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The Evolution of Management Thinking
Cha
pter
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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
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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
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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
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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 competing users
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Management Perspectives Over Time
1930Humanistic Perspective
19901890Classical 1940
1950
2000Systems Theory
2000
2010The Technology-Driven Workplace
1990
2010The Learning Organization
1970Contingency Views
2000
1980Total Quality Management
2000
1940Management Science Perspective
1990
20101870
Exhibit 2.1, p.44
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Classical Perspective: 3000 B.C.
● Rational, scientific approach to management – make organizations efficient operating machines
● Scientific Management● Bureaucratic Organizations● Administrative Principles
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Scientific Management: Frederick 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 output.
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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
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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
Systematic approach –looked at organization as a whole
Ethical Dilemma: The Supervisor
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Bureaucracy Organizations
Positions organized in a hierarchy of authority
Managers subject to Rules and procedures
that will ensure reliable predictable behavior
Personnel are selected and promoted based
on technical qualifications
Administrative acts and decisions recorded
in writingManagement separate
from the ownership of the organization
Division of labor with Clear definitions of
authority and responsibility
Exhibit 2.3, p. 49
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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)
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Henri Fayol 1841-1925
Division of labor Authority Discipline Unity of command Unity of direction Subordination of
individual interest Remuneration
Centralization Scalar chain Order Equity Stability and
tenure of staff Initiative Esprit de corps
14 General Principles of Management
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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 in dealing with rapid change in
global environment
Leadership – importance of people vs. engineering techniques
Ethics - Power - Empowerment
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Chester Barnard 1886-1961
Informal Organization– Cliques– Naturally occurring social groupings
Acceptance Theory of Authority– Free will– Can choose to follow management orders
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Humanistic Perspective
Emphasized understanding human behavior, needs, and attitudes in the workplace
●Human Relations Movement
●Human Resources Perspective
●Behavioral Sciences Approach
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Human Relations Movement
Emphasized satisfaction of employees’
basic needs as the key to increased
worker productivity
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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
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Human Resource Perspective
Suggests jobs should be designed to meet
higher-level needs by allowing workers to
use their full potential
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Physiological
Safety
Belongingness
Esteem
Self-actualization
Abraham Maslow’s Hierarchy of Needs
Based on needs satisfaction
1908-1970
Chapter 16 – Maslow in more detail
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Dislike work –will avoid it Must be coerced, controlled,
directed, or threatened with punishment
Prefer direction, avoid responsibility, little ambition, want security
Do not dislike work Self direction and self control Seek responsibility Imagination, creativity widely
distributed Intellectual potential only
partially utilized
Douglas McGregor Theory X & Y
Theory X Assumptions Theory Y Assumptions
1906-1964
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Douglas McGregor Theory X & Y
Few companies today still use Theory X
Many are trying Theory Y techniques
Experiential Exercise: Theory X and Theory Y Scale
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Behavioral Sciences Approach
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 Development
Sub-field of the Humanistic Management Perspective
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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
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Recent Historical Trends
● Systems Theory
● Contingency View
● Total Quality Management (TQM)
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Systems Theory
Open systems that are characterized by entropy, synergy and subsystem interdependence
System – a set of interrelated parts that function as a whole to achieve a common purpose
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Systems View of Organizations
Exhibit 2.5, p. 58
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Contingency View of Management
Exhibit 2.6, p. 59
Successful resolution of organizational problems is thought to depend on managers’ identification of key variations in the situation at hand
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Total Quality Management
W.Edwards Deming – “father of the quality movement”
A concept that focuses on managing the total organization to delivery quality to customers– Employee involvement– Focus on the customer– Benchmarking– Continuous improvement
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Learning Organizations
An organization in which everyone is engaged in identifying and solving problems, enabling the organization to continuously experiment, improve and increase its capability.
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Elements of a Learning Organization
Learning Organization
Open Information
Empowered Employees
Team-Based Structure
Exhibit 2.7, p. 61
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Technology-Driven Workplace
E-Business – work an organization does by using electronic linkages
E-Commerce – business exchanges or transactions done electronically
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Types of E-Commerce
Business-to-Consumer B2C Selling Products and
Services Online
Business-to-Business B2B Transactions Between
Organizations
Consumer-to-Consumer C2C Electronic Markets
Created by Web-Based Intermediaries
Exhibit 2.8, p. 63