Chapter 2

The Evolution of Management Thinking

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 Learning Outcomes
 Understand how historical forces influences the practice of management.
 Identify and explain major developments in the history of management thought.
 Describe the major components of the classical and humanistic management
perspectives.
 Discuss the management science perspective and its current use in organizations.
 Explain the major concepts of systems theory, the contingency view, and total
quality management.
 Explain what a learning organization is and why this approach has become
important in recent years.
 Describe the management changes brought about by a technology-driven
workplace, including the role of supply chain management, customer relationship
management, and outsourcing.

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Copyright ©2010 by South-Western, a division of Cengage
 Are You a New-Style or an Old-Style
Manager?
 Management and managers are undergoing
tremendous change
 Past strategies are no longer effective in today’s
dynamic business environment
 History provides perspective and a broader view
 Manager can find patterns and insight from history

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Copyright ©2010 by South-Western, a division of Cengage
 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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 2.1 - Management Perspectives
over Time

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 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

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 Classical Perspective
 Three subfields:
Scientific management
Bureaucratic organizations
Administrative principles

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 Scientific Management
 Improve efficiency and labor productivity through
scientific methods
 Frederick Winslow Taylor proposed that workers
“could be retooled like machines”
 Management decisions would be based on precise
procedures based on study

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 Scientific Management
 Henry Gantt developed the Gantt chart to measure
and plan work
 The Gilbreth pioneered time and motion studies to
promote efficiency

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 2.2 - Characteristics of
Scientific Management

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 Bureaucratic Organizations
 Max Weber, a German theorist, introduced the
concepts
 Manage organizations on impersonal, rational basis
 Organization depends on rules and records

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 Bureaucratic Organizations
 Managers use power instead of personality to
delegate

Although important productivity gains

come from this foundation, bureaucracy
has taken on a negative tone

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 2.3 - Characteristics of
Weberian Bureaucracy

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 Administrative Principles
 Focused on the entire organization
 Henri Fayol - a French mining engineer, was a
major contributor
 14 general principles of management; many still
used today:
Unity of command
Division of work
Unity of direction
Scalar chain

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 Administrative Principles

Identified five functions of management:

Planning
Organizing
Commanding
Coordinating
Controlling

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 Humanistic Perspective*:
Early Advocates
 Understand human behaviors, needs, and attitudes
in the workplace
 Mary Parker Follett and Chester Barnard
 Contrast to scientific management - Importance of
people rather than engineering techniques

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 Humanistic Perspective:
Early Advocates
 Empowerment: facilitating instead of controlling
 Recognition of the informal organization
 Introduced acceptance theory of authority

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 Humanistic Perspective: Human
Relations Movement
 Effective control comes from within the employee
 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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 Humanistic Perspective:
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
Theory X and Theory Y

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 2.4 - Theory X and Theory Y

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 Humanistic Perspective:
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

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 Humanistic Perspective:
Behavioral Sciences Approach
 Other strategies based on behavioral science:
Matrix organizations
Self-managed teams
Corporate culture
Management by wandering around

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 Quantitative Perspective
 Also referred to as management science
 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

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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

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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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 Exhibit 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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 Recent Trends:
Total Quality Management
 Quality movement is strongly associated with Japan
 The U.S. ignored the ideas of W. Edwards Deming,
“Father of the Quality Movement”
 Total Quality Management (TQM) became popular
in the 1980s and 1990s
 Integrate high-quality values in every activity

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 Elements of Quality Management

Employee involvement

Focus on the customer

Benchmarking

Continuous improvement

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 Innovative Management: Thinking
for a Changing World
 Management ideas trace their roots to historical
perspectives
 New ideas continue to emerge to meet the changing
needs and difficult times
 The shelf life of trends is getting shorter and new
ideas peak in fewer than three years

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 Managing the Technology-
Driven Workplace
 Social media programs – Company online
community pages, social media sites, microblogging
platforms and online forums
 Customer relationship management – technology
used to build relationships with customers
 Outsourcing – contracting functions or activities to
other organizations to cut costs
 Supply chain management – managing supplier and
purchaser relationships to get goods to consumers

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