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PRINCIPLES AND PRACTICES OF
MANAGEMENT
Chapter
2
Evolution of Management Thought

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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.
4. Describe the theories of the major contributors to the
behavioral perspective of management.
5. Describe the characteristics of the quantitative
perspective of management.
LEARNING OBJECTIVES
When you have finished studying this chapter, you
should be able to:

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LEARNING OBJECTIVES (cont’d)
6. Describe the systems perspective building blocks
and their interactions.
7. Discuss the nature of the contingency perspective of
management.
8. Discuss the future issues that will affect the further
development of management thought.
When you have finished studying this chapter, you
should be able to:

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Environmental Factors Influencing
Management Thought
• Economic Influences
 The availability, production, and distribution of
resources within a society.
• Social Influences
 The aspects of a culture that influence interpersonal
relationships.
• Political Influences
 The impact of political institutions on individuals and
organizations.

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Environmental Factors Influencing
Management Thought (cont’d)
• Technological Influences
 The advances and refinements in any of the devices
that are used in conjunction with conducting business.
• Global Influences
 The pressures to improve quality, productivity, and
costs as organizations attempt to compete in the
worldwide marketplace.

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Figure 2.1 Chronological Development of Management Perspectives

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Figure 2.2 Subfields of the Classical Perspective on Management
Focuses on the
individual worker’s
productivity
Focuses on the
functions of
management
Focuses on
the overall
organizational
system

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Scientific Management: Taylor
• Frederick W. Taylor (1856-1915)
 Father of “Scientific Management.
 attempted to define “the one best way” to perform every task
through systematic study and other scientific methods.
 believed that improved management practices lead to
improved productivity.
 Three areas of focus:
 Task Performance
 Supervision
 Motivation

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Task Performance
• Scientific management incorporates basic
expectations of management, including:
 Development of work standards
 Selection of workers
 Training of workers
 Support of workers

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Supervision
• Taylor felt that a single supervisor could not be
an expert at all tasks.
 As a result, each first-level supervisor should be
responsible only workers who perform a common
function familiar to the supervisor.
 This became known as “Functional Foremanship.”

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Motivation
• Taylor believed money was the way to motivate
workers to their fullest capabilities.
 He advocated a piecework system in which worker’s
pay was tied to their output.
Workers who met a standard level of production
were paid a standard wage rate.
Workers whose production exceeded the standard
were paid at a higher rate for all of their production
output.

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Scientific Management: The Gilbreths
• Frank Gilbreth
 Specialized in time and motion studies to determine
the most efficient way to perform tasks.
 Used motion pictures of bricklayers to identified work
elements (therbligs) such as lifting and grasping.
• Lillian Gilbreth
 A strong proponent of better working conditions as a
means of improving efficiency and productivity.
Favored standard days with scheduled lunch
breaks and rest periods for workers.
Strived for removal of unsafe working conditions
and the abolition of child labor.

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Administrative Management: Fayol
• Henri Fayol (1841–1925)
 First recognized that successful managers had to
understand the basic managerial functions.
 Developed a set of 14 general principles of
management.
 Fayol’s managerial functions of planning, leading,
organizing and controlling are routinely used in
modern organizations.

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Table 2.1 Fayol’s General Principles of Management
1. Division of work
2. Authority and
responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of
individual interest to the
common good
7. Remuneration of
personnel
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability
13. Initiative
14. Esprit de corps
Source: Based on Henri Fayol, General and Industrial Management, trans. Constana Storrs (London: Pittman & Sons, 1949).

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Bureaucratic Management
• Focuses on the overall organizational system.
• Bureaucratic management is based upon:
 Firm rules
 Policies and procedures
 A fixed hierarchy
 A clear division of labor

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Bureaucratic Management: Weber
• Max Weber (1864–1920)
 A German sociologist and historian who envisioned a
system of management that would be based upon
impersonal and rational behavior—the approach to
management now referred to as “bureaucracy.”
 Division of labor
 Hierarchy of authority
 Rules and procedures
 Impersonality
 Employee selection and promotion

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Weber’s Forms of Authority
• Traditional authority
 Subordinate obedience based upon custom or
tradition (e.g., kings, queens, chiefs).
• Charismatic authority
 Subordinates voluntarily comply with a leader
because of his or her special personal qualities or
abilities (e.g., Martin Luther King, Gandhi).
• Rational-legal authority
 Subordinate obedience based upon the position held
by superiors within the organization (e.g., police
officers, executives, supervisors).

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Table 2.2 Weber’s Three Types of Authority
Type Description
Traditional Subordinate obedience based upon
custom or tradition
Charismatic Subordinate obedience based upon
special personal qualities associated
with certain social reformers, political
leaders, religious leaders, or
organizational leaders
Rational–legal Subordinate obedience based upon
the position held by superiors
within the organization

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Figure 2.3 Bureaucratic Hierarchical Power Structure

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Classical versus Behavioral Perspective
Focused on
rational behavior
Classical
Perspective
Acknowledged the
importance of human
behavior
Behavioral
Perspective
vs.

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Behavioral Perspective
• Followed the classical perspective in the
development of management thought.
 Acknowledged the importance of human behavior in
shaping management style
 Is associated with:
 Mary Parker Follett
 Elton Mayo
 Douglas McGregor
 Chester Barnard

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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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Follett on Effective Work Groups
• Four principles of coordination to promote
effective work groups:
1. Coordination requires that people be in direct
contact with one another.
2. Coordination is essential during the initial stages of
any endeavor.
3. Coordination must address all factors and phases of
any endeavor.
4. Coordination is a continuous, ongoing process.

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Elton Mayo
• Conducted the famous Hawthorne Experiments.
 “Hawthorne Effect”
 Productivity increased because attention was paid to the
workers in the experiment.
 Phenomenon whereby individual or group performance is
influenced by human behavior factors.
• His work represents the transition from scientific
management to the early human relations
movement.

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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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Table 2.3 Comparison of Theory X and Theory Y Assumptions
Factor Theory X Assumptions Theory Y Assumptions
Employee attitude Employees dislike work and. Employees enjoy work and
toward work will avoid it if at all possible. will actively seek it.
Management view Employees must be directed, Employees are self-motivated
of direction coerced, controlled, or threatened and self-directed toward achieving
to get them to put forth adequate effort. organizational goals.
Employee view Employees wish to avoid responsibility; Employees seek responsibility;
of direction they prefer to be directed and told what they wish to use their creativity,
to do and how to do it. imagination, and ingenuity in
performing their jobs.
Management style Authoritarian style of management Participatory style of management

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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 an acceptance theory of authority:
 Authority of a manager flows from the ability of
subordinates to accept or reject an order from the
manager once they:
 Comprehend what the order requires of them.
 Review the order’s consistency with organization goals.
 Perceive a personal benefit in obeying the order.

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The Quantitative Perspective
• Characterized by its use of mathematics,
statistics, and other quantitative techniques for
management decision making and problem
solving.
• This approach has four basic characteristics:
1. A decision-making focus
2. Development of measurable criteria
3. Formulation of a quantitative model
4. The use of computers

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The Quantitative Perspective (cont’d)
• Decision-Making Focus
 The primary focus of the quantitative approach is on
problems or situations that require direct action, or a
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
measurable criteria.

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The Quantitative Perspective (cont’d)
• 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 problem-solving
process.

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Figure 2.4 Basic Structure of Systems

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Systems Perspective
• An approach to problem solving based on an
understanding of the basic structure of systems.
 Environmental interaction
 Open systems must interact with the external environment to
survive.
 Closed systems do not interact with the environment.
 Synergy: when all subsystems work together making
the whole greater than the sum of its parts.
 Entropy: the tendency for systems to decay over time.

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The 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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Figure 2.5 Blending Components into a Contingency Perspective

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An Example of the Contingency Perspective
• Joan Woodward’s Research
 Discovered that a particular management style is
affected by the organization’s technology.
 Identified and described three different types of
technology:
 Small-batch technology
 Mass-production technology
 Continuous-process technology

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Table 2.4 Production Technology Examples
Production Technology Examples
Small-batch Custom fabrication machine shop,
technology manufacturer of neon advertising signs,
print shop specializing in personal business
cards, trophy-engraving shop
Mass-production Manufacturer of automobiles, manufacturer
technology of refrigerators, manufacturer of hair dryers,
manufacturer of pencils
Continuous-process Oil refinery, flour mill, soft drink bottler,
technology chemical processor

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Information Technology and Management
Style
• Information technology can facilitate the use of a
particular management style.
Facilitated by
advanced computers
Quantitative/
Systems
Perspectives
Classical
Perspective
Facilitated by
communications
equipment

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Future Issues: Diversity, Globalization, and
Quality
• Heightened concern for diversity initiatives within
the workplace and within management
• Adoption of the concept of workers as decision
makers, problem solvers, and team players
• Creation of a focus on and commitment to the
concept of quality.

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Management in the 21st Century
• William Ouchi’s Theory Z
 Japanese-style approach to management developed
by William Ouchi
Advocates trusting employees and making them
feel like an integral 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 Leaders Must:
• Be thoroughly schooled in the different management
perspectives.
• Understand the various influences that will have a
continuing effect on management thinking
• Be aware of how key business environment variables
relate to their organization.
• Know which elements to select from the various
management perspectives that are appropriate for their
situation.
• Be adaptable to change such that future conditions and
developments do not quickly render their chosen
approaches obsolete.