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Chapter

1
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Appendix A: The Evolution of Management

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Introduction
Throughout history most managers operated strictly on a trial-and-error basis The management profession as we know it today is relatively new

wide swings in management approaches over the last 100 years parts of each approach have survived and been incorporated into modern perspectives on management

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Evolution Of Management Thought

Classical Approaches
1890 1900 1910 1920 1930 1940 1950

Contemporary Approaches
1960 1970 1980 1990 2000

Systematic management

Administrative management

Quantitative management

Systems theory

Contingency theory

Current and future revolutions

Scientific management

Human relations

Organizational behavior

Bureaucracy

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Early Management Concepts And Influences

Industrial revolution

minor improvements in management tactics produced impressive increases in production quantity and quality economies of scale - reductions in the average cost of a unit of production as the total volume produced increases opportunities for mass production created by the industrial revolution spawned intense and systematic thought about management problems and issues

efficiency production processes cost savings

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Systematic Management
Key concepts
Systematized manufacturing operations Coordination of procedures and processes built into internal operations Emphasis on economical operations, inventory management, and cost control

Contributions
Beginning of formal management in the United States Promotion of efficient, uninterrupted production

Limitations
Ignored relationship between an organization and it environment Ignored differences in managers and workers views

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Scientific Management

Advocated the application of scientific methods to analyze work and to determine how to complete production tasks efficiently Four principles develop a scientific approach for each element of ones work scientifically select, train, teach and develop each worker cooperate with workers to ensure that jobs match plans and principles ensure appropriate division of labor Personalities Frederick W. Taylor Frank and Lillian Gilbreth Henry Gantt
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Scientific Management (cont.)

Key concepts
Used scientific methods to determine the one best way Emphasized study of tasks, selection and training of workers, and cooperation between workers and management

Contributions
Improved factory productivity and efficiency Introduced scientific analysis to the workplace Piecerate system equated worker rewards and performance

Limitations
Simplistic motivational assumptions Workers viewed as parts of a machine Potential for exploitation of labor Excluded senior management tasks

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Administrative Management

Emphasized the perspective of senior managers Five management functions planning organizing commanding coordinating controlling Fourteen principles of management Personalities Henri Fayol Chester Barnard Mary Parker Follet
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Administrative Management (cont.)

Key concepts
Fayols five functions and 14 principles of management Executives formulate the organizations purpose, secure employees, and maintain communications Managers must respond to changing developments

Contributions
Viewed management as a profession that can be trained and developed Emphasized the broad policy aspects of top-level managers Offered universal managerial prescriptions

Limitations
Universal prescriptions need qualifications for environmental, technological, and personnel factors
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Human Relations

Aimed to understand how psychological and social processes interact with the work situation to influence performance Hawthorne Studies Hawthorne Effect - workers perform and react differently when researchers observe them Argued that managers should stress primarily employee welfare, motivation, and communication Personalities Abraham Maslow

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Human Relations (cont.)

Key concepts
Productivity and employee behavior are influenced by the informal work group Cohesion, status, and group norms determine output Social needs have precedence over economic needs

Contributions
Psychological and social processes influence performance Maslows hierarchy of need

Limitations
Ignored workers rational side and the formal organizations contributions to productivity Research overturned the simplistic belief that happy workers are more productive
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Bureaucracy
Bureaucratic structures can eliminate the variability that results when managers in the same organization have different skills, experiences, and goals Allows large organizations to perform the many routine activities necessary for their survival People should be treated in unbiased manner Personalities

Max Weber

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Bureaucracy (cont.)
Key concepts
Structured network of relationships among specialized positions Rules and regulations standardize behavior Jobs staffed by trained specialists who follow rules Hierarchy defines the relationship among jobs

Contributions
Promotes efficient performance of routine operations Eliminates subjective judgment by employees and management Emphasizes position rather than the person

Limitations
Limited organizational flexibility and slowed decision making Ignores the importance of people and interpersonal relationships Rules may become ends in themselves
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Quantitative Management
Teams of quantitative experts tackle complex issues facing large organizations Helps management make a decision by developing formal mathematical models of the problem Personalities

military planners in World War II

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Quantitative Management (cont.)

Key concepts
Application of quantitative analysis to management decisions

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Contributions
Developed specific mathematical methods of problem analysis Helped managers select the best alternative among a set

Limitations
Models neglect nonquantifiable factors Managers not trained in these techniques may not trust or understand the techniques outcomes Not suited for nonroutine or unpredictable management decisions

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Organizational Behavior

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Studies management activities that promote employee effectiveness

investigates the complex nature of individual, group, and organizational processes Theory X

managers assume that workers are lazy, irresponsible, and require constant supervision

Theory Y

managers assume employees want to work and control themselves

Personalities

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Douglas McGregor

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Organizational Behavior (cont.)

Key concepts

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Promotes employee effectiveness through understanding of individual, group, and organizational processes Stresses relationships among employees, managers, and work performed Assumes employees want to work and can control themselves

Contributions
Increased participation, greater autonomy, individual challenge and initiative, and enriched jobs may increase participation Recognized the importance of developing human resources

Limitations
Some approaches ignored situational factors, such as the environment and technology
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Systems Theory
Key concepts
Organization is viewed as a managed system Management must interact with the environment Organizational goals must address effectiveness and efficiency Organizations contain a series of subsystems There are many avenues to the same outcome Synergies enable the whole to be more than the sum of the parts

Contributions
Recognized the importance of the relationship between the organization and the environment

Limitations
Does not provide specific guidance on the functions of managers
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Contingency Perspective
Key concepts
Situational contingencies influence the strategies, structures, and processes that result in high performance There is more than one way to reach a goal Managers may adapt their organizations to the situation

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Contributions
Identified major contingencies Argued against universal principles of management

Limitations
Not all important contingencies have been identified Theory may not be applicable to all managerial issues
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