Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Bateman Snell

Management

5thEdition

Competingin theNew Era

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Part OneChapter 1 – The 411 on. . .

The Evolution of Management

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Evolution Of Management Thought

Evolution Of Management Thought

1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000

Systematicmanagement

Administrativemanagement

Quantitativemanagement

Systemstheory

Current andfuture revolutions

Scientificmanagement

Humanrelations

Organizationalbehavior

Bureaucracy

Classical Approaches Contemporary Approaches

Contingencytheory

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Early Management Concepts And Influences

Early Management Concepts And Influences

Growth of companies minor improvements in management tactics produced

impressive increases in production quantity and quality economies of scale - reductions in the average cost of a unit

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

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Systematic ManagementSystematic ManagementKey concepts

systematized manufacturing operationscoordination of procedures and processes built into internal operations

emphasis on economical operations, inventory management, and cost control

Contributionsbeginning of formal management in the United Statespromotion of efficient, uninterrupted production

Limitationsignored relationship between an organization and it environmentignored differences in managers’ and workers’ views

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Scientific ManagementScientific ManagementKey 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

Contributionsimproved factory productivity and efficiencyintroduced scientific analysis to the workplacepiecerate system equated worker rewards and performance

Limitationssimplistic motivational assumptionsworkers viewed as parts of a machinepotential for exploitation of labor

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Administrative ManagementAdministrative ManagementKey concepts

Fayol’s five functions and 14 principles of managementexecutives formulate the organization’s purpose, secure employees, and maintain communications

managers must respond to changing developments

Contributionsviewed management as a profession that can be trained and developed

emphasized the broad policy aspects of top-level managersoffered universal managerial prescriptions

Limitationsuniversal prescriptions need qualifications for contingencies

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Human RelationsHuman RelationsKey concepts

productivity and employee behavior are influenced by the informal work group

should stress employee welfare, motivation, and communicationsocial needs have precedence over economic needs

Contributionspsychological and social processes influence performanceMaslow’s hierarchy of need

Limitationsignored workers’ rational side and the formal organization’s contributions to productivity

research overturned the simplistic belief that happy workers are more productive

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BureaucracyBureaucracyKey Concepts

structured network of relationships among specialized positionsrules and regulations standardize behaviorjobs staffed by trained specialists who follow rules

Contributionspromotes efficient performance of routine operationseliminates subjective judgment by employees and managementemphasizes position rather than the person

Limitationslimited organizational flexibility and slowed decision makingignores the importance of people and interpersonal relationshipsrules may become ends in themselves

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Quantitative ManagementQuantitative Management

Key conceptsapplication of quantitative analysis to management

Contributionsdeveloped specific mathematical methods of problem analysishelped managers select the best alternative among a set

Limitationsmodels neglect nonquantitative factorsmanagers 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 BehaviorOrganizational Behavior

Key conceptspromotes employee effectiveness through understanding of individual, group, and organizational processes

stresses relationships among employees/managersassumes employees want to work and can control themselves

Contributionsincreased participation, greater autonomy, individual challenge and initiative, and enriched jobs may increase participation

recognized the importance of developing human resources

Limitationssome approaches ignored situational factors, such as the environment and technology

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Systems TheorySystems TheoryKey concepts

organization is viewed as a managed systemmanagement must interact with the environmentorganizational goals must address effectiveness and efficiencyorganizations contain a series of subsystemsthere are many avenues to the same outcomesynergies enable the whole to be more than the sum of the parts

Contributionsrecognized the importance of the relationship between the organization and the environment

Limitationsdoes not provide specific guidance on the functions of managers

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Contingency perspectiveContingency perspective

Key conceptssituational contingencies influence the strategies, structures, and processes that result in high performance

there is more than one way to reach a goalmanagers may adapt their organizations to the situation

Contributionsidentified major contingenciesargued against universal principles of management

Limitationsnot all important contingencies have been identifiedtheory may not be applicable to all managerial issues