Management Thinking
Management Thinking
Management Thinking
Evolution of
Management
Thinking
KILAT, Kristal LIM, Gian
LARISMA, Arlene MANGAS, Sheeva
LAZALA, Dorothie
What is
“Management
Thinking” ?
What is
“Management
Thinking” ?
This is designed to help managers,
business students and researchers
perform better by providing access to the
latest thinking on management theory and
practice. It is structured around a number
of interest areas which reflect the most
talked about topics in business today.
CLASSICAL
MANAGEMENT
THINKING
Which Classic Manager are you?
Which Classic Manager are you?
1. What is your overall outlook on management?
A. Managers should value efficiency above all else.
B. Managers should control and plan every process.
C. Managers should ensure organizational hierarchy is
respected and no lines are blurred.
D. Managers should always acknowledge and show
appreciation for their employees.
Which Classic Manager are you?
2. An employee approaches you with a pitch. What is your
initial reaction?
A. To calculate the most efficient way to run with the pitch, if it's
a competent plan to begin with.
B. To take control of the plan and schedule out tasks
accordingly.
C. To scold the employee for crossing their designated role.
D. To praise your employee for thinking outside of the box and
having the courage to propose an original idea.
Which Classic Manager are you?
3. What does an ideal employee look like to you?
Scientific Management
You believe that the work
process should be broken down
into small subtasks to
determine the most efficient
method possible for completing
a particular job. You carefully
select and then train your
employees accordingly and
reward them for improved
productivity.
MOSTLY A’s:
SCIENTIFIC MANAGER
Scientific Management
● Developed by Frederick
Taylor
● Focuses on two aspects:
○ Improving labor
productivity through
scientific changes
○ Adopting management
practices that are based
on fact and not
guesswork
MOSTLY A’s:
SCIENTIFIC MANAGER
Scientific Management
● Other important
contributors:
○ Henri Gantt ➔ For measuring planned and
[Gantt Chart] completed work
○ Frank and Lillian ➔ For identifying and
Gilbreath [Time and measuring a worker’s
Motion Studies] physical movements when
performing a task and
analyzing the results
MOSTLY A’s:
SCIENTIFIC MANAGER
Administrative Principles
McDonald’s
Perspective
➢ Mary Parker Follett (1868-1933)
➔ Her ideas served as a contrast to scientific
management.
PEOPLE > engineering techniques
● Understanding human ➔ Concepts of Empowerment,
behavior, needs, and FACILITATING rather than CONTROLLING
employees
attitudes in the workplace
➢ Chester I. Barnard (1886-1961)
➔ Concept of Informal Organization,
organizations are not machines and informal
relationships are powerful forces that can
help the organization
➔ Acceptance theory of authority, people have
free will and can choose whether to follow
management orders
THREE PRIMARY SUBFIELDS
HAWTHORNE STUDIES
● Took place at the Hawthorne plant of the Western Electric
Company
● Investigated the effect of illumination on worker
productivity
● However, five different tests were conducted that pointed
to the importance of factors other than illumination in
affecting productivity
RELAY ASSEMBLY TEST ROOM EXPERIMENT
CONCLUSIONS on HAWTHORNE STUDIES
➔ Money was not the cause of the increased output but it was human relations
➔ Employees performed better when managers treated them in a positive manner
➔ Worker productivity increased partly as a result of the increased feelings of
importance
➔ One unintended contribution, “HAWTHORNE EFFECT”
HUMAN RESOURCES PERSPECTIVE
THEORY-X THEORY-Y
DOUGLAS MCGREGOR’S THEORY X AND
THEORY Y
BEHAVIORAL SCIENCES APPROACH
➔ uses scientific methods and draws from sociology, psychology,
anthropology, economics, and other disciplines to develop
theories about human behavior and interaction in an
organizational setting
ORGANIZATION DEVELOPMENT
➔ separate field that applied the behavioral sciences to improve
the organization’s health and effectiveness through its ability to
cope with change, improve internal relationships, and increase
problem-solving capabilities.
Management Science
Perspective
Quantitative Perspective
Operations Management
● System Thinking
● Contingency view
Systems Thinking
Synergy means that the whole is greater than the sum of its
parts.
Example:
Circles of Causality
Contingency View
Universal View - Management concepts were thought to be universal.
● Peter Senge has defined the learning organization as the organization “in which you cannot not
learn because learning is so insinuated into the fabric of life.” According to him the learning
organizations are “ …organizations where people continually expand their capacity to create the
results they truly desire, where new and expansive patterns of thinking are nurtured, where
collective aspiration is set free, and where people are continually learning to see the whole
together”.
● Learning organization can also be defined as an “Organization with an ingrained philosophy for
anticipating, reacting and responding to change, complexity and uncertainty.”
● A learning organization is an organization that actively creates, captures, transfers, and mobilizes
knowledge to enable it to adapt to a changing environment.
Five Disciplines
Systems
Thinking
Team Personal
Learning Mastery
The Learning
Organization
Building
Mental
Shared
Models
Vision
Systems Thinking - the ability to see the big picture, and to distinguish patterns
instead of conceptualizing change as isolated events. Systems thinking needs the
other four disciplines to enable a learning organization to be realized. There must be a
paradigm shift - from being unconnected to interconnected to the whole, and from
blaming our problems on something external to a realization that how we operate,
our actions, can create problems (Senge 1990,10).
Personal Mastery - begins "by becoming committed to lifelong learning," and is the
spiritual cornerstone of a learning organization. Personal Mastery involves being more
realistic, focusing on becoming the best person possible, and striving for a sense of
commitment and excitement in our careers to facilitate the realization of potential
(Senge 1990,11).
Mental Models - must be managed because they do prevent new powerful insights
and organizational practices from becoming implemented. The process begins with
self-reflection; unearthing deeply held belief structures and generalizations, and
understanding how they dramatically influence the way we operate in our own lives.
Until there is realization and a focus on openness, real change can never take place
(Senge 1990,12).
Building Shared Visions - visions cannot be dictated because they always begin
with the personal visions of individual employees, who may not agree with the
leader's vision. What is needed is a genuine vision that elicits commitment in
good times and bad, and has the power to bind an organization together. As
Peter Senge contends, "[b]uilding shared vision fosters a commitment to the long
term" (Senge 1990,12).
-the big shift has been to outsource intellectually based service activities like research,
product development, logistics, human relations, accounting, legal work, marketing,
logistics, and market research
Advantages
It allows the organization to focus on its core and value adding activities without the
distraction of having to run support services.
On-time delivery performance and end customer satisfaction levels can decline because of
delays at third parties.