Management Thought: Past and Present: Management Meeting and Exceeding Customer Expectations Eighth Edition

Management Thought:
Past and Present
MANAGEMENT
Meeting and Exceeding Customer
Expectations
EIGHTH EDITION
Prepared by
Chapter 2
Deborah Baker
Texas Christian University
1
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved
learning objectives
1. Discuss why knowledge of the evolution of

management theories is important to managers
2. Explain the contributions of the following:
a. Classical schools of management thought
b. Behavioral school of management thought
c. Quantitative school of management thought
d. Systems school of management thought
e. Contingency school of management thought
f. Quality school of management thought
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1 History and Theory of Management
The Value of History
People who ignore the past are destined to relive it.
A person unaware of mistakes made by others is

likely to repeat them.
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1 Time Line of Management Thought
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2a Classical Management Theory
Classical A theory that focused on finding

Management the “one best way” to perform
Theory and manage tasks
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▼ Originated during England’s Industrial Revolution
▼ Manufacturers began mass-producing goods
in factories
▼ Textile industry was among the first
▼ Allowed production of standardized goods
▼ Depended on a constant flow of labor and
materials
▼ Owners needed to plan, organize, lead, control
▼ Focused on finding the “one best way”
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Classical Focused on the manufacturing

Scientific environment
School
Classical Emphasized the flow of

information and how
Administrative
organizations should operate
School
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2a Classical Scientific School
Charles Babbage
▼ In 1832, published On the Economy of

Machinery and Manufactures
▼ Concluded that definite management
principles existed:
– with broad applications
– determined by experience
▼ Principle of “the division of labor amongst the
persons who perform the work”
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Frederick W. Taylor
▼ The Father of Scientific Management

▼ Pursued four key goals:
– Develop a science of management
– Select workers scientifically
– Develop and train workers scientifically
– Create cooperation between management and
labor
▼ Determined the quickest ways to perform
tasks
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Henry Gantt
▼ Invented the Gantt chart

▼ Moved away from authoritarian management
▼ Advocated a bonus system to reward workers
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2a Lessons from Classical Scientific Thinkers
Analyze
Analyze everything
everything
Teach
Teach effective
effective methods
methods to
to others
others
Constantly
Constantly monitor
monitor workers
workers
Plan
Plan responsibly
responsibly
Control
Control the
the work
work and
and the
the workers
workers
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2a Classical Administrative School
Henri Fayol
▼ Believed specific management skills could be

learned and taught
▼ Fayol’s universal management functions:
– Planning
– Organizing
– Leading
– Controlling
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Mary Parker Follett
▼ Focused on how organizations cope

with conflict and the importance of
sharing goals
▼ Emphasized the need to discover and
enlist individual and group motivation
▼ The first principle for individual and
group success is the “capacity for
organized thinking”
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Chester Barnard
▼ Argued that managers must gain

acceptance for their authority
▼ Advocated the use of basic management
principles
▼ Cautioned managers to issue no order
that could not or would not be obeyed
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2b Behavioral Management Theory
Recognized employees as
Behavioral individuals with concrete,
School human needs, as parts of work
groups, and as members of a
larger society
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Robert Owen
▼ The father of modern personnel

management
▼ The quality and quantity of workers’
output influenced by conditions on and
off the job
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Abraham Maslow
▼ Needs-based theory of motivation

– physiology
– security
– affiliation
– esteem
– self-actualization
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2b Behavioral Management Theory Results
Managers
Managers discover…
discover…
What
What employees
employees want
want from
from work
work
How
How to
to enlist
enlist cooperation
cooperation
and
and commitment
commitment
How
How to
to unleash
unleash talents,
talents,
energy,
energy, and
and creativity
creativity
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2c Quantitative Management Theory
Emphasized mathematical
Quantitative approaches to management
School problems
The study of complex systems

Management of people, money, equipment,
Science and procedures, with the goal of
improving their effectiveness
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2c Quantitative Management Theory
▼ Mathematical approaches to
management problems
▼ Developed during World War II
▼ Applied to every aspect of business
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2c Tools of Operations Management
Inventory
Inventory models
models
Beak-even
Beak-even analyses
analyses
Production
Production scheduling
scheduling
Production
Production routing
routing
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2d Systems Management Theory
The theory that an organization

Systems comprises various parts that
School must perform tasks necessary
for the survival and proper
functioning of the system
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2d The Organization as a System
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2e Contingency Management Theory
A theory based on the premise

Contingency that managers’ preferred actions
School or approaches depend on the
variables of the situation they
face
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2e Contingency Management Theory
▼ Approaches depend on the variables of the

situations
▼ Draws on all past theories in attempting to
analyze and solve problems
▼ Is integrative
▼ Summarized as an “it all depends” device
▼ Tells managers to look to their experiences
and the past and to consider many options
before choosing
▼ Encourages managers to stay flexible
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2f Quality Management Theory
The essence of the quality of

Quality any output is its ability to meet
School the needs of the person or group
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2f Quality Management Theory
A Japanese term used to mean

Kaizen incremental, continuous
improvement for people,
products, and processes
Businesses processes are

Reengineering redesigned to achieve
improvements in performance
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2f Reengineering Approach
Reengineering determines…
▼ What a company must do

▼ How to do it
Managerial Challenges
▼ To sense the need for change

▼ To see change coming
▼ To react effectively to change
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2f Quality School of Management
▼ Quality school is the most current and is

worldwide
▼ Its roots are in the behavioral, quantitative,
systems, and contingency schools of
management theory
▼ People are key to commitments and
performance
▼ What is done must be evaluated
quantitatively and qualitatively
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Management Thought:

Past and Present

1. Discuss why knowledge of the evolution of

The Value of History

People who ignore the past are destined to relive it.

A person unaware of mistakes made by others is

Classical A theory that focused on finding

Classical Focused on the manufacturing

Classical Emphasized the flow of

▼ In 1832, published On the Economy of

▼ The Father of Scientific Management

▼ Invented the Gantt chart

▼ Believed specific management skills could be

▼ Focused on how organizations cope

▼ Argued that managers must gain

▼ The father of modern personnel

▼ Needs-based theory of motivation

The study of complex systems

The theory that an organization

A theory based on the premise

▼ Approaches depend on the variables of the

The essence of the quality of

A Japanese term used to mean

Businesses processes are

▼ What a company must do

▼ To sense the need for change

▼ Quality school is the most current and is

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