Management ch 02 the evolution of management thinking

Chapter The Evolution of Management Thinking 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 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved 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 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved 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 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Forces Influencing Organizations and Management  Social Forces - values, needs, and standards of behavior  Political Forces - influence of political and legal institutions on people & organizations  Economic Forces - forces that affect the availability, production, & distribution of a society’s resources among competing users Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Management Perspectives Over Time Exhibit 2.1, p.44 2000 The Technology-Driven Workplace 2010 1990 The Learning Organization 2010 1980 Total Quality Management 2000 1970 Contingency Views 2000 1950 Systems Theory 2000 1940 Management Science Perspective 1990 1930 Humanistic Perspective 1990 1890 Classical 1940 2010 1870 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Classical Perspective: 3000 B.C ● ● ● ● Rational, scientific approach to management – make organizations efficient operating machines Scientific Management Bureaucratic Organizations Administrative Principles Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Scientific Management: Taylor 1856-1915 General Approach  Developed standard method for performing each job  Selected workers with appropriate abilities for each job  Trained workers in standard method  Supported workers by planning work and eliminating interruptions  Provided wage incentives to workers for increased output Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved 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 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Bureaucracy Organizations  Max Weber 1864-1920  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 a whole approach –looked at organization as Ethical Dilemma: The Supervisor 10 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Chester Barnard 1886-1961  Informal Organization – Cliques – Naturally occurring social groupings  Acceptance 15 Theory of Authority – Free will – Can choose to follow management orders Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Humanistic Perspective Emphasized understanding human behavior, needs, and attitudes in the workplace ●Human Relations Movement ●Human Resources Perspective ●Behavioral 16 Sciences Approach Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Human Relations Movement Emphasized satisfaction of employees’ basic needs as the key to increased worker productivity 17 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Hawthorne Studies        18 Ten year study Four experimental & three control groups Five different tests Test pointed to factors other than illumination for productivity 1st Relay Assembly Test Room experiment, was controversial, test lasted years Interpretation, money not cause of increased output Factor that increased output, Human Relations Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Human Resource Perspective Suggests jobs should be designed to meet higher-level needs by allowing workers to use their full potential 19 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Abraham Maslow’s Hierarchy of Needs 1908-1970 Selfactualization Esteem Belongingness Safety Physiological Based on needs satisfaction 20 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Chapter 16 – Maslow in more detail Douglas McGregor Theory X & Y Theory X Assumptions    21 Dislike work –will avoid it Must be coerced, controlled, directed, or threatened with punishment Prefer direction, avoid responsibility, little ambition, want security 1906-1964 Theory Y Assumptions      Do not dislike work Self direction and self control Seek responsibility Imagination, creativity widely distributed Intellectual potential only partially utilized Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved 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 22 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Behavioral Sciences Approach Sub-field of the Humanistic Management Perspective  Applies social science in an organizational context  Draws from economics, psychology, sociology, anthropology, and other disciplines 23 – Understand employee behavior and interaction in an organizational setting – OD – Organization Development Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Management Science Perspective  Emerged after WW II  Applied mathematics, statistics, and other quantitative techniques to managerial problems    24 Operations Research – mathematical modeling Operations Management – specializes in physical production of goods or services Information Technology – reflected in management information systems Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Recent Historical Trends 25 ● Systems Theory ● Contingency View ● Total Quality Management (TQM) Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Systems View of Organizations Exhibit 2.5, p 58 26 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved 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 27 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Elements of a Learning Organization Team-Based Structure Learning Organization Empowered Employees Open Information Exhibit 2.7, p 61 28 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Types of E-Commerce Business-to-Consumer B2C Selling Products and Services Online Business-to-Business B2B Transactions Between Organizations Consumer-to-Consumer C2C Electronic Markets Created by Web-Based Intermediaries Exhibit 2.8, p 63 29 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved ... division of Thomson Learning All rights reserved Douglas McGregor Theory X & Y  Few companies today still use Theory X  Many are trying Theory Y techniques Experiential Exercise: Theory X and Theory... 2.1, p.44 2000 The Technology-Driven Workplace 2010 1990 The Learning Organization 2010 1980 Total Quality Management 2000 1970 Contingency Views 2000 1950 Systems Theory 2000 1940 Management Science... a division of Thomson Learning All rights reserved Scientific Management Contributions    Demonstrated the importance of compensation for performance Initiated the careful study of tasks and