Chapter 2 - The Evolution of Management Thinking
Management and Organization
Organization and management influences
Social Forces
Social Forces refer to those aspects of a culture that guide and influence relationships
among people. What do people value? What do people need? What are the standards of
behavior among people? These forces shape what is known as the social contract, which
refers to the unwritten, common rules and perceptions about relationships among people
and between employees and management.
Example
One social force is the changing attitudes, ideas, and values, of the Generation Y employees
(millennials). These young workers, arguably the most educated generation, grew up
technologically adept and globally conscious. Unlike many workers of the past, they typically
are not hesitant to question their superiors and challenge the status quo. They want a
flexible, collaborative work environment that is challenging and supportive, with access to
cutting-edge technology, opportunities to learn and further their careers and personal goals,
and the power to make substantive decisions and changes in the workplace.
Political Forces
Political Forces refer to the influence of political and legal institutions on people and
organizations. One significant political force is the increased role of government in business
after the collapse of companies in the financial services sector and major problems in the
auto industry. Some managers expect increasing government regulation in the coming
years. Political forces also include basic assumptions underlying the political system, such
as the desirability of self-government, property rights and contract rights, the definition of
justice and the determination of innocence or guilt of a crime.
Economic Forces
Economic Forces pertain to the availability, production, and distribution of resources in a
society. Governments, military agencies, churches, schools and business organizations in
every society need resources to achieve their goals, and economic forces influence the
allocation of scarce resources. Companies in every industry have been affected by the
recent financial crisis, which is the worst since the Great Depression of the 1930s. Reduced
consumer spending and tighter access to credit have curtailed growth and left companies
continued to struggle to find funding. Another economic trend that affects managers
worldwide is the growing economic power of countries such as China, India, and Brazil.
Classical Perspective
The Classical Perspective has 3 subfields, each with a slightly different emphasis: Scientific
management, bureaucratic organizations, and administrative principles.
Scientific Management
Scientific Management emphasizes scientifically determined jobs and management
practices as the way to improve efficiency and labor productivity.
General approach
● Developed a standard method for performing each job.
Management and Organization
Organization and management influences
Social Forces
Social Forces refer to those aspects of a culture that guide and influence relationships
among people. What do people value? What do people need? What are the standards of
behavior among people? These forces shape what is known as the social contract, which
refers to the unwritten, common rules and perceptions about relationships among people
and between employees and management.
Example
One social force is the changing attitudes, ideas, and values, of the Generation Y employees
(millennials). These young workers, arguably the most educated generation, grew up
technologically adept and globally conscious. Unlike many workers of the past, they typically
are not hesitant to question their superiors and challenge the status quo. They want a
flexible, collaborative work environment that is challenging and supportive, with access to
cutting-edge technology, opportunities to learn and further their careers and personal goals,
and the power to make substantive decisions and changes in the workplace.
Political Forces
Political Forces refer to the influence of political and legal institutions on people and
organizations. One significant political force is the increased role of government in business
after the collapse of companies in the financial services sector and major problems in the
auto industry. Some managers expect increasing government regulation in the coming
years. Political forces also include basic assumptions underlying the political system, such
as the desirability of self-government, property rights and contract rights, the definition of
justice and the determination of innocence or guilt of a crime.
Economic Forces
Economic Forces pertain to the availability, production, and distribution of resources in a
society. Governments, military agencies, churches, schools and business organizations in
every society need resources to achieve their goals, and economic forces influence the
allocation of scarce resources. Companies in every industry have been affected by the
recent financial crisis, which is the worst since the Great Depression of the 1930s. Reduced
consumer spending and tighter access to credit have curtailed growth and left companies
continued to struggle to find funding. Another economic trend that affects managers
worldwide is the growing economic power of countries such as China, India, and Brazil.
Classical Perspective
The Classical Perspective has 3 subfields, each with a slightly different emphasis: Scientific
management, bureaucratic organizations, and administrative principles.
Scientific Management
Scientific Management emphasizes scientifically determined jobs and management
practices as the way to improve efficiency and labor productivity.
General approach
● Developed a standard method for performing each job.
