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 competing users
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 output.
 Scientific
Management
Contributions
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
❖ Systematic approach –looked at
organization as a whole

Ethical Dilemma: The Supervisor

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 labor
  Centralization
 Authority
 Discipline
 Scalar chain
 Unity of command  Order
 Unity of direction
 Subordination of
 Equity
individual interest  Stability and
Remuneration

tenure of staff
 Initiative
 Esprit de corps
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

Chester Barnard
1886-1961
❖ Informal Organization
❖ Cliques
❖ Naturally occurring social groupings

❖ Acceptance Theory of Authority

❖ Free will
❖ Can choose to follow management orders
Humanistic
Perspective
Emphasized understanding human
behavior, needs, and attitudes in
the workplace
●Human Relations Movement

●Human Resources Perspective

●Behavioral Sciences Approach

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 avoid it Theory Y Assumptions
❖ Must be coerced, controlled, ❖ Do not dislike work
directed, or threatened with ❖ Self direction and self
punishment control
❖ Prefer direction, avoid ❖ Seek responsibility
responsibility, little ❖ Imagination, creativity
ambition, want security widely distributed
❖ Intellectual potential only
partially utilized
Douglas McGregor
Theory X & Y

❖ Fewcompanies today still use

Theory X

❖ Many are trying Theory Y

techniques

Experiential Exercise: Theory X and Theory Y Scale

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 Development
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