CH.2 THE EVOLUTION OF MANAGEMENT THOUGHT 4.
Line of Authority – the length of the chain of
command that extends from the top to the bottom of
Changes in management practices occur as managers, an organization should be limited.
theorists, researchers, and consultants seek new ways 5. Centralization – authority should not be
to increase organizational efficiency and effectiveness. concentrated at the top of the chain of command.
6. Unity of Direction – the organization should have a
1) SCIENTIFIC MANAGEMENT THEORY
single plan of action to guide managers and workers.
-The concept of job specialization and division of labor
7. Equity – all organizational members are entitled to be
remains the basis for the design of work settings in
treated with justice and respect.
modern organizations.
8. Order – the arrangement of organizational positions
-Scientific management principles developed by Taylor
should maximize organizational efficiency
and Gilbreths.
9. Initiative – managers should allow employees to be
Job Specialization and the Division of Labor innovative and creative.
-A famous economist, Adam Smith journeyed around 10. Discipline – managers need to create a workforce
England in the 1700s studying the effects of the that strives to achieve organizational goals.
industrial revolution. 11. Remuneration of Personnel – the system that
-Smith concluded that increasing the level of job managers use to reward employees
specialization – the process by which a division of labor 12. Stability of Tenure of Personnel – long-term
occurs as different workers specialize in specific tasks employees develops skills that can improve
over time – increases efficiency and leads to higher organizational efficiency.
organizational performance. 13. Subordination of Individual Interests to the
Common Interest – employees should understand how
-Frederick W. Taylor (1856-1915) is best known for their performance affects the performance of the whole
defining the techniques of scientific management -the organization.
systematic study of relationships between people and 14. Esprit de Corps – managers should encourage the
tasks for the purpose of redefining the work process to development of shared feelings of comradeship,
increase efficiency. enthusiasm, or devotion to a common cause.
The Gilbreths - two prominent followers of Taylor were 3) BEHAVIORAL MANAGEMENT THEORY
Frank Gilbreth (1868-1924) and Lillian Gilbreth (1878- -Researchers have described many different approaches
1972) to managerial behavior, including Theories X and Y.
-Mary Parket Follett advocated managerial behaviors
2) ADMINISTRATIVE MANAGEMENT THEORY that did not reflect accepted modes of managerial
-Max Weber and Henri Fayol outlined principles of behavior at the time
bureaucracy and administration. -Behavioral Management is the study of how managers
administrative management the study of how to should behave to motivate employees and encourage
create an organizational structure and control system them to perform at high levels and be committed to the
that leads to high efficiency and effectiveness. achievement of organizational goals.
-If F. W. Taylor is considered the father of management
THE THEORY OF BUREAUCRACY thought, Mary Parker Follett (1868-1933) serves as its
Max Weber (1864-1920) developed the principles of mother.
bureaucracy – a formal system of organization and
administration designed to ensure efficiency and The Hawthorne Studies and Human Relations
effectiveness. -Hawthorne studies began as an attempt to investigate
how characteristics of the work setting-specifically the
Henri Fayol’s 14 Principles of Management level of lighting or illumination-affect worker fatigue
1. Division of Labor – job specialization and the division and performance.
of labor should increase efficiency -Hawthorne effect is the finding that a manager’s
2. Authority and Responsibility – managers have the behavior or leadership approach can affect workers’
right to give orders and the power to exhort level of performance.
subordinates for obedience. -Human relations movement is a management
3. Unity of Command – an employee should receive approach that advocates the idea that supervisors
orders from only one superior. should receive behavioral training to manage
subordinates in ways that elicit their cooperation and Contingency Theory - there is no one best way to
increase their productivity. organize; organizational structure depends on the
Informal organization, the system of behavioral rules environment in which an organization operates.
and norms that emerge in a group
Organizational behavior, the study of the factors that Mechanistic Structure
have an impact on how individuals and groups respond
An organizational structure in which authority is
to and act in organizations
centralized, tasks and rules are clearly specified, and
employees are closely supervised.
Theory X and Theory Y
THEORY X, the average worker is lazy, dislikes work, and Organic Structure
will try to do as little as possible.
THEORY Y assumes that workers are not inherently lazy, An organizational structure in which authority is
do not naturally dislike work, and, if given the decentralized to middle and first-line managers and
opportunity, will do what is good for the organization. tasks and roles are left ambiguous to encourage
employees to cooperate and respond quickly to the
4) MANAGEMENT SCIENCE THEORY unexpected.
- a contemporary approach to management that
focuses on the use of rigorous quantitative techniques
to help managers make maximum use of organizational
resources to produce goods and services.
-as developed by Taylor
Quantitative management utilizes mathematical
techniques – such as linear and non-linear
programming, modeling, simulation, queuing theory,
and chaos theory
Operations management provides managers with a set
of techniques that they can use to analyze any aspect of
an organization’s production system to increase
efficiency.
Total quality management (TQM) focuses on analyzing
an organization’s input, conversion, and output
activities to increase product quality.
Management information systems (MISs) help
managers design systems that provide information
about events occurring inside the organization as well
as in its external environment
5) ORGANIZATIONAL ENVIRONMENT THEORY
- the set of forces and conditions that operate beyond
an organization’s boundaries but affect a manager’s
ability to acquire and utilize resources.
The Open-Systems View a system that takes in
resources from its external environment and converts
or transforms them into goods and services that are
sent back to that environment, where they are bought
by customers.
Closed System is a self-contained system that is not
affected by changes in its external environment.
Entropy the tendency of a closed system to lose
its ability to control itself and thus to dissolve and
disintegrate.
