mgt420(chap02)

PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie CookThe University of West AlabamaThe University of West Alabama

© 2007 Thomson/South-Western. All rights reserved.© 2007 Thomson/South-Western. All rights reserved.

Evolution of Evolution of Management Management ThoughtThought

ChapterChapter

22

Part 1 Meeting the Challenges of the 21st CenturyPart 1 Meeting the Challenges of the 21st Century

© 2007 Thomson/South-Western. All rights reserved. 2–2

Environmental Factors Influencing Environmental Factors Influencing Management ThoughtManagement Thought

• Economic Influences Economic Influences The availability, production, and distribution of The availability, production, and distribution of

resources within a society.resources within a society.

• Social InfluencesSocial Influences The aspects of a culture that influence interpersonal The aspects of a culture that influence interpersonal

relationships.relationships.

• Political InfluencesPolitical Influences The impact of political institutions on individuals and The impact of political institutions on individuals and

organizations.organizations.


Environmental Factors Influencing Environmental Factors Influencing Management Thought Management Thought (cont’d)(cont’d)

• Technological InfluencesTechnological Influences The advances and refinements in any of the devices The advances and refinements in any of the devices

that are used in conjunction with conducting business.that are used in conjunction with conducting business.

• Global InfluencesGlobal Influences The pressures to improve quality, productivity, and The pressures to improve quality, productivity, and

costs as organizations attempt to compete in the costs as organizations attempt to compete in the worldwide marketplace.worldwide marketplace.


Figure 2.1Figure 2.1 Chronological Development of Management PerspectivesChronological Development of Management Perspectives


Figure 2.Figure 2.2 2 Subfields of the Classical Perspective on ManagementSubfields of the Classical Perspective on Management

Focuses on the Focuses on the individual worker’s individual worker’s

productivityproductivity

Focuses on the Focuses on the functions of functions of managementmanagement

Focuses on Focuses on the overall the overall

organizational organizational systemsystem


Scientific Management: TaylorScientific Management: Taylor

• Frederick W. Taylor (1856-1915)Frederick W. Taylor (1856-1915)

Father of “Scientific Management.Father of “Scientific Management. attempted to define “the one best way” to perform every task attempted to define “the one best way” to perform every task

through systematic study and other scientific methods.through systematic study and other scientific methods.

believed that improved management practices lead to believed that improved management practices lead to improved productivity.improved productivity.

Three areas of focus:Three areas of focus: Task PerformanceTask Performance

SupervisionSupervision

MotivationMotivation


Scientific Management: The GilbrethsScientific Management: The Gilbreths

• Frank Gilbreth Frank Gilbreth Specialized in time and motion studies to determine Specialized in time and motion studies to determine

the most efficient way to perform tasks.the most efficient way to perform tasks. Used motion pictures of bricklayers to identified work Used motion pictures of bricklayers to identified work

elements (therbligs) such as lifting and grasping.elements (therbligs) such as lifting and grasping.

• Lillian GilbrethLillian Gilbreth A strong proponent of better working conditions as a A strong proponent of better working conditions as a

means of improving efficiency and productivity.means of improving efficiency and productivity.Favored standard days with scheduled lunch Favored standard days with scheduled lunch

breaks and rest periods for workers.breaks and rest periods for workers.Strived for removal of unsafe working conditions Strived for removal of unsafe working conditions

and the abolition of child labor.and the abolition of child labor.


Table 2.Table 2.1 1 Fayol’s Adminstrative General Principles of ManagementFayol’s Adminstrative General Principles of Management

1.1. Division of workDivision of work

2.2. Authority and Authority and responsibilityresponsibility

3.3. DisciplineDiscipline

4.4. Unity of commandUnity of command

5.5. Unity of directionUnity of direction

6.6. Subordination of Subordination of individual interest to the individual interest to the common goodcommon good

7.7. Remuneration of Remuneration of personnelpersonnel

8.8. CentralizationCentralization

9.9. Scalar chainScalar chain

10.10. OrderOrder

11.11. EquityEquity

12.12. StabilityStability

13.13. InitiativeInitiative

14.14. Esprit de corpsEsprit de corps

Source: Based on Henri Fayol, General and Industrial Management, trans. Constana Storrs (London: Pittman & Sons, 1949).


Bureaucratic ManagementBureaucratic Management

• Focuses on the overall organizational system.Focuses on the overall organizational system.• Bureaucratic management is based upon: Bureaucratic management is based upon:

Firm rulesFirm rules Policies and proceduresPolicies and procedures A fixed hierarchyA fixed hierarchy A clear division of laborA clear division of labor


Bureaucratic Management: WeberBureaucratic Management: Weber

• Max Weber (1864Max Weber (1864––1920)1920) A German sociologist and historian who envisioned a A German sociologist and historian who envisioned a

system of management that would be based upon system of management that would be based upon impersonal and rational behaviorimpersonal and rational behavior——the approach to the approach to management now referred to as “bureaucracy.”management now referred to as “bureaucracy.” Division of laborDivision of labor Hierarchy of authorityHierarchy of authority Rules and proceduresRules and procedures ImpersonalityImpersonality Employee selection and promotionEmployee selection and promotion


Weber’s Forms of AuthorityWeber’s Forms of Authority

• Traditional authority Traditional authority Subordinate obedience based upon custom or Subordinate obedience based upon custom or

tradition (e.g., kings, queens, chiefs).tradition (e.g., kings, queens, chiefs).

• Charismatic authorityCharismatic authority Subordinates voluntarily comply with a leader Subordinates voluntarily comply with a leader

because of his or her special personal qualities or because of his or her special personal qualities or abilities (e.g., Martin Luther King, Gandhi).abilities (e.g., Martin Luther King, Gandhi).

• Rational-legal authorityRational-legal authority Subordinate obedience based upon the position held Subordinate obedience based upon the position held

by superiors within the organization (e.g., police by superiors within the organization (e.g., police officers, executives, supervisors).officers, executives, supervisors).


Classical versus Behavioral Classical versus Behavioral PerspectivePerspective

Focused on Focused on rational rational behavior behavior

ClassicalClassicalPerspectivePerspective

Acknowledged theAcknowledged theimportance of human importance of human

behaviorbehavior

Behavioral Behavioral PerspectivePerspective

vs.


Behavioral PerspectiveBehavioral Perspective

• Followed the classical perspective in the Followed the classical perspective in the development of management thought.development of management thought. Acknowledged the importance of human behavior in Acknowledged the importance of human behavior in

shaping management styleshaping management style Is associated with:Is associated with:

Mary Parker FollettMary Parker Follett Elton MayoElton Mayo Douglas McGregorDouglas McGregor Chester BarnardChester Barnard


Follett on Effective Work GroupsFollett on Effective Work Groups

• Four principles of coordination to promote Four principles of coordination to promote effective work groups:effective work groups:

1.1. Coordination requires that people be in direct Coordination requires that people be in direct contact with one another.contact with one another.

2.2. Coordination is essential during the initial stages of Coordination is essential during the initial stages of any endeavor.any endeavor.

3.3. Coordination must address all factors and phases of Coordination must address all factors and phases of any endeavor. any endeavor.

4.4. Coordination is a continuous, ongoing process.Coordination is a continuous, ongoing process.


Elton MayoElton Mayo

• Conducted the famous Hawthorne Experiments.Conducted the famous Hawthorne Experiments. ““Hawthorne Effect”Hawthorne Effect”

Productivity increased because attention was paid to the Productivity increased because attention was paid to the workers in the experiment.workers in the experiment.

Phenomenon whereby individual or group performance is Phenomenon whereby individual or group performance is influenced by human behavior factors.influenced by human behavior factors.

• His work represents the transition from scientific His work represents the transition from scientific management to the early human relations management to the early human relations movement.movement.


Douglas McGregorDouglas McGregor

• Proposed the Theory X and Theory Y styles of Proposed the Theory X and Theory Y styles of management.management.

Theory X managers perceive that their subordinates Theory X managers perceive that their subordinates have an inherent dislike of work and will avoid it if at have an inherent dislike of work and will avoid it if at all possible.all possible.

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


Chester BarnardChester Barnard

• Felt that executives serve two primary functions:Felt that executives serve two primary functions: Must establish and maintain a communications Must establish and maintain a communications

system among employees.system among employees. Must establish the objectives of the organization and Must establish the objectives of the organization and

motivate employees.motivate employees.

• Developed an acceptance theory of authority:Developed an acceptance theory of authority: Authority of a manager flows from the ability of Authority of a manager flows from the ability of

subordinates to accept or reject an order from the subordinates to accept or reject an order from the manager once they:manager once they: Comprehend what the order requires of them.Comprehend what the order requires of them. Review the order’s consistency with organization goals.Review the order’s consistency with organization goals. Perceive a personal benefit in obeying the order.Perceive a personal benefit in obeying the order.


The Quantitative PerspectiveThe Quantitative Perspective

• Characterized by its use of mathematics, Characterized by its use of mathematics, statistics, and other quantitative techniques for statistics, and other quantitative techniques for management decision making and problem management decision making and problem solving. solving.

• This approach has four basic characteristics:This approach has four basic characteristics:1.1. A decision-making focusA decision-making focus

2.2. Development of measurable criteriaDevelopment of measurable criteria

3.3. Formulation of a quantitative modelFormulation of a quantitative model

4.4. The use of computersThe use of computers


The Quantitative Perspective The Quantitative Perspective (cont’d)(cont’d)

• Decision-Making FocusDecision-Making Focus The primary focus of the quantitative approach is on The primary focus of the quantitative approach is on

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

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

decision maker select some alternative course of decision maker select some alternative course of action. action.

The alternatives must be compared on the basis of The alternatives must be compared on the basis of measurable criteria.measurable criteria.


The Quantitative Perspective The Quantitative Perspective (cont’d)(cont’d)

• Quantitative ModelQuantitative Model To assess the likely impact of each alternative on the To assess the likely impact of each alternative on the

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

• ComputersComputers Computers are quite useful in the problem-solving Computers are quite useful in the problem-solving

process.process.


Systems PerspectiveSystems Perspective

• An approach to problem solving based on an An approach to problem solving based on an understanding of the basic structure of systems.understanding of the basic structure of systems. Environmental interactionEnvironmental interaction

Open systemsOpen systems must interact with the external environment to must interact with the external environment to survive.survive.

Closed systemsClosed systems do not interact with the environment. do not interact with the environment.

Synergy: when all subsystems work together making Synergy: when all subsystems work together making the whole greater than the sum of its parts.the whole greater than the sum of its parts.

Entropy: the tendency for systems to decay over time.Entropy: the tendency for systems to decay over time.


The Contingency PerspectiveThe Contingency Perspective

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

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

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


Figure 2.Figure 2.5 5 Blending Components into a Contingency PerspectiveBlending Components into a Contingency Perspective


An Example of the Contingency An Example of the Contingency PerspectivePerspective• Joan Woodward’s ResearchJoan Woodward’s Research

Discovered that a particular management style is Discovered that a particular management style is affected by the organization’s technology.affected by the organization’s technology.

Identified and described three different types of Identified and described three different types of technology:technology: Small-batch technologySmall-batch technology Mass-production technologyMass-production technology Continuous-process technologyContinuous-process technology


Management in the 21Management in the 21stst Century Century

• William Ouchi’s Theory ZWilliam Ouchi’s Theory Z

Japanese-style approach to management developed Japanese-style approach to management developed by William Ouchiby William Ouchi

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

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

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