Chapter 2
The Evolution of Management Thinking
Management and Organization
Studying management history helps your
conceptual skills
• Social Forces – influence of culture that guides
people and relationships
• Political Forces – influence of political and legal
institutions
• Economic Forces – the availability, production,
and distribution of resources
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2.1 Management Perspectives over Time
Classical Perspective
• Emerged during the 19th & early 20th centuries:
– Rise of the factory system
– Issues regarding structure, training, and employee
satisfaction
• Large, complex organizations required new
approaches to coordination and control
• Three subfields: (1) scientific management, (2)
bureaucratic organizations, and (3)
administrative principles
4
Classical Perspectives –
(1) Scientific Management
• 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
• Gilbreth pioneered time and motion studies to
promote efficiency
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2.2 Characteristics of Scientific Management
Classical Perspectives –
(2) Bureaucratic Organizations
• 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
• DQ: Suppose you are a creative worker, and do not have
much respect on authority. Is a bureaucratic government
job a right choice for your career?
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2.3 Characteristics of Weberian Bureaucracy
Classical Perspectives –
(3) Administrative Principles
• Focused on the entire organization
• Henri Fayol, a French mining engineer, was a major
contributor – “General & Industrial Management”
• Identified 5 functions of MGMT: planning, organizing,
commanding, coordinating, and controlling
• 14 general principles of MGMT; many still used today:
– Unity of command: Each employee should have only one boss
– Division of work: Specialized employees produce more with the
same effort.
– Unity of direction: Similar activities should be grouped under one
manager.
– Scalar chain: A chain of authority, which extends from the top of an
organization to the bottom.
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Humanistic Perspective:
(1) Early Advocates
• Understand human behaviors, needs, and
attitudes in the workplace
• Mary Parker Follett:
– Importance of people rather than engineering
techniques: contrast to scientific management
– Empowerment: facilitating instead of controlling
• Chester Barnard:
– Recognition of the informal organization
– Introduced acceptance theory of authority: the notion
that employees have free will and can choose whether to follow
management orders. Acceptance of authority can be critical to success.
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Humanistic Perspective (continued):
(2) Human Relations Movement
• Effective work comes from within the employee
• Hawthorne studies were key contributor
• Human relations paid key variable in increasing
performance
• Employees performed better when managers
treated them positively
• Strongly shaped management practice and
research
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Humanistic Perspective (continued):
(3) Human Resources Perspective
• 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 (Chapter 16)
– Theory X and Theory Y
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2.4 Theory X and Theory Y
Research Proposal (Lee, 2013) :
Generation S / Generation T
• Generation S or Generation T:
– Smart phone, Tablet computer
– Social networking
– Interest in politics:
– Interest in social issues:
– Interest in globalization:
– Interest in technology:
– Interest in innovation:
– Interest in education, training:
– Interest in collaborative work:
• Contribution: How manager can deal with S/T generation
employees.
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Humanistic Perspective (continued):
(4) Behavioral Sciences Approach
• Scientific methods + sociology, psychology,
anthropology, economics…
• Organizational Development – field that uses
behavioral sciences to improve organization
• Other strategies based on behavioral science:
– Matrix Organizations
– Self-Managed Teams
– Corporate Culture
– Management by Wandering Around
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Quantitative Perspective
• Also referred to as Management Science (a.k.a.
Operations Research, MS/OR, Decision 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
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Recent Trends:
(1) Systems Thinking
• System = Input Process Output
• 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
parts
– Managers must understand subsystem interdependence
and synergy
• Self-Adaptation: Basic System + [Feedback + Control]
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• A system is a set of interrelated parts that function as a whole to
achieve a common purpose.
• A system functions by taking inputs from the external environment,
transforming them, and then discharging the transformed input back
into the environment.
• Systems theory describes organizations as open systems.
• Systems thinking enables managers to look for patterns of movement
over time and focus on the qualities or rhythm, flow, direction, shape,
and networks of relationships that accomplish the performance of the
whole.
• Discussion Question #8: How would you apply systemic thinking to a
problem such as poor performance in your current academic studies?
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2.5 Systems Thinking and Circles of Causality
Recent Trends:
(2) Contingency View
• 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
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2.6 Contingency View of Management
Recent Trends:
(3) Total Quality Management (TQM)
• Quality movement is strongly associated with
Japan
• The US ignored the ideas of W. Edwards Deming,
“Father of the Quality Movement”
• TQM became popular in the 1980s and 90s
• Integrate high-quality values in every activity
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Elements of TQM
Employee involvement
Focus on the customer
Benchmarking
Process Improvement
Each process improvement
Improvement of the whole organization
Continuous improvement
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Innovative Management:
Thinking for a Changing World
• Management ideas trace their roots to historical
perspectives
• New ideas continue to emerge to meet the
changing needs and difficult times
• The shelf life of trends is getting shorter and new
ideas peak in fewer than three years
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Managing the Technology-
Driven Workplace
• Customer Relationship Management –
technology used to build relationship with
customers
• Outsourcing – contracting functions or activities
to other organizations to cut costs
• Supply Chain Management – managing supplier
and purchaser relationships to get goods to
consumers
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2.7 Supply Chain for a Retail Organization
