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Chapter 2

The Evolution of Management Thinking

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Management and
Organization
Studying management history helps
your conceptual skills
Social forces aspects of a culture that
guide and influence relationships among
people
Political forces influence of political
and legal institutions on people and
organizations
Economic forces the availability,
production, and distribution of resources
2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

2.1 - Management Perspectives


over Time

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Classical Perspective

Three subfields:
Scientific management
Bureaucratic organizations
Administrative principles

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

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Scientific Management

Henry Gantt developed the Gantt chart


to measure and plan work
The Gilbreths pioneered time and
motion studies to promote efficiency

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

2.2 - Characteristics of
Scientific Management

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Bureaucratic Organizations

Max Weber, a German theorist,


introduced the concepts

Manage organizations on impersonal,


rational basis

Organization depends on rules and


records

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Bureaucratic Organizations

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
14 general principles of management;
many still used today:
Unity of command
Division of work
Unity of direction
Scalar chain

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Administrative Principles

Identified five functions of management:


Planning
Organizing
Commanding
Coordinating
Controlling

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Humanistic Perspective:
Early Advocates

Understand human behaviors, needs,


and attitudes in the workplace
Mary Parker Follett and Chester
Barnard
Contrast to scientific management Importance of people rather than
engineering techniques

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Humanistic Perspective:
Early Advocates

Empowerment: facilitating instead of


controlling
Recognition of the informal
organization
Introduced acceptance theory of
authority

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Humanistic Perspective:
Human Relations Movement

Effective control comes from within the


employee
Hawthorne studies were key contributor
Human relations played 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
Maslows 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 to
develop theories about human behavior
and interaction in an organizational
setting
Organizational development field that
uses behavioral sciences to improve
organization

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Humanistic Perspective:
Behavioral Sciences Approach

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 perfection

of the computer

Operations management focuses on


the physical production of goods and
services

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Quantitative Perspective

Information technology focuses on


technology and software to aid managers
Quants financial managers who base
their decisions on complex quantitative
analysis

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Recent Trends: Systems


Thinking

The ability to see the distinct elements of a


situation as well as the complexities
System set of interrelated parts that function
as a whole to achieve a common purpose
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

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Exhibit 2.5 Circles of


Causality

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Recent Trends:
Contingency View

Every situation is unique


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

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Recent Trends: Total Quality


Management

Quality movement is strongly associated


with Japan

The U.S. ignored the ideas of W. Edwards


Deming, Father of the Quality
Movement

Total Quality Management (TQM) became


popular in the 1980s and 1990s

Integrate high-quality values in every


activity

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Elements of Quality
Management
Employee involvement
Focus on the customer
Benchmarking
Continuous improvement

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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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

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Managing the TechnologyDriven Workplace


Social media programs Company online
community pages, social media sites,
microblogging platforms and online forums
Customer relationship management
technology used to build relationships 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

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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