management history

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall2–1

Management Management HistoryHistory

ChapterChapter

22

Management Stephen P. Robbins Mary Coulter

tenth edition


Learning OutcomesLearning OutcomesFollow this Learning Outline as you read and study Follow this Learning Outline as you read and study this chapter.this chapter.

2.1 Historical Background Of Management.

• Explain why studying management history is important.Explain why studying management history is important.

• Describe some early evidences of management practice.Describe some early evidences of management practice.

• Describe two important historical events that are significant to Describe two important historical events that are significant to the study of management.the study of management.

2.2 Classical Approach.Classical Approach.

• Describe the important contributions made by Frederick W. Describe the important contributions made by Frederick W. Taylor and Frank and Lillian Gilbreth.Taylor and Frank and Lillian Gilbreth.

• Discuss Fayol’s and Weber’s contributions to management Discuss Fayol’s and Weber’s contributions to management theory.theory.

• Explain how today’s managers use scientific management and Explain how today’s managers use scientific management and general administrative theory.general administrative theory.


Learning OutcomesLearning Outcomes2.3 Quantitative Approach.

• Explain what the quantitative approach has Explain what the quantitative approach has contributed to the field of management.contributed to the field of management.

• Describe total quality management.

• Discuss how today’s managers use the quantitative Discuss how today’s managers use the quantitative approachapproach..

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.


Learning OutcomesLearning Outcomes

2.5 Contemporary Approach

• Describe an organization using the systems approach.Describe an organization using the systems approach.

• Discuss how the systems approach helps us Discuss how the systems approach helps us understand management.understand management.

• Explain how the contingency approach is appropriate Explain how the contingency approach is appropriate for studying managementfor studying management.


Historical Background of Historical Background of ManagementManagement• Ancient ManagementAncient Management

Egypt (pyramids) and China (Great Wall)Egypt (pyramids) and China (Great Wall)

• Adam SmithAdam Smith Published Published The Wealth of Nations The Wealth of Nations in 1776in 1776

Advocated the division of labor (job specialization) to Advocated the division of labor (job specialization) to increase the productivity of workersincrease the productivity of workers

• Industrial RevolutionIndustrial Revolution Substituted machine power for human laborSubstituted machine power for human labor Created large organizations in need of managementCreated large organizations in need of management


Exhibit 2–1 Major Approaches to ManagementExhibit 2–1 Major Approaches to Management


Major Approaches to Major Approaches to ManagementManagement

• ClassicalClassical• QuantitativeQuantitative• BehavioralBehavioral• ContemporaryContemporary


Scientific ManagementScientific Management• Fredrick Winslow TaylorFredrick Winslow Taylor

The “father” of scientific managementThe “father” of scientific management

Published Published Principles of Scientific ManagementPrinciples of Scientific Management (1911) (1911) The theory of scientific managementThe theory of scientific management

– Using scientific methods to define the “one best way” for a Using scientific methods to define the “one best way” for a job to be done:job to be done:

• Putting the right person on the job with the correct tools Putting the right person on the job with the correct tools and equipment.and equipment.

• Having a standardized method of doing the job.Having a standardized method of doing the job.

• Providing an economic incentive to the worker.Providing an economic incentive to the worker.


Exhibit 2–2 Taylor’s Scientific Management PrinciplesExhibit 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.


Scientific Management (cont’d)Scientific Management (cont’d)• Frank and Lillian GilbrethFrank and Lillian Gilbreth

Focused on increasing worker productivity through Focused on increasing worker productivity through the reduction of wasted motionthe reduction of wasted motion

Developed the microchronometer to time worker Developed the microchronometer to time worker motions and optimize work performancemotions and optimize work performance

• How Do Today’s Managers Use Scientific How Do Today’s Managers Use Scientific Management?Management? Use time and motion studies to increase productivityUse time and motion studies to increase productivity Hire the best qualified employeesHire the best qualified employees Design incentive systems based on outputDesign incentive systems based on output


General Administrative TheoryGeneral Administrative Theory• Henri FayolHenri Fayol

Believed that the practice of management was distinct Believed that the practice of management was distinct from other organizational functions from other organizational functions

Developed principles of management that applied to Developed principles of management that applied to all organizational situationsall organizational situations

• Max WeberMax Weber Developed a theory of authority based on an ideal Developed a theory of authority based on an ideal

type of organization (bureaucracy)type of organization (bureaucracy) Emphasized rationality, predictability, impersonality, technical Emphasized rationality, predictability, impersonality, technical

competence, and authoritarianismcompetence, and authoritarianism


Exhibit 2–3 Fayol’s 14 Principles of Exhibit 2–3 Fayol’s 14 Principles of Management Management

1.1. Division of workDivision of work

2.2. AuthorityAuthority

3.3. DisciplineDiscipline

4.4. Unity of commandUnity of command

5.5. Unity of directionUnity of direction

6.6. Subordination of Subordination of individual interests individual interests to the general to the general interestinterest

7.7. RemunerationRemuneration

8.8. CentralizationCentralization

9.9. Scalar chainScalar chain

10.10. OrderOrder

11.11. EquityEquity

12.12. Stability of tenure Stability of tenure of personnelof personnel

13.13. InitiativeInitiative

14.14. Esprit de corpsEsprit de corps


Exhibit 2–4Exhibit 2–4 Weber’s BureaucracyWeber’s Bureaucracy


Quantitative Approach to Quantitative Approach to ManagementManagement

• Quantitative ApproachQuantitative Approach Also called Also called operations researchoperations research or or management management

sciencescience Evolved from mathematical and statistical methods Evolved from mathematical and statistical methods

developed to solve WWII military logistics and quality developed to solve WWII military logistics and quality control problemscontrol problems

Focuses on improving managerial decision making by Focuses on improving managerial decision making by applying:applying: Statistics, optimization models, information models, and Statistics, optimization models, information models, and

computer simulationscomputer simulations


Exhibit 2–5 What Is Quality Management? 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


Understanding Organizational Understanding Organizational Behavior Behavior • Organizational Behavior (OB)Organizational Behavior (OB)

The study of the actions of people at work; people are The study of the actions of people at work; people are the most important asset of an organizationthe most important asset of an organization

• Early OB AdvocatesEarly OB Advocates Robert OwenRobert Owen

Hugo MunsterbergHugo Munsterberg

Mary Parker FollettMary Parker Follett

Chester BarnardChester Barnard


Exhibit 2–6Exhibit 2–6 Early Advocates of OB Early Advocates of OB


•A series of productivity experiments conducted A series of productivity experiments conducted at Western Electric from 1924 to 1932.at Western Electric from 1924 to 1932.

•Experimental findingsExperimental findingsProductivity unexpectedly increased under imposed Productivity unexpectedly increased under imposed adverse working conditions.adverse working conditions.The effect of incentive plans was less than The effect of incentive plans was less than expected.expected.

•Research conclusionResearch conclusionSocial norms, group standards and attitudes more Social norms, group standards and attitudes more strongly influence individual output and work behavior strongly influence individual output and work behavior than do monetary incentives.than do monetary incentives.

The Hawthorne StudiesThe Hawthorne Studies


The Systems ApproachThe Systems Approach• System DefinedSystem Defined

A set of interrelated and interdependent parts A set of interrelated and interdependent parts arranged in a manner that produces a unified whole.arranged in a manner that produces a unified whole.

• Basic Types of SystemsBasic Types of Systems Closed systemsClosed systems

Are not influenced by and do not interact with their Are not influenced by and do not interact with their environment (all system input and output is internal).environment (all system input and output is internal).

Open systemsOpen systems Dynamically interact to their environments by taking in inputs Dynamically interact to their environments by taking in inputs

and transforming them into outputs that are distributed into and transforming them into outputs that are distributed into their environments.their environments.


Exhibit 2–7 The Organization as an Open Exhibit 2–7 The Organization as an Open System System


Implications of the Systems Implications of the Systems ApproachApproach• Coordination of the organization’s parts is Coordination of the organization’s parts is

essential for proper functioning of the entire essential for proper functioning of the entire organization.organization.

• Decisions and actions taken in one area of the Decisions and actions taken in one area of the organization will have an effect in other areas of organization will have an effect in other areas of the organization.the organization.

• Organizations are not self-contained and, Organizations are not self-contained and, therefore, must adapt to changes in their therefore, must adapt to changes in their external environment.external environment.


The Contingency ApproachThe Contingency Approach• Contingency Approach DefinedContingency Approach Defined

Also sometimes called the Also sometimes called the situational approach.situational approach.

There is no one universally applicable set of There is no one universally applicable set of management principles (rules) by which to manage management principles (rules) by which to manage organizations.organizations.

Organizations are individually different, face different Organizations are individually different, face different situations (contingency variables), and require situations (contingency variables), and require different ways of managing.different ways of managing.


Exhibit 2–8Exhibit 2–8 Popular Contingency VariablesPopular 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.


Terms to KnowTerms to Know• division of labor (or job division of labor (or job

specialization)specialization)

• Industrial RevolutionIndustrial Revolution

• scientific managementscientific management

• therbligstherbligs

• general administrative general administrative theorytheory

• principles of managementprinciples of management

• bureaucracybureaucracy

• quantitative approachquantitative approach

• organizational behavior organizational behavior (OB)(OB)

• Hawthorne StudiesHawthorne Studies

• systemsystem

• closed systemsclosed systems

• open systemsopen systems

• contingency approachcontingency approach

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