The Evolution of

Management Thinking
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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

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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
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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
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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
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Management Perspectives Over Time
1930
Humanistic Perspective
1990
1890
Classical
1940
1950
2000
Systems Theory
2000
2010
The Technology-Driven Workplace
1990
2010
The Learning Organization
1970
Contingency Views
2000
1980
Total Quality Management
2000
1940
Management Science Perspective
1990
2010
1870
Exhibit 2.1, p.44
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Classical Perspective: 3000 B.C.
Rational, scientific approach to
management make organizations
efficient operating machines
Scientific Management
Bureaucratic Organizations
Administrative Principles
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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.
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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
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Bureaucracy Organizations
Max Weber 1864-1920
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
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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
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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
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Henri Fayol 1841-1925
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 General Principles of Management
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Mary Parker Follett 1868-1933
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
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Chester Barnard 1886-1961
Informal Organization
Cliques
Naturally occurring social groupings

Acceptance Theory of Authority
Free will
Can choose to follow management orders

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Humanistic Perspective
Emphasized understanding human behavior,
needs, and attitudes in the workplace

Human Relations Movement
Human Resources Perspective
Behavioral Sciences Approach

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Human Relations Movement
Emphasized satisfaction of employees
basic needs as the key to increased
worker productivity
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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
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Human Resource Perspective
Suggests jobs should be designed to meet
higher-level needs by allowing workers to
use their full potential
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Physiological
Safety
Belongingness
Esteem
Self-
actualization
Abraham Maslows
Hierarchy of Needs
Based on needs satisfaction
1908-1970
Chapter 16 Maslow in more detail
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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 Assumptions Theory Y Assumptions
1906-1964
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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
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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
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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
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Recent Historical Trends
Systems Theory

Contingency View

Total Quality Management (TQM)
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Systems View of Organizations
Exhibit 2.5, p. 58
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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
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Elements of a Learning Organization
Learning
Organization
Open
Information
Empowered
Employees
Team-Based Structure
Exhibit 2.7, p. 61
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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