The Evolution of Management Thinking

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Management 371 Mind Map on The Evolution of Management Thinking, created by suttona4 on 05/11/2014.

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The Evolution of Management Thinking
1 Jugaad: refers to an innovation mindset used widely by Indian companies
1.1 Kaizen: total quality
2 Historical perspective: provides a broader way of thinking, and searching for patterns and whether they reoccur across time periods
2.1 learning from others mistakes (& not to repeat them)
2.2 learning from others successes
2.3 Management and Organization
2.3.1 *Examining how [social], [political], and [economic forces] have influenced organizations and the practice of management Social forces: refer to those aspects of a culture that guide and influence relationships among people. Examples: What do people value? What do people need? What are the standards of behavior among people? Forces shape the "social contract" which are unwritten common rules and perceptions about relationships among people and between employees and management Political forces: influence of political and legal institutions on people and organizations One significant political force: the increased role of govt. in businesses after the collapse in the financial services sector. Economic forces: pertain to the availability, production, and distribution of resources in a society {limited resources} Classical Perspective factory system: began to appear in the 1800's gave challenges that earlier organizations had not encountered. Problems arose in: -tooling the plants, organizing managerial structure, training employees (many non English speaking immigrants), scheduling complex manufacturing operations, dealing with increased labor dissatisfaction and resulting strikes Salaried Manager began developing and testing solutions to the challenges of organizing, coordinating, and controlling large #'s of people and increasing worker productivity Classical Perspective: contained three subfields scientific management, bureaucratic organizations, and administrative principles Scientific Management scientifically determined jobs and management practices as the way to improve efficiency and labor productivity Fredrick Winslow Taylor: proposed that workers "could be retooled like machines, their physical and mental gears re-calibrated for better reproductivity


  • Important to remember (test) Gantt Chart: bar graph that measures planned and completed work along each stage of production by time elapsed Characteristics of Scientific Management General Approach: developed standard method for performing each job, selected workers with appropriate abilities for each job, trained workers in standard methods, supported workers by planning their work and eliminating interruptions, provided wage incentives to workers for increased output Bureaucratic Organiations a subfield within the classical perspective (6 characteristics of bureaucracy) [Division of labor, with clear definitions of authority and responsibility], [Positions organized in a hierarchy of authority],[Managers subject to rules and procedures that will ensure reliable, predictable behavior],[Management separate from the ownership of the organization],[Administrative acts and decisions recorded in writing],[Personnel selected and promoted based on technical qualifications] Max Weber introduced most concepts bureaucracy: has taken on a negative meaning that is associated with red tape and endless rules. Administrative Principles focuses on the total organization Henry Fayol french mining engineer who worked his way up to become a head leader in a mining group known as Comambault. General and Industrial Management "Fayol discusses 14 general principles of management" Unity command: each subordinate receives orders from one and only one superior Division of work: Managerial work and technical work are amenable to specialization to produce more and better work with the same amount of effort. Unity of direction: Similar activities in an organization should be grouped together under one manager. Scalar chain:a chain of authority extends from the top to the bottom of the organization and should include every employee He also identifies 5 basic functions of management: planning, organizing, commanding, coordinating and controlling Humanistic Perspective: on management emphasized the importance of understanding human behaviors, needs and attitudes in the workplace as well as social interactions and group processes. Three primary subfields: the human relations movement, the human resources prospective, and the behavioral sciences approach. 'Early Advocates' of Humanistic approach Mary Parker Follett wrote of the importance of common superordinate goals of reducing conflict in organizations. Chester Benard informal organization: occurs in all formal organizations and include cliques and naturally occurring social groupings. Acceptance theory of authority: states that people have free will and can choose whether to follow management orders. Human Relations Movement: Human Resources Perspective maintained an interest in worker participation and considerate leadership but shifted the emphasis to consider the daily tasks that people perform. combines prescriptions for design of job tasks with theories of motivation Perspective came from the idea that cows gave more milk when they were more satisfied (more satisfied you are the more productive you are) Contributors of human resources perspective Abraham Maslow Maslow's Hierarchy started with physiological needs and progressed to safety, belongingness, esteem and self-actualization needs. Douglas McGregor


  • Know this theory! Theory X based on the classical perspective, and early human relation ideas Theory Y (pg45) organizations can take advantage of the imagination and intellect of all their employees Ex: Cisco Systems Behavioral Sciences Approach uses scientific methods and draws from sociology psychology, anthropology, economics, and other disciplines to develop theories about human behavior and interaction in an organizational setting. Quantitative Perspective management science, provided a way to address problems using mathematics, statistics, and other quantitative techniques to management decision making. Quants: financial managers and others who base their decisions on complex quantitative analysis Recent Historical Trends System Thinking ability to see both the distinct elements of a system or situation and the complex and changing interaction among those elements System: is a set of interrelated parts that function as a whole to achieve a common purpose Subsystems: are parts of a system such as an organization, that depends on one another Synergy: the whole is greater than the sum of its parts Contingency View


  • Case view (every situation is unique) and Universalist View (there is one best way) what works in one setting might not work in another Contingency means that one thing depends on other things Total Quality Management focuses on managing the total organization to deliver better quality to customers (to help organization with global compitetion Four key elements: employee involvement, focus on the customer, benchmarking, & continuous improvement(kaizen) W. Edward Deming: known as "the father of quality movement" based on the idea of that truly effective control comes from within the individual worker rather than from strict, authoritarian control.
3 This Chapter: provides historical overview of the: ideas, theories, and management philosophies
4 Innovative Management Thinking for a Changing World
4.1 Managing the Technology-Driven Workplace
4.1.1 Customer Relationship Management: systems use the latest information technology to keep in close touch with customers and to collect and manage large amounts of customer data.
4.1.2 Outsourcing contracting out selected functions or activities to other organizations that can do the work more cost efficiently Supply Chain Management refers to managing the sequence of suppliers and purchases, covering all stages of processing from obtaining raw materials to disturbing finished goods and cutomers

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