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Evolution of Management Thought

Chapter 2

Part 1 Meeting the Challenges of the 21st Century

PowerPoint Presentation by Charlie Cook The University of West Alabama

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Describe the major influences on the development of management thought.

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

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

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

Describe the characteristics of the quantitative perspective of management.

LEARNING OBJECTIVES

When you have finished studying this chapter, you should be able to:

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LEARNING OBJECTIVES (cont’d)

Describe the systems perspective building blocks and their interactions.

Discuss the nature of the contingency perspective of management.

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

When you have finished studying this chapter, you should be able to:

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Environmental Factors Influencing Management Thought

Economic Influences

The availability, production, and distribution of resources within a society.

Social Influences

The aspects of a culture that influence interpersonal relationships.

Political Influences

The impact of political institutions on individuals and organizations.

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Environmental Factors Influencing Management Thought (cont’d)

Technological Influences

The advances and refinements in any of the devices that are used in conjunction with conducting business.

Global Influences

The pressures to improve quality, productivity, and costs as organizations attempt to compete in the worldwide marketplace.

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Figure 2.1 Chronological Development of Management Perspectives

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Figure 2.2 Subfields of the Classical Perspective on Management

Focuses on the individual worker’s productivity

Focuses on the functions of management

Focuses on the overall organizational system

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Scientific Management: Taylor

Frederick W. Taylor (1856-1915)

Father of “Scientific Management.

attempted to define “the one best way” to perform every task through systematic study and other scientific methods.

believed that improved management practices lead to improved productivity.

Three areas of focus:

Task Performance

Supervision

Motivation

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Task Performance

Scientific management incorporates basic expectations of management, including:

Development of work standards

Selection of workers

Training of workers

Support of workers

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Supervision

Taylor felt that a single supervisor could not be an expert at all tasks.

As a result, each first-level supervisor should be responsible only workers who perform a common function familiar to the supervisor.

This became known as “Functional Foremanship.”

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Motivation

Taylor believed money was the way to motivate workers to their fullest capabilities.

He advocated a piecework system in which worker’s pay was tied to their output.

Workers who met a standard level of production were paid a standard wage rate.

Workers whose production exceeded the standard were paid at a higher rate for all of their production output.

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Scientific Management: The Gilbreths

Frank Gilbreth

Specialized in time and motion studies to determine the most efficient way to perform tasks.

Used motion pictures of bricklayers to identified work elements (therbligs) such as lifting and grasping.

Lillian Gilbreth

A strong proponent of better working conditions as a means of improving efficiency and productivity.

Favored standard days with scheduled lunch breaks and rest periods for workers.

Strived for removal of unsafe working conditions and the abolition of child labor.

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Administrative Management: Fayol

Henri Fayol (1841–1925)

First recognized that successful managers had to understand the basic managerial functions.

Developed a set of 14 general principles of management.

Fayol’s managerial functions of planning, leading, organizing and controlling are routinely used in modern organizations.

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Table 2.1 Fayol’s General Principles of Management

Division of work

Authority and responsibility

Discipline

Unity of command

Unity of direction

Subordination of individual interest to the common good

Remuneration of personnel

Centralization

Scalar chain

Order

Equity

Stability

Initiative

Esprit de corps

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

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Bureaucratic Management

Focuses on the overall organizational system.

Bureaucratic management is based upon:

Firm rules

Policies and procedures

A fixed hierarchy

A clear division of labor

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Bureaucratic Management: Weber

Max Weber (1864–1920)

A German sociologist and historian who envisioned a system of management that would be based upon impersonal and rational behavior—the approach to management now referred to as “bureaucracy.”

Division of labor

Hierarchy of authority

Rules and procedures

Impersonality

Employee selection and promotion

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Weber’s Forms of Authority

Traditional authority

Subordinate obedience based upon custom or tradition (e.g., kings, queens, chiefs).

Charismatic authority

Subordinates voluntarily comply with a leader because of his or her special personal qualities or abilities (e.g., Martin Luther King, Gandhi).

Rational-legal authority

Subordinate obedience based upon the position held by superiors within the organization (e.g., police officers, executives, supervisors).

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Table 2.2 Weber’s Three Types of Authority

Type Description

Traditional Subordinate obedience based upon custom or tradition

Charismatic Subordinate obedience based upon special personal qualities associated with certain social reformers, political leaders, religious leaders, or organizational leaders

Rational–legal Subordinate obedience based upon the position held by superiors within the organization

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Figure 2.3 Bureaucratic Hierarchical Power Structure

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Classical versus Behavioral Perspective

Focused on rational behavior

Classical Perspective

Acknowledged the importance of human behavior

Behavioral Perspective

vs.

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Behavioral Perspective

Followed the classical perspective in the development of management thought.

Acknowledged the importance of human behavior in shaping management style

Is associated with:

Mary Parker Follett

Elton Mayo

Douglas McGregor

Chester Barnard

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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.

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Follett on Effective Work Groups

Four principles of coordination to promote effective work groups:

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

Coordination is essential during the initial stages of any endeavor.

Coordination must address all factors and phases of any endeavor.

Coordination is a continuous, ongoing process.

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Elton Mayo

Conducted the famous Hawthorne Experiments.

“Hawthorne Effect”

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

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

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

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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.

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Table 2.3 Comparison of Theory X and Theory Y Assumptions

Factor Theory X Assumptions Theory Y Assumptions

Employee attitude Employees dislike work and. Employees enjoy work and toward work will avoid it if at all possible. will actively seek it. Management view Employees must be directed, Employees are self-motivated of direction coerced, controlled, or threatened and self-directed toward achieving to get them to put forth adequate effort. organizational goals. Employee view Employees wish to avoid responsibility; Employees seek responsibility; of direction they prefer to be directed and told what they wish to use their creativity, to do and how to do it. imagination, and ingenuity in performing their jobs.

Management style Authoritarian style of management Participatory style of management

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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 an acceptance theory of authority:

Authority of a manager flows from the ability of subordinates to accept or reject an order from the manager once they:

Comprehend what the order requires of them.

Review the order’s consistency with organization goals.

Perceive a personal benefit in obeying the order.

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The Quantitative Perspective

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

This approach has four basic characteristics:

A decision-making focus

Development of measurable criteria

Formulation of a quantitative model

The use of computers

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The Quantitative Perspective (cont’d)

Decision-Making Focus

The primary focus of the quantitative approach is on problems or situations that require direct action, or a 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 measurable criteria.

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The Quantitative Perspective (cont’d)

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.

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Figure 2.4 Basic Structure of Systems

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Systems Perspective

An approach to problem solving based on an understanding of the basic structure of systems.

Environmental interaction

Open systems must interact with the external environment to survive.

Closed systems do not interact with the environment.

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

Entropy: the tendency for systems to decay over time.

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The Contingency 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.

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Figure 2.5 Blending Components into a Contingency Perspective

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An Example of the Contingency Perspective

Joan Woodward’s Research

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

Identified and described three different types of technology:

Small-batch technology

Mass-production technology

Continuous-process technology

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Table 2.4 Production Technology Examples

Production Technology Examples Small-batch Custom fabrication machine shop, technology manufacturer of neon advertising signs, print shop specializing in personal business cards, trophy-engraving shop

Mass-production Manufacturer of automobiles, manufacturer technology of refrigerators, manufacturer of hair dryers, manufacturer of pencils

Continuous-process Oil refinery, flour mill, soft drink bottler, technology chemical processor

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Information Technology and Management Style

Information technology can facilitate the use of a particular management style.

Facilitated by advanced computers

Quantitative/ Systems Perspectives

Classical Perspective

Facilitated by communications equipment

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Future Issues: Diversity, Globalization, and Quality

Heightened concern for diversity initiatives within the workplace and within management

Adoption of the concept of workers as decision makers, problem solvers, and team players

Creation of a focus on and commitment to the concept of quality.

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Management in the 21st Century

William Ouchi’s Theory Z

Japanese-style approach to management developed by William Ouchi

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

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

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Future Leaders Must:

Be thoroughly schooled in the different management perspectives.

Understand the various influences that will have a continuing effect on management thinking

Be aware of how key business environment variables relate to their organization.

Know which elements to select from the various management perspectives that are appropriate for their situation.

Be adaptable to change such that future conditions and developments do not quickly render their chosen approaches obsolete.