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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
Follow this Learning Outline as you read and study
this chapter.
2.1 Historical Background Of Management.
2.2 Classical Approach.
2.3 Quantitative Approach.
2.4 Behavioral Approach
2.5 Contingency/Contemporary Approach
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–3
Historical Background of
Management
• Ancient Management
Egypt (pyramids) and China (Great Wall)
Venetians (floating warship assembly lines)
• Adam Smith
Published The Wealth of Nations in 1776
• Industrial Revolution
An elephant model by blind men
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–4
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–5
Exhibit 2–1 Major Approaches to Management
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Scientific Management
• Fredrick Winslow Taylor
The “father” of scientific management
Published Principles of Scientific Management (1911)
Says “Management is a science. There is one
best way and one best person to do the task. I
love efficiency and I love to study people at
work. Management should be an academic
discipline.” (He had a point…)
His work influenced:
Bringing psychology into the workplace
Gantt Chart and planning
Harvard University Offering Management Degree
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–7
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
2–8
General Administrative Theory
• Henri Fayol
Principles of Management
• 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
2–9
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
Team spirit,
harmony, unity
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–10
Exhibit 2–4 Weber’s Bureaucracy
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–11
Quantitative Approach to
Management
• Quantitative Approach
Evolved from mathematical and statistical methods
developed to solve WWII military logistics and quality
control problems
 British and American military had developed techniques using
math/stats to plan for attacks, convoy sizes, bombing raids,
etc…
Focuses on improving managerial decision making by
applying:
 Statistics, optimization models, information models, and
computer simulations
 Computers do most of this work today
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–12
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
2–13
Understanding Organizational
Behavior
• Organizational Behavior (OB)
People are the MOST important asset of an
organization or firm (True or False?)
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–14
•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
Contemporary Approach
• External environment outside the boundaries of
the organization
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–15
Contemporary
Approach
Systems
theory
Open system Close system
Contingency
approach
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–16
Exhibit 2–7 The Organization as an Open
System
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–17
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
2–18
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
2–19
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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Management History

  • 1. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–1 Management History Chapter 2 Management Stephen P. Robbins Mary Coulter tenth edition
  • 2. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–2 Learning Outcomes Follow this Learning Outline as you read and study this chapter. 2.1 Historical Background Of Management. 2.2 Classical Approach. 2.3 Quantitative Approach. 2.4 Behavioral Approach 2.5 Contingency/Contemporary Approach
  • 3. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–3 Historical Background of Management • Ancient Management Egypt (pyramids) and China (Great Wall) Venetians (floating warship assembly lines) • Adam Smith Published The Wealth of Nations in 1776 • Industrial Revolution
  • 4. An elephant model by blind men Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–4
  • 5. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–5 Exhibit 2–1 Major Approaches to Management
  • 6. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Scientific Management • Fredrick Winslow Taylor The “father” of scientific management Published Principles of Scientific Management (1911) Says “Management is a science. There is one best way and one best person to do the task. I love efficiency and I love to study people at work. Management should be an academic discipline.” (He had a point…) His work influenced: Bringing psychology into the workplace Gantt Chart and planning Harvard University Offering Management Degree
  • 7. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–7 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.
  • 8. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–8 General Administrative Theory • Henri Fayol Principles of Management • Max Weber Developed a theory of authority based on an ideal type of organization (bureaucracy)  Emphasized rationality, predictability, impersonality, technical competence, and authoritarianism
  • 9. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–9 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 Team spirit, harmony, unity
  • 10. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–10 Exhibit 2–4 Weber’s Bureaucracy
  • 11. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–11 Quantitative Approach to Management • Quantitative Approach Evolved from mathematical and statistical methods developed to solve WWII military logistics and quality control problems  British and American military had developed techniques using math/stats to plan for attacks, convoy sizes, bombing raids, etc… Focuses on improving managerial decision making by applying:  Statistics, optimization models, information models, and computer simulations  Computers do most of this work today
  • 12. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–12 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
  • 13. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–13 Understanding Organizational Behavior • Organizational Behavior (OB) People are the MOST important asset of an organization or firm (True or False?)
  • 14. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–14 •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
  • 15. Contemporary Approach • External environment outside the boundaries of the organization Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–15 Contemporary Approach Systems theory Open system Close system Contingency approach
  • 16. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–16 Exhibit 2–7 The Organization as an Open System
  • 17. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–17 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.
  • 18. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–18 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.
  • 19. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–19 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.