Chapter 2
Evolution of Management Thought
Pamela S. Lewis
Stephen H. Goodman
Patricia M. Fandt
Slides Prepared by
Bruce R. Barringer
University of Central Florida
©2001 South-Western College Publishing
Learning Objectives
Slide 1 of 3
1.Describe the major influences on the
development of management thought.
2.Identify the five major perspectives of
management thought that have evolved
over the years.
3.Describe the different subfields that exist in
the classical perspective of management
and discuss the central focus of each.
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Learning Objectives
Slide 2 of 3
4.Describe the theories of the major
contributors to the behavioral perspective
of management.
5.Identify the major events that gave rise to
the emergence of the quantitative
perspective of management.
6.Describe the structure of the building
blocks of systems analysis.
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Learning Objectives
Slide 3 of 3
7.Discuss the nature of the contingency
perspective of management.
8.Discuss the future issues that will affect the
further development of management
thought.
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Environmental Factors Influencing
Management Thought
Slide 1 of 3
Influences on Management
Thought
Economic
Political
Social
Global
Technological
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Environmental Factors Influencing
Management Thought
Slide 2 of 3
• Economic Influences
– Relate to the availability, production, and
distribution of resources within a society.
• Social Influences
– Relate to the aspects of a culture that influence
interpersonal relationships.
• Political Influences
– Relate to the impact of political institutions on
individuals and organizations.
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Environmental Factors Influencing
Management Thought
Slide 3 of 3
• Technological Influences
– Relate to the advances and refinements in any
of the devices that are used in conjunction with
conducting business.
• Global Influences
– Relate to the pressures to improve quality,
productivity, and costs as organizations attempt
to compete in the worldwide marketplace.
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Schools of Management Thought
Classical Perspective
Behavioral Perspective
Quantitative Perspective
Systems Perspective
Contingency Perspective
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Chronological Development of the
Schools of Management Thought
Contingency
Perspective
Systems
Perspective
Quantitative
Perspective
Behavioral
Perspective
Classical
Perspective
1875
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1900
1925
1950
1975
Transparency 2-9
2000
Classical Perspective
The oldest formal viewpoints of management, it
includes the following approaches:
Scientific
Management
Administrative
Management
Bureaucratic
Management
Focuses on the
productivity of
the individual
worker
Focuses on the
functions of
management
Focuses on the
overall
organizational
system
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Scientific Management
Slide 1 of 4
• Focuses on the productivity of the
individual worker
– Frederick W. Taylor
– Frank & Lillian Gilbreth
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Scientific Management
Slide 2 of 4
• Frederick W. Taylor (1865-1915)
– Father of “Scientific Management.
– Taylor was convinced that there was “one best
way” to perform every task.
– Taylor attempted to define “the one best way”
to perform every task through systematic study
and other scientific methods.
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Scientific Management
Slide 3 of 4
• Frank Gilbreth
– Specialized in time and motion studies to
determine the most efficient way to perform
tasks.
– Used the new medium of motion pictures to
examine the work of bricklayers.
– Identified 17 work elements (such as lifting and
grasping) and called them therbligs.
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Scientific Management
Slide 4 of 4
• Lillian Gilbreth
– Was a strong proponent of better working
conditions as a means of improving efficiency
and productivity.
– Wrote an entertaining book about raising her
family entitled “Cheaper by the Dozen.”
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Administrative Management
Slide 1 of 2
• Focuses on the managers and the functions
they perform
– This approach to management is most closely
identified with Henri Fayol (1841-1925).
– Fayol was the first to recognize that successful
managers had to understand the basic
managerial functions.
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Administrative Management
Slide 2 of 2
• Henri Fayol
– Developed a set of 14 general principles of
management.
– His managerial functions of planning, leading,
organizing, and controlling are routinely used
in modern organizations.
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Bureaucratic Management
Slide 1 of 4
• Focuses on the overall organizational
system and is based upon firm rules,
policies, and procedures; a fixed hierarchy;
and a clear division of labor
– Max Weber (1864-1920), a German sociologist
and historian, is most closely associated with
bureaucratic management.
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Bureaucratic Management
Slide 2 of 4
• Max Weber
– Envisioned a system of management that would
be based upon impersonal and rational
behavior.
– Conceptualized the approach to management
referred to as bureaucracy.
•
•
•
•
•
Division of labor
Hierarchy of authority
Rules and procedures
Impersonality
Employee selection and promotion
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Bureaucratic Management
Slide 3 of 4
• Weber’s Forms of Authority
– Traditional authority
• Is based upon custom or tradition.
– Charismatic authority
• Subordinates voluntarily comply with a leader
because of his or her special personal qualities or
abilities.
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Bureaucratic Management
Slide 4 of 4
• Weber’s Forms of Authority
– Rational-legal authority
• Subordinates comply with a leader because of a set
of impersonal rules and regulations that apply to all
employees.
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Classical vs. Behavioral Perspective
Classical Perspective
Focused on rational
behavior
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Behavioral Perspective
vs.
Acknowledged the
importance of
human behavior
Transparency 2-21
Behavioral Perspective
Slide 1 of 6
• Behavioral Perspective
– Followed the classical perspective
– Acknowledged the importance of human
behavior in shaping management style
– Associated with the following scholars:
•
•
•
•
Mary Parker Follett
Elton Mayo
Douglas McGregor
Chester Barnard
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Behavioral Perspective
Slide 2 of 6
• Mary Parker Follett
– Concluded that a key to effective management
was coordination.
– Felt that managers needed to coordinate and
harmonize group effort rather than force and
coerce people.
– Believed that management is a continuous,
dynamic process.
– Felt that the best decisions would be made by
people who were closest to the situation.
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Behavioral Perspective
Slide 3 of 6
• Elton Mayo
– Conducted the famous Hawthorne Experiments.
– Concluded that productivity increased because
someone was “paying attention” to the workers.
– Mayo’s work represents the transition from
scientific management to the early human
relations movement.
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Behavioral Perspective
Slide 4 of 6
Elton Mayo’s Hawthorne Effect
Phenomenon whereby individual or
group performance is influenced by
human behavior factors.
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Behavioral Perspective
Slide 5 of 6
• Douglas McGregor
– Proposed the Theory X and Theory Y styles of
management.
– Theory X managers perceive that their
subordinates have an inherent dislike of work
and will avoid it if at all possible.
– Theory Y managers perceive that their
subordinates enjoy work and that they will gain
satisfaction from performing their jobs.
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Behavioral Perspective
Slide 6 of 6
• Chester Barnard
– Felt that executives serve two primary
functions:
• Must establish and maintain a communications
system among employees.
• Must establish the objectives of the organization and
motivate employees.
– Developed a theory on authority:
• Believed that authority flows from the ability of
subordinates to accept or reject an order.
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Quantitative Perspective
Slide 1 of 3
Is characterized by its use of mathematics,
statistics, and other quantitative techniques for
management decision making and problem solving.
This approach has four basic characteristics:
Decisionmaking focus
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Measurable
criteria
Quantitative
model
Computers
Transparency 2-28
Quantitative Perspective
Slide 2 of 3
• Decision-Making Focus
– The primary focus of the quantitative approach
is on problems or situations that require some
direct action, or decision, on the part of
management.
• Measurable Criteria
– The decision-making process requires that the
decision maker select some alternative course
of action. The alternatives must be compared
on the basis of some measurable criteria.
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Quantitative Perspective
Slide 3 of 3
• Quantitative Model
– To assess the likely impact of each alternative
on the stated criteria, a quantitative model of
the decision situation must be formulated.
• Computers
– Computers are quite useful in the problemsolving process.
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Systems Perspective
An approach to problem solving that is based on an
understanding of the basic structure of systems:
Basic Structure of Systems
Inputs
Transformation
process
Outputs
Feedback
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Contingency Perspective
• A view that proposes that there is no one
best approach to management for all
situations.
• Asserts that managers are responsible for
determining which managerial approach is
likely to be most effective in a given
situation.
• This requires managers to identify the key
contingencies in a given situation.
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Example of the Contingency
Perspective
Joan Woodward discovered that a particular
management style is affected by the organization’s
technology. Woodward identified and described
three different types of technology:
Small-batch
technology
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Mass-production
technology
Continuous-process
technology
Transparency 2-33
Information Technology and
Management Style
In many cases, information technology can facilitate
the use of a particular management style.
Quantitative & Systems
Perspectives
Classical Perspective
Facilitated by advanced
computers
Facilitated by modern
communications
equipment
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Future Issues Influencing
Management Thought
Future Issues
Influencing
Management
Thought
Diversity
Globalization
Quality
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William Ouchi’s Theory Z
• Japanese approach to management
developed by William Ouchi.
• Advocates trusting employees and making
them feel like an intimate part of the
organization.
• Based on the assumption that once a
trusting relationship with workers is
established, production will increase.
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Future Managers Must Be:
Slide 1 of 3
• Thoroughly schooled in the different
management perspectives that have evolved
over the years.
• Able to understand the various economic,
political, social, technological, and global
influences that have affected management
thinking over the years, and will continue to
shape future evolutionary changes in
management thought.
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Future Managers Must Be:
Slide 2 of 3
• Capable of identifying and understanding
such key variables as environment,
production technology, organizational
culture, organization size, and international
culture as they relate to the organization.
• Prepared to select elements from the various
management perspectives that are
appropriate for his or her situation.
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Future Managers Must Be:
Slide 3 of 3
• Adaptable to change, because future
conditions and developments can quickly
render the chosen approaches obsolete.
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