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Bateman Snell

Management Competing
in the
New Era

5th
Edition
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved
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Part One
Chapter 1 – The 411 on. . .
The Evolution of Management

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved

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Evolution Of Management
Thought

Classical Approaches Contemporary Approaches

1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000

Systematic Administrative Quantitative Systems Contingency Current and

management management management theory theory future revolutions

Scientific Human Organizational

management relations behavior

Bureaucracy

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved

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Early Management Concepts And

Influences
Growth of companies
 minor improvements in management tactics produced
impressive increases in production quantity and quality
 economies of scale - reductions in the average cost of a unit

production as the total volume produced increases

 opportunities for mass production created by the industrial

revolution spawned intense and systematic thought about

management problems and issues

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved

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Systematic Management
Key concepts
systematized manufacturing operations
coordination of procedures and processes built into internal operations

emphasis on economical operations, inventory management, and cost

control
Contributions
beginningof formal management in the United States
promotion of efficient, uninterrupted production

Limitations
ignored relationship between an organization and it environment
ignored differences in managers’ and workers’ views

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved

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Scientific Management
Key concepts
usedscientific methods to determine the “one best way’
emphasized study of tasks, selection and training of workers, and

cooperation between workers and management

Contributions
improved factory productivity and efficiency
introduced scientific analysis to the workplace

piecerate system equated worker rewards and performance

Limitations
simplistic motivational assumptions
workers viewed as parts of a machine

potential for exploitation of labor

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved

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Administrative Management
Key concepts
Fayol’s five functions and 14 principles of management
executives formulate the organization’s purpose, secure employees,

and maintain communications

managers must respond to changing developments

Contributions
viewed management as a profession that can be trained and
developed
emphasized the broad policy aspects of top-level managers

offered universal managerial prescriptions

Limitations
universal prescriptions need qualifications for contingencies
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved
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Human Relations
Key concepts
productivity and employee behavior are influenced by the informal work
group
should stress employee welfare, motivation, and communication

social needs have precedence over economic needs

Contributions
psychologicaland social processes influence performance
Maslow’s hierarchy of need

Limitations
ignored workers’ rational side and the formal organization’s contributions
to productivity
research overturned the simplistic belief that happy workers are more

productive

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved

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Bureaucracy
Key Concepts
structured network of relationships among specialized positions
rules and regulations standardize behavior

jobs staffed by trained specialists who follow rules

Contributions
promotes efficient performance of routine operations
eliminates subjective judgment by employees and management

emphasizes position rather than the person

Limitations
limited organizational flexibility and slowed decision making
ignores the importance of people and interpersonal relationships

rules may become ends in themselves

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved

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Quantitative Management
Key concepts
application of quantitative analysis to management
Contributions
developedspecific mathematical methods of problem analysis
helped managers select the best alternative among a set

Limitations
models neglect nonquantitative factors
managers not trained in these techniques may not trust or

understand the techniques’ outcomes

not suited for nonroutine or unpredictable management

decisions
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved
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Organizational Behavior
Key concepts
promotes employee effectiveness through understanding of
individual, group, and organizational processes
stresses relationships among employees/managers

assumes employees want to work and can control themselves

Contributions
increased participation, greater autonomy, individual challenge and
initiative, and enriched jobs may increase participation
recognized the importance of developing human resources

Limitations
some approaches ignored situational factors, such as the
environment and technology
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved
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Systems Theory
Key concepts
organization is viewed as a managed system
management must interact with the environment

organizational goals must address effectiveness and efficiency

organizations contain a series of subsystems

there are many avenues to the same outcome

synergies enable the whole to be more than the sum of the parts

Contributions
recognized the importance of the relationship between the
organization and the environment
Limitations
does not provide specific guidance on the functions of managers

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved

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Contingency perspective
Key concepts
situationalcontingencies influence the strategies, structures, and
processes that result in high performance
there is more than one way to reach a goal

managers may adapt their organizations to the situation

Contributions
identified
major contingencies
argued against universal principles of management

Limitations
not all important contingencies have been identified
theory may not be applicable to all managerial issues

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved