Chapter 2 The Evolution of Management Thinking 2016

Chapter 2 The Evolution of Management Thinking © 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.

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 © 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. 2

2. 1 Management Perspectives over Time © 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. 3

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 © 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. 4

Classical Perspective Three subfields: Scientific management Bureaucratic organizations Administrative principles © 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. 5

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 © 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. 6

Scientific Management Henry Gantt developed the Gantt chart to measure and plan work The Gilbreths pioneered time and motion studies to promote efficiency © 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. 7

2. 2 Characteristics of Scientific Management © 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. 8

Bureaucratic Organizations Max Weber, a German theorist, introduced the concepts Manage organizations on impersonal, rational basis Organization depends on rules and records © 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. 9

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 © 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. 10

2. 3 Characteristics of Weberian Bureaucracy © 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. 11

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 © 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. 12

Administrative Principles Identified five functions of management: Planning Organizing Commanding Coordinating Controlling © 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. 13

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 © 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. 14

Humanistic Perspective: Early Advocates Empowerment: facilitating instead of controlling Recognition of the informal organization Introduced acceptance theory of authority © 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. 15

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 © 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. 16

Humanistic Perspective: Human Resources Perspective From worker participation and considerate leadership to managing work performance Combine motivation with job design Maslow and Mc. Gregor extended and challenged current theories Maslow’s Hierarchy Theory X and Theory Y © 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. 17

2. 4 Theory X and Theory Y © 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. 18

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 © 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. 19

Humanistic Perspective: Behavioral Sciences Approach Other strategies based on behavioral science: Matrix organizations Self-managed teams Corporate culture Management by wandering around © 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. 20

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 © 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. 21

Quantitative Perspective Information technology – focuses on technology and software to aid managers Quants – financial managers who base their decisions on complex quantitative analysis © 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. 22

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 © 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. 23

Exhibit 2. 5 Circles of Causality © 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. 24

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 © 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. 25

2. 6 Contingency View of Management © 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. 26

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 © 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. 27

2. 7 Supply Chain for Retailers © 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. 28

Managing the People-Driven Workplace The Bossless 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 © 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. 29