Management Thought: Past and Present

MANAGEMENT Meeting and Exceeding Customer Expectations EIGHTH EDITION Management Thought:Past and Present Prepared by Deborah Baker Texas Christian University

learning objectives • Discuss why knowledge of the evolution of management theories is important to managers • Explain the contributions of the following: • Classical schools of management thought • Behavioral school of management thought • Quantitative school of management thought • Systems school of management thought • Contingency school of management thought • Quality school of management thought

History and Theory of Management 1 The Value of History People who ignore the past are destined to relive it. A person unaware of mistakes made by others is likely to repeat them.

Time Line of Management Thought 1

Classical Management Theory A theory that focused on finding the “one best way” to perform and manage tasks ClassicalManagement Theory 2a

Classical Management Theory 2a • Originated during England’s Industrial Revolution • Manufacturers began mass-producing goods in factories • Textile industry was among the first • Allowed production of standardized goods • Depended on a constant flow of labor and materials • Owners needed to plan, organize, lead, control • Focused on finding the “one best way”

Classical Management Theory 2a ClassicalScientificSchool Focused on the manufacturing environment Emphasized the flow of information and how organizations should operate ClassicalAdministrativeSchool

Classical Scientific School 2a Charles Babbage • In 1832, published On the Economy of Machinery and Manufactures • Concluded that definite management principles existed: • with broad applications • determined by experience • Principle of “the division of labor amongst the persons who perform the work”

Classical Scientific School 2a Frederick W. Taylor • The Father of Scientific Management • Pursued four key goals: • Develop a science of management • Select workers scientifically • Develop and train workers scientifically • Create cooperation between management and labor • Determined the quickest ways to perform tasks

Classical Scientific School 2a Henry Gantt • Invented the Gantt chart • Moved away from authoritarian management • Advocated a bonus system to reward workers

Lessons from Classical Scientific Thinkers Analyze everything Teach effective methods to others Constantly monitor workers Plan responsibly Control the work and the workers 2a

Classical Administrative School 2a Henri Fayol • Believed specific management skills could be learned and taught • Fayol’s universal management functions: • Planning • Organizing • Leading • Controlling

Classical Administrative School 2a Mary Parker Follett • Focused on how organizations cope with conflict and the importance of sharing goals • Emphasized the need to discover and enlist individual and group motivation • The first principle for individual and group success is the “capacity for organized thinking”

Classical Administrative School 2a Chester Barnard • Argued that managers must gain acceptance for their authority • Advocated the use of basic management principles • Cautioned managers to issue no order that could not or would not be obeyed

Behavioral Management Theory Recognized employees as individuals with concrete, human needs, as parts of work groups, and as members of a larger society Behavioral School 2b

Behavioral Management Theory 2b Robert Owen • The father of modern personnel management • The quality and quantity of workers’ output influenced by conditions on and off the job

Behavioral Management Theory 2b Abraham Maslow • Needs-based theory of motivation • physiology • security • affiliation • esteem • self-actualization

Behavioral Management Theory Results 2b Managers discover… What employees want from work How to enlist cooperation and commitment How to unleash talents, energy, and creativity

Quantitative Management Theory Emphasized mathematical approaches to management problems The study of complex systems of people, money, equipment, and procedures, with the goal of improving their effectiveness Quantitative School Management Science 2c

Quantitative Management Theory 2c • Mathematical approaches to management problems • Developed during World War II • Applied to every aspect of business

Tools of Operations Management 2c Inventory models Beak-even analyses Production scheduling Production routing

Systems Management Theory The theory that an organization comprises various parts that must perform tasks necessary for the survival and proper functioning of the system Systems School 2d

The Organization as a System 2d

Contingency Management Theory A theory based on the premise that managers’ preferred actions or approaches depend on the variables of the situation they face Contingency School 2e

Contingency Management Theory 2e • Approaches depend on the variables of the situations • Draws on all past theories in attempting to analyze and solve problems • Is integrative • Summarized as an “it all depends” device • Tells managers to look to their experiences and the past and to consider many options before choosing • Encourages managers to stay flexible

Quality Management Theory The essence of the quality of any output is its ability to meet the needs of the person or group Quality School 2f

Quality Management Theory A Japanese term used to mean incremental, continuous improvement for people, products, and processes Kaizen Businesses processes are redesigned to achieve improvements in performance Reengineering 2f

Reengineering Approach 2f Reengineering determines… • What a company must do • How to do it Managerial Challenges • To sense the need for change • To see change coming • To react effectively to change

Quality School of Management 2f • Quality school is the most current and is worldwide • Its roots are in the behavioral, quantitative, systems, and contingency schools of management theory • People are key to commitments and performance • What is done must be evaluated quantitatively and qualitatively

Management Thought: Past and Present