THE EVOLUTION OF

MANAGEMENT THINKING
 Forces Influencing
Organizations and
Management
• Social Forces - values, needs, and standards
of behavior

• Political Forces - influence of political and

legal institutions on people & organizations

• Economic Forces - forces that affect the

availability, production, & distribution of a
society’s resources among competing users
Management Perspectives
Over Time

Exhibit 2.1, p.44

2000
The Technology-Driven Workplace
1990 2010
The Learning Organization
1980 2010
Total Quality Management
2000
1970
Contingency Views
2000
1950
Systems Theory
1940 2000
Management Science Perspective
1990
1930
Humanistic Perspective
1890 1990
Classical
1940 2010
1870
Scientific Management: Taylor
1856-1915
General Approach
• Developed standard method for
performing each job.
• Selected workers with appropriate
abilities for each job.
• Trained workers in standard method.
• Supported workers by planning work
and eliminating interruptions.
• Provided wage incentives to workers
for increased output.
Scientific Management
Contributions
• Demonstrated the importance of
compensation for performance.
• Initiated the careful study of tasks and jobs.
• Demonstrated the importance of personnel
and their training.

Criticisms
• Did not appreciate social context of work and
higher needs of workers.
• Did not acknowledge variance among
individuals.
• Tended to regard workers as uninformed and
ignored their ideas
 Bureaucracy
Organizations
• Max Weber 1864-1920
• Prior to Bureaucracy Organizations
– European employees were loyal
to a single individual rather
than to the organization or its
mission
– Resources used to realize
individual desires rather than
organizational goals
• Systematic approach –looked at
organization as a whole
 Bureaucracy
Organizations
Division of labor
with Clear definitions of
authority and responsibility
Personnel are selected
and promoted based Positions organized
on technical in a hierarchy of authority
qualifications

Managers subject to
Administrative acts
Rules and procedures
and decisions recorded
that will ensure reliable
in writing
predictable behavior
Management separate
from the ownership
of the organization
Administrative Principles
• Contributors: Henri Fayol, Mary Parker,
and Chester I. Barnard
• Focus:
– Organization rather than the
individual
– Delineated the management
functions of planning, organizing,
commanding, coordinating, and
controlling
 Henri Fayol 1841-1925
14 General Principles of Management

 Division of labor  Centralizatio

 Authority n
 Discipline  Scalar chain
 Unity of  Order
command  Equity
 Unity of  Stability and
direction tenure of staff
 Subordination of  Initiative
individual
 Esprit de
interest
corps
 Remuneration
Humanistic Perspective
Emphasized understanding
human behavior, needs, and
attitudes in the workplace
●Human Relations Movement
●Human Resources Perspective
●Behavioral Sciences Approach
 Human Relations
Movement
Emphasized satisfaction
of employees’ basic needs
as the key to increased
worker productivity
 Hawthorne
Studies
• Ten year study
• Four experimental & three control
groups
• Five different tests
• Test pointed to factors other than
illumination for productivity
• 1st Relay Assembly Test Room
experiment, was controversial, test
lasted 6 years
• Interpretation, money not cause of
increased output
• Factor that increased output, Human
Relations
 Human Resource
Perspective
Suggests jobs should be
designed to meet higher-
level needs by allowing
workers to use their full
potential
Abraham Maslow’s
Hierarchy of Needs
1908-1970
Self-
actualization

Esteem
Belongingness
Safety
Physiological
Based on needs satisfaction
 Douglas
McGregor 1906-1964
Theory X & Y
Theory X Assumptions
• Dislike work –will avoid it
• Must be coerced, controlled,
directed, or threatened with
punishment
• Prefer direction, avoid
responsibility, little ambition,
want security
Theory
• DoY Assumptions
not dislike work
• Self direction and self control
• Seek responsibility
• Imagination, creativity widely
distributed
• Intellectual potential only
partially utilized
 Douglas McGregor
Theory X & Y

• Few companies today still use

Theory X

• Many are trying Theory Y techniques