Chapter 2 Evolution of Management Thought Pamela S

Chapter 2 Evolution of Management Thought Pamela S. Lewis Stephen H. Goodman Patricia M. Fandt Slides Prepared by Bruce R. Barringer University of Central Florida © 2001 South-Western College Publishing

Learning Objectives Slide 1 of 3 1. Describe the major influences on the development of management thought. 2. Identify the five major perspectives of management thought that have evolved over the years. 3. Describe the different subfields that exist in the classical perspective of management and discuss the central focus of each. © 2001 South-Western Publishing Transparency 2 -2

Learning Objectives Slide 2 of 3 4. Describe theories of the major contributors to the behavioral perspective of management. 5. Identify the major events that gave rise to the emergence of the quantitative perspective of management. 6. Describe the structure of the building blocks of systems analysis. © 2001 South-Western Publishing Transparency 2 -3

Learning Objectives Slide 3 of 3 7. Discuss the nature of the contingency perspective of management. 8. Discuss the future issues that will affect the further development of management thought. © 2001 South-Western Publishing Transparency 2 -4

Environmental Factors Influencing Management Thought Slide 1 of 3 Influences on Management Thought Economic Political Social Global Technological © 2001 South-Western Publishing Transparency 2 -5

Environmental Factors Influencing Management Thought Slide 2 of 3 • Economic Influences – Relate to the availability, production, and distribution of resources within a society. • Social Influences – Relate to the aspects of a culture that influence interpersonal relationships. • Political Influences – Relate to the impact of political institutions on individuals and organizations. © 2001 South-Western Publishing Transparency 2 -6

Environmental Factors Influencing Management Thought Slide 3 of 3 • Technological Influences – Relate to the advances and refinements in any of the devices that are used in conjunction with conducting business. • Global Influences – Relate to the pressures to improve quality, productivity, and costs as organizations attempt to compete in the worldwide marketplace. © 2001 South-Western Publishing Transparency 2 -7

Schools of Management Thought Classical Perspective Behavioral Perspective Quantitative Perspective Systems Perspective Contingency Perspective © 2001 South-Western Publishing Transparency 2 -8

Chronological Development of the Schools of Management Thought Contingency Perspective Systems Perspective Quantitative Perspective Behavioral Perspective Classical Perspective 1875 © 2001 South-Western Publishing 1900 1925 1950 1975 Transparency 2 -9 2000

Classical Perspective The oldest formal viewpoints of management, it includes the following approaches: Scientific Management Administrative Management Bureaucratic Management Focuses on the productivity of the individual worker Focuses on the functions of management Focuses on the overall organizational system © 2001 South-Western Publishing Transparency 2 -10

Scientific Management Slide 1 of 4 • Focuses on the productivity of the individual worker – Frederick W. Taylor – Frank & Lillian Gilbreth © 2001 South-Western Publishing Transparency 2 -11

Scientific Management Slide 2 of 4 • Frederick W. Taylor (1865 -1915) – Father of “Scientific Management. – Taylor was convinced that there was “one best way” to perform every task. – Taylor attempted to define “the one best way” to perform every task through systematic study and other scientific methods. © 2001 South-Western Publishing Transparency 2 -12

Scientific Management Slide 3 of 4 • Frank Gilbreth – Specialized in time and motion studies to determine the most efficient way to perform tasks. – Used the new medium of motion pictures to examine the work of bricklayers. – Identified 17 work elements (such as lifting and grasping) and called them therbligs. © 2001 South-Western Publishing Transparency 2 -13

Scientific Management Slide 4 of 4 • Lillian Gilbreth – Was a strong proponent of better working conditions as a means of improving efficiency and productivity. – Wrote an entertaining book about raising her family entitled “Cheaper by the Dozen. ” © 2001 South-Western Publishing Transparency 2 -14

Administrative Management Slide 1 of 2 • Focuses on the managers and the functions they perform – This approach to management is most closely identified with Henri Fayol (1841 -1925). – Fayol was the first to recognize that successful managers had to understand the basic managerial functions. © 2001 South-Western Publishing Transparency 2 -15

Administrative Management Slide 2 of 2 • Henri Fayol – Developed a set of 14 general principles of management. – His managerial functions of planning, leading, organizing, and controlling are routinely used in modern organizations. © 2001 South-Western Publishing Transparency 2 -16

Bureaucratic Management Slide 1 of 4 • Focuses on the overall organizational system and is based upon firm rules, policies, and procedures; a fixed hierarchy; and a clear division of labor – Max Weber (1864 -1920), a German sociologist and historian, is most closely associated with bureaucratic management. © 2001 South-Western Publishing Transparency 2 -17

Bureaucratic Management Slide 2 of 4 • Max Weber – Envisioned a system of management that would be based upon impersonal and rational behavior. – Conceptualized the approach to management referred to as bureaucracy. • • • Division of labor Hierarchy of authority Rules and procedures Impersonality Employee selection and promotion © 2001 South-Western Publishing Transparency 2 -18

Bureaucratic Management Slide 3 of 4 • Weber’s Forms of Authority – Traditional authority • Is based upon custom or tradition. – Charismatic authority • Subordinates voluntarily comply with a leader because of his or her special personal qualities or abilities. © 2001 South-Western Publishing Transparency 2 -19

Bureaucratic Management Slide 4 of 4 • Weber’s Forms of Authority – Rational-legal authority • Subordinates comply with a leader because of a set of impersonal rules and regulations that apply to all employees. © 2001 South-Western Publishing Transparency 2 -20

Classical vs. Behavioral Perspective Classical Perspective Focused on rational behavior © 2001 South-Western Publishing Behavioral Perspective vs. Acknowledged the importance of human behavior Transparency 2 -21

Behavioral Perspective Slide 1 of 6 • Behavioral Perspective – Followed the classical perspective – Acknowledged the importance of human behavior in shaping management style – Associated with the following scholars: • • Mary Parker Follett Elton Mayo Douglas Mc. Gregor Chester Barnard © 2001 South-Western Publishing Transparency 2 -22

Behavioral Perspective Slide 2 of 6 • Mary Parker Follett – Concluded that a key to effective management was coordination. – Felt that managers needed to coordinate and harmonize group effort rather than force and coerce people. – Believed that management is a continuous, dynamic process. – Felt that the best decisions would be made by people who were closest to the situation. © 2001 South-Western Publishing Transparency 2 -23

Behavioral Perspective Slide 3 of 6 • Elton Mayo – Conducted the famous Hawthorne Experiments. – Concluded that productivity increased because someone was “paying attention” to the workers. – Mayo’s work represents the transition from scientific management to the early human relations movement. © 2001 South-Western Publishing Transparency 2 -24

Behavioral Perspective Slide 4 of 6 Elton Mayo’s Hawthorne Effect Phenomenon whereby individual or group performance is influenced by human behavior factors. © 2001 South-Western Publishing Transparency 2 -25

Behavioral Perspective Slide 5 of 6 • Douglas Mc. Gregor – Proposed the Theory X and Theory Y styles of management. – Theory X managers perceive that their subordinates have an inherent dislike of work and will avoid it if at all possible. – Theory Y managers perceive that their subordinates enjoy work and that they will gain satisfaction from performing their jobs. © 2001 South-Western Publishing Transparency 2 -26

Behavioral Perspective Slide 6 of 6 • Chester Barnard – Felt that executives serve two primary functions: • Must establish and maintain a communications system among employees. • Must establish the objectives of the organization and motivate employees. – Developed a theory on authority: • Believed that authority flows from the ability of subordinates to accept or reject an order. © 2001 South-Western Publishing Transparency 2 -27

Quantitative Perspective Slide 1 of 3 Is characterized by its use of mathematics, statistics, and other quantitative techniques for management decision making and problem solving. This approach has four basic characteristics: Decisionmaking focus © 2001 South-Western Publishing Measurable criteria Quantitative model Computers Transparency 2 -28

Quantitative Perspective Slide 2 of 3 • Decision-Making Focus – The primary focus of the quantitative approach is on problems or situations that require some direct action, or decision, on the part of management. • Measurable Criteria – The decision-making process requires that the decision maker select some alternative course of action. The alternatives must be compared on the basis of some measurable criteria. © 2001 South-Western Publishing Transparency 2 -29

Quantitative Perspective Slide 3 of 3 • Quantitative Model – To assess the likely impact of each alternative on the stated criteria, a quantitative model of the decision situation must be formulated. • Computers – Computers are quite useful in the problemsolving process. © 2001 South-Western Publishing Transparency 2 -30

Systems Perspective An approach to problem solving that is based on an understanding of the basic structure of systems: Basic Structure of Systems Inputs Transformation process Outputs Feedback © 2001 South-Western Publishing Transparency 2 -31

Contingency Perspective • A view that proposes that there is no one best approach to management for all situations. • Asserts that managers are responsible for determining which managerial approach is likely to be most effective in a given situation. • This requires managers to identify the key contingencies in a given situation. © 2001 South-Western Publishing Transparency 2 -32

Example of the Contingency Perspective Joan Woodward discovered that a particular management style is affected by the organization’s technology. Woodward identified and described three different types of technology: Small-batch technology © 2001 South-Western Publishing Mass-production technology Continuous-process technology Transparency 2 -33

Information Technology and Management Style In many cases, information technology can facilitate the use of a particular management style. Quantitative & Systems Perspectives Classical Perspective Facilitated by advanced computers Facilitated by modern communications equipment © 2001 South-Western Publishing Transparency 2 -34

Future Issues Influencing Management Thought Diversity Globalization Quality © 2001 South-Western Publishing Transparency 2 -35

William Ouchi’s Theory Z • Japanese approach to management developed by William Ouchi. • Advocates trusting employees and making them feel like an intimate part of the organization. • Based on the assumption that once a trusting relationship with workers is established, production will increase. © 2001 South-Western Publishing Transparency 2 -36

Future Managers Must Be: Slide 1 of 3 • Thoroughly schooled in the different management perspectives that have evolved over the years. • Able to understand the various economic, political, social, technological, and global influences that have affected management thinking over the years, and will continue to shape future evolutionary changes in management thought. © 2001 South-Western Publishing Transparency 2 -37

Future Managers Must Be: Slide 2 of 3 • Capable of identifying and understanding such key variables as environment, production technology, organizational culture, organization size, and international culture as they relate to the organization. • Prepared to select elements from the various management perspectives that are appropriate for his or her situation. © 2001 South-Western Publishing Transparency 2 -38

Future Managers Must Be: Slide 3 of 3 • Adaptable to change, because future conditions and developments can quickly render the chosen approaches obsolete. © 2001 South-Western Publishing Transparency 2 -39