Chapter 2

The Evolution of Management Thinking

 Management and Organization

Studying management history helps your

conceptual skills
• Social Forces – influence of culture that guides
people and relationships
• Political Forces – influence of political and legal
institutions
• Economic Forces – the availability, production,
and distribution of resources

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2.1 Management Perspectives
over Time

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 Classical Perspective

• Emerged during the nineteenth and early twentieth

centuries
– Rise of the factory system
– Issues regarding structure, training, and employee
satisfaction
• Large, complex organizations required new
approaches to coordination and control
• Three subfields: scientific management,
bureaucratic organizations, and administrative
principles
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 Scientific Management

• Improve efficiency and labor productivity through

scientific methods
• Frederick Winslow Taylor proposed that workers
“could be retooled like machines”
• Management decisions would be based on precise
procedures based on study
• Henry Gantt developed the Gantt Chart to measure
and plan work
• The Gilbreth’s pioneered time and motion studies to
promote efficiency
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 2.2 Characteristics of
Scientific Management

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 Bureaucratic Organizations

• Max Weber, a German theorist, introduced the

concepts
• Manage organized on an impersonal, rational basis
• Organization depends on rules and records
• Managers use power instead of personality to delegate

Although important productivity gains

come from this foundation, bureaucracy
has taken on a negative tone
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 2.3 Characteristics of
Weberian Bureaucracy

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 Administrative Principles

• Focused on the entire organization

• Henri Fayol, a French mining engineer, was a major
contributor
• Identified five functions of management: planning,
organizing, commanding, coordinating, and controlling
• 14 general principles of management; many still used
today:
– Unity of command
– Division of work
– Unity of direction
– Scalar chain
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 Humanistic Perspective:
Early Advocates

• Mary Parker Follett and Chester Barnard

• Understand human behaviors, needs, and
attitudes in the workplace
• Importance of people rather than engineering
techniques: contrast to scientific management
• Empowerment: facilitating instead of controlling
• Recognition of the informal organization
• Introduced acceptance theory of authority

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 Humanistic Perspective: Human Relations
Movement

• Effective work comes from within the employee

• Hawthorne studies were key contributor
• Human relations paid key variable in increasing
performance
• Employees performed better when managers
treated them positively
• Strongly shaped management practice and
research

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 Humanistic Perspective: Human Resources
Perspective

• From worker participation and considerate

leadership to managing work performance

• Combine motivation with job design

• Maslow and McGregor extended and challenged

current theories
– Maslow’s Hierarchy
– Theory X and Theory Y

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 2.4 Theory X and Theory Y

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 Humanistic Perspective: Behavioral Sciences
Approach

• Scientific methods + sociology, psychology,

anthropology, economics…
• Organizational Development – field that uses
behavioral sciences to improve organization
• Other strategies based on behavioral science:
– Matrix Organizations
– Self-Managed Teams
– Corporate Culture
– Management by Wandering Around

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 Quantitative Perspective

• Also referred to as management science

• Use of mathematics and statistics to aid
management decision making
– Enhanced by development and growth of the
computer
• Operations Management focuses on the physical
production of goods and services
• Information technology focuses on technology
and software to aid managers

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 Recent Trends: Systems Thinking

• The ability to see the distinct elements of a

situation as well as the complexities
– The relationship among the parts form the whole system
• Subsystems are parts of the system that are all
interconnected
• Synergy – the whole is greater than the sum of its
parts
Managers must understand subsystem
interdependence and synergy

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 2.5 Systems Thinking and
Circles of Causality

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 Recent Trends:
Contingency View

• Every situation is unique, there is no universal

management theory

• Managers must determine what method will work

• Managers must identify key contingencies for the

current situation

• Organizational structure should depend upon industry

and other variables
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 2.6 Contingency View
of Management

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 Recent Trends: Total Quality Management

• Quality movement is strongly associated with

Japan
• The US ignored the ideas of W. Edwards Deming,
“Father of the Quality Movement”
• Total Quality Management (TQM) became
popular in the 1980s and 90s
• Integrate high-quality values in every activity

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 Elements of Quality Management

 Employee involvement
 Focus on the customer
 Benchmarking
 Continuous improvement

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 Innovative Management: Thinking for a
Changing World

• Management ideas trace their roots to historical

perspectives
• New ideas continue to emerge to meet the
changing needs and difficult times
• The shelf life of trends is getting shorter and new
ideas peak in fewer than three years

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 Managing the Technology-
Driven Workplace

• Customer Relationship Management –

technology used to build relationship with
customers

• Outsourcing – contracting functions or activities

to other organizations to cut costs

• Supply Chain Management – managing supplier

and purchaser relationships to get goods to
consumers
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 2.7 Supply Chain for a
Retail Organization

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