Presentation on theme: "The Evolution of Management Theory"— Presentation transcript:
1 The Evolution of Management Theory Chapter 2The Evolution of Management Theory
2 Learning ObjectivesIdentify and explain major developments in the history of management thought.Describe and compare scientific management, administrative management and behavioral management theories.What role does contingency play in organizations?Explain the importance of the external environment in management theories.
3 Evolution of Management Theory Evolution of Management TheoryInfluences on Management PracticeSocial Forces … values, needs, and standards of behavior. – Family versus WorkPolitical Forces … influence of political and legal institutions on people & organizations –government systems, capitalismEconomic Forces … forces that affect the availability, production, & distribution of a society’s resources. Machines replacing labor, technology
4 Late 1800s to 1940Emphasized a rational, scientific approach to the study of management.Sought to make organizations efficient.
5 Scientific Management Scientific ManagementPioneered by Frederick TaylorStandard of living is low and production is labor intensive at the beginning of this periodDeveloped precise, standardized procedures for doing each jobFocused on efficiency – “one best way to do the job”Used wage incentive plans. Workers earn higher pay – management higher profits.Emphasized selecting workers based on abilities and training workers
6 Scientific Management Scientific ManagementFrank and Lillian GilbrethStudied fatigue caused by lighting, heating and design of tools and machinesTime and Motion studies (often filmed workers performing tasks)Broke up each job action into its componentsSought better ways to perform the taskReorganize job action to be more efficient
7 Administrative principles Administrative principlesWhat comes to mind when you hear the word “bureaucracy?”Max Weber developed five principles of bureaucracy in GermanyDesigned to ensure efficiency and effectiveness in organizations
8 Administrative principles Administrative principlesMax Weber’s principles:Manager’s authority derives from position in organizationPeople should be given position because of performanceEach position’s responsibility and authority should be clearly definedClearly specified hierarchy of authoritySystem of rules and standard operating procedures which specify how employees should behave.
9 Administrative principles Administrative principlesHenri Fayol’s 14 Principles of ManagementStill the foundation for much of management theory of todaySome notable mentions of principlesManager’s informal authority from expertise, moral worth and ability to leadUnity of commandImportant to limit the length of the chain of commandManagers should allow employees to be innovative and creativeEquity to all organizational membersEsprit de Corps
10 Behavioral Management Theory Behavioral Management TheoryEmphasized understanding human behavior.Dealt with needs & attitudes in the workplace.Truly effective control comes from within the individual worker rather than authoritarian control.Hawthorne Studies brought this perspective to forefront.
11 Behavioral Management Theory Behavioral Management TheoryMary Parker FollettScientific management approaches ignored human side of organizationManagement should involve workers in finding better ways to perform tasksKnowledge and expertise should be deciding factor in who should lead – not manager’s formal authorityPrecursor to self-managed teams
12 Behavioral Management Theory “Managers get things done through people” Behavioral Management Theory “Managers get things done through people”Western Electric Company’s Hawthorn Studies (1920s)– Elton MayoStarted from studies looking at how amount of illumination affected productivity – found that productivity increased in control and experimental groupsNumerous experiments performed on wage incentives, job design, etc. over a decade found that positive treatment of employees had more influence on group productivity.Money isn’t the only motivator – group norms, standardsNew emphasis on “human factor” in management
13 Theory X & Y – Douglas McGregor Theory X & Y – Douglas McGregorTheory XTheory YPeople are lazyPeople lack ambitionDislike responsibilityPeople are self-centeredPeople don’t like changePeople are energeticPeople want to make contributionsPeople do have ambitionPeople will seek responsibility
14 The Contingency Approach The Contingency ApproachThere is no one best way to organize.Situations are unique. There are no universal principles of management.Managers search for key contingencies – important patterns and characteristicsfor organizations to be effective, there must be a “goodness of fit” between their structure and the conditions in their external environment.
15 Characteristics of the New Workplace Characteristics of the New WorkplaceEconomic ForcesWork centered around information and ideasGlobalization of marketsWork is often virtual
16 Characteristics of the New Workplace Characteristics of the New WorkplaceSocial ForcesCoordination of Family and WorkIncreased Longevity of Workers – Multi-generationsCultural Diversity of WorkersSocial Responsibility