The Evolution of Management
Business Management
Copyright © Texas Education Agency, 2012. All rights reserved.
1
“Copyright and Terms of Service
Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked ™ as
the property of the Texas Education Agency and may not be reproduced without the express written permission of the
Texas Education Agency, except under the following conditions:
1) Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the
Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the
Texas Education Agency;
2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual
personal use only without obtaining written permission of the Texas Education Agency;
3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any
way;
4) No monetary charge can be made for the reproduced materials or any document containing them; however, a
reasonable charge to cover only the cost of reproduction and distribution may be charged.
Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or
any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST
obtain written approval from the Texas Education Agency and will be required to enter into a license agreement that
may involve the payment of a licensing fee or a royalty fee.
Copyright © Texas Education Agency, 2012. All rights reserved.
Call TEA Copyrights with any questions.
2
Management Defined
• The process of accomplishing the goals of an
organization through the effective use of people
and other resources
• Manager vs. Leader
• Why management?
Copyright © Texas Education Agency, 2012. All rights reserved.
3
Early Management
• Pyramids (2500-2000 B.C.)
• Railroad (early 1800s)
• Industrial Revolution (late 1800s – early 1900s)
▫ Assembly line
• 20th century management theories
▫ Scientific – Taylor (1880)
▫ Human Relations





Mayo – Hawthorne Studies (1932)
Maslow’s Hierarchy of Needs (1954)
McClelland – Achievement Theory (1950s)
Herzberg - Hygiene Factors (1959)
McGregor Theory X and Theory Y (1960)
• Drucker & the knowledge worker (1959)
Copyright © Texas Education Agency, 2012. All rights reserved.
4
Levels of Management
• Management Pyramid
▫ 3 Levels
 Supervisor
 Many non-managerial activities
 Mid-manager
 Spends most time on one
management function
 Executive
 Spends almost all time
on management functions
Copyright © Texas Education Agency, 2012. All rights reserved.
5
Influences on Management
•
•
•
•
•
•
•
Changing nature of business
Entrepreneurship
Social considerations
Ethical considerations
Human resource issues
Economic environment
Global competition
Copyright © Texas Education Agency, 2012. All rights reserved.
6
Changing Nature of Business
• Types of Businesses
▫ Industrial
 Produce goods used by other businesses to make
things
 Manufacturing was major type of business until after
WWII
▫ Commercial
 Marketing, finance, and providing services
 More prevalent today
Copyright © Texas Education Agency, 2012. All rights reserved.
7
Entrepreneurship
• Someone who starts, manages, and owns a
business
• Many major corporations were started by
entrepreneurs.
• Mostly involved in retail and service businesses,
as opposed to manufacturing
• > 90% of all businesses are classified as small.
• Franchises have risen in popularity since the
1950s with Ray Kroc and McDonald’s.
8
Copyright © Texas Education Agency, 2012. All rights reserved.
Social Considerations
• Poverty
▫ Increases to minimum wage and unemployment
benefits
• Societal values
▫ Transformation of family – higher divorce rates
▫ Generation X – post baby-boom workers who expect
to change jobs many more times than previous
generations
▫ Net Generation (also Generation Y and Generation
Next) – born approximately between 1977-1997, very
familiar with virtual worlds, more dependent on
teamwork, less loyal to employers than in the past 9
Copyright © Texas Education Agency, 2012. All rights reserved.
Ethical Considerations
• Environmental Issues
▫ Recycling
▫ Pollution
• Business Ethics
▫ a collection of principles and rules that define
what is right and wrong conduct for an
organization
▫ decisions of whether certain actions may be legal
or illegal
Copyright © Texas Education Agency, 2012. All rights reserved.
10
Human Resource Issues
• Growing population, especially with an increase
in immigration
• Changing population
▫ Increased diversity
▫ # of people >55 have increased substantially
• Moving population
▫ Increased movement to the sun belt
▫ Increased movement from cities to the suburbs
• New employment laws in recent decades
Copyright © Texas Education Agency, 2012. All rights reserved.
11
Economic Environment
• Economics – the body of knowledge that relates
to producing and using goods and services that
satisfy human wants
• Economic systems have changed in many other
countries during recent decades, especially the
countries of the former Soviet Union
• Increase in competition among American
products and services
Copyright © Texas Education Agency, 2012. All rights reserved.
12
Global Competition
• Expansion to Pacific Rim countries
• Multinational firms
▫ Headquarters in a home country (parent firm)
▫ Facilities in a foreign location known as a host
country
▫ Foreign branches called subsidiaries
Copyright © Texas Education Agency, 2012. All rights reserved.
13
Global Competition (continued)
• Increase in imports, especially since the 1980s
▫ Tariffs – taxes on foreign goods to protect
domestic industries
▫ Quota – limits the quantity or value of units
permitted to enter a country, designed to protect
market share of domestic producers
▫ Dumping – selling goods in a foreign market at a
price that is below cost or below what it charges in
its home country, often prevented by imposing
tariffs which then increase the price of the goods14
Copyright © Texas Education Agency, 2012. All rights reserved.
Global Competition (continued)
• Increase in foreign business:
▫
▫
▫
▫
European Union
North American Free Trade Agreement
International Monetary Fund
World Bank
• International communications facilitated
through technological advances
Copyright © Texas Education Agency, 2012. All rights reserved.
15
Management Functions
• Planning
▫ setting goals
▫ analyzing information
• Organizing
▫ accomplishing plans
▫ arranging resources
• Implementing (includes Directing and Leading)
▫ communicating
▫ motivating
• Controlling
▫ establishing standards
▫ evaluating performance
Copyright © Texas Education Agency, 2012. All rights reserved.
16
Independent Practice Assignments
• Management Timeline Document – Students will use
information from the PowerPoint as well as information they
discover after conducting Internet research to create a timeline
covering at least 10 different decades. The goal of this research is to
identify milestones in history, such as inventions, and explain the
importance and possible management structure utilized in that
situation, as well as the particular management movement popular
during the time period and how it applies to that invention.
• Business and Community Report - A local business is about to
be bought by a competitor who will then close the local business.
Ask students to write a one-page, well-written report addressing the
following questions: 1) who will be affected in the community, 2)
how will these individuals be affected, and 3) your opinion of
whether or not the business that is closing and/or the competitor
business has any responsibility to the community.
17
Copyright © Texas Education Agency, 2012. All rights reserved.
Independent Practice Assignments
(continued)
• The Knowledge Worker Communiqué – Students will research Peter
Drucker’s concept that he coined as “knowledge worker” and create a bulletin, or
communiqué, including the following components: 1) a definition of the term in
the student’s own words, 2) a specific business scenario or job where this
situation can be observed, that is, where an employee may have more technical
knowledge and information than their supervisor or manager, 3) the possible
conflicts that can arise as a result, and 4) possible resolutions of the conflicts as
well as ways to prevent the conflicts from occurring. The document should be
free of grammatical errors and have clearly identified sections that address each
component.
• Management Functions Applied Diagram – Students will select an
important invention in history and create a diagram showing how that product
has evolved or improved over time. Part of the diagram will also be an
explanation at each step of how any of the management functions has had to
adapt to make the evolution of the product possible to what it is today.
Copyright © Texas Education Agency, 2012. All rights reserved.
18