Daft12ePPT Ch01 Tahir

Chapter 2
THE EVOLUTION OF
MANAGEMENT THINKING
Management
by
Richard L Daft
(Vanderbilt University)
12th Edition
(2016)
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Outcomes
After studying this chapter, you should be able to:
1. Summarize how historical forces influence the practice of management.
2. Explain how social business is bridging the historical struggle between managing the “things
of production” and the “humanity of production.”
3. Describe the major components of the classical and humanistic management perspectives.
4. Discuss the management science approach and its current use in organizations.
5. Explain the major concepts of systems thinking and the contingency view.
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Learning Outcomes
6. Provide examples of contemporary management tools and explain why these trends change
over time.
7. Describe the management changes brought about by a technology driven workplace,
including the role of big data analytics and supply chain management.
8. Explain how organizations are implementing the ideas of boss-less workplaces and
employee engagement to facilitate a people-driven workplace
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Management and Organization
Studying management history helps your conceptual skills
Social forces –
◦ aspects of a culture that guide and influence relationships among people
Political forces –
◦ influence of political and legal institutions on people and organizations
Economic forces –
◦ the availability, production, and distribution of resources
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A-Classical Perspective --- Things of Production/Rise of Factory system 1888-1945
I-Scientific management- Gantt chart/ time & motion Studies
II- Bureaucratic Organizations
III-Administrative principles
B-Humanistic Perspective 1928-1998
I-Human Relation Movement
II-Human Resource Perspective
III-Behavioral Science approach
C-Management Science Perspective 1942-2000
I-Operation Research
II- Operation Management
III-Information Technology
D-System Thinking 1952-2004
I-Systems
II-Subsystem
III-Synergy
E-Contingency View 1968-2002
I-Case View
II-Universalist View
F-Total Quality Management 1978-2016
I-Technology Driven Workforce 1995-2016
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II-People Driven Workforce 2000-2015
2.1 Management Perspectives over Time
A-Classical Perspective 1888-1945
I Scientific management
II- Bureaucratic Organizations
III-Administrative principles
B-Humanistic Perspective 1928-1998
I-Human Relation Movement
II-Human Resource Perspective
III-Behavioral Science approach
C-Management Science Perspective 1942-2000
I-Operation Research
II- Operation Management
III-Information Technology
D-System Thinking 1952-2004
I-Systems
II-Subsystem
III-Synergy
E-Contingency View 1968-2002
I-Case View
II-Universalist View
F-Total Quality Management 1978-2005
I-Technology Driven Workforce 1995-2016
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II-People Driven Workforce 2000-2015
Main Classification- Classical and Humanistic
“a struggle within management to balance “the things of production” and “the humanity of production.”
-When forces either outside or within the organization suggest a need for change to improve efficiency
or effectiveness, managers have often responded with a technology or numbers-oriented solution that
would make people little more than a cog in a big machine.
-For instance, as the United States shifted from a world of small towns and small businesses to an
industrialized network of cities and factories in the late nineteenth century, people began looking at
management as a set of scientific practices that could be measured, studied, and improved with
machinelike precision (the classical perspective).
Frederick Taylor wrote that “the best management is a true science, resting upon clearly defined laws,
rules, and principles.”
- By the 1920s, there was a minor rebellion against this emphasis on the quantifiable with a call for
more attention to human and social needs (the humanistic perspective). In the first issue of the
Harvard Business Review (1922), Dean Wallace B. Donham wrote that the “development,
strengthening, and multiplication
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, 2016
copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7
A- Classical Perspective
Emerged during the nineteenth and early twentieth centuries
◦ Rise of the factory system
◦ Issues regarding structure, training, and employee satisfaction
Large, complex organizations required new approaches to coordination and
control
Three subfields of Classical Perspective:
I. Scientific Management
II. Bureaucratic Organizations
III. Administrative Principles
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I-Scientific Management
Scientific management emphasizes scientifically determined jobs and management practices
as the way to improve efficiency and labor productivity.
Henry Gantt developed the Gantt chart to measure and plan work
The Gilbreths pioneered time and motion studies to promote efficiency
In the late 1800s, a young engineer, Frederick Winslow Taylor (1856–1915), proposed that
workers “could be retooled like machines, their physical and mental gears recalibrated for better
productivity.”
Taylor calculated that with the correct movements, tools, and sequencing, each man was capable of loading 47.5
tons per day instead of the typical 12.5 tons. He also worked out an incentive system that paid each man $1.85 a
day for meeting the new standard, an increase from the previous rate of $1.15. Productivity at Bethlehem Steel shot
up overnight.
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2.2 Characteristics of Scientific Management
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II-Bureaucratic Organizations
Max Weber, (1864–1920) a German theorist, introduced the concepts of
Managing organizations on impersonal, rational basis, Organization depends on rules and

records.
 Weber believed that an organization based on rational authority would be more efficient
and adaptable to change because continuity is related to formal structure and positions
rather than to a particular person, who may leave or die.
During the late 1800s, many European organizations were managed on a personal, family-
like basis. Employees were loyal to a single individual rather than to the organization or its
mission.
The dysfunctional consequence of this management practice was that resources were used
to realize individual desires rather than organizational goals.
Employees in effect owned the organization and used resources for their own gain rather
than to serve customers.
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2.3 Characteristics of Weberian Bureaucracy
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III-Administrative Principles
Focused on the entire organization Henri Fayol, a French mining engineer, was a major
contributor
4 general principles of management; many still used today:
1. Unity of command. Each subordinate receives orders from one—and only one—superior.
2. Division of work. Managerial work and technical work are amenable to specialization
to produce more and better work with the same amount of effort.
3. Unity of direction. Similar activities in an organization should be grouped together
under one manager.
4. Scalar chain. A chain of authority extends from the top to the bottom of the organization
and should include every employee.
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Administrative Principles
Identified five functions of management:

1. Planning
2. Organizing
3. Commanding
4. Coordinating
5. Controlling
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B- Humanistic Perspective
Emphasizes to Understand:
- human behaviors,
- Human needs, and
- attitudes in the workplace
Contrast to scientific management - Importance of people rather than engineering
techniques
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Humanistic Perspective: Early Advocates
Mary Parker Follett and Chester Barnard
Empowerment:
facilitating instead of controlling and allowing employees to act depending on the authority of
the situation
Recognition of the informal organization
The informal organization occurs in all formal organizations and includes cliques, informal
networks, and naturally occurring social groupings. Barnard argued that organizations are not
machines and stressed that informal relationships are powerful forces that can help the
organization if properly managed.
Introduced acceptance theory of authority
people have free will and can choose whether to follow management orders. People typically
follow orders because they perceive positive benefit to themselves, but they do have a choice.
Managers should treat employees properly because their acceptance of authority may be critical
to organization success in important situations.
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I- Human Relations Movement
Effective control comes from within the employee individual worker rather than from strict,
authoritarian control
Hawthorne studies were key contributor
Human relations played key variable in increasing performance
Employees performed better when managers treated them positively
Strongly shaped management practice and research
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II- Human Resources Perspective
From worker participation and considerate leadership to managing work performance
Combine motivation with job design
Maslow and McGregor extended and challenged current theories
◦ Maslow’s Hierarchy of Needs
◦ started with physiological needs and progressed to safety, belongingness, esteem, and,
finally, self-actualization needs.
◦ McGregor Theory X and Theory Y

The point of Theory Y is that organizations can take advantage of the imagination and intellect
of all their employees. Employees will exercise self-direction and self-control to contribute to
organizational goals when given the opportunity. A few companies today still use Theory X
management, but many are using Theory Y techniques.
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2.4 Theory X and Theory Y
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III-Behavioral Sciences Approach
Scientific methods + sociology, psychology, anthropology, economics to develop theories about
human behavior and interaction in an organizational setting
Organizational development – field that uses behavioral sciences to improve organization
This approach can be seen in practically every organization. When a company such as
Zappos.com conducts research to determine the best set of tests, interviews, and employee
profiles to use when selecting new employees, it is using behavioral science techniques. When
Best Buy electronics stores train new managers in the techniques of employee motivation,
most of the theories and findings are rooted in behavioral science research.
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Behavioral Sciences Approach
Other strategies based on behavioral science:
◦ Matrix organizations
◦ Self-managed teams
◦ Corporate culture
◦ Management by wandering around
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Management Science- Quantitative Perspective
Use of mathematics and statistics to aid management decision making
◦ Enhanced by development and perfection of the computer
Operations management focuses on the physical production of goods and services
Operations management refers to the field of management that specializes in the physical
production of goods or services. Operations management specialists use management science
to solve manufacturing problems.
Some commonly used methods are:
 forecasting,
 inventory modeling,
 linear and nonlinear programming,
 queuing theory,
 scheduling,
 simulation, and
 break-even analysis.
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Quantitative Perspective
Information technology – focuses on technology and software to aid managers
Quants – financial managers who base their decisions on complex quantitative analysis under
the assumption that using advanced mathematics and sophisticated computer technology
can accurately predict how the market works and help them reap huge profits.
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Recent Trends: Systems Thinking
The ability to see the distinct elements of a situation as well as the complexities
System – set of interrelated parts that function as a whole to achieve a common purpose
Subsystems – are parts of the system that are all interconnected
Synergy – the whole is greater than the sum of its parts
Managers must understand subsystem interdependence and synergy
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System Working
Decision to
Advertise
Advertising Profits
Budget
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2.5 Circles of Causality
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Recent Trends: Contingency View
Every situation is unique

Managers must determine what method will work
Managers must identify key contingencies for the current situation
Organizational structure should depend upon industry and other
variables
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2.6 Contingency View of Management
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Managing the Technology-Driven Workplace
Big data analysis
Technologies, skills, and processes for searching and examining
massive, complex sets of data
Uncovers hidden patterns and correlations
Supply Chain Management
Managing the sequence of suppliers and purchasers
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2.7 Supply Chain for Retailers
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Managing the People-Driven Workplace
The Boss less Workplace
 work from home
 accountability to the customers and team
Employee Engagement
 emotional involvement in the job
 satisfaction with work conditions
 enthusiastic contribution to the team
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The New Test
The Civil Service Board in a midsize city in Indiana decided that a written exam should be given to all candidates for promotion to supervisor. A
written test would assess mental skills and would open access to all personnel who wanted to apply for the position. The board believed a written
exam for promotion would be completely fair and objective because it eliminated subjective judgments and personal favoritism regarding a
candidate’s qualifications.
Maxine Othman, manager of a social service agency, loved to see her employees learn and grow to their full potential. When a rare opening for a
supervising clerk occurred, Maxine quickly decided to give Sheryl Hines a shot at the job. Sheryl had been with the agency for 17 years and had
shown herself to be a true leader. In her new position, Sheryl worked hard at becoming a good supervisor, just as she had always worked hard at
being a top-notch clerk.
She paid attention to the human aspects of employee problems and introduced modern management techniques that strengthened the entire
agency. Because of the board’s new ruling, however, Sheryl would have to complete the exam in an open competition—anyone could sign up and
take it, even a new employee. The board wanted the candidate with the highest score to get the job but allowed Maxine, as manager of the agency,
to have the final say.
Because Sheryl had accepted the provisional opening and proved herself on the job, Maxine was upset that the entire clerical force was deemed
qualified to take the test. When the results came back, she was devastated. Sheryl placed twelfth in the field of candidates, while one of her newly
hired clerks placed first.
The Civil Service Board, impressed by this person’s high score, urged Maxine to give the new clerk the permanent supervisory job over Sheryl;
however, it was still Maxine’s choice. Maxine wondered whether it was fair to base her decision only on the results of a written test. The board
was pushing her to honor the objective written test, but could the test really assess fairly who was the right person for the job?
What Would You Do?
1- Ignore the test. Sheryl has proven herself via work experience and deserves the job.
2- Give the job to the candidate with the highest score. You don’t need to make enemies on the Civil Service Board, and, although it is a
bureaucratic procedure, the test is an objective way to select a permanent placement.
3- Press the board to devise a more comprehensive set of selection criteria—including test results, but also taking into account supervisory
experience, ability to motivate employees, and knowledge of agency procedures—that can be explained and justified to the board and to
employees. © 2016 Cengage Learning. All Rights Reserved. May not be scanned, 2016
40
Discussion Questions
1- Differentiate between different perspectives of Management.

5. As organizations become more technology-driven, which do you think will become more important—the
management of the human element of the organization or the management of technology? Discuss.
6. Why do you think Mary Parker Follett’s ideas tended to be popular with businesspeople of her day but were
ignored by management scholars? Why are her ideas appreciated more today?
7. Explain the basic idea underlying the contingency view. How would you go about identifying key
contingencies facing an organization?
8. Why can an event such as the Hawthorne studies be a major turning point in the history of management, even
if the results of the studies are later shown to be in error? Discuss.
9. How would you apply systems thinking to a problem such as poor performance in your current academic
studies? What about a problem with a romantic partner or family member? Try to identify all the elements and
their interdependencies.
10. Can a manager be effective and successful today without using social media? What do you see as the most
important ways for managers to use this technology?

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Chapter 2

Managing organizations on impersonal, rational basis, Organization depends on rules and

Identified five functions of management:

◦ McGregor Theory X and Theory Y

Organizational development – field that uses behavioral sciences to improve organization

Other strategies based on behavioral science:

◦ Management by wandering around

Information technology – focuses on technology and software to aid managers

Every situation is unique

1- Differentiate between different perspectives of Management.

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