Chapter 2: Looking Backward, Thinking Forward PDF

lOMoARcPSD|40186229 CH2: Looking backward, thinking forward -Why Study Dead Scholars?  Progressive Insight: Scientic knowledge builds upon past discoveries ("Standing on the shoulders of giants").  Relevance of the Past: Historical works, like Machiavelli's "Il Principe,"...

lOMoARcPSD|40186229 CH2: Looking backward, thinking forward -Why Study Dead Scholars?  Progressive Insight: Scientic knowledge builds upon past discoveries ("Standing on the shoulders of giants").  Relevance of the Past: Historical works, like Machiavelli's "Il Principe," remain relevant and applicable today.  Repetition of Ideas: Events and ideas from history often recur, albeit with variations, highlighting enduring themes in human experience. A Historical Perspective on Management Theories -Purpose of Theories: o Theories in management provide practical frameworks for understanding and solving organizational challenges. o “Nothing as practical as a good theory” Kurt Lewin -Contextual Development: o Management theories are shaped by the era in which they develop. o They address specic contextual problems and draw on existing knowledge and skills. -Evolution and Inuence: o Historical management theories often build upon or challenge earlier ideas. o For example, Henri Fayol rened Adam Smith's division of labor concept. o The behavioral approach emerged as a counter to scientic management, reecting ongoing theoretical evolution and debate in management studies. Schools of thought: 1) Classical Ideas: Adam Smith: Enhancing productivity through specialisation Advocated division of labor during the industrial revolution to enhance productivity through specialization. (Assembly workers, cashiers) Frederick Taylor: Optimising worker productivity through process standardisation 5 Downloaded by Hong Van Do ([email protected])  lOMoARcPSD|40186229 Introduced scientic management to optimize worker productivity through process standardization. (oce workers, warehouse workers) Henri Fayol: Eectuating managerial functions Emphasized good management practices and organizational functions for ecient industrial production. Max Weber: Optimising the ‘human machine’ Developed bureaucracy theory focusing on rules, hierarchies, and eciency in organizational structures. (Schools) -Assessment of Classical Ideas: Pros: Eective in structuring complex organizations. Cons: Often viewed workers as mindless and neglected human factors. 2) Behavioural Approaches: Mary Parker Follett: Foregrounding humans Advocated for human-centric management, emphasizing informal processes and conict resolution. (protests, unions) Elton Mayo: Nurturing social relations Highlighted human attention and interactions to nurture social relations in workplaces. Chester Barnard: Mobilising power and morality for cooperation Emphasized cooperation and the moral aspects of organizational behavior. -Assessment of Behavioural Approaches: Pros: Focus on personal willpower and social interactions. Cons: May overlook rational structures and processes in favor of human factors. 3) Contemporary Approaches: Edwards Deming: Eectuating circles of performance improvement 6 Downloaded by Hong Van Do ([email protected])  lOMoARcPSD|40186229 Pioneered quality management focusing on continuous improvement and performance circles. Open Systems Perspective: Overseeing global implications of local actions Focuses on interactions within and outside organizations in unpredictable, complex business environments. Contingency Theory: Attuning actions to contingencies Adjusts actions based on factors like technology, size, and environmental complexity. Resource Dependence Theory (Pfeer and Salancik): Eectuating governance to control resources Emphasizes managing external resource dependencies. Institutional Theory: Building and adhering to institutions Studies how formal and informal institutions shape organizational behavior. Organizational Learning: Learning how to perform better Focuses on adapting and improving through experience and observation. -More salient approaches:  Herbert Simon’s boundedly rational decision-making  Ronald Coase’s transaction cost economics  Georg Simmel’s social network analysis  Edward Freeman’s stakeholder perspective -Assessment of Contemporary Approaches: Pros: Adaptability to changing environments and holistic perspectives. Cons: Complexity and potential oversights in specic organizational contexts. Some take-aways -Historical insights are surprisingly topical -Older and more recent management theories oer cumulative, complementary insights into contemporary management practices -Extant management theories are probably helpful in explaining future practices 7 Downloaded by Hong Van Do ([email protected])