The Evolution of Management
Thinking
Asst. Prof. Meral DÜLGER TAŞKIN
Spring 2024
Evolution of
Beginning of the Fall What is management thought Global Environment & Planning & Goal
Semester management? Corporate Culture Setting
Motivating
Dynamics of Behavior Strategy Formulation
Managing Human Employees, Designing
in Organizations &
Resources Communication and Organizations (2 Weeks)
Leadership
Leading Teams
Managing Quality Managing the Value IT, E-Business and Ethics and Social End of the Fall
and Performance Chain Innovation Responsibility Semester
Imagine if your favorite online shopping platform
suddenly shut down, simply because no one knew
how to manage it effectively
Management & Organization
Management philosophies and organization forms
change over time to meet new needs
Some ideas and practices from the past are still
relevant and applicable to management today
The Industrial Revolutions
How it all began…
Steam-powered machines gave companies
fundamental skill for high productivity
• Helped US surge in management techniques
Organizations were seeking ways to better
satisfy customer needs
1.0 Managers had to increase the efficiency of
the worker-task mix
Thus, «Classical Management» began in the
late 19th century
Management
Perspectives
Over Time
• Watch: Evolution of Management
Classical Perspective
Scientific Bureaucratic Administrative
Management Organizations Principles
Scientific Management
Frederick Winslow Taylor (1856-
1915), father of Scientific
Management
Focus on
Incentive
improving Workers could
systems for
efficiency and be retooled like
meeting
labor machines
standards
productivity
Characteristics of Standard
method for
each job
Scientific
Management Plannig work
Skill matches
the job *Minimum
interruptions
Efficiency
Wage
Trained
incentives to
workers for
increase
each method
output
Criticisms
DID NOT APPRECIATE SOCIAL DID NOT ACKNOWLEDGE TENDED TO REGARD WORKERS
CONTEXT OF WORK AND VARIANCE AMONG AS UNINFORMED AND
HIGHER NEEDS OF WORKERS INDIVIDUALS IGNORED THEIR IDEAS
Bureaucratic Organizations
German theorist Max Buraeucracy is a
Weber (1864-1920) structure that ensures
introduced the effectiveness and
bureaucratic theories efficiency
The term bureaucracy
has taken on a negative
tone, associated with
endless “red tape”
Created the concepts of…
Authority Hierarchy
Right to give orders, make decisions, A way of structuring work that
and enforce obedience due to provides managers with legitimate
administrative power authority over their subordinates
They get this power because of their
experience and wisdom.
*So, positions are organized in a hierarchy of authority
Characteristics of Formal written rules and procedures:
Weberian • To ensure conformity of behavior and to generate
consistent outputs
Bureaucracy Selection and advancement based on:
Competence and technical qualifications
Positions in the firm:
• Should be held based on performance, not social contacts
Division of labor:
• Clear definitions of authority, duty and responsibility
Administrative Principles
Henri Fayol (1841-1925), Identified five functions of
French mining engineer led management
the ideas
Planning,
Organizing,
Commanding (Leading),
*Coordinating,
Controlling
Fayol’s 14 Principles of General Management
Watch: 14 Principles of Management - Henri Fayol
Authority and Responsibility Unity of Command Line of Authority
Division of Labor
The managers have the power to
Employees should have only A clear chain from top to
Allows for job specialization give orders BUT with authority
comes responsibility one boss bottom of the firm
Centralization Unity of Direction Remuneration of
Equity
The degree to which Personnel:
One plan of action to guide the Treat all employees fairly in
authority rests at the very organization justice and respect
The payment system
top contributes to success
General interest over Order
Discipline Stability of Tenure
individual interest Each employee is put where Long-term employment is
The organization takes Respectful employees needed they have the most value important
precedence over the individual
Initiative Esprit de corps
Share enthusiasm or devotion to
Encourage innovation
the organization
• Needs
Humanistic Importance of
understanding
human behaviors
• Attitudes
• Social
interactions
Perspective
Human Human
Behavioral
Relations Resources
Sciences
Movement Perspective
Mary Parker Follett (1868-1933)
Leadership – importance of Ethics - Power -
people vs. engineering Empowerment
techniques
Chester Barnard (1886-1961)
Informal Organization Acceptance Theory of
Authority
Cliques Free will
Naturally occurring social Can choose to follow
groupings management orders
Human Relations Movement: The
Hawthorne Studies
Study of worker
efficiency at the
Hawthorne Works of
the Western Electric
Co. during 1924-1932.
Researchers found that
Worker productivity
regardless of whether
was measured at
the light levels were
various levels of light
raised or lowered,
illumination.
productivity rose!
The Hawthorne
Effect
The workers
enjoyed the
attention they
received and
hence, they were
more productive!
Human Relations Movement
The Hawthorne studies found
increased output due to
Control comes from the managers’ better treatment of
individual worker rather than employees
authoritarian control • Money mattered a great deal
• Productivity increased from feelings of
importance
Emphasized satisfaction of
Created a focus on positive employees’ basic needs as the
treatment of employees key to increased worker
productivity
Human Resources Perspective
Perspective came from the idea that cows gave more milk when they were more satisfied ☺
Focus on job tasks and theories of Reduce dehumanizing or demeaning work
motivation Allow workers to use full potential
Abraham Maslow’s Hierarchy of Needs
Main contributors:
Douglas McGregor’s Theory X/Theory Y
Maslow’s Hierarchy of Needs
Which does the managers follow?
Salary increases Sense of belonging to a Giving people the
Social Drivers
Material Drivers
Personal Drivers
Promotions community/team freedom to work
Having a certain status creatively with others
Bonuses
within a peer group that Opportunity to build
Prizes can accord recognition and demonstrate
Green light given to a Peer approval expertise
project Opportunity to
Popularity
Approval of a patent contribute to a
worthwile cause.
A prize for coming up
with the best solution Such joy and
to a problem satisfaction drives
artists, wirters,
scientists!
Scientific methods that draw from
sociology, psychology, anthropology,
economics and other disciplines
Behavioral
Focus on human behavior and
Sciences interaction
Approach
Applied behavioral sciences to
improve organizational health and
effectiveness
Management Science Use of
technology and
programming
for optimizing
operations
Engaged mathematics, statistics and
quantitative techniques to aid in New subsets in
management
Efficient
Decision making resource Management
utilization Quantitative Operations
Information
management Management
Systems (MIS)
Utilizes linear Provides
Techniques to analyze
programming, information
all aspects of the
modeling,simulation about the
production system
systems organization
Modern Historical Trends
Systems Contingency Total Quality
Theory Theory Management
The Systems View of Organizations
*Resouces
*Goals
A holistic view of
management that
shows how
interrelated parts
are used to achieve
a common purpose.
Contingency View of Management
«Successful resolution of organizational problems
depends on the case!»
The Age of Continuous Improvement, Flexibility &
Adaptability
Lean Agile
Management Management
The Learning Organization
LEARNING AIDS PETER SENGE ALL EMPLOYEES ARE
IN THE BEGAN THE ENGAGED IN
ADAPTATION TO DISCUSSION ABOUT IDENTIFYING AND
CHANGE THE LEARNING SOLVING PROBLEMS
ORGANIZATION
LEARNING MOVE FROM
INCREASES THE EFFICIENCY TO
CAPACITY TO SOLVING
LEARN AND PROBLEMS
GROW
Elements of a Learning Organization
Most work is Companies use Key technologies in Up and coming
performed on technology to today’s workplace technologies for the
and/or by workplace
Complete workflows Supply Chain
computers in today’s Management Generative AI
Communicate
workplace
Collaborate Customer Relationship Robotics
Management AR & VR
Outsourcing
The Technology-Driven Workplace
Management
Classical Humanistic Science
Perspective Perspective Perspective
Increasing
Industrial
Factories Efficiency quality of
Revolution Understanding decision making
Steam power •Mass • Productivity human behavior
production Maths
Engines
Statistics
Contingency View
Total Quality Every situation Org. as a sytem
Management is unique!
Technology- • Transforming inputs
The Learning Lean • Still get help into outputs
Driven
Organization Management from • How org.s interact
Workplace
Agile management with their
Management principles environments
Systems Theory
Everything in a nutshell…
