Management Thought: Past and Present

MANAGEMENT Meeting and Exceeding Customer Expectations EIGHTH EDITION

Chapter 2

Prepared by Deborah Baker Texas Christian University

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learning objectives
1. 2. Discuss why knowledge of the evolution of management theories is important to managers 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

f.
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Quality school of management thought

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History and Theory of Management

The Value of History People who ignore the past are destined to relive it.

A person unaware of mistakes made by others is likely to repeat them.

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Time Line of Management Thought

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2a

Classical Management Theory

A theory that focused on finding the one best way to perform and manage tasks

Classical Management Theory

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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

Focused on finding the one best way

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2a

Classical Management Theory

Classical Scientific School
Focused on the manufacturing environment

Classical Administrative School

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Emphasized the flow of information and how organizations should operate

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2a

Classical Scientific School

Charles Babbage

In 1832, published On the Economy of Machinery and Manufactures

Concluded that definite management principles existed: with broad applications determined by experience Principle of the division of labor amongst the persons who perform the work
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2a

Classical Scientific School

Frederick W. 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

Determined the quickest ways to perform tasks

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2a

Classical Scientific School

Henry Gantt

Invented the Gantt chart

Moved away from authoritarian management

Advocated a bonus system to reward workers

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2a

Lessons from Classical Scientific Thinkers

Analyze everything Teach effective methods to others

Constantly monitor workers

Plan responsibly Control the work and the workers
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2a

Classical Administrative School

Henri Fayol

Believed specific management skills could be learned and taught

Fayols universal management functions: Planning Organizing Leading Controlling

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2a

Classical Administrative School

Mary Parker 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 The first principle for individual and group success is the capacity for organized thinking
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2a

Classical Administrative School

Chester Barnard

Argued that managers must gain acceptance for their authority

Advocated the use of basic management principles Cautioned managers to issue no order that could not or would not be obeyed

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2b

Behavioral Management Theory

Recognized employees as individuals with concrete, human needs, as parts of work groups, and as members of a larger society

Behavioral School

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2b

Behavioral Management Theory

Robert Owen

The father of modern personnel management

The quality and quantity of workers output influenced by conditions on and off the job

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2b

Behavioral Management Theory

Abraham Maslow

Needs-based theory of motivation

physiology security

affiliation
esteem self-actualization

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2b

Behavioral Management Theory Results

Managers discover

What employees want from work How to enlist cooperation and commitment

How to unleash talents, energy, and creativity

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2c

Quantitative Management Theory

Emphasized mathematical approaches to management problems

Quantitative School

Management Science

The study of complex systems of people, money, equipment, and procedures, with the goal of improving their effectiveness

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2c

Quantitative Management Theory

Mathematical approaches to management problems

Developed during World War II Applied to every aspect of business

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2c

Tools of Operations Management

Inventory models Beak-even analyses Production scheduling

Production routing

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2d

Systems Management Theory

The theory that an organization comprises various parts that must perform tasks necessary for the survival and proper functioning of the system

Systems School

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2d

The Organization as a System

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2e

Contingency Management Theory

A theory based on the premise that managers preferred actions or approaches depend on the variables of the situation they face

Contingency School

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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 Encourages managers to stay flexible

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2f

Quality Management Theory

The essence of the quality of any output is its ability to meet the needs of the person or group

Quality School

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2f

Quality Management Theory

A Japanese term used to mean incremental, continuous improvement for people, products, and processes

Kaizen

Reengineering

Businesses processes are redesigned to achieve improvements in performance

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2f

Reengineering Approach
Reengineering determines What a company must do

How to do it

Managerial Challenges To sense the need for change

To see change coming

To react effectively to change
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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 What is done must be evaluated quantitatively and qualitatively

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