2.1 Historical Background Of Management. 2.2 Classical Approach. 2.3 Quantitative Approach. 2.4 Behavioral Approach 2.5 Contingency/Contemporary Approach

1. Management
History
Chapter
2
Management
Stephen P. Robbins Mary Coulter

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. Historical Background of
Management
Ancient Management
 Egypt (pyramids), China (Great Wall), the Qutab Minar and Taj
Mehal are tangible evidence that projects of tremendous scope,
employing tens of thousands of people completed in ancient times
 In Venice, warships were floated among the canals and it was look
like a car “floating” along an automobile assembly line
 Adam Smith published “Wealth of Nations” in which he argued
about division of labor (or job specialization) by using example
of pin industry
 In late 18th century Industrial Revolution changed management
history and human power was replaced by machine power
 In Industrial Revolution factories were established and someone
had to forecast demand, ensuring availability of raw material,
assigning tasks and directing daily activities

4. Exhibit 2–1 Major Approaches to Management

5. Approaches to Management
1. Classical Approach
 Formal study of management began until early in 20th
century and these first studies of management called
Classical Approach
 It emphasized rationality and making organizations and
workers as efficient as possible
 This classical approach consisted two major theories
(a) Scientific Management
(b) General Administrative Theory

6. 1. Classical Approach
• 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
(A) Scientific Management:

7. 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. 1. Classical Approach
(b) General Administrative Theory
 An approach to management that focuses on describing what
managers do and what constitutes good management practices
 The two prominent individuals behind this theory were Henri
Fayol and Max Weber
Henri Fayol:
 Fayol first identified five functions of management planning,
organizing, commanding, coordinating and controlling
 Taylor was concerned with first-line managers while Fayal's
attention was directed at all levels of management
 Henri Fayol developed 14 Principles of Management------
Fundamental rules of management that could be applied in all
organizational structures and taught in schools

9. (b) General Administrative Theory
Max Weber
 Weber was a German Sociologist and in 1900 he developed a theory
of authority structures and relations based on an ideal type of
organization he called a Bureaucracy
 Bureaucracy----- A form of organization characterized by division of
labor, a clearly defined hierarchy, detailed rules and regulations and
impersonal relationships
Use of General Administrative Theory in Recent World
 Functional view of a manger’s job can be attributed to Fayol
 Many current management concepts-----such as managerial authority,
centralized decision making, reporting to only one boss have evolved
from Fayal's 14 Principles of Management
 Weber’s bureaucratic model is still applicable in many organizations
such as UTV and Infosays but in present world it is not considered too
much effective because it hinders employee creativity and efficiency

10. (b) 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

11. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–11
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

12. 2–12
Exhibit 2–4 Weber’s Bureaucracy

13. 2. Quantitative Approach to Management
 The use of quantitative techniques to improve decision
making and this approach is also known as Management
Science
 Evolved from mathematical and statistical methods developed
to solve WW-II 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

14. 2. Quantitative Approach to Management
Total Quality Management (TQM):
 A quality revolution swept through both business and public sectors
in 1980s and 1990s
 It was inspired by a small group of quality experts, the most famous
being W. Edwards Deming and Joseph M. Juran and their ideas
and techniques became the basis for today’s quality management
programs
 TQM is a management philosophy devoted to continual
improvement and responding to customer needs and expectations
 TQM was a departure from earlier management approaches that
were based on the belief that keeping costs low is the only way to
improve productivity
 The Japanese demonstrated that it was possible for the highest
quality manufacturers to be among the lowest-cost producers

15. Exhibit 2–5 What Is Quality Management?
 Intense focus on the Customer---Both Internal and External
 Concern for Continual Improvement---- Being not satisfied
 Process-Focused------ Focus on work processes
 Improvement in the Quality of Everything----- In each and
every aspect of the organization
 Accurate Measurement---- Statistical techniques are used
to measure every critical variable in an organization and
then these are compared with set standards e.g. 6-Sigma
 Empowerment of Employees------Decentralized
organizational environment and teams are widely used to
find and fix the quality problems

16. 2. Quantitative Approach to Management
How Today’s Managers use Quantitative Approach
 Queue Management: Science of keeping lines moving--- Many
organizations use queuing theory for their customers in order to
avoid rush and customer dissatisfaction e.g. Indian Railway uses
Railway Reservation Systems
 Call centers also use the same logic to queue the receiver’s call
 Tour operators make their real time availability and confirmation
to the domestic and inbound travelers in the City Tour in India
 The Quantitative Approach contributes directly to management
decision making in the areas of planning and control
 In organizations many activities like budgeting, queuing,
scheduling, quality control and similar techniques based on
quantitative approach to management

17. 3. Behavioral Approach
Organizational Behavior (OB)
“The field of study that researches the actions (behaviors)
of people at workplace is called OB”.
 Much of what managers do today when managing people----
motivating, leading, building trust, working with a team,
managing conflict and so forth--- has come out of OB research
Early Advocates of Organizational Behavior
 Four personalities stand out as early advocates of OB approach:
Robert Owen, Hugo Munsterberg, Mary Parker and Chester Bernard
 Inspite of their distinctive work they all were believed that people are
the most important asset of an organization and must be managed
accordingly
 Their ideas provided the foundation for such management practices
as employee selection procedures, motivation programs, and work
teams

18. 3. Behavioral Approach
How Today’s Managers Use the Behavioral Approach
 From the way that mangers design jobs to the way that they
work with employee teams to the way that they communicate,
we see elements of behavioral approach
 Much of what the early advocates of OB proposed and the
conclusions of the Hawthorne Studies have provided the
foundation for our current theories of motivation, leadership,
group behavior and development, and numerous other
behavioral approaches

19. Understanding Organizational
Behavior
• Organizational Behavior (OB)
People are the MOST important asset of an
organization or firm (True or False?)

20. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–20
•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

21. 4. Contemporary Approach
 Previous three approaches to management were focused
on manager’s concerns Inside and organization but due to
Contemporary Approach researchers began to look in the
external environment of the organization
 Two contemporary management perspectives are part of
this approach
(a) Systems Theory
(b) Contingency Approach

22. 4. Contemporary Approach
(a) Systems Theory
 In 1960 the management researchers began to look more
carefully at systems theory and it was considered that system
theory is a basic theory in the physical sciences and it can also
be applied to organized human efforts
System: A system is a set of interrelated and interdependent
parts arranged in a manner that produces a unified whole
(i) Closed Systems: Systems that are not influenced by and do
not interact with their environment
(ii) Open Systems: Systems that are interact with their
environment
 Today when we describe organizations as systems-----we mean
Open Systems

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

24. 4. Contemporary Approach
Implications of the Systems Approach
• Coordination of the organization’s parts is essential for proper
functioning of the entire organization (i.e.: For production and
operations their must be strong coordination among, marketing,
finance, HR and SCM functions)
• Decisions and actions taken in one area of the organization will
have an effect in other areas of the organization (i.e.; If purchasing
department does not acquire the right quantity and quality of inputs
it will suffer the activities of production department)
• Organizations are not self-contained and, therefore, must adapt to
changes in their external environment (i.e.: They rely on their
environment for essential inputs and as outlets to absorb their
outputs----Organizations should not ignore Govt. regulations,
supplier relations or varied external constituencies on which it
depends)

25. 4. Contemporary Approach
(b) The Contingency Approach
 The early management theorists focuses on principles that
they generally assumed to be universally applicable
 In later research many exceptions were found e.g.: Inspite of
division of labor jobs can be too specialized, In many
situations other structural designs are important than that of
Bureaucracy
 The Contingency Approach---- Also called Situational
Approach, a management approach which says that
organizations are different, face different situations and
require different ways of managing
 There is no one universally applicable set of management
principles (rules) by which to manage organizations

26. 4. Contemporary Approach
The Contingency Approach and Managers
 A good way to describe Contingency is “If, the”: If this is the
way my situation is, then this is the best way for me to
mange in this situation
 This approach is intuitively logical because organizations and
even units within the same organizations differ----in terms of
size, goals, work activities and the like
 Management researches continue working on these
situational variables and more than 100 different variables
have been identified
 The primary value of contingency approach is that it stresses
that there are no simplistic or universal rules for managers to
follow

27. 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.