1. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 1Ap - 1

2. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 1Ap - 2 Chapter 1 Appendix A: The Evolution of Management

3. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 1Ap - 3Introduction Throughout history most managers operated strictly on a trial-and-error basis The management profession as we know it today is relatively new wide swings in management approaches over the last 100 years parts of each approach have survived and been incorporated into modern perspectives on management

4. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 1Ap - 4 Evolution Of Management Thought 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 Systematic management Administrative management Quantitative management Systems theory Current and future revolutions Scientific management Human relations Organizational behavior Bureaucracy Classical ApproachesContemporary Approaches Contingency theory

5. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 1Ap - 5 Early Management Concepts And Influences Industrial revolution minor improvements in management tactics produced impressive increases in production quantity and quality economies of scale - reductions in the average cost of a unit of production as the total volume produced increases opportunities for mass production created by the industrial revolution spawned intense and systematic thought about management problems and issues efficiency production processes cost savings

6. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 1Ap - 6 Systematic Management Systematized manufacturing operations Coordination of procedures and processes built into internal operations Emphasis on economical operations, inventory management, and cost control Beginning of formal management in the United States Promotion of efficient, uninterrupted production Ignored relationship between an organization and it environment Ignored differences in managers’ and workers’ views Key concepts Limitations Contributions

7. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 1Ap - 7 Scientific Management Advocated the application of scientific methods to analyze work and to determine how to complete production tasks efficiently Four principles develop a scientific approach for each element of one’s work scientifically select, train, teach and develop each worker cooperate with workers to ensure that jobs match plans and principles ensure appropriate division of labor Personalities Frederick W. Taylor Frank and Lillian Gilbreth Henry Gantt

8. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 1Ap - 8 Scientific Management (cont.) Used scientific methods to determine the “one best way’ Emphasized study of tasks, selection and training of workers, and cooperation between workers and management Improved factory productivity and efficiency Introduced scientific analysis to the workplace Piecerate system equated worker rewards and performance Simplistic motivational assumptions Workers viewed as parts of a machine Potential for exploitation of labor Excluded senior management tasks Key concepts Limitations Contributions

9. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 1Ap - 9 Administrative Management Emphasized the perspective of senior managers Five management functions planning organizing commanding coordinating controlling Fourteen principles of management Personalities Henri Fayol Chester Barnard Mary Parker Follet

10. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 1Ap - 10 Administrative Management (cont.) Fayol’s five functions and 14 principles of management Executives formulate the organization’s purpose, secure employees, and maintain communications Managers must respond to changing developments Viewed management as a profession that can be trained and developed Emphasized the broad policy aspects of top-level managers Offered universal managerial prescriptions Universal prescriptions need qualifications for environmental, technological, and personnel factors Key concepts Limitations Contributions

11. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 1Ap - 11 Human Relations Aimed to understand how psychological and social processes interact with the work situation to influence performance Hawthorne Studies Hawthorne Effect - workers perform and react differently when researchers observe them Argued that managers should stress primarily employee welfare, motivation, and communication Personalities Abraham Maslow

12. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 1Ap - 12 Human Relations (cont.) Productivity and employee behavior are influenced by the informal work group Cohesion, status, and group norms determine output Social needs have precedence over economic needs Psychological and social processes influence performance Maslow’s hierarchy of need Ignored workers’ rational side and the formal organization’s contributions to productivity Research overturned the simplistic belief that happy workers are more productive Key concepts Limitations Contributions

13. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 1Ap - 13Bureaucracy Bureaucratic structures can eliminate the variability that results when managers in the same organization have different skills, experiences, and goals Allows large organizations to perform the many routine activities necessary for their survival People should be treated in unbiased manner Personalities Max Weber

14. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 1Ap - 14 Bureaucracy (cont.) Structured network of relationships among specialized positions Rules and regulations standardize behavior Jobs staffed by trained specialists who follow rules Hierarchy defines the relationship among jobs Promotes efficient performance of routine operations Eliminates subjective judgment by employees and management Emphasizes position rather than the person Limited organizational flexibility and slowed decision making Ignores the importance of people and interpersonal relationships Rules may become ends in themselves Key concepts Limitations Contributions

15. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 1Ap - 15 Quantitative Management Teams of quantitative experts tackle complex issues facing large organizations Helps management make a decision by developing formal mathematical models of the problem Personalities military planners in World War II

16. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 1Ap - 16 Quantitative Management (cont.) Application of quantitative analysis to management decisions Developed specific mathematical methods of problem analysis Helped managers select the best alternative among a set Models neglect nonquantifiable factors Managers not trained in these techniques may not trust or understand the techniques’ outcomes Not suited for nonroutine or unpredictable management decisions Key concepts Limitations Contributions

17. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 1Ap - 17 Organizational Behavior Studies management activities that promote employee effectiveness investigates the complex nature of individual, group, and organizational processes Theory X managers assume that workers are lazy, irresponsible, and require constant supervision Theory Y managers assume employees want to work and control themselves Personalities Douglas McGregor

18. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 1Ap - 18 Organizational Behavior (cont.) Promotes employee effectiveness through understanding of individual, group, and organizational processes Stresses relationships among employees, managers, and work performed Assumes employees want to work and can control themselves Increased participation, greater autonomy, individual challenge and initiative, and enriched jobs may increase participation Recognized the importance of developing human resources Some approaches ignored situational factors, such as the environment and technology Key concepts Limitations Contributions

19. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 1Ap - 19 Systems Theory Organization is viewed as a managed system Management must interact with the environment Organizational goals must address effectiveness and efficiency Organizations contain a series of subsystems There are many avenues to the same outcome Synergies enable the whole to be more than the sum of the parts Recognized the importance of the relationship between the organization and the environment Does not provide specific guidance on the functions of managers Key concepts Limitations Contributions

20. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 1Ap - 20 Contingency Perspective Situational contingencies influence the strategies, structures, and processes that result in high performance There is more than one way to reach a goal Managers may adapt their organizations to the situation Identified major contingencies Argued against universal principles of management Not all important contingencies have been identified Theory may not be applicable to all managerial issues Key concepts Limitations Contributions