Copyright © 2010 Pearson Education, Inc.

Publishing as Prentice Hall 2–1 Management History Chapter

2 Management Stephen P. Robbins Mary Coulter tenth edition Copyright © 2010 Pearson Education,
Inc. Publishing as Prentice Hall 2–2 Learning Outcomes 2.1 Historical Background Of Management. •
Explain why studying management history is important. • Describe some early evidences of
management practice. • Describe two important historical events that are significant to the study of
management. 2.2 Classical Approach. • Describe the important contributions made by Frederick W.
Taylor and Frank and Lillian Gilbreth. • Discuss Fayol’s and Weber’s contributions to management
theory. • Explain how today’s managers use scientific management and general administrative theory.
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–3 Learning Outcomes 2.3
Quantitative Approach. • Explain what the quantitative approach has contributed to the field of
management. • Describe total quality management. • Discuss how today’s managers use the
quantitative approach. 2.4 Behavioral approach. • Describe the contributions of the early advocates of
OB. • Explain the contributions of the Hawthorne Studies to the field of management. • Discuss how
today’s managers use the behavioral approach. Copyright © 2010 Pearson Education, Inc. Publishing as
Prentice Hall 2–4 Learning Outcomes 2.5 Contemporary Approach • Describe an organization using the
systems approach. • Discuss how the systems approach helps us understand management. • Explain
how the contingency approach is appropriate for studying management. Copyright © 2010 Pearson
Education, Inc. Publishing as Prentice Hall 2–5 Why Study Management Theory ? • Theory : Coherent
group of assumptions put forth to explain the relationship between two or more observable facts and to
provide, a sound basis for predicting, future events. • Importance of Theories :  Theory provides stable
focus for understanding what we experience.  Theory enable us to communicate efficiently and thus
move in to more and more complex relationship with other people.  Theories help us to keep learning
about our world. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–6 Schools of
Management 1) Scientific Management School 2) Classical Organization Theory School 3) Behavioral
School 4) Management Science School  In this Schools, later ideas have not replaced earlier ones. Each
new school has tended to complement or coexist with previous ones.  At same time, each school has
continued to evolve and some have even merged with others. Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall 2–7 Exhibit 2–1 Major Approaches to Management Copyright © 2010
Pearson Education, Inc. Publishing as Prentice Hall 2–8 Historical Background of Management • Ancient
Management Egypt (pyramids) and China (Great Wall) Qutub Minar and Taj Mahal  Some one had
to plan what was to be done, organize people and materials to do it.  Lead and direct the workers and
impose some controls to ensure that everything was done as planned.  The another example of early
management can be seen during the 1400s in the city of Venice, a major economic and trade center. 
The Venetians developed an early form of business enterprise and engaged in many activities common
to today’s organization. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–9
Historical Background of Management • Adam Smith Published The Wealth of Nations in 1776 
Advocated the division of labor (job specialization) to increase the productivity of workers  Division of
labor - Breakdown of jobs in narrow and repetitive tasks.  Smith concluded that division of labor
increased Productivity by increasing each workers skill and dexterity  Saving time lost in changing
tasks, and creating labor-saving inventions and machinery. Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall 2–10 Historical Background of Management • Industrial Revolution  Starting
in late eighteenth century when machine power was Substituted for human labor  Created large
organizations in need of management  These large efficient factories needed someone to forecast,
ensure that enough material was on hand to make products, assign tasks to people, direct daily activities
and so forth.  These “someone” was managers. Copyright © 2010 Pearson Education, Inc. Publishing
as Prentice Hall 2–11 Major Approaches to Management • Classical • Quantitative • Behavioral •
Contemporary Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–12 • Classical
Approach –  The first study of Management which emphasize rationality and making organizations and
workers as efficient as possible • Scientific Management –  An approach that involves using scientific
method to determine the “one best way” for a job to be done. Copyright © 2010 Pearson Education,
Inc. Publishing as Prentice Hall 2–13 • Terms related to Scientific Management • Work Study - defined as
the systematic, objective and critical examination of all the factors governing the operational efficiency
of any specified activity in order to effect improvement. • Work Study Includes • Methods Study:  The
management should try to ensure that the plant is laid out in the best manner and is equipped with the
best tools and machinery. • Motion Study:  It is a study of the movement, of an operator in performing
an operation with the purpose of eliminating useless motions. Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall 2–14 • Time Study (work measurement):  The basic purpose of time study is
to determine the proper time for performing the operation.  Both time study and motion study help in
determining the best method of doing a job and the standard time allowed for it. • Fatigue Study:  A
standard task should be set after providing for measures to fatigue so that workers need not over strain
themselves to attain it. • Rate-setting:  Taylor recommended the differential piece wage system, under
which workers performing the standard task within prescribed time are paid a much higher rate per unit
than inefficient workers who are not able to come up to the standard set Copyright © 2010 Pearson
Education, Inc. Publishing as Prentice Hall 2–15 Scientific Management • Fredrick Winslow Taylor The
“father” of scientific management Published Principles of Scientific Management (1911)  The theory
of scientific management – Using scientific methods to define the “one best way” for a job to be done: •
Putting the right person on the job with the correct tools and equipment. • Having a standardized
method of doing the job. • Providing an economic incentive to the worker. Copyright © 2010 Pearson
Education, Inc. Publishing as Prentice Hall 2–16 Exhibit 2–2 Taylor’s Scientific Management Principles 1.
Develop a science for each element of an individual’s work, which will replace the old rule-of-thumb
method. 2. Scientifically select and then train, teach, and develop the worker. 3. Heartily cooperate with
the workers so as to ensure that all work is done in accordance with the principles of the science that
has been developed. 4. Divide work and responsibility almost equally between management and
workers. Management takes over all work for which it is better fitted than the workers. Copyright ©
2010 Pearson Education, Inc. Publishing as Prentice Hall 2–17 Scientific Management (cont’d) • H L
Gantt  He developed Gantt chart to compare actual to planned performance.  Gantt chart was a daily
chart which graphically presented the process of work by showing machine operations, man hour
performance, deliveries etc.  This chart was intended to facilitate day-to-day production planning. 
Task-and-bonus plan for remunerating workers indicating a more humanitarian approach.  This plan
was aimed at providing extra wages for extra work besides guarantee of minimum wages. Copyright ©
2010 Pearson Education, Inc. Publishing as Prentice Hall 2–18 Scientific Management (cont’d) • H L
Gantt  Gantt advocated for a policy of preaching and teaching workmen to do their work in the process
evolved through pre thinking of management. He considered management as leadership function. •
Frank and Lillian Gilbreth  Focused on increasing worker productivity through the reduction of wasted
motion  Developed the micro chronometer that recorded a worker’s motions and amount of time
spent doing each motion.  Waste motion missed by naked eye could be identified and eliminated. 
Therbligs – A classification scheme of labeling 17 basic hand motions. Copyright © 2010 Pearson
Education, Inc. Publishing as Prentice Hall 2–19 Scientific Management (cont’d) • How Do Today’s
Managers Use Scientific Management?  Use time and motion studies to increase productivity  Hire
the best qualified employees  Design incentive systems based on output • General Administrative
theory – An approach to management that focus on describing what managers do and what constitute
good management practice. • Principal of Management – Fundamental rules of management that could
be applied in all organizational situation and taught in schools. Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall 2–20 General Administrative Theory • Henri Fayol Believed that the practice
of management was distinct from other organizational functions Developed principles of management
that applied to all organizational situations • Max Weber Developed a theory of authority based on an
ideal type of organization (bureaucracy)  Emphasized rationality, predictability, impersonality,
technical competence, and authoritarianism Copyright © 2010 Pearson Education, Inc. Publishing as
Prentice Hall 2–21 Exhibit 2–3 Fayol’s 14 Principles of Management 1. Division of work 2. Authority 3.
Discipline 4. Unity of command 5. Unity of direction 6. Subordination of individual interests to the
general interest 7. Remuneration 8. Centralization 9. Scalar chain 10. Order 11. Equity 12. Stability of
tenure of personnel 13. Initiative 14. Esprit de corps Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall 2–22 1. Division of work – as per the specialization and skills to achieve higher
efficiency 2. Authority - managers must give orders so that they can get the things done. 3. Discipline –
all members of the organization to respect rules and agreements 4. Unity of command – each employee
must receive instructions from only one person to avoid conflicts 5. Unity of direction – operations that
have the same objective should be directed by only one manager Copyright © 2010 Pearson Education,
Inc. Publishing as Prentice Hall 2–23 6. Subordination of individual interest to the common good –
interest of employee should not take precedence over the interests of the organization. 7.
Remuneration – compensation for work done should be fair to both employees and employers 8.
Centralization – decreasing the role of subordinates in decision making, i.e. decision making authority
was kept with managers 9. Scalar Chain– line of authority in an organization runs from top mgt. to the
lowest level of the organization. [Link] – material & people should be in the right place at right time,
people should be in the jobs for which they are most suitable one. [Link] – manager should be
friendly and fair to their subordinates. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice
Hall 2–24 12. Stability of tenure of personnel – high employee turnover undermines the efficient
functioning of the organization 13. Initiative – subordinates should be given freedom to conceive and
carry out their plans 14. Esprit de Corps – promoting team spirit to have a sense of unity. Bureaucracy –
A form of organization characterized by division of labor, a clearly defined hierarchy, detail rules and
regulations and impersonal relationship.  Bureaucracy is a lot like scientific management in its
ideology, both emphasize rationality, predictability, impersonality, technical competence and
authoritarianism. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–25 Exhibit 2–4
Weber’s Bureaucracy Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–26 • How
Do Today’s Managers Use General Administrative Theories Many current management concepts are
based on it. 1. Managerial Authority 2. Centralized decision making 3. Reporting to only one boss etc..
Even if Flexible organization of creative professionals some bureaucratic mechanisms are necessary to
ensure that resources are used efficiently and effectively. Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall 2–27 Quantitative Approach to Management • Quantitative Approach Also
called operations research or management science Evolved from mathematical and statistical methods
developed to solve WWII military logistics and quality control problems Focuses on improving
managerial decision making by applying:  Statistics, optimization models, information models, and
computer simulations Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–28 Exhibit
2–5 What Is Quality Management? Intense focus on the customer Concern for continual improvement
Process-focused Improvement in the quality of everything Accurate measurement Empowerment of
employees Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–29 • Quantitative
Approach or Management Science - The use of quantitative techniques to improve decision making. •
Total Quality Management – A philosophy of management that is driven by continuous improvement
and responsiveness to customer need and expectations. • Human relations - How managers interact
with other employees or recruits Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–30 Understanding Organizational Behavior • Organizational Behavior (OB) The study of the actions
of people at work; people are the most important asset of an organization • Early OB Advocates
Robert Owen Hugo Munsterberg Mary Parker Follett Chester Barnard Copyright © 2010 Pearson
Education, Inc. Publishing as Prentice Hall 2–31 Exhibit 2–6 Early Advocates of OB Copyright © 2010
Pearson Education, Inc. Publishing as Prentice Hall 2–32 •A series of productivity experiments conducted
at Western Electric from 1924 to 1932. •Experimental findings Productivity unexpectedly increased
under imposed adverse working conditions. The effect of incentive plans was less than expected.
•Research conclusion Social norms, group standards and attitudes more strongly influence individual
output and work behavior than do monetary incentives. The Hawthorne Studies Copyright © 2010
Pearson Education, Inc. Publishing as Prentice Hall 2–33 Theory X and Y • Douglas McGregor proposed
the two different sets of worker assumptions. Theory X:  Assumes the average worker is lazy, dislikes
work and will do as little as possible.  Managers must closely supervise and control through reward
and punishment.  Theory Y:  Assumes workers are not lazy, want to do a good job and the job itself
will determine if the worker likes the work.  Managers should allow the worker great latitude, and
create an organization to stimulate the worker. Copyright © 2010 Pearson Education, Inc. Publishing as
Prentice Hall 2–34 Theory X and Y Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–35 Safety Needs Social Needs Physiological Needs Esteem Needs SelfActualization Hierarchy Of Needs
MASLOW’S Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–36 • Physiological
Needs: oxygen, water, protein, salt, sugar, calcium and other minerals and vitamins and sleep etc. •
Safety Needs: security, stability, protection from physical and emotional harm • Social Needs: affection,
belonging, acceptance, friendship, community • Esteem Needs: Internal ones are need for self-respect,
confidence, autonomy, and achievement.  External ones are need for respect of others, status, fame,
glory, recognition and attention. • Self-actualization: doing that which maximizes one’s potential and
fulfills one’s innate aspirations Maslow’s Hierarchy of Needs Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall 2–37 The Systems Approach • System Defined A set of interrelated and
interdependent parts arranged in a manner that produces a unified whole. • Basic Types of Systems
Closed systems  Are not influenced by and do not interact with their environment (all system input
and output is internal). Open systems  Dynamically interact to their environments by taking in inputs
and transforming them into outputs that are distributed into their environments. Copyright © 2010
Pearson Education, Inc. Publishing as Prentice Hall 2–38 Exhibit 2–7 The Organization as an Open System
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–39 Implications of the Systems
Approach • Coordination of the organization’s parts is essential for proper functioning of the entire
organization. • Decisions and actions taken in one area of the organization will have an effect in other
areas of the organization. • Organizations are not self-contained and, therefore, must adapt to changes
in their external environment. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–
40 The Contingency Approach • Contingency Approach Defined Also sometimes called the situational
approach. There is no one universally applicable set of management principles (rules) by which to
manage organizations. Organizations are individually different, face different situations (contingency
variables), and require different ways of managing. Copyright © 2010 Pearson Education, Inc. Publishing
as Prentice Hall 2–41 Exhibit 2–8 Popular Contingency Variables • Organization size • As size increases,
so do the problems of coordination. • Routineness of task technology • Routine technologies require
organizational structures, leadership styles, and control systems that differ from those required by
customized or non-routine technologies. • Environmental uncertainty • What works best in a stable and
predictable environment may be totally inappropriate in a rapidly changing and unpredictable
environment. • Individual differences • Individuals differ in terms of their desire for growth, autonomy,
tolerance of ambiguity, and expectations. Copyright © 2010 Pearson Education, Inc. Publishing as
Prentice Hall 2–42 Terms to Know • division of labor (or job specialization) • Industrial Revolution •
scientific management • therbligs • general administrative theory • principles of management •
bureaucracy • quantitative approach • organizational behavior (OB) • Hawthorne Studies • system •
closed systems • open systems • contingency approach