MANAGEMENT
HISTORY MODULE
Copyright © 2016 Pearson
Education, Ltd.
1a-1
1a - 1
Management tenth edition
Management
History
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2–2
Exhibit 2–1 Major Approaches to Management
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2–3
Learning Outcomes
Follow this Learning Outline as you read and study
this chapter.
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.
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2–4
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.
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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.
management
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Exhibit 2–1 Major Approaches to Management
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Historical Background of Management
• Ancient Management
Egypt (pyramids)
• Adam Smith
Published The Wealth of Nations in 1776
Advocated the division of labor (job specialization) to
increase the productivity of workers
• Industrial Revolution (late 18 th
century)
Created large organizations in need of management
Efficient factories needed someone to direct daily activities. That
“someone” was a “manager” who would need formal theories to
guide them in running these large organizations.
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Exhibit 2–1 Major Approaches to Management
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Major Approaches to
Management
• Classical
• Quantitative
• Behavioral
• Contemporary
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Classical Approach
Scientific Management
• Fredrick Winslow Taylor
• Frank and Lillian Gilbreth
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Classical Approach
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.
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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.
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Classical Approach
Scientific Management
• Fredrick Winslow Taylor
• Frank and Lillian Gilbreth
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Scientific Management (cont’d)
• Frank and Lillian Gilbreth
Focused on increasing worker productivity through
the reduction of wasted motion
Developed the microchronometer to time worker
motions and optimize work performance
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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
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Classical Approach
General Administrative Theory
• Henri Fayol
• Max Weber
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Classical Approach
General Administrative Theory
• Henri Fayol
Identified five functions that managers perform:
Planning - Organizing - Commanding - Coordinating
and Controlling
Developed principles of management that applied to
all organizational situations
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Exhibit 2–3 Fayol’s 14 Principles of
Management
1. Division of work 7. Remuneration
2. Authority 8. Centralization
3. Discipline 9. Scalar chain
4. Unity of command 10. Order
5. Unity of direction 11. Equity
6. Subordination of 12. Stability of tenure
individual interests of personnel
to the general 13. Initiative
interest
14. Esprit de corps
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Fayol’s 14 Principles of Management
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Classical Approach
General Administrative Theory
• Henri Fayol
• Max Weber
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Classical Approach
General Administrative Theory
• Max Weber
Developed a theory of authority based on an ideal
type of organization (bureaucracy)
Emphasized rationality, predictability, impersonality, technical
competence, and authoritarianism
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Exhibit 2–4 Weber’s Bureaucracy
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How Today’s Manager use
Administrative Theories
• It serves as a frame of reference from which
many current management concepts such as
managerial authority, reporting to only one boss
and so forth, have evolved.
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Exhibit 2–1 Major Approaches to Management
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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.
Linear programming is a technique to improve resource allocation
decision. Work scheduling can be more efficient as a result of
critical path scheduling analysis, and the economic order quantity
model helps managers determine the optimum inventory levels.
Another area where quantitative techniques are being used is
known as Total Quality Management.
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What Is Total Quality Management TQM?
•TQM is a management philosophy devoted to
continual improvement and responding to
customer needs and expectations.
•A quality revolution swept through both the
private business and public sectors in the 1980s
and 1990s.
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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
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What Is Quality Management?
Exhibit 2–5 (page 48)
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How Today’s Manager use the
Quantitative Approach
• The quantitative approach contributes directly to
management decision making in the area of
planning and control (budgeting, scheduling,
quality control, and similar decisions)
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Exhibit 2–1 Major Approaches to Management
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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
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Exhibit 2–6 Early Advocates of OB
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The Hawthorne Studies
•The most important contribution to the OB field
came out of the Hawthorne Studies.
•A series of productivity experiments conducted at
Western Electric from 1924 to 1932.
•Experimental findings
•Productivity unexpectedly increased under imposed adverse working
conditions (various lighting intensity/rest period/redesign the job/incentive
plan).
The effect of incentive plans was less than expected.
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The Hawthorne Studies
•Research conclusion
Social norms, group standards and attitudes more
strongly influence individual output and work behavior
than do monetary incentives.
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How Today’s Manager use the
Behavioral Approach
• Hawthorn studies have provided the foundation
of our current theories of motivation, leadership,
group behavior and other numerous behavioral
approaches
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Basic
OB
Model,
Stage II
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Exhibit 2–1 Major Approaches to Management
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Contemporary Approach
• The Systems Approach
• The Contingency Approach
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Contemporary Approach
The Systems Theory
• System Defined
A set of interrelated and interdependent parts
arranged in a manner that produces a unified whole.
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Contemporary Approach
The Systems Theory
• 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.
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Exhibit 2–7 The Organization as an Open
System
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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.
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Exhibit 2–1 Major Approaches to Management
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Contemporary Approach
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.
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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.
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Terms to Know
• division of labor (or job • quantitative approach
specialization) • total quality management
• Industrial Revolution (TQM)
• scientific management • organizational behavior
• general administrative (OB)
theory • Hawthorne Studies
• principles of management • system
• bureaucracy • closed systems
• open systems
• contingency approach
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