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1Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved

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Management Thought:

Past and Present

MANAGEMENT

Meeting and Exceeding CustomerExpectations

EIGHTH EDITION

Prepared by

Deborah Baker

Texas Christian University

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learning objectives

1. Discuss why knowledge of the evolution of

management theories is important to managers

2. 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 thoughte. Contingency school of management thought

f. Quality school of management thought

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History and Theory of Management1

People who ignore the past are destined to relive it.

The Value of HistoryThe Value of History

A person unaware of mistakes made by others is

likely to repeat them.

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Time Line of Management Thought1

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Classical Management Theory

Classical

Management

Theory

A theory that focused on finding

the one best way to perform

and manage tasks

2a

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Classical Management Theory2a

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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7Copyright 2005 by South-Western, a division of Thomson Learning. All rights reservedC

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Classical Management Theory2a

Classical

Scientific

School

Focused on the manufacturing

environment

Classical

AdministrativeSchool

Emphasized the flow of

information and how

organizations should operate

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Classical Scientific School

In 1832, published On the Economy of

Machinery and Manufactures

Concluded that definite managementprinciples existed:

with broad applications

determined by experience

Principle of the division of labor amongst the

persons who perform the work

Charles Babbage

2a

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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

Frederick W. Taylor

2a

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Invented the Gantt chart

Moved away from authoritarian management

Advocated a bonus system to reward workers

Henry Gantt

2a

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Lessons from Classical Scientific Thinkers2a

Analyze everythingAnalyze everything

Teach effective methods to othersTeach effective methods to others

Plan responsiblyPlan responsibly

Constantly monitor workersConstantly monitor workers

Control the work and the workersControl the work and the workers

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Classical Administrative School2a

Believed specific management skills could be

learned and taught

Fayols universal management functions: Planning

Organizing

Leading

Controlling

Henri Fayol

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Classical Administrative School2a

Chester Barnard

Argued that managers must gain

acceptance for their authority

Advocated the use of basic managementprinciples

Cautioned managers to issue no order

that could not or would not be obeyed

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Behavioral Management Theory2b

Behavioral

School

Recognized employees as

individuals with concrete,

human needs, as parts of work

groups, and as members of a

larger society

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Robert Owen

The father of modern personnel

management

The quality and quantity of workers

output influenced by conditions on andoff the job

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Abraham Maslow

Needs-based theory of motivation

physiology

security affiliation

esteem

self-actualization

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Behavioral Management Theory Results2b

Managers discoverManagers discover

What employees want from workWhat employees want from work

How to unleash talents,energy, and creativity

How to unleash talents,energy, and creativity

How to enlist cooperationand commitment

How to enlist cooperationand commitment

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Quantitative Management Theory2c

Quantitative

School

Emphasized mathematicalapproaches to management

problems

Management

Science

The study of complex systems

of people, money, equipment,

and procedures, with the goal of

improving their effectiveness

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Quantitative Management Theory2c

Mathematical approaches to

management problems

Developed during World War II

Applied to every aspect of business

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Tools of Operations Management2c

Inventory modelsInventory models

Beak-even analysesBeak-even analyses

Production routingProduction routing

Production schedulingProduction scheduling

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Systems Management Theory2d

Systems

School

The theory that an organizationcomprises various parts that

must perform tasks necessary

for the survival and proper

functioning of the system

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The Organization as a System2d

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Contingency Management Theory2e

Contingency

School

A theory based on the premisethat managers preferred actions

or approaches depend on the

variables of the situation they

face

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Contingency Management Theory2e

Approaches depend on the variables of thesituations

Draws on all past theories in attempting toanalyze 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 optionsbefore choosing

Encourages managers to stay flexible

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Quality Management Theory2f

Quality

School

The essence of the quality ofany output is its ability to meet

the needs of the person or group

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Quality Management Theory2f

Kaizen

A Japanese term used to meanincremental, continuous

improvement for people,

products, and processes

ReengineeringBusinesses processes are

redesigned to achieve

improvements in performance

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Reengineering Approach2f

What a company must do

How to do it

Reengineering determines

To sense the need for change

To see change coming

To react effectively to change

Managerial Challenges

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29Chapter2

Quality School of Management2f

Quality school is the most current and is

worldwide

Its roots are in the behavioral, quantitative,

systems, and contingency schools ofmanagement theory

People are key to commitments and

performance

What is done must be evaluatedquantitatively and qualitatively

Documents

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