Chapter 2

1. Chapter 2 The Evolution of Management Thinking

2. 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

3. 2.1 Management Perspectives over Time

4. 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

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

6. 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

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

8. 2.2 Characteristics of Scientific Management

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

10. 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

11. 2.3 Characteristics of Weberian Bureaucracy

12. 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

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

14. 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

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

16. 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

17. 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

18. 2.4 Theory X and Theory Y

19. 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

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

21. 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

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

23. 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

24. Exhibit 2.5 Circles of Causality

25. 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

26. 2.6 Contingency View of Management

27. 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

28. 2.7 Supply Chain for Retailers

29. 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