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Chapter 2
History of
Management Thought
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1-1
Planning
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Title Text Here 2 Study Questions
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Chapter
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Figure 2.1 Major branches in the classical approach
to management
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PlaceTakeaway 1: Classical
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PlaceTakeaway 1: Classical
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to fit diverse
to make sure
to lead, select, efforts
to provide and things happen
and evaluate together and
to complete a mobilize according to
workers to get ensure
plan of action resources to plan and to
the best work information is
for the future implement the take necessary
toward the shared and
plan corrective
plan problems
action
solved
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PlaceTakeaway 1: Classical
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PlaceTakeaway 1: Classical
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Figure 2.2 Foundations in the behavioral or
human resource approaches to management
Organizations
as communities
Mary Parker
Follett Theory X and
Hawthorne
Theory Y
studies
Douglas
Elton Mayo
McGregor
Human resource
Theory of approaches
Personality and
human needs Assumption:
organization
Abraham People are social
Chris Argyris
Maslow and self-
actualizing
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Takeaway
Place 2: Behavioral
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• Organizations as communities
– Mary Parker Follett
– Groups and human cooperation:
• Groups allow individuals to combine their talents for a greater
good
• Organizations are cooperating “communities” of managers and
workers
• Manager’s job is to help people cooperate and achieve an
integration of interests
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Takeaway
Place 2: Behavioral
Slide Title Text HereManagement Approaches
• Organizations as communities
– Forward-looking management insights:
Making every
employee an owner • precursor of employee ownership,
creates a sense of profit sharing, and gain-sharing
collective responsibility
Business problems
involve a variety of • precursor of systems thinking
inter-related factors
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Takeaway
Place 2: Behavioral
Slide Title Text HereManagement Approaches
• Hawthorne studies
– Initial study examined how economic incentives
and physical conditions affected worker output
– No consistent relationship found
– “Psychological factors” influenced results
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Takeaway
Place 2: Behavioral
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Takeaway
Place 2: Behavioral
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Takeaway
Place 2: Behavioral
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Figure 2.3 Maslow’s hierarchy of human needs
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Takeaway
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Behavioral Management Approaches
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Takeaway
Place 2: Behavioral
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Takeaway
Place 2: Behavioral
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Takeaway
Place 2: Behavioral
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Takeaway
Place 2: Behavioral
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Takeaway
Place 2: Behavioral
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PlaceTakeaway 3: Modern
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Contingency thinking
Evidence-based management
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Quality
control
Inventory Queuing
management theory
The scientific
applications of
mathematical
Value chain techniques to Network
analysis management models
problems
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PlaceTakeaway 3: Modern
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• Organizations as Systems
– System
• Collection of interrelated parts that function together
to achieve a common purpose
– Subsystem
• A smaller component of a larger system
– Open systems
• Organizations that interact with their environments in
the continual process of transforming resource inputs
into outputs
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Figure 2.4 Organizations as complex networks of
interacting subsystems
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• Contingency thinking
– Tries to match managerial responses with
problems and opportunities
unique to different situations
– No “one best way” to manage
– Appropriate way to manage
depends on the situation
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• Quality management
– Managers and workers in progressive
organizations are quality conscious
• Quality and competitive advantage are linked
– Total quality management (TQM)
• Comprehensive approach to continuous quality
improvement for a total organization
• Creates context for the value chain
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– Continuous improvement
• Continual search for new ways to improve quality
• Something always can and should be improved
– ISO certification
• Global quality benchmark
• Refine and upgrade quality to meet ISO standards
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• Learning organizations
– Organizations that are able to continually learn
and adapt to new circumstances
– Core ingredients include:
Encourage Information
Teamwork Empowerment Participation
learning sharing
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• Evidence-Based Management
– Making management decisions on “hard facts”
about what really works
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