The Evolution of

Management Thinking
Chapter 2
New Approach to
Management
Success accrues to those who learn how
❖ To be leaders
❖ To Initiate change
❖ To participate in and create
organizations
❖ with fewer managers
❖ With less hierarchy that can change
quickly
Management and
Organization
❖ Management philosophies
and organization forms
change over time to meet
new needs
❖ Some ideas and practices
from the past are still
relevant and applicable to
management today
 Historical
Perspective
❖ Provides a context or
environment
❖ Develops an understanding of
societal impact
❖ Achieves strategic thinking
❖ Improves conceptual skills
❖ Social, political, and economic
forces have influenced
organizations and the
practice of management
Forces Influencing
Organizations and
Management
❖ Social Forces - values,
needs, and standards of
behavior

❖ Political Forces - influence

of political and legal
institutions on people &
organizations

❖ Economic Forces - forces

that affect the availability,
production, & distribution of
a society’s resources among
Management Perspectives
Over Time
Exhibit 2.1, p.44

2000
The Technology-Driven Workplace
1990 2010
The Learning Organization
1980 2010
Total Quality Management
2000
1970
Contingency Views
2000
1950
Systems Theory
1940 2000
Management Science Perspective
1990
1930
Humanistic Perspective
1890 1990
Classical
1940 2010
1870
Classical Perspective:
3000 B.C.
● Rational, scientific approach
to management – make
organizations efficient
operating machines
● Scientific Management
● Bureaucratic
Organizations
● Administrative Principles
Scientific Management: Taylor
1856-1915
General Approach
❖ Developed standard
method for performing
each job.
❖ Selected workers with
appropriate abilities for
each job.
❖ Trained workers in
standard method.
❖ Supported workers by
planning work and
eliminating interruptions.
❖ Provided wage incentives
to workers for increased
 Scientific
Management
Contributions
❖ Demonstrated the importance of
compensation for performance.
❖ Initiated the careful study of tasks
and jobs.
❖ Demonstrated the importance of
personnel and their training.

Criticisms
❖ Did not appreciate social context of
work and higher needs of workers.
❖ Did not acknowledge variance
among individuals.
❖ Tended to regard workers as
uninformed and ignored their ideas
Bureaucracy
Organizations
❖ Max Weber 1864-1920
❖ Prior to Bureaucracy
Organizations
❖ European employees
were loyal to a single
individual rather than to
the organization or its
mission
❖ Resources used to
realize individual desires
rather than
organizational goals Ethical Dilemma: The Supervisor

❖ Systematic approach –
looked at organization as
Bureaucracy
Organizations
Division of labor
with Clear definitions of
authority and responsibility
Personnel are selected
and promoted based Positions organized
on technical in a hierarchy of authority
qualifications

Managers subject to
Administrative acts Rules and procedures
and decisions recorded that will ensure reliable
in writing predictable behavior
Management separate
from the ownership
of the organization
Exhibit 2.3, p. 49
Administrative Principles
❖ Contributors: Henri Fayol, Mary
Parker, and Chester I. Barnard
❖ Focus:
❖ Organization rather than the
individual
❖ Delineated the management
functions of planning,
organizing, commanding,
coordinating, and controlling
Henri Fayol 1841-1925
14 General Principles of Management

 Division of  Centralization
labor  Scalar chain
 Authority  Order
 Discipline  Equity
 Unity of  Stability and
command tenure of staff
 Unity of  Initiative
direction  Esprit de corps
 Subordination
of individual
Mary Parker
Follett 1868-1933
❖ Importance of common
super-ordinate goals for
reducing conflict in
organizations
❖ Popular with
businesspeople of her day
❖ Overlooked by
management scholars
❖ Contrast to scientific
management
❖ Reemerging as applicable
Ethicswith
in dealing - Power - Empowerment
rapid
change in global
Chester Barnard
1886-1961
❖ Informal Organization
❖ Cliques
❖ Naturallyoccurring social
groupings

❖ Acceptance Theory of
Authority
❖ Free will
❖ Can choose to follow
Humanistic
Perspective
Emphasized
understanding
human behavior,
needs, and attitudes
in the workplace
●Human
Relations
Movement
●Human Resources
Perspective
Human Relations
Movement
Emphasized
satisfaction of
employees’ basic
needs as the key to
increased worker
productivity
Hawthorne
Studies
❖Ten year study
❖ Four experimental & three
control groups
❖ Five different tests
❖ Test pointed to factors other
than illumination for
productivity
❖ 1st Relay Assembly Test
Room experiment, was
controversial, test lasted 6
years
❖ Interpretation, money not
cause of increased output
❖ Factor that increased
output, Human Relations
Human Resource
Perspective
Suggests jobs should
be designed to meet
higher-level needs by
allowing workers to
use their full
potential
Abraham Maslow’s
Hierarchy of Needs
1908-1970

Self-
actualization
Esteem
Belongingness
Safety
Physiological
Based on needs satisfaction
Douglas
McGregor Theory
1906-1964
X&Y
Theory X Assumptions
❖ Dislike work –will avoidTheory Y Assumptions
it ❖ Do not dislike work
❖ Must be coerced, ❖ Self direction and
controlled, directed, or self control
threatened with ❖ Seek responsibility
punishment ❖ Imagination,
❖ Prefer direction, avoid creativity widely
responsibility, little distributed
ambition, want ❖ Intellectual
security
potential only
partially utilized
Douglas McGregor
Theory X & Y

❖ Fewcompanies
today still use
Theory X

❖ Many are trying

Theory Y Experiential Exercise: Theory X and Theory Y Scale

techniques
Behavioral Sciences
Approach
Sub-field of the Humanistic Management Perspective

❖ Applies social science in an

organizational context
❖ Draws from economics,
psychology, sociology,
anthropology, and other
disciplines
❖ Understand employee
behavior and interaction
in an organizational
setting
❖ OD – Organization
Management Science
Perspective
❖ Emerged after WW II
❖ Applied mathematics, statistics,
and other quantitative
techniques to managerial
problems
 Operations Research –
mathematical modeling
 Operations Management –
specializes in physical
production of goods or
services
 Information Technology –
reflected in management
information systems
Recent Historical Trends

● Systems Theory

● Contingency View

● Total Quality
Management (TQM)
Systems View of Organizations

Exhibit 2.5, p. 58
Contingency View of
Management

Successful resolution of organizational problems is thought to

depend on managers’ identification of key variations in the
situation at hand
Elements of a Learning
Organization
Team-Based Structure

Learning
Organization
Empowered Open
Employees Information

Exhibit 2.7, p. 61
Types of E-Commerce

Business-to-Consumer B2C
Selling Products and
Services Online

Consumer-to-Consumer C2C
Business-to-Business B2B Electronic Markets
Transactions Between Created by Web-Based
Organizations Intermediaries
Exhibit 2.8, p. 63