The Evolution of

Management Thinking
CHAPTER 2
chapter2 Learning Outcomes
• Understand how historical forces influences the practice of management.
• Identify and explain major developments in the history of management
thought.
• Describe the major components of the classical and humanistic
management perspectives.
• Discuss the management science perspective and its current use in
organizations.
• Explain the major concepts of systems theory, the contingency view, and
total quality management.
• Explain what a learning organization is and why this approach has
become important in recent years.
• Describe the management changes brought about by a technology-driven
workplace, including the role of supply chain management, customer
relationship management, and outsourcing.
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chapter2 Stages of economic
development
Preindustrial Society:
•Life is characterized as a game against
nature. Working with muscle power and
tradition, the labor force is engaged in
agriculture, mining, and fishing
•Life is conditioned by the elements, such as
the weather, the quality of the soil, and the
availability of water. The rhythm of life is
shaped by nature, and the pace of work
varies with the seasons
•Productivity is low and bears little evidence
of technology
chapter2 Stages of economic
development
Industrial Society:
•The predominant activity in an industrial
society is the production of goods.
•Energy and machines multiply the output
per labor-hour and structure the nature of
work
•Work is accomplished in the artificial
environment of the factory, and people tend
the machines
•The rhythm of life is machine-paced and
dominated by rigid working hours and time
clocks
chapter2 Stages of economic
development
Postindustrial Society:
•is concerned with the quality of life, as
measured by services such as health,
education, and recreation.
•The central figure is the professional
person, because rather than energy or
physical strength, information is the key
resource.
•Service sector creates more wealth than
manufacturing sector of the economy
 Are You a New-Style or an
chapter2
Old-Style Manager?
• Management and managers are
undergoing tremendous change
• Past strategies are no longer effective in
today’s dynamic business environment
• History provides perspective and a
broader view
• Manager can find patterns and insight
from history 6
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 Management and
chapter2
Organization
• Managers must “see the big
picture”
– Social Forces: culture and values
– Political Forces: political and legal
institutions and systems
– Economic Forces: availability and
distribution of resources
• Managers must face
environmental turbulence

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 Management Perspectives
chapter2
Over Time

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chapter2 Classical Perspective

• The early study of management.

• 19th – late 20th Century
– Scientific Management
– Bureaucratic Organizations
– Administrative Principles
• Very powerful, gave companies
fundamental skill for high productivity
– Helped US surge in management techniques
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chapter2 Classical Perspective

• A management
perspective that emerged
during the nineteenth and
early twentieth centuries
that emphasized a rational,
scientific approach to the
study of management and
sought to make
organizations efficient
operating machines
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chapter2 Scientific Management
• Frederick Winslow Taylor (1856-
1915), father of scientific
management
• Focus on improving efficiency
and labor productivity
• Workers could be retooled like
machines
• Managers would need to change
• Incentive systems for meeting
standards
• Others added to the theories
• Lillian M. Gilbreth added a human
component to the study
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chapter2

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 Characteristics of
chapter2
Scientific Management

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chapter2 Bureaucratic Organizations

• Max Weber (1864-1920), a German

theorist introduced the bureaucratic
theories
• Rational authority—more efficient and
adaptable to change
• Selection and advancement would be
focused on competence and
technical qualifications
• The term bureaucracy has taken on a
negative tone, associated with endless
“red tape”
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 Characteristics of
chapter2
Weberian Bureaucracy

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chapter2 Administrative Principles
• Henri Fayol (1841-1925), French mining engineer and
other contributors led the ideas
• Foyal wrote down his own management practices
• In the text, General and Industrial Management; 14
general principles were outlined
• Several of the principles include:
– Unity of Command
– Division of Work
– Unity of Direction
– Scalar Chain
• Fayol identified five functions of management:
Planning, Organizing, Commanding, Coordinating,
and Controlling
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chapter2

• Unity of command Each

subordinate receives
orders from one—and
only one—superior.
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chapter2

• Division of work - Managerial work and

technical work are amenable to
specialization to produce more and better
work with the same amount of effort.
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chapter2

• Unity of direction
Similar activities in an
organization should
be grouped together
under one manager.

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chapter2

• Scalar chain - A chain

of authority extends
from the top to the
bottom of the
organization and
should include every
employee.

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chapter2 Humanistic Perspective
• Led by Mary Parker Follett
and Chester Barnard
• Importance of understanding
human behaviors: needs,
attitudes and social
interactions
– Human Relations Movement
– Human Resources Perspective
– Behavioral Sciences
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chapter2

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 Human Relations
chapter2
Movement
• Control comes from the individual worker rather
than authoritarian control
• The Hawthorne studies found increased output
due to managers’ better treatment of employees
– Money mattered a great deal
– Productivity increased from feelings of importance

• Created a focus on positive treatment of

employees
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chapter2

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 Human Resources
chapter2
Perspective
• Focus on job tasks and theories of
motivation
– Reduce dehumanizing or demeaning work
– Allow workers to use full potential
– Main contributors: Abraham Maslow and
Douglas McGregor
• Maslow’s Hierarchy of Needs
• McGregor’s Theory X/Theory Y
• Perspective came from the idea that cows
gave more milk when they were more
satisfied 25
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chapter2 Theory X and Theory Y

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chapter2

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chapter2

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 Behavioral Sciences
chapter2
Approach
• Scientific methods that draw from
sociology, psychology, anthropology,
economics and other disciplines
• Focus on human behavior and interaction
• Organizational development came from
behavioral sciences approach
– Applied behavioral sciences to improve
organizational health and effectiveness
29
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 Management Science
chapter2
Perspective
• Developed to meet changing and dynamic
environment created from WWII
• Engaged mathematics, statistics and quantitative
techniques to aid in decision making
• Increased study of management led by Peter Drucker
• Use of technology and programming for optimizing
operations
• Introduced new subsets of management:
– Operations Research
– Operations Management
– Information Technology 30
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chapter2 Recent Historical Trends

• Systems Theory. A holistic view of

management as a interrelated parts to
achieve a common purpose.
• Contingency View. Successful resolution
of organizational problems depends on
situations.
• Total Quality Management. Management
of the total organization to deliver quality.
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chapter2

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 The Systems View of
chapter2
Organizations

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 Contingency View of
chapter2
Management

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chapter2 Total Quality Management

• W. Edward Deming, known as the father of the

quality movement
– US initially scoffed at Deming
• During the 1908s and 1990s, quality became a
focus to meet global competition
• Four key elements of quality management:
1. Employee involvement
2. Focus on customer
3. Benchmarking
4. Continuous improvement
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chapter2 The Learning Organization

• Learning aids in the adaptation to change

• Peter Senge began the discussion about the
learning organization
• All employees are engaged in identifying and
solving problems
• Learning increases the capacity to learn and
grow
• Move from efficiency to solving problems
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 Managing the Technology-
chapter2
Driven Workplace
• Most work is performed on
computers in today’s workplace
• Companies use technology to
communicate and collaborate
• Key technologies in today’s
workplace:
– Supply Chain Management
– Customer Relationship Management
– Outsourcing
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 Supply Chain for a
chapter2
Retail Organization

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chapter2

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 Customer Relationship
chapter2
Management
• Customer relationship management
(CRM) systems use the latest information
technology to keep in close touch with
customers and to collect and manage
large amounts of customer data

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chapter2

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chapter2

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chapter2 Reflection Paper 1:
Being a manager requires more than a casual acquaintance with human
behavior and how to create an environment that will encourage and allow your
employees to give their very best at all times. Reflect for a few moments on
what you have learned in this chapter; then ask yourself the following questions:

1.Does your personal style of management incorporate more of the classic

functions of managers or more of the new functions of managers? In what
ways?
2.What will you do to energize your employees? Are you the type of manager
you’d like to work for?
3.In what visible ways do you support your employees? Would your employees
agree with your response? Why or why not?
4.Have you ever helped a friend or associate who was going through a difficult
period? What seemed to be most helpful to him/her?

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