Lecture Management (2nd edition) – Chapter 2: The evolution of management
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MANAGEMENT
SECOND EDITION
Chapter 2
The Evolution of
Management
Learning Objectives
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Describe the historical foundation of management
Explain the beginnings of modern management
theory and education
Outline the progression of the quantitative approach
to management
Outline the progression of the humanistic approach to
management
Interpret the factors that led to a balanced approach to
management
Copyright ©2017 John Wiley & Sons, Inc.
The Historical Foundations of
Management (p. 32)
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“Wealth of a Nation” – Adam Smith (p. 33)
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Division of labor – workers specialize on a task
Corporation
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Legal entity formed and structured to achieve
goals with special protections for owners
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Dartmouth College v. Woodward
Copyright ©2017 John Wiley & Sons, Inc.
Discovering and Teaching
Management Theory (p. 33)
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Bureaucratic management – Max Weber (p.
34)
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Bureaucracy – an organization marked by:
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Division of labor
Managerial hierarchy
Formal selection
Career orientation
Formal rules and controls
Impersonality
Copyright ©2017 John Wiley & Sons, Inc.
Discovering and Teaching
Management Theory (cont.)
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Administrative management – Henri Fayol (p.
35)
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Administrative theory
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Identifies the functions of management
Successful management linked to satisfied and
motivated employees
“Provided the basis for management education
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Principles of management
Copyright ©2017 John Wiley & Sons, Inc.
The Quantitative Approach (p. 37)
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Soldiering
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Workers tested management by performing as slowly as
possible, while creating the impression that they were
working fast
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Quantitative approach
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Natural soldiering
Systemic soldiering
Applying objective methods to enhance decision making
Management science
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Using statistics, mathematics, and other quantitative
methods to improve efficiencies
Copyright ©2017 John Wiley & Sons, Inc.
The Quantitative Approach (cont.)
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Scientific management – Frederick Taylor (p. 37)
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Classical perspective – make organizations and workers
operate as efficiently as possible
Used quantitative approach to analyze and synthesize the
flow of work to maximize productivity
Taskmanagement system – combination of setting
performance standards, selecting the best worker for the
job, and building good relations between managers and
employees (p. 38)
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Harrington Emerson – principles of efficiency
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Blueprint for the art and science of management
Copyright ©2017 John Wiley & Sons, Inc.
The Quantitative Approach (cont.)
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Motion studies – Frank B. Gilbreth (p. 39)
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Motion picture cameras captured the stepbystep
movements taken to complete a task
Sought efficiencies by orchestrating the maximum results
for the least worker effort
Scientific management and the mind – Lillian
Gilbreth (p. 40)
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Studied how managerial perceptions, emotions, and
thoughts affected work and employees
Three historical types of management
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Traditional
Transitory
Scientific
Copyright ©2017 John Wiley & Sons, Inc.
The Quantitative Approach (cont.)
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Visualizing management – Henry Gantt (p. 40)
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Habits of industry
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Training converted invisible internal forces into visible
behaviors such as industriousness and cooperation
Developed methods for visualizing performance
standards
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Importance of time
Copyright ©2017 John Wiley & Sons, Inc.
The Quantitative Approach (cont.)
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Quality movement (p. 42)
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Ford Motor Company
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Assembly line – parts added sequentially to manufacture a product
more quickly
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Interchangeable parts
Operations research – established a quantitative rationale
for decisions that lead to goal attainment
Edwards Deming
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Continuous improvement (p. 43)
Quality circles
Lean manufacturing
Total quality management
Six sigma
Copyright ©2017 John Wiley & Sons, Inc.
The Humanistic Approach (p. 43)
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Focused on the human side of management
Hawthorne studies (p. 44)
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Employees motivated by more than money
Group dynamics have an impact on worker morale and
performance
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Illumination study – performance increased when lighting
increased or decreased
Relay assembly test room – productivity increased following
various changes in work conditions
Interviewing program – nondirective interviewing (p. 45)
Managers encouraged to treat workers as people
Copyright ©2017 John Wiley & Sons, Inc.
The Humanistic Approach (cont.)
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Conflict: Mary Parker Follett (p. 45)
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Constructive conflict – positive outcomes from group
conflict emerge when individual ideals remain intact and
become part of a “single whole” (p. 46)
Figure 2.2
Copyright ©2017 John Wiley & Sons, Inc.
The Humanistic Approach (cont.)
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Conflict: Mary Parker Follett (cont.)
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“Power with people,” not “power over people” (p. 47)
Motivation: Douglas McGregor
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Theory X – negative assumptions about worker motivation
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Theory Y – positive view about worker motivation
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People do not like work; must be coerced or intimidated
People enjoy the mental and physical purpose of work; try to expand their
personal contributions
Behavioral management – relies on understanding individual
behaviors, decisions, and attitudes to motivate employees
Copyright ©2017 John Wiley & Sons, Inc.
The Balanced Approach (p. 48)
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Contingency (situational) theory
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Different organizations, situations, and contexts require different
approaches
Cooperation: Chester I. Barnard (p. 49)
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Entropy – inefficient organizations lose social and marketbased
energy leading to the decline of the system
Negative entropy – social and marketbased energy that builds or
maintains a system
Managers must maintain an equilibrium of internal and external forces
and their relationship to the organization
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Cooperative system – managers of effective and efficient organizations
control and influence people’s behavior by modifying their motives
Copyright ©2017 John Wiley & Sons, Inc.
