Evolution of ManagementLearning ObjectivesManagement Perspectives over TimeThe Evolution of Management ThinkingClassical Approaches (Mid 19th Century – Early 1950’s)Scientific ManagementCharacteristics of Scientific ManagementClassical ApproachnContinuedThe Bureaucratic ApproachClassical Approach ContinuedFayols Principles of ManagementFoundations of the Humanistic PerspectiveMary Parker FollettThe Humanistic PerspectiveHuman Relations MovementThe Hawthorne Studies 1927-1932Human Resources PerspectiveTheory X and Theory YBehavioral Sciences ApproachInnovative Management: Thinking for a Changing WorldEvolution of ManagementLearning Objectives•Explain how understanding the historical influences help managers become more effective today. •Define the major approaches to management and identify the major theorists associated with each.•Distinguish between these approaches and understand how they differ.Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 2Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 3Management Perspectives over TimeThe Evolution of Management Thinking•Early thoughts •Rise of the factory system•Large, complex organizations required new approaches to coordination and controlCopyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 4Classical Approaches(Mid 19th Century – Early 1950’s)•Three Major Approaches•Scientific Management•Bureaucracy•Administrative Management5Scientific Management•Late 19th century-early 1900’s•Frederick Taylor advocated use of scientific methods to analyze work and improve efficiency & labor productivity•Tasks were broken down into basic movements & motions were timed to determine most efficient way to complete a task•After “one best way” to perform a job was identified, Taylor stressed importance of training, standardization, and breaks to reduce fatigue•Implemented a piece-rate system6Characteristics of Scientific Management7Classical ApproachnContinued•Bureaucratic Approach•Max Weber (German Sociologist, 1864-1920)•Based on a rational set of guidelines for structuring organizations in the most efficient manner•Emphasis on rational methods, rules & procedures, formal authority, specialized labor•Administrative Approach•Henri Fayol (French mining engineer)•Identified 5 functions of management: planning, organizing, commanding, coordinating & controlling•14 General Principles of Management8The Bureaucratic Approach9Classical Approach Continued•Administrative Approach•Henry Fayol (French mining engineer)•Identified 5 functions of management: planning/forecasting, organizing, commanding, coordinating & controlling•14 General Principles of Management (1914)•Focus of his approach:10Fayols Principles of Management•Division of Work/Labor•Authority and Responsibility•Unity of Command•Scalar Chain/Line of Authority•Centralization •Unity of Direction•Equity•Order•Initiative•Discipline•Renumeration of Personnel•Stability of Tenure & Personnel•Subordination of Individual Interests to the Common Interest•Esprit de Corps11Foundations of the Humanistic PerspectiveCopyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 12Mary Parker Folletbest known for her early ideas about conflict and coordination and the importance of peopleChester BarnardEmphasized the importance of the informal organization and that authority must be acceptedMary Parker Follett•defined management as "the art of getting things done through people“•stressed the importance of understanding the informal processes within organizations•In a 1924 essay, "Power," she coined the words "power-over" and "power-with" to differentiate coercive power from participative decision-makingCopyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 13The Humanistic PerspectiveCopyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 14Human Relations MovementHuman Resources PerspectiveBehavioral Sciences ApproachHuman Relations Movement•Effective work comes from within the employee•Human relations are a key variable in increasing performance•Hawthorne studies were key contributor•Strongly shaped management theory, practice, and research 15The Hawthorne Studies1927-1932•Study:•Finding:•What happened?•Conclusions:•This research paved the way for the Human Relations Movement16Human Resources Perspective•This perspective shifted emphasis to consider the daily tasks people perform•Combines prescriptions for job design with theories of motivation•Maslow’s Need Theory of Motivation•McGregor’s Theory X & Theory Y1718Theory X and Theory YBehavioral Sciences ApproachScientific methods + sociology, psychology, anthropology, economics…•Organizational Behavior & Organizational Development•Other strategies based on behavioral science:•Matrix Organizations•Self-Managed Teams•Corporate CultureCopyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 19INNOVATIVE MANAGEMENT: THINKING FOR A CHANGING WORLDNew ideas continue to emerge to meet the changing needs and difficult timesThe shelf life of trends is getting shorter and new ideas peak in fewer than three yearsManagement ideas trace their roots to historical perspectivesCopyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.