11. Evolution of Mgmt Theory
Transcript of 11. Evolution of Mgmt Theory
8/12/2019 11. Evolution of Mgmt Theory
http://slidepdf.com/reader/full/11-evolution-of-mgmt-theory 1/18
The Evolution of
Management Theories
8/12/2019 11. Evolution of Mgmt Theory
http://slidepdf.com/reader/full/11-evolution-of-mgmt-theory 2/18
Management Theories
Industrial Revolution (1700’s – 1800’s)- Moved from Agrarian to Manufacturing Society
- Adam Smith – The Wealth of Nations
- Division of labor (pin factory example)
Scientific Management (1890’s – 1930’s)- Frederick Taylor
- Time & Motion Studies- “Fair day’s pay for a fair day’s work”
8/12/2019 11. Evolution of Mgmt Theory
http://slidepdf.com/reader/full/11-evolution-of-mgmt-theory 3/18
Management Theories
Bureaucracy – Max Weber (1930’s – 1950’s)
- All activities follow the organizational hierarchy
- Strong lines of authority & control
- Formal selection, rules & regulations
- Only qualified persons are employed (no nepotism)
8/12/2019 11. Evolution of Mgmt Theory
http://slidepdf.com/reader/full/11-evolution-of-mgmt-theory 4/18
Management Theories
Humanistic Management (1930’s – 1970’s)
Hawthorne Studies
- Elton Mayo – Father of Human Relations
- Western Electric Plant in Hawthorne, IL
- “”Hawthorne Effect”; “Spotlight Effect”
8/12/2019 11. Evolution of Mgmt Theory
http://slidepdf.com/reader/full/11-evolution-of-mgmt-theory 5/18
Management Theories
POSDCORB (1937)- Luther Gulick
Management by Objectives (1954)- Peter Drucker
- Goals are set for employee to achieve- People end up working for themselves
Theory X & Theory Y (1960)- Douglas McGregor
8/12/2019 11. Evolution of Mgmt Theory
http://slidepdf.com/reader/full/11-evolution-of-mgmt-theory 6/18
Theory X & Theory Y
Theory X
People do not really want to work.
They are self-interested and prefer leisure over work.
If managers relax, sloppiness sets in.
Theory Y Workers find work enjoyable & satisfying “Work is Play”
Workers will exercise self-direction and self-control.
Workers can solve problems creatively.
8/12/2019 11. Evolution of Mgmt Theory
http://slidepdf.com/reader/full/11-evolution-of-mgmt-theory 7/18
Theory X
People do not really want to work.
They are self-interested and prefer leisure over work.
Managers have to structure work and give workerswell specified tasks.
If managers relax, sloppiness sets in. Most people prefer to be directed. They do not really
want to carry the burden of responsibility.
Workers have little ambition and prefer security
8/12/2019 11. Evolution of Mgmt Theory
http://slidepdf.com/reader/full/11-evolution-of-mgmt-theory 8/18
Theory Y
Workers find work enjoyable & satisfying “Work is Play”
Workers will exercise self-direction and self-control.
Workers will seek the intrinsic rewards associated withtheir achievement, not just extrinsic rewards.
Workers can solve problems creatively.
The intellectual potential of workers is only partially
utilized. People are capable of handling more complexproblems.
8/12/2019 11. Evolution of Mgmt Theory
http://slidepdf.com/reader/full/11-evolution-of-mgmt-theory 9/18
Management Theories
Total Quality Management A system of continuous improvement employing
participative management and centered on the
needs of customers.
W. Edwards Deming (1950’s Japan)
14 Steps to TQM- Cease dependence on mass inspection
- Eliminate quotas and numerical targets
8/12/2019 11. Evolution of Mgmt Theory
http://slidepdf.com/reader/full/11-evolution-of-mgmt-theory 10/18
Management Theories
Theory Z- William Ouchi (1981); Abraham Maslow (1968)
Japanese Management- Cooperation and trust built on mutual respect
* Maslow’s Hierarchy of Needs Long-term employment Collective decision making & shared responsibility Careful evaluation and slow promotion Involvement in the organization
8/12/2019 11. Evolution of Mgmt Theory
http://slidepdf.com/reader/full/11-evolution-of-mgmt-theory 11/18
Theory Z
Maslow (1968) & William Ouchi (1980’s) Employees driven by commitment to belong
to something worthwhile
Employees crave opportunities to advanceand learn
Manager believes that employees shouldwork up through the ranks to build loyaltyand have lifelong employment
8/12/2019 11. Evolution of Mgmt Theory
http://slidepdf.com/reader/full/11-evolution-of-mgmt-theory 12/18
Theory “X” vs. “Y” vs. “Z”
8/12/2019 11. Evolution of Mgmt Theory
http://slidepdf.com/reader/full/11-evolution-of-mgmt-theory 13/18
Management Theories
“The One Minute Manager” (1981)- Kenneth Blanchard
- One minute objectives; praising & reprimanding
The ABCs- Activators – Manager’s pre-goal actions
- Behavior – Effect on employee actions- Consequences – Manager’s post-goal actions
8/12/2019 11. Evolution of Mgmt Theory
http://slidepdf.com/reader/full/11-evolution-of-mgmt-theory 14/18
Management Theories
Systems Approach – Peter Senge (1990)System – A set of interdependent parts that work
together to achieve a common goal
Inputs Processes Outputs (Feedback)
Look at the organization from a broader perspective
Interrelationship of all of the parts (hotel front desk)
8/12/2019 11. Evolution of Mgmt Theory
http://slidepdf.com/reader/full/11-evolution-of-mgmt-theory 15/18
Management Theories
Empowerment- Authorizing employees to do their work without the need toseek approval from supervisors
- Sense of responsibility & achievement for employees
- Reduces work-load on manager; Reduces delays in flow of work
8/12/2019 11. Evolution of Mgmt Theory
http://slidepdf.com/reader/full/11-evolution-of-mgmt-theory 16/18
8/12/2019 11. Evolution of Mgmt Theory
http://slidepdf.com/reader/full/11-evolution-of-mgmt-theory 17/18
Japanese Management
Kaizen Continuous improvement
Jidoka
Defect detection system
Just-in-time inventory
Having just enough inventory on hand tocomplete the process
8/12/2019 11. Evolution of Mgmt Theory
http://slidepdf.com/reader/full/11-evolution-of-mgmt-theory 18/18
Other Theories
Peter Principle Promotion to a level of ignorance
Dilbert Principle
Promote worst employees to management
Natural Capitalism
Rewards energy and material efficiency