Meeting the Challenges of the 21st Century

Evolution of Management Thought

PowerPoint Presentation by Charlie Cook The University of West Alabama

Environmental Factors Influencing Management Thought Economic Influences

The availability, production, and distribution of resources within a society.

Social Influences
The aspects of a culture that influence interpersonal relationships.

Political Influences
The impact of political institutions on individuals and organizations.
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Environmental Factors Influencing Management Thought (contd) Technological Influences

The advances and refinements in any of the devices that are used in conjunction with conducting business.

Global Influences
The pressures to improve quality, productivity, and costs as organizations attempt to compete in the worldwide marketplace.
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Chronological Development of Management Perspectives

Subfields of the Classical Perspective on Management

Focuses on the individual workers productivity

Focuses on the functions of management

Focuses on the overall organizational system

Scientific Management: Taylor

Frederick W. Taylor (1856-1915)
Father of Scientific Management.
attempted to define the one best way to perform every task through systematic study and other scientific methods. believed that improved management practices lead to improved productivity.

Three areas of focus:

Task Performance Supervision Motivation
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Task Performance
Scientific management incorporates basic expectations of management, including:
Development of work standards Selection of workers Training of workers Support of workers

Supervision
Taylor felt that a single supervisor could not be an expert at all tasks.
As a result, each first-level supervisor should be responsible only workers who perform a common function familiar to the supervisor. This became known as Functional Foremanship.

Motivation
Taylor believed money was the way to motivate workers to their fullest capabilities.
He advocated a piecework system in which workers pay was tied to their output. Workers who met a standard level of production were paid a standard wage rate. Workers whose production exceeded the standard were paid at a higher rate for all of their production output.
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Scientific Management: The Gilbreths

Frank Gilbreth Specialized in time and motion studies to determine the most efficient way to perform tasks. Used motion pictures of bricklayers to identified work elements such as lifting and grasping. Lillian Gilbreth A strong proponent of better working conditions as a means of improving efficiency and productivity. Favored standard days with scheduled lunch breaks and rest periods for workers. Strived for removal of unsafe working conditions and the abolition of child labor.

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Administrative Management: Fayol

Henri Fayol (18411925)
First recognized that successful managers had to understand the basic managerial functions. Developed a set of 14 general principles of management. Fayols managerial functions of planning, leading, organizing and controlling are routinely used in modern organizations.
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Fayols General Principles of Management

1. Division of work 2. Authority and responsibility 3. Discipline 4. Unity of command 5. Unity of direction 6. Subordination of individual interest to the common good 7. Remuneration of personnel

8. Centralization 9. Scalar chain 10. Order 11. Equity 12. Stability 13. Initiative 14. Esprit de corps

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Bureaucratic Management
Focuses on the overall organizational system. Bureaucratic management is based upon:
Firm rules Policies and procedures A fixed hierarchy A clear division of labor

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Bureaucratic Management: Weber

Max Weber (18641920)
A German sociologist and historian who envisioned a system of management that would be based upon impersonal and rational behaviorthe approach to management now referred to as bureaucracy.
Division of labor Hierarchy of authority Rules and procedures Impersonality Employee selection and promotion

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Webers Forms of Authority

Traditional authority Subordinate obedience based upon custom or tradition (e.g., kings, queens, chiefs). Charismatic authority Subordinates voluntarily comply with a leader because of his or her special personal qualities or abilities (e.g., Martin Luther King, Gandhi). Rational-legal authority Subordinate obedience based upon the position held by superiors within the organization (e.g., police officers, executives, supervisors).

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Webers Three Types of Authority

Type
Traditional Charismatic

Description
Subordinate obedience based upon custom or tradition Subordinate obedience based upon special personal qualities associated with certain social reformers, political leaders, religious leaders, or organizational leaders Subordinate obedience based upon the position held by superiors within the organization

Rationallegal

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Bureaucratic Hierarchical Power Structure

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Classical versus Behavioral Perspective

vs.

Classical Perspective
Focused on rational behavior

Behavioral Perspective
Acknowledged the importance of human behavior
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Behavioral Perspective
Followed the classical perspective in the development of management thought.
Acknowledged the importance of human behavior in shaping management style Is associated with:
Mary Parker Follett Elton Mayo Douglas McGregor Chester Barnard
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Mary Parker Follett

Concluded that a key to effective management was coordination. Felt that managers needed to coordinate and harmonize group effort rather than force and coerce people. Believed that management is a continuous, dynamic process. Felt that the best decisions would be made by people who were closest to the situation.
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Follett on Effective Work Groups

Four principles of coordination to promote effective work groups:
1. Coordination requires that people be in direct contact with one another. 2. Coordination is essential during the initial stages of any endeavor. 3. Coordination must address all factors and phases of any endeavor. 4. Coordination is a continuous, ongoing process.
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Elton Mayo
Conducted the famous Hawthorne Experiments.
Hawthorne Effect
Productivity increased because attention was paid to the workers in the experiment. Phenomenon whereby individual or group performance is influenced by human behavior factors.

His work represents the transition from scientific management to the early human relations movement.
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Douglas McGregor
Proposed the Theory X and Theory Y styles of management.
Theory X managers perceive that their subordinates have an inherent dislike of work and will avoid it if at all possible. Theory Y managers perceive that their subordinates enjoy work and that they will gain satisfaction from performing their jobs.

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Comparison of Theory X and Theory Y Assumptions

Factor Employee attitude toward work Theory X Assumptions Employees dislike work and. will avoid it if at all possible. Theory Y Assumptions Employees enjoy work and will actively seek it.

Management view Employees must be directed, Employees are self-motivated of direction coerced, controlled, or threatened and self-directed toward achieving to get them to put forth adequate effort. organizational goals. Employee view responsibility; of direction creativity, Employees wish to avoid responsibility; Employees seek they prefer to be directed and told what they wish to use their to do and how to do it. Management style Authoritarian style of management management imagination, and ingenuity in performing their jobs. Participatory style of

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Chester Barnard
Felt that executives serve two primary functions: Must establish and maintain a communications system among employees. Must establish the objectives of the organization and motivate employees. Developed an acceptance theory of authority: Authority of a manager flows from the ability of subordinates to accept or reject an order from the manager once they: Comprehend what the order requires of them. Review the orders consistency with organization goals. Perceive a personal benefit in obeying the order.
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The Quantitative Perspective

Characterized by its use of mathematics, statistics, and other quantitative techniques for management decision making and problem solving. This approach has four basic characteristics:
1. A decision-making focus 2. Development of measurable criteria 3. Formulation of a quantitative model 4. The use of computers

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The Quantitative Perspective

(contd)
Decision-Making Focus
The primary focus of the quantitative approach is on problems or situations that require direct action, or a decision, on the part of management.

Measurable Criteria
The decision-making process requires that the decision maker select some alternative course of action. The alternatives must be compared on the basis of measurable criteria.

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The Quantitative Perspective

(contd)
Quantitative Model
To assess the likely impact of each alternative on the stated criteria, a quantitative model of the decision situation must be formulated.

Computers
Computers are quite useful in the problemsolving process.

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Basic Structure of Systems

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Systems Perspective
An approach to problem solving based on an understanding of the basic structure of systems. Environmental interaction Open systems must interact with the external environment to survive. Closed systems do not interact with the environment. Synergy: when all subsystems work together making the whole greater than the sum of its parts. Entropy: the tendency for systems to decay over time.
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The Contingency Perspective

A view that proposes that there is no one best approach to management for all situations.
Asserts that managers are responsible for determining which managerial approach is likely to be most effective in a given situation. This requires managers to identify the key contingencies in a given situation.
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Blending Components into a Contingency Perspective

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An Example of the Contingency Perspective

Joan Woodwards Research
Discovered that a particular management style is affected by the organizations technology. Identified and described three different types of technology:
Small-batch technology Mass-production technology Continuous-process technology
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Table 2.4 2.4

Production Technology Examples

Examples Custom fabrication machine shop, manufacturer of neon advertising signs, print shop specializing in personal business cards, trophy-engraving shop Manufacturer of automobiles, manufacturer of refrigerators, manufacturer of hair dryers, manufacturer of pencils Oil refinery, flour mill, soft drink bottler, chemical processor

Production Technology Small-batch technology

Mass-production technology

Continuous-process technology

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Information Technology and Management Style

Information technology can facilitate the use of a particular management style.
Classical Perspective
Facilitated by communications equipment

Quantitative/ Systems Perspectives

Facilitated by advanced computers

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Future Issues: Diversity, Globalization, and Quality

Heightened concern for diversity initiatives within the workplace and within management Adoption of the concept of workers as decision makers, problem solvers, and team players Creation of a focus on and commitment to the concept of quality.
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Management in the
William Ouchis Theory Z

st 21

Century

Japanese-style approach to management developed by William Ouchi Advocates trusting employees and making them feel like an integral part of the organization. Based on the assumption that once a trusting relationship with workers is established, production will increase.
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Future Leaders Must:

Be thoroughly schooled in the different management perspectives. Understand the various influences that will have a continuing effect on management thinking Be aware of how key business environment variables relate to their organization. Know which elements to select from the various management perspectives that are appropriate for their situation. Be adaptable to change such that future conditions and developments do not quickly render their chosen approaches obsolete. 38