The evolution of management thought

People have been changing and redesigning organizations for centuries.

The evolution of management thought

Early stages[ edit ] All early stages are characterized by changing focus of attention within the unchanging, invariant scheme of Figure 1. The management system has typically focused on: Final product[ edit ] The final product is a primary focus, the production process is considered secondary.

Statistical quality controlinventory controlcost minimization, mass production, assembly linework specialization, hierarchies of command, mass consumption, statistical mass markets and forecasting are among the defining characteristics of this stage.

Partitioned process[ edit ] It is the high-quality process that assures the high-quality product. The main focus was on improving of process operations. Quality of the process was understood as the quality of its operations.

The reengineering of the process, re-integrating individual components into effective, more autonomous and even self-manageable wholes, has characterized this stage. Discontinuous improvement and process innovation replaced the piecemeal continuous improvement. Traditional vertical hierarchies of command have flattened out into more horizontal, process-oriented networks.

The evolution of management thought

Mass customizationdisintermediation, knowledge management and autonomous teams have started emerging. Extended process[ edit ] Figure 2 Extended process and Customer Intervention Point Figure 2 refers to the paradigmatic shift from internal processes expanded into the extended process — including supplier networks and alliances as well as customer self-service, mass customization and disintermediation — as the increasingly external sources of competitive advantage.

In this recently peaked stage, networks of suppliers and communities of customers have extended the internal process into a functional and competitive whole.

Both internal and external sources of knowledge and competitiveness have formed new core competencies. Intranets and extranets have provided a communication medium for B2B and B2C exchanges.

Quality has become bundled together with cost, speed and reliability. Today, powerful processes of global sourcing bring forth and foster a new set of relationships with customers and suppliers. The firm starts disaggregating its production processes, transferring, leasing or selling selected pieces off to a higher-added value operator or coordinator.

Evolution of Management Concept

Any firm can be only as good as is the network of which it is a part. Consequently, the firm has disaggregated and became a network. Distributed process[ edit ] This emerging stage represents the most radical business refocusing so far. Through the global sourcingsections and components of the internal process are being outsourced to external providers and contractors in search of the highest added value contribution.

Long-term alliances are formed and companies are transforming themselves into networks. Network cooperation is replacing corporate competition: The majority of companies also the educational and training institutions could still be the leading global players in this incessant and accelerating paradigm shifting.

Globally distributed process ushers in new forms of organization, coordination and modular integration. Figure 3 Distributed process and Outsourcing Different parts of the extended process are geographically distributed and often spatially remote.

In Figure 3, this distribution is represented by sections OS of the process which have been outsourced to higher added-value providers.

The evolutionary process, driven by relentless global search for maximum added value, is clearly accelerating. Management systems paradigm or business model, after a century of relative invariance, is becoming a new dynamic source of competitive advantage.

Radically distributed supply and demand chains of Stage 5 will clearly have to be coordinated and reintegrated on a global scale.

The Classical Approach

Reintegration processes are proceeding under increasing environmental pressures. The search for added value, after exploring traditional global resources, is now turning towards reuse, recycling, recovery and remanufacturing as new sources of maximizing added value.

Innovation in business models will become a norm. Recycled process[ edit ] Figure 4 Recycled Process and Global Sourcing During the process of utilizing added value, the asset-recovery practices expand quickly to a majority of products and services Dell, IBM, Xerox.

New products are being designed for extended life spans and multiple profit cycles. Reverse logistics and reverse logistics management RLM are adding new loops to the traditionally unidirectional processes of supply chains.

Concepts of easy disassembly, durability, reuse and recycling are built in into equipment design. The new loops in the figure are not just traditional information feedback loops, but real business processes of collection, disassembly, reprocessing and reassembly activities operations.

New loops of recycled products and materials, energy recovery and knowledge renewal are being created within global-sourcing GS networks.History of Management Thought In this chapter, we will focus on four well‐established schools of management thought: the scientific can understand the evolution of management theory in terms of how people have wrestled with matters of.

In the above three stages of Evolution of Management Systems, the competitive advantage was derived almost exclusively from the internal resources of the firm.

At the end of the s, a radical fourth shift has occurred: the competitive advantage became increasingly derived from the external resources of the firm – through the extended. Evolution of management thought. Introduction: Modern managers use many of the practices, principal, and techniques developed from earlier concepts and experience/5(14).

The Evolution of Management Thought is a well-respected, seminal work in the field of Business Administration. Written in a clear, interesting, and easily readable manner, it covers the historical development of management theory from the pre-industrial age through the current era/5(17).

Evolution of management thought. Introduction: Modern managers use many of the practices, principal, and techniques developed from earlier concepts and experience/5(14). EVOLUTION OF MANAGEMENT THOUGHT- Free online tutorials for Principles of Management and Organisational Behaviour () courses with .

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