Evolution of management thought approaches to management

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved
Chapter2
1
Management Thought:
Past and Present
MANAGEMENT
Meeting and Exceeding Customer Expectations
EIGHTH EDITION

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2
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 thought
c. Quantitative school of management thought
d. Systems school of management thought
e. Contingency school of management thought
f. Quality school of management thought

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History and Theory of Management
11
People who ignore the past are destined to
relive it.
The Value of HistoryThe Value of HistoryThe 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 Thought
11

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Classical Management Theory
Classical
Management
Theory
Classical
Management
Theory
A theory that focused on finding
the “one best way” to perform
and manage tasks
2a2a

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2a2a
▼ 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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2a2a
Classical
Scientific
School
Classical
Scientific
School
Focused on the manufacturing
environment
Classical
Administrative
School
Classical
Administrative
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 BabbageCharles Babbage
2a2a

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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. TaylorFrederick W. Taylor
2a2a

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▼ Invented the Gantt chart
▼ Moved away from authoritarian
management
▼ Advocated a bonus system to reward
workers
Henry GanttHenry Gantt
2a2a

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Lessons from Classical Scientific Thinkers
2a2a
Analyze everythingAnalyze everything
Teach effective methods to othersTeach effective methods to others
Plan responsiblyPlan responsibly
Constantly monitor workersConstantly monitor workers
Control the work and the workersControl the work and the workers

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Classical Administrative School
2a2a
▼ Believed specific management skills could
be learned and taught
▼ Fayol’s universal management functions:
– Planning
– Organizing
– Leading
– Controlling
Henri FayolHenri Fayol

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2a2a
Mary Parker FollettMary 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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2a2a
Chester BarnardChester 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 Theory
2b2b
Behavioral
School
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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2b2b
Robert OwenRobert 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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2b2b
Abraham MaslowAbraham Maslow
▼ Needs-based theory of motivation
– physiology
– security
– affiliation
– esteem
– self-actualization

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Behavioral Management Theory Results
2b2b
Managers discover…Managers discover…
What employees want from workWhat employees want from work
How to unleash talents,
energy, and creativity
How to unleash talents,
energy, and creativity
How to enlist cooperation
and commitment
How to enlist cooperation
and commitment

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Quantitative Management Theory
2c2c
Quantitative
School
Quantitative
School
Emphasized mathematical
approaches to management
problems
Management
Science
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 Theory
2c2c
▼ Mathematical approaches to
management problems
▼ Developed during World War II
▼ Applied to every aspect of business

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Tools of Operations Management
2c2c
Inventory modelsInventory models
Beak-even analysesBeak-even analyses
Production routingProduction routing
Production schedulingProduction scheduling

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Systems Management Theory
2d2d
Systems
School
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
2d2d

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Contingency Management Theory
2e2e
Contingency
School
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 Theory
2e2e
▼ 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
2f2f
Quality
School
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 Theory
2f2f
KaizenKaizen
A Japanese term used to mean
incremental, continuous
improvement for people,
products, and processes
ReengineeringReengineering
Businesses processes are
redesigned to achieve
improvements in performance

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Reengineering Approach
2f2f
▼ What a company must do
▼ How to do it
Reengineering determines…Reengineering determines…
▼ To sense the need for change
▼ To see change coming
▼ To react effectively to change
Managerial ChallengesManagerial Challenges

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Quality School of Management
2f2f
▼ 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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