Management History
PREPARED BY: DR. HEBA SADEK

Agenda
⮚The Importance of Studying the History of Management
⮚Historical background includes: (Early examples of Management,
Adam Smith and the Industrial revolution)
⮚Classical Approaches
⮚Behavioral Approaches
⮚Quantitative Approach
⮚Contemporary Approaches
⮚The management themes of the 21st century

The Importance of Studying the History
of Management.
⮚Management philosophies and organization forms change
over time to meet new needs.
⮚Some ideas and practices from the past are still relevant and
applicable to management today.

1-Historical Background.
⮚ Early examples of Management such as:
• The Egyptian pyramids
• The great wall of China
⮚Two events are very significant to management history:
• 1st In 1776, Adam Smith published the wealth of nations in which
he focused on the “division of labor” “job specialization” the
breakdown of jobs into narrow and repetitive tasks.
• 2nd in the late eighteenth century, the industrial revolution started
when machine power was substituted for human power.

2-Classical Approaches

A- Scientific Management
⮚Scientific management (Frederick Taylor)
◦Define clear guidelines for improving production efficiency.
◦Develop rules of standardized work implements, and proper
working conditions for every job.
◦Carefully select workers with the right abilities for the job.
◦Carefully train workers and provide proper incentives.
◦Support workers by carefully planning their work and removing
obstacles.

A- Scientific Management
⮚Scientific management (the Gilbreths “Frank & Lillian Gilbreth)
◦ Motion study.
◦ Eliminating wasted motions improves performance.
“to eliminate inefficient hand and body motions”
◦ They invented a device called “microchronometer” that recorded a
worker’s motions and the amount of time spent doing each motion.

B- Administrative principles

B- Administrative principles

C- Bureaucratic Organization

How today’s managers benefit from
the classical approach?
⮚Many of the guidelines and techniques that Taylor and the
Gilbreths developed for improving production efficiency are
still used in organizations today.
⮚When managers analyse the basic work tasks that must be
performed, use time and motion study to eliminate wasted
motions, hire the best qualified workers for a job, or design
incentive systems based on output, they are using the
principles of scientific management.

How today’s managers benefit from
the classical approach?
⮚Several of our current management ideas and practices can be
directly traced to the contributions of general administrative
theory (14 principles serve as frame of reference from which
many current management concepts such as: managerial
authority, centralized decision making, reporting to only one
boss have evolved).
⮚Although many characteristics of Weber’s bureaucracy are
still evident in large organizations, his model is not popular
today as it was in the twentieth century. Many managers help
their employees to create, to innovate new ideas.

3-Behavioral Approaches
⮚Behavioral management (or human resource) approaches include:
◦ Hawthorne studies
◦ Maslow’s theory of human needs
◦ McGregor’s Theory X and Theory Y
◦ Argyris’s theory of adult personality

3-Behavioral Approaches

A- Hawthorne studies
◦Initial study examined how economic incentives and physical
conditions affected worker output. “No consistent
relationship found”.
◦“Psychological factors” influenced results.

⮚Factors that accounted for increased productivity
◦Group atmosphere
◦Participative supervision
⮚ Employee attitudes, interpersonal relations and group
processes
◦Some things satisfied some workers but not others.
◦People restricted output to obey to group norms.
⮚ Main Lesson
◦Social and human concerns as keys to productivity.
A- Hawthorne studies

B-Maslow’s theory
⮚Maslow’s theory of human needs
◦A need is a physiological or psychological deficiency a person
feels forced to satisfy.
◦Need levels
◦Physiological
◦Safety
◦Social
◦Esteem
◦Self-actualization

B-Maslow’s theory

⮚Maslow’s theory of human needs is based on two principles:
◦ Deficit principle
◦ A satisfied need is not a motivator of behavior.
◦ Progression principle
◦ A need becomes a motivator once the preceding lower-level
need is satisfied.
B-Maslow’s theory

C- McGregor’s Theory X & Y
⮚McGregor’s Theory X assumes
that workers:
◦Dislike work
◦Lack ambition
◦Are irresponsible
◦Resist change
◦Prefer to be led
⮚McGregor’s Theory Y
assumes that workers are:
◦Willing to work
◦Capable of self control
◦Willing to accept
responsibility
◦Imaginative and creative
◦Capable of self-direction

⮚McGregor’s Theory X and Theory Y
◦Managers create self-fulfilling predict
◦Theory X managers create situations where workers become
dependent and reluctant.
◦Theory Y managers create situations where workers respond
with initiative and high performance.
◦Central to notions of empowerment and self-management.
C- McGregor’s Theory X & Y

D- Argyris’s theory
⮚Argyris’s theory of adult personality
◦Classical management principles and practices inhibit worker
maturation and are inconsistent with the mature adult
personality.
◦Management should accommodate the mature personality.

⮚Argyris’s theory of adult personality
◦Management practices consistent with the mature adult
personality:
◦Increasing task responsibility
◦Increasing task variety
◦Using participative decision making
D- Argyris’s theory

How today’s managers benefit from
the behavioural approaches?
⮚The behavioural approach has largely shaped how today’s
organizations are managed. From the way that managers design
jobs to the way that they work with employee teams to the way
that they can communicate.
⮚The Hawthorne studies have provided the foundation for our
current theories of motivation, leadership, group behaviour
and development, and numerous other behavioural
approaches.

◦Scientific application of mathematical techniques to improve
managerial decision making.
◦Techniques and applications include:
◦Applying statistics
◦Mathematical forecasting
◦Inventory modeling
◦Linear programming
◦And other quantitative techniques to management activities
4- Quantitative Approach

4- Quantitative Approach
⮚Quantitative analysis today
◦ Use of staff specialists to help managers apply techniques.
◦ Good judgment and appreciation for human factors must
accompany use of quantitative analysis.

5-Contemporary Approaches
⮚Systems thinking
oSystem
◦Collection of interrelated parts that function together to achieve
a common purpose.
oSubsystem
◦A smaller component of a larger system.
oOpen systems
◦Organizations that interact with their environments in the
continual process of transforming resource inputs into outputs.

5-Contemporary Approaches

⮚Contingency thinking
◦Tries to match managerial responses with problems and
opportunities unique to different situations.
◦Especially individual or environmental differences.
◦No “one best way” to manage.
◦Appropriate way to manage depends on the situation.
5-Contemporary Approaches

What are the management
themes of the 21st century?
⮚Quality and performance excellence
◦ Managers and workers in progressive organizations are quality
conscious.
◦ Quality and competitive advantage are linked.
⮚Total quality management (TQM)
◦ Comprehensive approach to continuous quality improvement for
a total organization.
◦ Creates context for the value chain.

⮚Quality and performance excellence
◦ISO certification
◦Global quality benchmark.
◦Refine and upgrade quality to meet ISO standards
⮚Continuous improvement
◦Continual search for new ways to improve quality
◦Something always can and should be improved on
What are the management
themes of the 21st century?

⮚Knowledge Management
◦Knowledge management is the process of using intellectual
capital for competitive advantage
◦Portfolio of intellectual assets include patents, intellectual
property rights, trade secrets, and accumulated knowledge of
the entire workforce.
What are the management
themes of the 21st century?

⮚Learning organizations
What are the management
themes of the 21st century?

37
Types of E-Commerce
Business-to-Consumer B2C
Selling Products and
Services Online
Business-to-Business B2B
Transactions Between
Organizations
Consumer-to-Consumer C2C
Electronic Markets
Created by Web-Based
Intermediaries
What are the management
themes of the 21st century?

4th industrial revolution
(video)