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Topic 2

Chapter 2
Evolution of Fundamental
Management Theories

Learning Outcome
1. To differentiate between the
perspectives of classical,
behavioral and contemporary
viewpoints in the evolution of
management theories.
2. To apply the different perspectives
of management theories in
managing organizations today.

CLASSICAL THEORY EVOLUTION OF MANAGEMENT THOUGHT & PRACTICES BEHAVIOUR AL THEORY CONTEMPORA RY THEORY CONTINGEN CY THEORY .

behavioral. Contemporary Perspective: includes three viewpoints— systems.Two Perspectives about Management Historical Perspective: includes three viewpoints—classical. and quantitative. and quality-management. contingency. .

The Historical Perspective Classical Viewpoint Scientific Management Behavioral Viewpoint Quantitative Viewpoint Early Behaviorists Management Science Human Relations Movement Administrative Management Behavioral science approach Operations Management .

The Classical Viewpoint Classical Viewpoint: emphasized finding ways to manage work more efficiently. i) Scientific Management: .emphasized the scientific study of work methods to improve the productivity of individual workers.Pioneered by Frederick Taylor . had two branches— scientific and administrative. .

Scientific Management 4 Principles of Science Pioneered by Frederick Taylor & Frank & Lillian Gilbreth  Taylor believed: managers could eliminate “soldiering” by applying these principles:  Evaluate a task by scientifically studying each part of the task  Carefully select workers with the right abilities for the task  Give workers the training and incentives to do the task with the proper work methods  Use scientific principles to plan the work methods and ease the way for workers do their jobs. .

approach of Henri Fayol and Max Weber . .ii) The Classical Viewpoint Administrative Management: .includes the ideas of the four management functions (Fayol) and the concept of bureaucracy (Weber) .is concerned with managing with the total organization.

The Rationality of Bureaucracy  Weber: a better-performing organization should have five bureaucratic features: A well-defined hierarchy of authority Formal rules and procedures A clear division of labor Impersonality Careers based on merit .

.The Behavioral Viewpoint Emphasized the importance of understanding human behavior and of motivating employees toward achievement.

Hugo Munsterberg felt science could contribute to industries in three ways: * Study jobs and determine which people are best suited to specific jobs * Identify the psychological conditions under which employees did their best work * Create management strategies to influence employees to follow the management’s interests .The Behavioral Viewpoint 1 Early Behaviorism: Approach of Hugo Munsterburg. Mary Parker Follet. Elton Mayo .

with managers and employees working cooperatively * Organizations should be operated as “communities” * Conflicts should be resolved and find solutions that would satisfy both parties * The work process should be under the control of workers with the relevant knowledge .The Behavioral Viewpoint .Mary Parker Follett thought organizations should become more democratic.

The Behavioral Viewpoint Hawthorne effect employees worked harder if they received added attention.  thought that managers cared about their welfare and that supervisors paid special attention to them by Elton Mayo .

Concern about better human relations movement could improve productivity a) Abraham Maslow Proposed the Hierarchy of Needs Physiological. esteem. Douglas McGregor . social. . and self-actualization.2 Human Relations Movement: - Approach of Abraham Maslow. safety.

ABRAHAM MASLOW’S HIERARCHY OF NEEDS .

2 Human Relations Movement: . negative view of workers. positive view of workers. * Theory Y: optimistic.Douglas McGregor proposed Theory X and Y * Theory X: pessimistic. .

or threatened with punishment to achieve desired goals. will attempt to avoid it. . Most workers place security above all other factors associated with work and will display little ambition.Theory X Premises A manager who views employees from a Theory X (negative) perspective believes: Employees inherently dislike work and. whenever possible. Because employees dislike work. controlled. they must be coerced. Employees will shirk responsibilities and seek formal direction whenever possible.

Men and women will exercise selfdirection and self-control if they are committed to the objectives. even seek. The ability to make good decisions is widely dispersed throughout the population and is not necessarily the sole province of managers. responsibility.A manager who views employees from a Theory Y (positive) perspective believes: Employees can view work as being as natural as rest or play. . The average person can learn to accept.

.The Behavioral Viewpoint 3 Behavioral Science: *Relies on scientific research fo developing theories about huma behavior that can be used to pr practical tools for managers.

Question? John believes that individual workers should be concerned about productivity. What view does John have? A. He does not allow them any input into how to perform their job tasks. Total Quality Management (TQM) . Administrative management C. Scientific management B. Behavioral science D.

Behavioral D. Which viewpoint does Veron have? A.TQM . Scientific management B. She believes it is important to understand her employees’ behavior and to help motivate them.Veron manages a small coffee shop. Administrative management C.

irresponsible and must be constantly supervised. What perspective does Anne follow? A.Anne has managed a Ida’s Club store for many years. Alphabet Theory . Theory Y C. Theory X B. She believes her employees are apathetic. Theory Z D.

The Contemporary Viewpoint System Viewpoint Quality Control Contingency Viewpoint Quality Assurance Quality Management Viewpoint Total Quality Management .

The Systems  System: is a set Viewpoint of interrelated parts that operate together to achieve a common purpose. Subsystems: parts making up the whole system. . 2) a part of a larger environment.  Looks at the organization as: 1) a collection of subsystems.

The Four Parts of a System Input Transformational Process The people. profits. equipment and materials required to produce and organization’s goods or services The organization’s capabilities in management and technology that are applied to converting inputs to outputs Output The products. information. and the like that are produced by the organization Feedback Information about the reaction of the environment to the outputs that affect the inputs . losses. employee satisfaction or discontent. services. money.

Open and Closed Systems  Open System: continually interacts with its environment. it receives very little feedback from the outside. receives sufficient feedback from outside  Closed System: has little interaction with its environment. .

. be contingent on—the individual’s and the environmental situation.The Contingency Viewpoint emphasizes that a manager’s approach should vary accordingly to—that is.

System C.Contingency . A.Project D. Even though there are specific company rules regarding attendance.Priya has many employees who have spouses that are deployed in military service. This is an example of the __________ viewpoint. she chooses to deal with each employee’s issue on a case-bycase basis.Operations B.

Reference Chapter 2 Kinicki. A. B. Management: A practical introduction. (2013).K. & Williams. (6th ed. New York: McGraw-Hill.). ..