1. The Evolution of Management Thought
Chapter 1

2. Major Tasks of Management:
Decide the purpose and mission of the organization
Make work productive
Manage social impacts and responsibilities

3. Management Has Different Meanings
Primary views of management state that management is a:
Process
Discipline
Human activity
Career

4. Management Is a Process
Implies that management:
Is some type of work or set of activities
Activities are performed well or not well
Involves certain functions and activities

5. Management Is a Discipline
Implies that management:
Is an accumulated, “learnable” body of knowledge
Is a subject with principles, concepts, and theories
Has a purpose of learning how to apply principles, concepts, and theories at the right time and under the right circumstances to produce desired results

6. Management Is a Human Activity
Implies that management:
Refers to people in the management process
Refers to and emphasizes employees’ importance

7. Management Is a Career Implies that management:
Is a progression through a sequence of activities, jobs, organizations, and challenges
Requires constant learning of new skills and updating information on business and its industry

8. The Functions of Management
Leading
Planning
Organizing
Controlling

9. Management Function—Leading
Integrates everything a manager does
Leader has:
Ability to influence others
Vision or mission
Courage and commitment

10. Management Function—Planning
Capstone activity of management
All managers plan at all levels
Determine an organization’s goals in order to be successful
Establish strategies to achieve goals

11. Management Function—Organizing
Turn plans into actions
Create a structure of task and authority relationships to achieve goals
Assign tasks to individuals and groups

12. Management Function—Controlling
Ensure that actual performance conforms to planned performance requiring management to:
Establish standards of performance
Locate deviations between actual and planned standards
Correct performance not meeting standards

13. History of Management Thought

14. Management Thought Has Been Grouped Into Three Approaches:
Classical
Behavioral
Management Science

15. Classical Approach

16. Classical Approach
Late 19th century effort to understand work and how workers can be more productive and efficient
Two perspectives:
Scientific management
Classical organization theory

17. Scientific Management
Focus is on the management of work
Focus on the physical environment
Concentrate on the problems of lower-level managers dealing with the everyday problems of the work force
Study work processes to make them more efficient in order to better use labor at that time—unskilled, no formal education, largely immigrant
Primary contributors—engineers

18. Scientific Management—Contributors
Frederick W. Taylor, “father of scientific management,” developed 4 principles based on his beliefs that the interests of both management & labor can be combined:
1 best way to do a job
Optimum work pace
Train people to do a job
Reward using incentive pay system
Frank & Lillian Gilbreth, “time & motion studies,” break down job motions into elementary parts and find better ways to perform each part

19. Classical Organization Theory
Focus is on the management of organizations
Concentrate on the problems top-level managers face in managing the organization as a whole
Two major purposes:
Develop basic principles to create, and maintain large organizations
Identify basic functions of managing organizations
Primary contributors—practicing executives

20. Classical Organization Theory—Contributors
Max Weber, “theory of bureaucracy,” thought an organization should be based on 5 principles:
Formal authority of managers
Jobs based on qualifications
Authority and responsibility clearly defined
Hierarchical positions
Rules and SOPs control organization
Modern ideas based on Weber: TQM, process specialization, competency testing

21. Classical Organization Theory—Contributors (cont)
Henri Fayol developed 14 principles
essential to effective management:
1. Division of labor
2. Management authority and responsibility
3. Unity of command
4. Line of Authority
5. Centralization
6. Unity of direction
7. Equity
8. Order
9. Initiative
10. Discipline
11. Remuneration
12. Tenure Stability
13. Common Interest
14. Esprit De Corps

22. Classical Approach—Pros & Cons
Contributions
Identify management as an important element of organized society
Basis for training new managers
Acknowledge importance of managers
Many current techniques are direct outgrowths
Limitations
Too simplistic for today’s complex organizations
More appropriate for stable & predictable environments
Shallow understanding of human nature and how people interact

23. Behavioral Approach

24. Behavioral Approach
Developed because (a) classical approach didn’t achieve total efficiency and workplace harmony and (b) managers still encountered problems because workers didn’t always behave as they were supposed to
Two branches:
Human Relations Approach
Behavioral Sciences Approach

25. Human Relations Approach
Focus on the social environment of a job
Refers to the manner in which managers interact with subordinates
Managers must know why subordinates behave as they do
Importance of individuals in success or failure of an organization

26. Human Relations Approach—(cont.)
Management should recognize employees’ need for recognition and social acceptance
Management should look on work group as a positive force
Managers should be trained in human relations skills as well as in technical skills

27. Behavioral Sciences Approach
Focus is on the nature of work itself
Individuals are motivated to work for reasons other than money and social relationships— recognition, societal contributions, personal fulfillment

28. Behavioral Sciences Approach—Contributors
Mary Parker Follett viewed organizations from the perspective of individual or group behavior, i.e., people-centered view. Managers’ job is to harmonize and coordinate group efforts
Hawthorne Studies varied lighting levels at the Western Electric Company; productivity increased regardless of the illumination level
Elton Mayo replicated Hawthorne Studies and the results; workers enjoyed the attention and produced the results they believed researchers wanted

29. Behavioral Sciences Approach—Pros & Cons
Contributions
Contribute to people—managing aspect of management
Use of teams
Focus on training & development
Use of reward & incentive systems
Limitations
Doesn’t always help managers in problem situations
Difficulty in translating technical findings into useful tools and policies
Variety of viewpoints complicates the problem

30. Management Science Approach

31. Management Science Approach
Developed to solve complex military problems in World War II, American business firms began to use a similar approach to deal with operating issues
Formerly called operations research, this approach uses mathematics and statistics to aid in resolving production and operations problems
Solve technical rather than human behavior problems; analyze the problem and often develop a mathematical representation of it
Provide management with quantitative bases for decisions

32. Management Science Approach—Pros & Cons
Contributions
Techniques that help with production management—scheduling, budgeting, inventory
Techniques that help with operations management— development programs, aircraft scheduling
Limitations
Not a substitute for management
Doesn’t deal with the people aspect of a organization

33. Systems Approach Contingency Approach
Integrating the 3 Approaches— Classical, Behavioral, and Management Science
Systems Approach
Contingency Approach

34. Systems Approach
Views an organization as interrelated parts with a unified purpose: surviving and ideally thriving in its environment
Management should focus on efficiency and effectiveness in each part of the organization
Elements of an organization are interconnected
Organization is linked to its environment
Open Systems vs. Closed Systems

35. Contingency Approach
Helps in better understanding the interactions of an organization’s components. Views an organization as interrelated parts with a unified purpose: surviving and ideally thriving in its environment
Workplace situations are too complex to analyze and control; thus, instead of focusing on trying to find the one best way to arrange workplace variables, managers focus on adapting their behavior to match the demands of the situation

36. End of Chapter 1