chapter 2 ©2001 south-western college publishing pamela s. lewis stephen h. goodman patricia m....

Chapter 2Chapter 2

©2001 South-Western College Publishing©2001 South-Western College Publishing©2001 South-Western College Publishing©2001 South-Western College Publishing

Pamela S. LewisPamela S. LewisStephen H. GoodmanStephen H. Goodman

Patricia M. FandtPatricia M. Fandt

Slides Prepared bySlides Prepared byBruce R. BarringerBruce R. Barringer

University of Central FloridaUniversity of Central Florida

Pamela S. LewisPamela S. LewisStephen H. GoodmanStephen H. Goodman

Patricia M. FandtPatricia M. Fandt

Slides Prepared bySlides Prepared byBruce R. BarringerBruce R. Barringer

University of Central FloridaUniversity of Central Florida

Evolution of Management Thought

Evolution of Management Thought

Transparency 2-2Transparency 2-2© 2001 South-Western Publishing© 2001 South-Western Publishing

1.Describe the major influences on the development of management thought.

2.Identify the five major perspectives of management thought that have evolved over the years.

3.Describe the different subfields that exist in the classical perspective of management and discuss the central focus of each.

Learning ObjectivesSlide 1 of 3



4.Describe the theories of the major contributors to the behavioral perspective of management.

5.Identify the major events that gave rise to the emergence of the quantitative perspective of management.

6.Describe the structure of the building blocks of systems analysis.




7.Discuss the nature of the contingency perspective of management.

8.Discuss the future issues that will affect the further development of management thought.




Environmental Factors Influencing Management

Thought Slide 1 of 3



Influences on Management Thought

Economic

Social

Political

Global

Technological






• Economic Influences – Relate to the availability, production, and

distribution of resources within a society.

• Social Influences– Relate to the aspects of a culture that influence

interpersonal relationships.

• Political Influences– Relate to the impact of political institutions on

individuals and organizations.






• Technological Influences– Relate to the advances and refinements in any

of the devices that are used in conjunction with conducting business.

• Global Influences– Relate to the pressures to improve quality,

productivity, and costs as organizations attempt to compete in the worldwide marketplace.


Schools of Management ThoughtSchools of Management Thought

Classical PerspectiveClassical Perspective

Behavioral PerspectiveBehavioral Perspective

Quantitative PerspectiveQuantitative Perspective

Systems PerspectiveSystems Perspective

Contingency PerspectiveContingency Perspective


Chronological Development of the Schools of Management

Thought

Chronological Development of the Schools of Management

Thought

Classical Perspective

Behavioral Perspective

Quantitative Perspective

Systems Perspective

Contingency Perspective

1875 1900 1925 1950 1975 2000


Classical PerspectiveClassical Perspective

The oldest formal viewpoints of management, it includes the following approaches:

Scientific Management

Focuses on the productivity of the individual

worker

Administrative Management

Focuses on the functions of management

Bureaucratic Management

Focuses on the overall

organizational system


Scientific Management Slide 1 of 4


• Focuses on the productivity of the individual worker– Frederick W. Taylor– Frank & Lillian Gilbreth




• Frederick W. Taylor (1865-1915)– Father of “Scientific Management.– Taylor was convinced that there was “one best

way” to perform every task.– Taylor attempted to define “the one best way”

to perform every task through systematic study and other scientific methods.




• Frank Gilbreth– Specialized in time and motion studies to

determine the most efficient way to perform tasks.

– Used the new medium of motion pictures to examine the work of bricklayers.

– Identified 17 work elements (such as lifting and grasping) and called them therbligs.




• Lillian Gilbreth– Was a strong proponent of better working

conditions as a means of improving efficiency and productivity.

– Wrote an entertaining book about raising her family entitled “Cheaper by the Dozen.”


Administrative Management Slide 1 of 2


• Focuses on the managers and the functions they perform– This approach to management is most closely

identified with Henri Fayol (1841-1925).– Fayol was the first to recognize that successful

managers had to understand the basic managerial functions.




• Henri Fayol– Developed a set of 14 general principles of

management. – His managerial functions of planning, leading,

organizing, and controlling are routinely used in modern organizations.


Bureaucratic Management Slide 1 of 4


• Focuses on the overall organizational system and is based upon firm rules, policies, and procedures; a fixed hierarchy; and a clear division of labor– Max Weber (1864-1920), a German sociologist

and historian, is most closely associated with bureaucratic management.




• Max Weber– Envisioned a system of management that would

be based upon impersonal and rational behavior.

– Conceptualized the approach to management referred to as bureaucracy.

• Division of labor

• Hierarchy of authority

• Rules and procedures

• Impersonality

• Employee selection and promotion




• Weber’s Forms of Authority– Traditional authority

• Is based upon custom or tradition.

– Charismatic authority• Subordinates voluntarily comply with a leader

because of his or her special personal qualities or abilities.




• Weber’s Forms of Authority– Rational-legal authority

• Subordinates comply with a leader because of a set of impersonal rules and regulations that apply to all employees.


Classical vs. Behavioral Perspective

Classical vs. Behavioral Perspective

Focused on rationalbehavior

Focused on rationalbehavior


Acknowledged the importance of

human behavior

Acknowledged the importance of

human behavior

Behavioral Perspective

vs.


Behavioral Perspective Slide 1 of 6


• Behavioral Perspective– Followed the classical perspective– Acknowledged the importance of human

behavior in shaping management style– Associated with the following scholars:

• Mary Parker Follett

• Elton Mayo

• Douglas McGregor

• Chester Barnard




• Mary Parker Follett– Concluded that a key to effective management

was coordination.– Felt that managers needed to coordinate and

harmonize group effort rather than force and coerce people.

– Believed that management is a continuous, dynamic process.

– Felt that the best decisions would be made by people who were closest to the situation.




• Elton Mayo– Conducted the famous Hawthorne Experiments.– Concluded that productivity increased because

someone was “paying attention” to the workers.– Mayo’s work represents the transition from

scientific management to the early human relations movement.




Elton Mayo’s Hawthorne Effect

Phenomenon whereby individual or group performance is influenced by

human behavior factors.




• Douglas McGregor– Proposed the Theory X and Theory Y styles of

management.– Theory X managers perceive that their

subordinates have an inherent dislike of work and will avoid it if at all possible.

– Theory Y managers perceive that their subordinates enjoy work and that they will gain satisfaction from performing their jobs.




• Chester Barnard– Felt that executives serve two primary

functions:• Must establish and maintain a communications

system among employees.

• Must establish the objectives of the organization and motivate employees.

– Developed a theory on authority:• Believed that authority flows from the ability of

subordinates to accept or reject an order.


Quantitative PerspectiveSlide 1 of 3


Is characterized by its use of mathematics, statistics, and other quantitative techniques for

management decision making and problem solving. This approach has four basic characteristics:

Decision-making focus

Decision-making focus

Measurablecriteria

Measurablecriteria

Quantitativemodel

Quantitativemodel ComputersComputers




• Decision-Making Focus– The primary focus of the quantitative approach

is on problems or situations that require some direct action, or decision, on the part of management.

• Measurable Criteria– The decision-making process requires that the

decision maker select some alternative course of action. The alternatives must be compared on the basis of some measurable criteria.




• Quantitative Model– To assess the likely impact of each alternative

on the stated criteria, a quantitative model of the decision situation must be formulated.

• Computers– Computers are quite useful in the problem-

solving process.


Systems PerspectiveSystems Perspective

An approach to problem solving that is based on an understanding of the basic structure of systems:

InputsInputs Transformationprocess

Transformationprocess OutputsOutputs

Feedback

Basic Structure of Systems


Contingency PerspectiveContingency Perspective

• A view that proposes that there is no one best approach to management for all situations.

• Asserts that managers are responsible for determining which managerial approach is likely to be most effective in a given situation.

• This requires managers to identify the key contingencies in a given situation.


Example of the Contingency Perspective

Example of the Contingency Perspective

Joan Woodward discovered that a particular management style is affected by the organization’s technology. Woodward identified and described

three different types of technology:

Small-batch technology

Mass-production technology

Continuous-process technology


Information Technology and Management Style

Information Technology and Management Style

In many cases, information technology can facilitate the use of a particular management style.

Quantitative & Systems Perspectives

Facilitated by advanced computers


Facilitated by modern communications

equipment


Future Issues Influencing Management Thought

Future Issues Influencing Management Thought

DiversityDiversity

GlobalizationGlobalization

QualityQuality

Future IssuesInfluencing

ManagementThought

Future IssuesInfluencing

ManagementThought


William Ouchi’s Theory ZWilliam Ouchi’s Theory Z

• Japanese approach to management developed by William Ouchi.

• Advocates trusting employees and making them feel like an intimate part of the organization.

• Based on the assumption that once a trusting relationship with workers is established, production will increase.


Future Managers Must Be: Slide 1 of 3


• Thoroughly schooled in the different management perspectives that have evolved over the years.

• Able to understand the various economic, political, social, technological, and global influences that have affected management thinking over the years, and will continue to shape future evolutionary changes in management thought.




• Capable of identifying and understanding such key variables as environment, production technology, organizational culture, organization size, and international culture as they relate to the organization.

• Prepared to select elements from the various management perspectives that are appropriate for his or her situation.




• Adaptable to change, because future conditions and developments can quickly render the chosen approaches obsolete.

chapter 2 ©2001 south-western college publishing pamela s. lewis stephen h. goodman patricia m....

Documents

scientific management

major influences

political influences

economic influences

technological influences

social influences

global influences

learning objectives