Management Thought:

Past and Present

Chapter 2

MANAGEMENT
Meeting and Exceeding Customer Expectations
EIGHTH EDITION
Prepared by
Deborah Baker
Texas Christian University
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved

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

Chapter 2

f.

Quality school of management thought

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11

History and Theory of Management

The
TheValue
Valueof
ofHistory
History
People who ignore the past are destined to relive it.

Chapter 2

A person unaware of mistakes made by

others is likely to repeat them.

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

Chapter 2

11

Time Line of Management Thought

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2a
2a

Classical Management Theory

Chapter 2

Classical
Classical
Management
Management
Theory
Theory

A theory that focused on finding

the one best way to perform
and manage tasks

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

2a
2a

Classical Management Theory

Originated during Englands 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

Chapter 2

Focused on finding the one best way

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2a
2a

Classical Management Theory

Classical
Classical
Scientific
Scientific
School
School

Chapter 2

Classical
Classical
Administrative
Administrative
School
School

Focused on the manufacturing

environment

Emphasized the flow of

information and how
organizations should operate

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2a
2a

Classical Scientific School

Charles
Charles Babbage
Babbage
In 1832, published On the Economy of
Machinery and Manufactures
Concluded that definite management
principles existed:
with broad applications
determined by experience

Chapter 2

Principle of the division of labor amongst

the persons who perform the work

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Classical Scientific School

2a
2a

Frederick
FrederickW.
W.Taylor
Taylor
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

Chapter 2

Determined the quickest ways to perform

tasks

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2a
2a

Classical Scientific School

Henry
Henry Gantt
Gantt
Invented the Gantt chart
Moved away from authoritarian
management

Chapter 2

Advocated a bonus system to reward

workers

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10

2a
2a

Lessons from Classical Scientific Thinkers

Analyze
Analyze everything
everything
Teach
Teach effective
effective methods
methods to
to others
others
Constantly
Constantly monitor
monitor workers
workers

Chapter 2

Plan
Plan responsibly
responsibly
Control
Control the
the work
work and
and the
the workers
workers
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11

2a
2a

Classical Administrative School

Henri
HenriFayol
Fayol
Believed specific management skills could
be learned and taught

Chapter 2

Fayols universal management functions:

Planning
Organizing
Leading
Controlling

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12

2a
2a

Classical Administrative School

Mary
MaryParker
Parker Follett
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

Chapter 2

The first principle for individual and

group success is the capacity for
organized thinking

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13

2a
2a

Classical Administrative School

Chester
Chester Barnard
Barnard
Argued that managers must gain
acceptance for their authority
Advocated the use of basic management
principles

Chapter 2

Cautioned managers to issue no order

that could not or would not be obeyed

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14

2b
2b

Behavioral Management Theory

Chapter 2

Behavioral
Behavioral
School
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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15

2b
2b

Behavioral Management Theory

Robert
RobertOwen
Owen
The father of modern personnel
management

Chapter 2

The quality and quantity of workers

output influenced by conditions on and
off the job

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16

2b
2b

Behavioral Management Theory

Abraham
AbrahamMaslow
Maslow
Needs-based theory of motivation
physiology
security
affiliation
esteem

Chapter 2

self-actualization

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17

2b
2b

Behavioral Management Theory Results

Managers
Managers discover
discover

What
What employees
employees want
want from
from work
work
How
How to
to enlist
enlist cooperation
cooperation
and
and commitment
commitment

Chapter 2

How
How to
to unleash
unleash talents,
talents,
energy,
energy, and
and creativity
creativity

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18

Chapter 2

2c
2c

Quantitative Management Theory

Quantitative
Quantitative
School
School

Emphasized mathematical
approaches to management
problems

Management
Management
Science
Science

The study of complex systems

of people, money, equipment,
and procedures, with the goal of
improving their effectiveness

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19

2c
2c

Quantitative Management Theory

Mathematical approaches to
management problems
Developed during World War II

Chapter 2

Applied to every aspect of business

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20

2c
2c

Tools of Operations Management

Inventory
Inventory models
models
Beak-even
Beak-even analyses
analyses
Production
Production scheduling
scheduling

Chapter 2

Production
Production routing
routing

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21

2d
2d

Systems Management Theory

Chapter 2

Systems
Systems
School
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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22

Chapter 2

2d
2d

The Organization as a System

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23

2e
2e

Contingency Management Theory

Chapter 2

Contingency
Contingency
School
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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24

2e
2e

Contingency Management Theory

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

Chapter 2

Encourages managers to stay flexible

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25

2f
2f

Quality Management Theory

Chapter 2

Quality
Quality
School
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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26

2f
2f

Quality Management Theory

Kaizen
Kaizen

Chapter 2

Reengineering
Reengineering

A Japanese term used to mean

incremental, continuous
improvement for people,
products, and processes

Businesses processes are

redesigned to achieve
improvements in performance

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27

2f
2f

Reengineering Approach
Reengineering
Reengineeringdetermines
determines
What a company must do
How to do it

Managerial
Managerial Challenges
Challenges
To sense the need for change
To see change coming
Chapter 2

To react effectively to change

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28

2f
2f

Quality School of Management

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

Chapter 2

What is done must be evaluated

quantitatively and qualitatively

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29