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CHAPTER 2 LECTURE NOTES

Slides 1 – 6 Explain how management thinking is historically dependent on


environmental factors—legal, political, social, technological. Managerial thinking does
not switch from one way of thinking to another; it is an evolution. Many factors learned
100 years ago are still applied today, but they have been altered by time and application.
The chart on slide 6 provides a time map of dominant thinking and research.

1. Classical perspectives and theorists in the history of management—three branches pp.


36-41, Slides 7-12
CLASSICAL THEORY AND PERSPECTIVES
Job simplification and standardization—narrow jobs

Scientific Bureaucratic Administrative


Principles
Frederick Taylor, Father of Max Weber Henri Fayol--14
Scientific Management Weberian Bureaucracy principles
Standard Methods Hierarchy Unity of command
Worker selection and training Division of labor Division of work
to qualify for the job Documentation Scalar chain
Wage incentives Rules and procedures Esprit de corps
Work structured and planned Ownership and management Also, the functions
Separate of management
Henry Gantt—Gantt charts

Frank and Lillian Gilbreth


Motion studies

Other Classical School noted contributors:


Mary Parker Follett
And
Chester Barnard

2. HUMANISTIC THEORY AND PERSPECTIVES in the history of management


pp. 41-46, Slides 13-17
Recognition of the importance of the human will and motivation—higher-level
needs
Motivation theorists such as Abraham Maslow and Douglas McGregor
Hawthorne studies—Elton Mayo—A critical change in managerial thinking
Three schools—Human Relations, Human Resources, and Behavioral Science

3. MANAGEMENT SCIENCE THEORY AND PERSPECTIVES


Operations research, POM (Productions Operations Management, and IT pp. 46-
52, Slide 18

Quantitative approaches to problem solving and management


Examples: production planning and scheduling—MRP (Materials Requirements
Programs and Planning), inventory management, worker scheduling
Queuing theory, linear programming
Information technologies commencing with the historic Hollerith Code (U.S.
Census Bureau) and the 80-column card
Statistical process control and other quality management techniques

4. RECENT TRENDS IN MANAGERIAL THINKING—Modern


School/Contemporary Management Focus pp. 47-52, Slides 19-25
Open systems Theory
Contingency and Situational management and leadership
TQM (several quality management programs)
The Learning Organization
The Technologically driven workplace, including e-business and commerce

It is important to remember that although each of the five eras of management is


distinctive, the history of management is an evolution. Classical thinking did not stop,
nor did humanistic focus; instead, thinking was augmented by new research. The
importance of contingency and situational thinking is that all historic approaches may be
appropriate in certain situations. Management science is used in addition to other
methods of problem solving. Understanding the variables of different situations is the
management and leadership skill recognized today as being important. Judgment is the
critical factor and may be replacing the need for rules, regulations, and procedures in
some situations.
5. The Open Systems Theory/Concepts pp. 47

The following model is another version of the model in the textbook. It


emphasizes the importance of “outcomes” by separating them from “outputs.” Also,
workers are an element of “Resource Conversion,” rather than “inputs.” The pool of
potential employees from which employees are selected are “inputs.” Neither model is
the correct or incorrect display of the concepts, rather it is two different ways of viewing
organizations, departments, and jobs within a complex environment. An organization’s
need to interact with the environment is why the system is considered to be “open.”

Resource Conversion

People
Equipment
Outputs
Inputs (capital
goods)
Procedures Outcomes

Work

Feedback

Open Systems Theory

Meeting Specifications 100% time with outputs and meeting or exceeding


customers’ expectations constitutes quality and effectiveness. Achieving this at
the lowest cost (least resources) is efficiency.
Productivity= effectiveness + efficiency