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Chapter 2 The Evolution of Management Thinking. Studying management history helps your conceptual skills Social Forces – influence of culture that guides.

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Presentation on theme: "Chapter 2 The Evolution of Management Thinking. Studying management history helps your conceptual skills Social Forces – influence of culture that guides."— Presentation transcript:

1 Chapter 2 The Evolution of Management Thinking

2 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 Management and Organization Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 2

3 2.1 Management Perspectives over Time

4 Emerged during the 19 th & 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 Classical Perspective 4

5 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 Classical Perspectives – (1) Scientific Management 5

6 2.2 Characteristics of Scientific Management

7 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? Classical Perspectives – (2) Bureaucratic Organizations 7

8 2.3 Characteristics of Weberian Bureaucracy

9 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. Classical Perspectives – (3) Administrative Principles 9

10 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 Humanistic Perspective: (1) Early Advocates 10

11 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 Humanistic Perspective (continued): (2) Human Relations Movement Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 11

12 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 Humanistic Perspective (continued): (3) Human Resources Perspective 12

13 2.4 Theory X and Theory Y

14 Problem Statement Background Analysis Executive Recommendation Case Study : Cisco Systems 14

15 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. Research Proposal (Lee, 2013) : Generation S / Generation T 15

16 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 Humanistic Perspective (continued): (4) Behavioral Sciences Approach 16

17 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 Quantitative Perspective Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 17

18 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] Recent Trends: (1) Systems Thinking Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 18

19 2.5 Systems Thinking and Circles of Causality

20 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 Recent Trends: (2) Contingency View Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 20

21 2.6 Contingency View of Management

22 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 Recent Trends: (3) Total Quality Management (TQM) 22

23 Employee involvement Focus on the customer Benchmarking Process Improvement Each process improvement  Improvement of the whole organization Continuous improvement Elements of TQM 23

24 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 Innovative Management: Thinking for a Changing World Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 24

25 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 Managing the Technology- Driven Workplace Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 25

26 2.7 Supply Chain for a Retail Organization

27 Review Questions : 27 Describe the major components of the classical perspectives. Describe the major components of the humanistic management perspectives. Discuss the quantitative perspective and its current use in organizations. Explain the major concepts of systems thinking. Explain the major concepts of the contingency view. Explain the major concepts of the total quality management. Name contemporary management tools and some reasons management trends change over time. Describe the management changes brought about by a technology-driven workplace, including the role of customer relationship management, outsourcing, and supply chain management.


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