The Evolution of Management Thinking

1. The Evolution of Management Thinking GROUP 1: Caisido, Costes, Stefanowitz, Te

2. Creative, dynamic management is a driving force behind the success of any business. In today’s marketplace, change is rapid and managers are expected to deal with a broad set of issues and needs .

3. 2000 The Technology-Driven Workplace 1990 2010 TheLearning 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 Management Perspectives Over Time Exhibit 2.1, p.44 2010 1870

4. Classical perspective (emerged in the 19th and early 20th century) In response to a problem businesses grapple with today: how to make businesses efficient operating machines. In the factory system, managers had the challenge of.. • coordinating a huge, unskilled labor force • complex production systems • wide-ranging manufacturing operation.

5. Scientific Management: Frederick Winslow Taylor • Productivity could be improved only by a series of precise procedures developed from a scientific observation of a situation • Develop precise, standardized procedures for doing each job • Select workers with appropriate abilities • Train workers in the standard procedures • Plan work • Provide wage incentives for increased output

6. Scientific Management • While highly successful, this approach did not take into consideration the diversity of abilities and needs within the workforce. • 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.

7. Administrative Principles • Organization rather than the individual • Contributed to the development of bureaucratic organization

8. Bureaucracy Organizations • Division of labor with clear definitions of authority and responsibilities • Positions organized in a hierarchy of authority • Personnel are selected and promoted based on technical qualifications • Administrative acts and decisions recorded in writing • Management is separate from the ownership of the organization • Managers subject to rules and procedures that will ensure reliable predictable behavior

9. Humanistic Perspective: Mark Parker Follett and Chester Barnard • Emphasis on human behaviors, needs and attitudes in the workplace over the economy and efficiency of production

10. Humanistic Perspective:Human Relations Movement • Emphasized satisfaction of employees’ basic needs as the key to increased worker productivity

11. Humanistic Perspective:Human Resource Perspective • Suggests jobs should be designed to meet higher-level needs by allowing workers to use their full potential

12. Humanistic Perspective:Behavioral Sciences Approach • Sub-field of the Humanistic Management Perspective • Understand employee behavior and interaction in an organizational setting

13. Abraham Maslow’s Hierarchy of Needs Self-actualization Esteem Belongingness Safety Physiological Based on needs satisfaction

14. Theory X & Y: Douglas McGregor THEORY X ASSUMPTIONS • Dislike work –will avoid it • Must be coerced, controlled, directed, or threatened with punishment • Prefer direction, avoid responsibility, little ambition, want security THEORY Y ASSUMPTIONS • Do not dislike work • Self direction and self control • Seek responsibility • Imagination, creativity widely distributed • Intellectual potential only partially utilized

15. Theory X & Y: Douglas McGregor • Few companies today still use Theory X • Many are trying Theory Y techniques

16. Management Science Perspective • Emerged after WW II • Applied mathematics, statistics, and other quantitative 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

17. Recent Historical Trends • Systems Theory • Contingency View • Total Quality Management (TQM)

18. Systems Theory • views an organization as a series of interconnected systems that affect and are effected by each other

19. Contingency View of Management addresses one of the weaknesses of the classical perspective by viewing all employees and situations as unique, as opposed to uniform and generalizable. Successful resolution of organizational problems is thought to depend on managers’ identification of key variations in the situation at hand

20. Total Quality Management (TQM) • Focus on managing the total organization to deliver customer quality • Employee involvement • Focus on the customer • Benchmarking • Continuous improvement

21. Learning Organization (Elements) Team-Based Structure Learning Organization Empowered Employees Open Information Exhibit 2.7, p. 61

22. The Technology-Driven WorkplaceTypes of E-Commerce Business-to-Consumer B2C Selling Products and Services Online Consumer-to-Consumer C2C Electronic Markets Created by Web-Based Intermediaries Business-to-Business B2B Transactions Between Organizations Exhibit 2.8, p. 63

23. References • Wikipedia.com • Swlearning.com • Prinman handouts