CHAPTER TWO

MANAGEMENT THOUGHT: MANAGEMENT THOUGHT: PAST AND PRESENTPAST AND PRESENT

EVOLUTION OF MANAGEMENT THEORIES Traditional/Classical TheoryTraditional/Classical Theory Human Relations/Universal Principles Human Relations/Universal Principles

TheoryTheory Open Systems/Contingency ApproachOpen Systems/Contingency Approach

CLASSICAL MANAGEMENT THEORY Scientific ApproachScientific Approach

One Best Way to Get Work Done on Manufacturing One Best Way to Get Work Done on Manufacturing FloorFloor

Engineer People Like MachinesEngineer People Like Machines Time and Motion Studies the Dominant ParadigmTime and Motion Studies the Dominant Paradigm

Administrative ApproachAdministrative Approach Pertains to Flow of Information and PowerPertains to Flow of Information and Power Fayol’s Administrative PrinciplesFayol’s Administrative Principles Chain of Command/Span of ControlChain of Command/Span of Control

HUMAN RELATIONS THEORY Behavioral Management TheoryBehavioral Management Theory

Hawthorne Studies--Elton MayoHawthorne Studies--Elton Mayo Work a Social Activity --Not Just PhysicalWork a Social Activity --Not Just Physical Increasing Emphasis on Employee InputIncreasing Emphasis on Employee Input

Quantitative Management TheoryQuantitative Management Theory Information Used to Improve Quality of OperationsInformation Used to Improve Quality of Operations Beginnings of Quality Movement and Statistical Beginnings of Quality Movement and Statistical

Quality Control (SPC)Quality Control (SPC)

SYSTEMS/CONTINGENCY THEORY Management Approach is Predicated on Management Approach is Predicated on

Situation at HandSituation at Hand Blending of all Approaches Based on Blending of all Approaches Based on

ContingencyContingency Views the Organization as an Open SystemViews the Organization as an Open System Focuses Organizational Resources on Focuses Organizational Resources on

Customer SatisfactionCustomer Satisfaction Creates Continuous Improvement CultureCreates Continuous Improvement Culture

THE MANAGER’S ENVIRONMENT Closed and Open SystemClosed and Open System Organic versus Mechanistic CultureOrganic versus Mechanistic Culture Internal and External Environmental Internal and External Environmental

InfluencesInfluences