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The Evolution of Management Thinking

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Presentation on theme: "The Evolution of Management Thinking"— Presentation transcript:

1 The Evolution of Management Thinking
Chapter 2

2 New Approach to Management
Success accrues to those who learn how To be leaders To Initiate change To participate in and create organizations with fewer managers With less hierarchy that can change quickly

3 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

4 Historical Perspective
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

5 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

6 Management Perspectives Over Time
Exhibit 2.1, p.44 2000 2010 The Technology-Driven Workplace 1990 2010 The Learning Organization 1980 Total Quality Management 2000 1970 Contingency Views 2000 1950 2000 Systems Theory 1940 Management Science Perspective 1990 1930 Humanistic Perspective 1990 1890 Classical 1940 2010 1870

7 Classical Perspective: 3000 B.C.
Rational, scientific approach to management – make organizations efficient operating machines Scientific Management Bureaucratic Organizations Administrative Principles

8 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.

9 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 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

10 Bureaucracy Organizations
Max Weber 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 approach –looked at organization as a whole Ethical Dilemma: The Supervisor

11 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

12 Administrative Principles
Contributors: Henri Fayol, Mary Parker, and Chester I. Barnard Focus: Organization rather than the individual Delineated the management functions of planning, organizing, commanding, coordinating, and controlling

13 Henri Fayol 1841-1925 Division of labor Centralization Authority
14 General Principles of Management 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

14 Ethics - Power - Empowerment
Mary Parker Follett 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

15 Chester Barnard 1886-1961 Informal Organization
Cliques Naturally occurring social groupings Acceptance Theory of Authority Free will Can choose to follow management orders

16 Humanistic Perspective
Emphasized understanding human behavior, needs, and attitudes in the workplace Human Relations Movement Human Resources Perspective Behavioral Sciences Approach

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

18 Hawthorne Studies 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

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

20 Based on needs satisfaction
Abraham Maslow’s Hierarchy of Needs Self-actualization Esteem Belongingness Chapter 16 – Maslow in more detail Safety Physiological Based on needs satisfaction

21 Douglas McGregor Theory X & Y
Theory X Assumptions Theory Y Assumptions Do not dislike work Self direction and self control Seek responsibility Imagination, creativity widely distributed Intellectual potential only partially utilized Dislike work –will avoid it Must be coerced, controlled, directed, or threatened with punishment Prefer direction, avoid responsibility, little ambition, want security

22 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

23 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 Understand employee behavior and interaction in an organizational setting OD – Organization Development

24 Management Science Perspective
Emerged after WW II Applied mathematics, statistics, and other quantitative techniques to managerial problems Operations Research – mathematical modeling Operations Management – specializes in physical production of goods or services Information Technology – reflected in management information systems

25 Recent Historical Trends
Systems Theory Contingency View Total Quality Management (TQM)

26 Systems View of Organizations
Exhibit 2.5, p. 58

27 Contingency View of Management
Exhibit 2.6, p. 59 Successful resolution of organizational problems is thought to depend on managers’ identification of key variations in the situation at hand

28 Elements of a Learning Organization
Team-Based Structure Learning Organization Empowered Employees Open Information Exhibit 2.7, p. 61

29 Types of E-Commerce Business-to-Consumer B2C Selling Products and
Services Online Consumer-to-Consumer C2C Electronic Markets Created by Web-Based Intermediaries Business-to-Business B2B Transactions Between Organizations Exhibit 2.8, p. 63

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