Evolution of Management
Thougt and Contemporary
Approaches that Influence
Behavioral Sciences
Prof. Dr. Rana ÖZEN KUTANİS
Prof. Dr. Rana ÖZEN KUTANİS
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WHAT IS MANAGEMENT?
Some common definitions of management;
• Management is the process of getting things
done effectively and efficiently, through and
with other people.
Prof. Dr. Rana ÖZEN KUTANİS
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WHAT IS MANAGEMENT?
• Management is attainment of organizational
goals in an effective and efficient manner
through planning, organizing, leading and
controlling.
• Management is getting things done by
coordinating and motivating other people.
Prof. Dr. Rana ÖZEN KUTANİS
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MANAGEMENT FUNCTIONS
Prof. Dr. Rana ÖZEN KUTANİS
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MANAGEMENT FUNCTIONS
• PLANNING: Defining goals, establishing
strategy and developing plans to coordinate
activities.
• Managerial planning defines where the
organization wants to be in future and how to
get there.
Prof. Dr. Rana ÖZEN KUTANİS
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MANAGEMENT FUNCTIONS
• ORGANIZING: Determinig;
What tasks to be done,
Who is to do them,
How the tasks are to be grouped,
Who reports whom,
Where decisions are to made.
Prof. Dr. Rana ÖZEN KUTANİS
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MANAGEMENT FUNCTIONS
• LEADING: Use of influence to motivate
employees to achieve organizational goals.
Leading means creating a shared culture and
values, selecting the most effective
communication channel and resolving
conflicts and infusing employees with the
desire to perform at a high level.
Prof. Dr. Rana ÖZEN KUTANİS
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MANAGEMENT FUNCTIONS
• CONTROLLING: Monitoring employees’
activities, determining whether the
organization is on target towards its goals and
making corrections as necessary.
Managers must ensure that the organization is
moving towards its goals.
Prof. Dr. Rana ÖZEN KUTANİS
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WHAT IS AN ORGANIZATION?
• Organization is a social entity that is goal
directed and deliberately structured.
Social entity: being made up of two or more
people.
Goal directed: designed to achieve some
outcomes such as profit or social satisfaction.
Deliberatelty structured: tasks are divided and
responsibility for their performance assigned
to organization members.
Prof. Dr. Rana ÖZEN KUTANİS
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EFFICIENCY AND EFFECTIVENESS
Manager’s responsibility is to coordinate
resources in an effective and efficient manner
to accomplish the organization’s goals.
But what is effectiveness and efficiency?
Prof. Dr. Rana ÖZEN KUTANİS
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EFFICIENCY AND EFFECTIVENESS
“Efficiency is doing things right; effectiveness is
doing the right things. There is nothing as
useless as doing efficiently that which should
not be done at all.” (Peter Drucker)
Prof. Dr. Rana ÖZEN KUTANİS
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EFFICIENCY AND EFFECTIVENESS
• Effectiveness: refers to the degree to which
the organization achieves a stated goal.
• Organizational effectiveness means providing
a product or service that customers value.
• Efficiency: refers to amount of resources used
to achieve an organizational goal. It is based
on how much raw material, money and
people are necessary for producing a given
volume.
Prof. Dr. Rana ÖZEN KUTANİS
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The Evolution of Management
Thougt
Classical
Management
Neo Classical
Management
Economics
1900
1960
Mayo
Mc Gregor
Likert
Post-Modern
Management
Environment
Human
1930
Taylor
Fayol
Weber
Modern
Management
Knowledge
2000
Contingency
Approach
System
Approach
Theory Z
TQM
Prof. Dr. Rana ÖZEN KUTANİS
New
Management
Techniques
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CLASSICAL MANAGEMENT ERA (1900-1930)
“ECONOMICS”
Prof. Dr. Rana ÖZEN KUTANİS
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CLASSICAL MANAGEMENT ERA (1900-1930)
“ECONOMICS”
• Technology,economy and productivity were the featured
concepts. We can refer to three important people in that era:
F. W. TAYLOR
H. FAYOL
Prof. Dr. Rana ÖZEN KUTANİS
M. WEBER
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CLASSICAL MANAGEMENT ERA (1900-1930)
“ECONOMICS”
• Frederick Taylor: Son of a rich American family.Then he
leaves the law school due to heavy myopia.
• He starts to work as a lathe worker.He improved
productivity by 400% in his first year. He thought and
worked on productivity(output/input) all his life.
• While working at factory he gets a degree in
mechanical engineering and writes a book named “
Principles of Scientific Management”.He cited
production techniques and their effects on productivity
in his book.
• Taylor thougt people as a working being only and
classified peoplee as first class and second class.
• He enabled workers to earn more by producing more
using pierce rate wage.
Prof. Dr. Rana ÖZEN KUTANİS
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CLASSICAL MANAGEMENT ERA (1900-1930)
“ECONOMICS”
• Henry Fayol: French,management theorist. He
published a book about management process and he
defined management functions that are still spoken
today.His perspective of management was through
top management to lower stages.
• He outlined 14 general principles of management.
Prof. Dr. Rana ÖZEN KUTANİS
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CLASSICAL MANAGEMENT ERA (1900-1930)
“ECONOMICS”
• Max Weber: Weber was a German sociologist basicly
advocated bureaucracy approach and he emphasized
the need of bureaucracy for the systemization of
organizations.His ideas grounded organization theory
that is still valid today.
• Various events occured at the end of this era bring
about a new era in management period.Whether
efects of war or world economic crisis or results of
scientific studies called for this new era.
Prof. Dr. Rana ÖZEN KUTANİS
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NEO-CLASSICAL MANAGEMENT ERA (1930-1960)
“HUMAN”
ELTON MAYO
HAWTHORNE STUDIES
Prof. Dr. Rana ÖZEN KUTANİS
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NEO-CLASSICAL MANAGEMENT ERA (1930-1960)
“HUMAN”
This concept came on scene about 30 years after the
Classical Management Era. The human factor gained
importance,labour unions against Taylor established and
the new era called Neo-Classical Management began.The
terms like economics and technology were neglected.
With the declines in quality of production and
productivity many problems have occured with quality
and labour unions.Human factor gained importance due
to these events.
Prof. Dr. Rana ÖZEN KUTANİS
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NEO-CLASSICAL MANAGEMENT ERA (1930-1960)
“HUMAN”
• Elton Mayo: Mayo and his friends made some
experiments in a factory named Hawthorne.They firstly
investigated how the changes in physical conditions of
work place affect production.
• They made some experiments to determine how the
changes in light,humidity,tempreture of work place
affect the production.
• For instance in Relay Assembly Test Room Experiment
when the level of illumination raised the output had
gone up also when the level of illumination decreased
the output had gone up too.
• As a result of similar various experiments it is
concluded that not only physical conditions affect
production but also group and human psychology.
Prof. Dr. Rana ÖZEN KUTANİS
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NEO-CLASSICAL MANAGEMENT ERA (1930-1960)
“HUMAN”
• Mc Gregor’s Theories X and Y:Theory X’s assumptions
were;human beings dislike work and will avoid if they
can.To set them in motion, threat and direction is
required.Theory Y ‘s assumptions were;human beings like
work and appreciate being productive.The point is to
create work conditions and find the suitible position for
them.
• Mc Gregor married a woman when he was a monk and
took the head of her wife’s company.At first he was
defending X-Type person but he noticed Y-Type in action
and defended Type-Y.
• Besides these researches Likert,Mc Millan and Peter
Drucker’s Behavioral approach named this era.
Prof. Dr. Rana ÖZEN KUTANİS
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MODERN MANAGEMENT ERA (1960-2000)
“ENVIRONMENT AND BALANCE”
• Due
to
showing
much
interest
on
human;scientific improvements could not be
followed and as very important factors for
organizations economics and technology were
neglected.
• To balance the situation, Modern Approach was
developed.With regard to this approach,it is
thought that focusing just on human is not
efficient.To be efficient human factor and
technology must be brought together .
• Examples
of
Modern
Organization
Theories:Theory-Z,Systems
Approach,Contingency Approach,TQM…
Prof. Dr. Rana ÖZEN KUTANİS
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POSTMODERN ERA (2000 +) “KNOWLEDGE”
• Information stand out during this era.
• The idea espoused in this era was not to be a
slave of information but to rule using
information.
• There was a concern about ‘mechanization of
human’
• Aim of this approach is not just ‘machine’,besides
this not to let people forget their humanity.In
other words,it is about producing and using the
information which helps us to use machines more
efficiently.
Prof. Dr. Rana ÖZEN KUTANİS
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CONTEMPORARY APPROACHES THAT
INFLUENCE BEHAVIORAL SCIENCES
•
•
•
•
•
SYSTEMS APPROACH
CONTINGENCY APPROACH
TOTAL QUALITY APPROACH
GLOBALIZATION
INTERACTIONISM MODEL
Prof. Dr. Rana ÖZEN KUTANİS
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SYSTEMS APPROACH
INPUT
Material
Finance
Human
Knowledge
PROCESS
(Technology,Time,E
nvironmental
Impact)
OUTPUT
Product
Knowledge to
environment
Profit and loss
Behaviors of
employers
FEEDBACK
Prof. Dr. Rana ÖZEN KUTANİS
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SYSTEMS APPROACH
• This transformation form is efficient owing to include
whole personality structure and culture. Firms are affected
by sectors,competitors and international environment.
Individuals show different responses in age and education
periods when they are affected by internal and external
environment.
• In systems approach all types of environment(internalexternal,micro-macro) of people affected by internal and
external
environment,occurs as differentiation in
himself/herself created by the events observed.Age and
periods are also effective. Observing differences time to time
doesn’t mean characteristics.
• In systems approach every result can not be related with a
single cause.
Prof. Dr. Rana ÖZEN KUTANİS
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CONTINGENCY APPROACH
• There are no universal models for each organization.Each
organization is a single case in their own condition .
• There is no basic model that affect the administrator
behavior.It should be flexible,let to modify and able to use
initiative.
• “Best” for everytime doesn’t exist.The “best” will vary from
case to case. In any case “the best” may be different.
• Management styles are phenomenons that are affected by
contingency approach.
• What determines the “best”? The term “best” is comprised
according to conditions and environment.It can’t be
determined according to situations.Situations should be
analysed well.It’s hard to set linear relations.
Prof. Dr. Rana ÖZEN KUTANİS
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TOTAL QUALITY APPROACH
• Total Quality Approach aims to produce the best quality at shortest time
possible,with minimum cost and zero defect.Customer satisfaction aims to
improve the quality of relations about organizational systems and
environmental factors.Customer concept covers both internal and external
customers.
• Important issues that roles and behaviors matter:improving good/service
quality,conforming to delivery time,introducing new goods and services,cost
reduction on R&D,developing roles,behaviors and tasks for competition
advantage,renewing technology.
• Reengineering: Developing roles and behaviors about pıroduction-operation
process.
• Delayering: Reducing organizational level,organizational downsizing
• Benchmarking: Constantly comparing organizations with other organizations to
get the best aspects.
• Quality is required to establish strong relationship with suppliers and employee
satisfaction.
• How is internal and external customer satisfaction provided?Influencing
behaviors positively with satisfaction facts.
• To make the service that presented to us or the service we present completely
satisfy us behavioraly.Such as doctor’s providing information about his/her
disease to patient.
Prof. Dr. Rana ÖZEN KUTANİS
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GLOBALIZATION
• Brings people together from different cultures and borders
dissappear.
• Culture shocks and cultural conflicts occur as a result of
organizational marriage and mergers.Motivation and
success can reduce.
• The aim of globalization is to bring parties to a common
ground. Opposing or supporting argument behavior occurs.
• Anti-Globalists are against the spreading of information by
a single source.(Rise of imperialism,etc...)
Prof. Dr. Rana ÖZEN KUTANİS
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INTERACTIONISM MODEL
• Newly emerged and has been used. According to
this model,an individual’s behavior occurs as a
result of constant and different interactions
between individual’s characteristics and
situation.
• Concerns with how an individual is chosen and
how an individual behave in various situations.
• The individual and the situation interact in
various ways and determines an individual’s
behaviors.It could be said this model occured
from Contingency Approach.
Prof. Dr. Rana ÖZEN KUTANİS
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INTERACTIONISM MODEL
INDIVIDUAL
BEHAVIOR
SITUATION
Prof. Dr. Rana ÖZEN KUTANİS
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THANK YOU…
Prof. Dr. Rana ÖZEN KUTANİS
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