1. Developed by Stephen M.PetersCopyright © 2000 by Harcourt, Inc. All rights reserved. Two hapter Historical Foundations of the Learning Organization © 2000 by Harcourt, Inc. All rights reserved. Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Harcourt, Inc., 6277 Sea Harbor Drive, Orlando, Florida 32887-6777.

2. Developed by Stephen M.PetersCopyright © 2000 by Harcourt, Inc. All rights reserved. Influences Having an Impact On Organizations & 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

3. Developed by Stephen M.PetersCopyright © 2000 by Harcourt, Inc. All rights reserved. Management Perspectives Over Time 1930 Humanistic 1990 1890 Classical 1940 Management Science 1950 2000 Systems 1970 Contingency Views 1980 Total Quality Management 1990 2010 The Learning Organization

4. Developed by Stephen M.PetersCopyright © 2000 by Harcourt, Inc. All rights reserved. Leadership Participative Strategy Team-Based Structure Strong, Adaptive Culture Open Information Empowered Employees LEARNING ORGANIZATION Interacting Elements In A Learning Organization

5. Developed by Stephen M.PetersCopyright © 2000 by Harcourt, Inc. All rights reserved. Classical Perspective: Emphasized a rational, scientific approach to the study of management Sought to make organizations efficient Emphasized a rational, scientific approach to the study of management Sought to make organizations efficient

6. Developed by Stephen M.PetersCopyright © 2000 by Harcourt, Inc. All rights reserved. Classical Perspective Three Sub-Fields  Scientific  Bureaucratic Organizations  Administrative Principles

7. Developed by Stephen M.PetersCopyright © 2000 by Harcourt, Inc. All rights reserved. Characteristics of Scientific Management 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. 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. 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. 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.

8. Developed by Stephen M.PetersCopyright © 2000 by Harcourt, Inc. All rights reserved. Bureaucracy Organizations: Labor is divided with clear definitions of authority and responsibility. Positions are in hierarchy of authority. Personnel are selected and promoted based on qualifications. Management is separate from the ownership. Rules and procedures ensure reliable, & predictable behavior. Rules are impersonal and uniformly applied. Xerox Company

9. Developed by Stephen M.PetersCopyright © 2000 by Harcourt, Inc. All rights reserved. Administrative Principles Contributors to this approach, Henri Fayol, Mary Parker, and Chester I. Barnard Focused on organization rather than the individual Delineating the management functions of planning, organizing, commanding, coordinating, and controlling Contributors to this approach, Henri Fayol, Mary Parker, and Chester I. Barnard Focused on organization rather than the individual Delineating the management functions of planning, organizing, commanding, coordinating, and controlling Kentucky Fried Chicken

10. Developed by Stephen M.PetersCopyright © 2000 by Harcourt, Inc. All rights reserved. Administrative Principles & Henri Fayol’s 14 Points: Division of labor Authority Discipline Unity of command Unity of direction Subordination of individual interest for common good Remuneration Division of labor Authority Discipline Unity of command Unity of direction Subordination of individual interest for common good 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

11. Developed by Stephen M.PetersCopyright © 2000 by Harcourt, Inc. All rights reserved. Characteristics of Traditional Management Bureaucratic Scientific Administrative Characteristics Rules Impersonality Division of labor Hierarchy Authority structure Lifelong commitment Rationality Focus Whole organization Benefits Consistency Efficiency Drawbacks Rigidity Slowness Characteristics Training routines and rules “One best way” Financial motivation Focus Worker Benefits Productivity Efficiency Drawbacks Overlooks social needs Characteristics Defining of management functions Division of labor Hierarchy Authority Equity Focus Manager Benefits Clear structure Rules Drawbacks Doesn’t consider environment Overemphasizes managers’ behavior

12. Developed by Stephen M.PetersCopyright © 2000 by Harcourt, Inc. All rights reserved. Humanistic Perspective Emphasized 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 Emphasized 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

13. Developed by Stephen M.PetersCopyright © 2000 by Harcourt, Inc. All rights reserved. Humanistic Perspective Three Sub-Fields  Human Relations Movement  Human Resources Perspective  Behavioral Sciences Approach

14. Developed by Stephen M.PetersCopyright © 2000 by Harcourt, Inc. All rights reserved. Ten year study Four experimental & three control groups Five different test 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 Human Relations Movement

15. Developed by Stephen M.PetersCopyright © 2000 by Harcourt, Inc. All rights reserved. Human Resources Perspective  Combines design of job tasks with theories of motivation.  Maintains an interest in worker participation.  Considers the daily tasks that people perform.

16. Developed by Stephen M.PetersCopyright © 2000 by Harcourt, Inc. All rights reserved. Physiological Safety Belonging Esteem Self-actualization Abraham Maslow’s Hierarchy Based on needs satisfaction Organizational Examples Challenging Job Job Title Friends Retirement Plan Wages General Examples Self-fulfillment Status Friendship Stability Shelter

17. Developed by Stephen M.PetersCopyright © 2000 by Harcourt, Inc. All rights reserved. People are lazy People lack ambition Dislike responsibility People are self-centered People don’t like change People are energetic People want to make contributions People do have ambition People will seek responsibility Douglas McGregor Theory X & Y Theory X Theory Y

18. Developed by Stephen M.PetersCopyright © 2000 by Harcourt, Inc. All rights reserved. Behavioral Sciences Approach Develops theories about human behavior based on scientific methods & study Sub-field of the Humanistic Perspective Applies social science in an organizational context In understanding employees draws from economics, psychology, sociology Develops theories about human behavior based on scientific methods & study Sub-field of the Humanistic Perspective Applies social science in an organizational context In understanding employees draws from economics, psychology, sociology

19. Developed by Stephen M.PetersCopyright © 2000 by Harcourt, Inc. All rights reserved. Management Science Perspective Emerged after WW II Distinguished for its application of mathematics, statistics to problem solving  Operations Research emerged  Operations Management emerged  Management Information Systems emerged

20. Developed by Stephen M.PetersCopyright © 2000 by Harcourt, Inc. All rights reserved. Three Contemporary Trends  Systems Theory  Contingency View  Total Quality Management (TQM)