Management ch 02 the evolution of management thinking

Management and Organization Management philosophies and organization forms change over time to meet new needs  Some ideas and practices from the past are still relevant and applicable

New Approach to Management

Success accrues to those who learn how

 To be leaders

 To Initiate change

 To participate in and create organizations

– with fewer managers

– With less hierarchy that can change quickly

Management and Organization

 Management philosophies and organization forms change over time to meet new needs

 Some ideas and practices from the past are still relevant and applicable to management today

Historical Perspective

 Provides a context or environment

 Develops an understanding of societal impact

 Achieves strategic thinking

 Improves conceptual skills

 Social, political, and economic forces have influenced organizations and the practice of management

Forces Influencing

Organizations and Management

behavior

institutions on people & organizations

production, & distribution of a society’s resources among competing users

Management Perspectives Over Time

1930

Humanistic Perspective

1990 1890

Classical Perspective: 3000 B.C.

● Rational, scientific approach to

management – make organizations efficient operating machines

● Scientific Management

● Bureaucratic Organizations

● Administrative Principles

Scientific Management: Taylor 1856-1915

 Trained workers in standard method.

 Supported workers by planning work and eliminating interruptions.

 Provided wage incentives to workers for increased output.

Scientific Management

Contributions

 Demonstrated the importance of compensation for performance.

 Initiated the careful study of tasks and jobs.

 Demonstrated the importance of personnel and their training

Criticisms

 Did not appreciate social context of work and higher needs of workers.

 Did not acknowledge variance among individuals.

 Tended to regard workers as uninformed and ignored their ideas

Bureaucracy Organizations

 Prior to Bureaucracy Organizations

– European employees were loyal to a single individual rather than

to the organization or its mission

– Resources used to realize individual desires rather than organizational goals

 Systematic approach –looked at organization as

a whole

Ethical Dilemma: The Supervisor

Bureaucracy Organizations

Positions organized

in a hierarchy of authority

Managers subject to Rules and procedures that will ensure reliable predictable behavior

Personnel are selected and promoted based

on technical qualifications

Administrative acts and decisions recorded

in writing

Management separate from the ownership

of the organization

Division of labor with Clear definitions of authority and responsibility

Exhibit 2.3, p 49

Administrative Principles

 Contributors : Henri Fayol, Mary Parker, and Chester I Barnard

 Focus :

– Organization rather than the individual

– Delineated the management functions of planning, organizing, commanding, coordinating, and controlling

Mary Parker Follett 1868-1933

 Importance of common super-ordinate goals for reducing conflict in organizations

– Popular with businesspeople of her day

– Overlooked by management scholars

– Contrast to scientific management

– Reemerging as applicable in dealing with rapid change in global environment

 Leadership – importance of people vs engineering techniques

Chester Barnard 1886-1961

 Informal Organization

– Cliques

– Naturally occurring social groupings

 Acceptance Theory of Authority

– Free will

– Can choose to follow management orders

Humanistic Perspective

Emphasized understanding human behavior, needs, and attitudes in the workplace

● Human Relations Movement

● Human Resources Perspective

● Behavioral Sciences Approach

Human Relations Movement

Emphasized satisfaction of employees’ basic needs as the key to increased

worker productivity

Hawthorne Studies

productivity

controversial, test lasted 6 years

Human Resource Perspective

Suggests jobs should be designed to meet higher-level needs by allowing workers to use their full potential

Safety Belongingness Esteem

actualization

Self-Abraham Maslow’s

Chapter 16 – Maslow in more detail

 Dislike work –will avoid it

 Must be coerced, controlled,

directed, or threatened with punishment

 Prefer direction, avoid

responsibility, little ambition, want security

 Do not dislike work

 Self direction and self control

Douglas McGregor Theory X & Y

 Few companies today still use Theory X

 Many are trying Theory Y techniques

Experiential Exercise: Theory X and Theory Y Scale

Behavioral Sciences Approach

 Applies social science in an organizational context

 Draws from economics, psychology, sociology, anthropology, and other disciplines

– Understand employee behavior and interaction in an organizational setting

– OD – Organization Development

Sub-field of the Humanistic Management Perspective

Management Science Perspective

techniques to managerial problems

 Operations Research – mathematical modeling

 Operations Management – specializes in physical production of goods

or services

 Information Technology – reflected in management information systems

Recent Historical Trends

● Contingency View

● Total Quality Management (TQM)

Systems View of Organizations

Contingency View of Management

Exhibit 2.6, p 59

Successful resolution of organizational problems is thought to depend on managers’ identification of key variations in the situation at hand

Elements of a Learning Organization

Learning Organization

Open Information

Empowered Employees

Team-Based Structure

Consumer-to-Consumer C2C

Electronic Markets Created by Web-Based Intermediaries

Exhibit 2.8, p 63