and interaction in an
organizational setting



OD – Organization Development

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Management Science Perspective
 Emerged

after WW II
 Applied mathematics, statistics, and other quantitative
techniques to managerial problems





24

Operations Research – mathematical modeling
Operations Management – specializes in physical production of goods
or services
Information Technology – reflected in management information systems

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Recent Historical Trends

25



Systems Theory



Contingency View



Total Quality Management (TQM)

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