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The Evolution of Management Thinking Chapter 2. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 2 New Approach.

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Presentation on theme: "The Evolution of Management Thinking Chapter 2. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 2 New Approach."— Presentation transcript:

1 The Evolution of Management Thinking Chapter 2

2 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 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 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 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 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 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 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 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 societys resources among competing users

6 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 6 Management Perspectives Over Time 1930 Humanistic Perspective Classical Systems Theory The Technology-Driven Workplace The Learning Organization 1970 Contingency Views Total Quality Management Management Science Perspective Exhibit 2.1, p.44

7 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 7 Classical Perspective: 3000 B.C. Rational, scientific approach to management – make organizations efficient operating machines Scientific Management Bureaucratic Organizations Administrative Principles

8 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 8 Scientific Management: Taylor 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 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 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 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 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 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 11 Bureaucracy Organizations Positions organized in a hierarchy of authority Managers subject to Rules and procedures that will ensure reliable predictable behavior Personnel are selected and promoted based on technical qualifications Administrative acts and decisions recorded in writing Management separate from the ownership of the organization Division of labor with Clear definitions of authority and responsibility Exhibit 2.3, p. 49

12 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 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 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 13 Henri Fayol Division of labor Authority Discipline Unity of command Unity of direction Subordination of individual interest Remuneration 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 Centralization Scalar chain Order Equity Stability and tenure of staff Initiative Esprit de corps 14 General Principles of Management

14 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 14 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 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 15 Chester Barnard Informal Organization – Cliques – Naturally occurring social groupings Acceptance Theory of Authority – Free will – Can choose to follow management orders

16 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 16 Humanistic Perspective Emphasized understanding human behavior, needs, and attitudes in the workplace Human Relations Movement Human Resources Perspective Behavioral Sciences Approach

17 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 17 Human Relations Movement Emphasized satisfaction of employees basic needs as the key to increased worker productivity

18 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 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 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 19 Human Resource Perspective Suggests jobs should be designed to meet higher-level needs by allowing workers to use their full potential

20 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 20 Physiological Safety Belongingness Esteem Self- actualization Abraham Maslows Hierarchy of Needs Based on needs satisfaction Chapter 16 – Maslow in more detail

21 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 21 Dislike work –will avoid it Must be coerced, controlled, directed, or threatened with punishment Prefer direction, avoid responsibility, little ambition, want security Do not dislike work Self direction and self control Seek responsibility Imagination, creativity widely distributed Intellectual potential only partially utilized Douglas McGregor Theory X & Y Theory X AssumptionsTheory Y Assumptions

22 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 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 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 23 Behavioral Sciences Approach 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 Sub-field of the Humanistic Management Perspective

24 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 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 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 25 Recent Historical Trends Systems Theory Contingency View Total Quality Management (TQM)

26 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 26 Systems View of Organizations Exhibit 2.5, p. 58

27 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 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 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 28 Elements of a Learning Organization Learning Organization Open Information Empowered Employees Team-Based Structure Exhibit 2.7, p. 61

29 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 29 Types of E-Commerce Business-to-Consumer B2C Selling Products and Services Online Business-to-Business B2B Transactions Between Organizations Consumer-to-Consumer C2C Electronic Markets Created by Web-Based Intermediaries Exhibit 2.8, p. 63


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