evolution of management thought approaches to management

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Cha

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Management Thought:Past and Present

MANAGEMENTMeeting and Exceeding Customer Expectations

EIGHTH EDITION


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learning objectives

1. Discuss why knowledge of the evolution of management theories is important to managers

2. Explain the contributions of the following:a. Classical schools of management thought

b. Behavioral school of management thoughtc. Quantitative school of management thought

d. Systems school of management thoughte. Contingency school of management thought

f. Quality school of management thought


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History and Theory of Management1

People who ignore the past are destined to relive it.

The Value of HistoryThe Value of History

A person unaware of mistakes made by others is likely to repeat them.


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Time Line of Management Thought1


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Classical Management Theory

ClassicalManagement Theory

A theory that focused on finding the “one best way” to perform and manage tasks

2a


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Classical Management Theory2a

▼ Originated during England’s Industrial Revolution▼ Manufacturers began mass-producing goods

in factories▼ Textile industry was among the first ▼ Allowed production of standardized goods▼ Depended on a constant flow of labor and

materials▼ Owners needed to plan, organize, lead, control▼ Focused on finding the “one best way”


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Classical Management Theory2a

ClassicalScientific

School

Focused on the manufacturing environment

ClassicalAdministrative

School

Emphasized the flow of information and how organizations should operate


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Classical Scientific School

▼ In 1832, published On the Economy of Machinery and Manufactures

▼ Concluded that definite management principles existed:– with broad applications– determined by experience

▼ Principle of “the division of labor amongst the persons who perform the work”

Charles Babbage

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▼ The Father of Scientific Management▼ Pursued four key goals:

– Develop a science of management– Select workers scientifically– Develop and train workers scientifically– Create cooperation between management

and labor

▼ Determined the quickest ways to perform tasks

Frederick W. Taylor

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▼ Invented the Gantt chart▼ Moved away from authoritarian

management▼ Advocated a bonus system to reward

workers

Henry Gantt

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Lessons from Classical Scientific Thinkers2a

Analyze everything

Teach effective methods to others

Plan responsibly

Constantly monitor workers

Control the work and the workers


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Classical Administrative School2a

▼ Believed specific management skills could be learned and taught

▼ Fayol’s universal management functions:– Planning– Organizing– Leading– Controlling

Henri Fayol


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Mary Parker Follett

▼ Focused on how organizations cope with conflict and the importance of sharing goals

▼ Emphasized the need to discover and enlist individual and group motivation

▼ The first principle for individual and group success is the “capacity for organized thinking”


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Chester Barnard

▼ Argued that managers must gain acceptance for their authority

▼ Advocated the use of basic management principles

▼ Cautioned managers to issue no order that could not or would not be obeyed


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Behavioral Management Theory2b

Behavioral School

Recognized employees as individuals with concrete, human needs, as parts of work groups, and as members of a larger society


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Robert Owen

▼ The father of modern personnel management

▼ The quality and quantity of workers’ output influenced by conditions on and off the job


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Abraham Maslow

▼ Needs-based theory of motivation– physiology– security– affiliation– esteem– self-actualization


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Behavioral Management Theory Results2b

Managers discover…

What employees want from work

How to unleash talents, energy, and creativity

How to enlist cooperation and commitment


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Quantitative Management Theory2c

Quantitative School

Emphasized mathematical approaches to management problems

Management Science

The study of complex systems of people, money, equipment, and procedures, with the goal of improving their effectiveness


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Quantitative Management Theory2c

▼ Mathematical approaches to management problems

▼ Developed during World War II ▼ Applied to every aspect of business


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Tools of Operations Management 2c

Inventory models

Beak-even analyses

Production routing

Production scheduling


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Systems Management Theory 2d

Systems School

The theory that an organization comprises various parts that must perform tasks necessary for the survival and proper functioning of the system


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The Organization as a System 2d


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Contingency Management Theory 2e

Contingency School

A theory based on the premise that managers’ preferred actions or approaches depend on the variables of the situation they face


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Contingency Management Theory2e

▼ Approaches depend on the variables of the situations

▼ Draws on all past theories in attempting to analyze and solve problems

▼ Is integrative▼ Summarized as an “it all depends” device▼ Tells managers to look to their experiences

and the past and to consider many options before choosing

▼ Encourages managers to stay flexible


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Quality Management Theory 2f

Quality School

The essence of the quality of any output is its ability to meet the needs of the person or group


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Quality Management Theory2f

KaizenA Japanese term used to mean incremental, continuous improvement for people, products, and processes

ReengineeringBusinesses processes are redesigned to achieve improvements in performance


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Reengineering Approach2f

▼ What a company must do▼ How to do it

Reengineering determines…

▼ To sense the need for change▼ To see change coming▼ To react effectively to change

Managerial Challenges


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Quality School of Management2f

▼ Quality school is the most current and is worldwide

▼ Its roots are in the behavioral, quantitative, systems, and contingency schools of management theory

▼ People are key to commitments and performance

▼ What is done must be evaluated quantitatively and qualitatively

evolution of management thought approaches to management

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