Professional Documents
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Chapter 2
History of Management
Thought
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Figure 2.1 Major branches in the classical approach
to management
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1: Classical Management Approaches
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Figure 2.2 Foundations in the behavioral or
human resource approaches to management
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2: Behavioral Management Approaches
• Organizations as communities
– Mary Parker Follett
– Groups and human cooperation:
• Groups allow individuals to combine their talents for a greater
good
• Organizations are cooperating “communities” of managers and
workers
• Manager’s job is to help people cooperate and achieve an
integration of interests
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• Organizations as communities
– Forward-looking management insights:
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• Hawthorne studies
– Initial study examined how economic incentives
and physical conditions affected worker output
– No consistent relationship found
– “Psychological factors” influenced results
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Figure 2.3 Maslow’s hierarchy of human needs
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Behavioral Management Approaches
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3: Modern Management Foundations
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3: Modern Management Foundations
• Organizations as Systems
– System
• Collection of interrelated parts that function together
to achieve a common purpose
– Subsystem
• A smaller component of a larger system
– Open systems
• Organizations that interact with their environments in
the continual process of transforming resource inputs
into outputs
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Figure 2.4 Organizations as complex networks of
interacting subsystems
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3: Modern Management Foundations
• Contingency thinking
– Tries to match managerial responses with
problems and opportunities
unique to different situations
– No “one best way” to manage
– Appropriate way to manage
depends on the situation
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3: Modern Management Foundations
• Quality management
– Managers and workers in progressive
organizations are quality conscious
• Quality and competitive advantage are linked
– Total quality management (TQM)
• Comprehensive approach to continuous quality
improvement for a total organization
• Creates context for the value chain
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– Continuous improvement
• Continual search for new ways to improve quality
• Something always can and should be improved
– ISO certification
• Global quality benchmark
• Refine and upgrade quality to meet ISO standards
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• Learning organizations
– Organizations that are able to continually learn
and adapt to new circumstances
– Core ingredients include:
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• Evidence-Based Management
– Making management decisions on “hard facts”
about what really works
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