Chapter 2

2/23/2009

LEARNING OUTLINE
Follow this Learning Outline as you read and study this chapter.

• Historical Background of Management
• Explain why studying management history is important.
ninth edition
• Describe some early evidences of management practice.
STEPHEN P. ROBBINS MARY COULTER
• Scientific Management
g
Chapter • Describe the important contributions made by Fredrick
Management W. Taylor and Frank and Lillian Gilbreth.

2 Yesterday and Today • Explain how today’s managers use scientific
management.
today’

© 2007 Prentice Hall, Inc. PowerPoint Presentation by Charlie Cook
© 2007 Prentice Hall, Inc. All rights reserved. 2–2
All rights reserved. The University of West Alabama

L E A R N I N G O U T L I N E (cont’d)
(cont’ L E A R N I N G O U T L I N E (cont’d)
(cont’
Follow this Learning Outline as you read and study this chapter. Follow this Learning Outline as you read and study this chapter.

• General Administrative Theory • Toward Understanding Organizational Behavior
• Discuss Fayol’s contributions to management theory.
Fayol’ • Describe the contributions of the early advocates of OB.
• Describe Max Weber’s contribution to management
Weber’ • Explain the contributions of the Hawthorne Studies to the
theory. field of management.
• Explain how today’s managers use general administrative
today’ • Discuss how today’s managers use the behavioral
today’
theory. approach.

• Quantitative Approach • The Systems Approach
• Explain what the quantitative approach has contributed to • Describe an organization using the systems approach.
the field of management.
• Discuss how the systems approach helps us
• Discuss how today’s managers use the quantitative
today’ management.
approach.

© 2007 Prentice Hall, Inc. All rights reserved. 2–3 © 2007 Prentice Hall, Inc. All rights reserved. 2–4

L E A R N I N G O U T L I N E (cont’d)
(cont’ Historical Background of Management
Follow this Learning Outline as you read and study this chapter.
• Ancient Management
• The Contingency Approach Egypt (pyramids) and China (Great Wall)
• Explain how the contingency approach differs from the Venetians (floating warship assembly lines)
early theories of management.
• Adam Smith
• Discuss how the contingency approach helps us Published “The Wealth of Nations” in 1776
Nations”
understand management.
management
Advocated the division of labor (job specialization) to increase
• Current Issues and Trends the productivity of workers
• Explain why we need to look at the current trends and • Industrial Revolution
issues facing managers.
Substituted machine power for human labor
• Describe the current trends and issues facing managers. Created large organizations in need of management


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Exhibit 2–1 Development of Major Management Theories
2– Major Approaches to Management
• Scientific Management
• General Administrative Theory
• Quantitative Management
• Organizational Behavior
• Systems Approach
• Contingency Approach


Scientific Management Exhibit 2–2 Taylor’s Four Principles of Management
2– Taylor’

• Fredrick Winslow Taylor
1. Develop a science for each element of an individual’s work,
The “father” of scientific management
father” which will replace the old rule-of-thumb method.
Published Principles of Scientific Management (1911) 2. Scientifically select and then train, teach, and develop the
worker.
The theory of scientific management
3. Heartily cooperate with the workers so as to ensure that all
– Using scientific methods to define the “one best way” for a
way”
work is done in accordance with the principles of the science
job to be done:
that has been developed.
• Putting the right person on the job with the correct tools
and equipment. 4. Divide work and responsibility almost equally between
management and workers. Management takes over all work
• Having a standardized method of doing the job. for which it is better fitted than the workers.
• Providing an economic incentive to the worker.


Scientific Management (cont’d)
(cont’ General Administrative Theory
• Frank and Lillian Gilbreth • Henri Fayol
Focused on increasing worker productivity through Believed that the practice of management was distinct
the reduction of wasted motion from other organizational functions
Developed the microchronometer to time worker Developed fourteen principles of management that
motions and optimize work performance applied to all organizational situations
• How D T d ’s M
H Do Today Managers U S i tifi
Today’ Use Scientific •M W b
Max Weber
Management? Developed a theory of authority based on an ideal
Use time and motion studies to increase productivity type of organization (bureaucracy)
Hire the best qualified employees Emphasized rationality, predictability, impersonality, technical
competence, and authoritarianism
Design incentive systems based on output


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Exhibit 2–3 Fayol’s 14 Principles of Management
2– Fayol’ Exhibit 2–4 Weber’s Ideal Bureaucracy
Weber’

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.


Quantitative Approach to Management Understanding Organizational Behavior
• Quantitative Approach • Organizational Behavior (OB)
Also called operations research or management The study of the actions of people at work; people are
science the most important asset of an organization
Evolved from mathematical and statistical methods • Early OB Advocates
developed to solve WWII military logistics and quality
control problems Robert Owen
Focuses on improving managerial decision making by Hugo Munsterberg
applying: Mary Parker Follett
Statistics, optimization models, information models, and Chester Barnard
computer simulations


Exhibit 2–5 Early Advocates of OB
2– The Hawthorne Studies
•A series of productivity experiments conducted
at Western Electric from 1927 to 1932.

•Experimental findings
Productivity unexpectedly increased under imposed
adverse working conditions.
d ki diti
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.

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The Systems Approach Exhibit 2–6 The Organization as an Open System
2–

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


Implications of the Systems Approach The Contingency Approach
• Coordination of the organization’s parts is
organization’ • Contingency Approach Defined
essential for proper functioning of the entire Also sometimes called the situational approach.
organization.
There is no one universally applicable set of
• Decisions and actions taken in one area of the management principles (rules) by which to manage
organization will have an effect in other areas of
g organizations.
the organization. Organizations are individually different, face different
situations (contingency variables), and require
• Organizations are not self-contained and,
self- different ways of managing.
therefore, must adapt to changes in their
external environment.


Exhibit 2–7 Popular Contingency Variables
2– Current Trends and Issues
• Organization size • Globalization
• As size increases, so do the problems of coordination. • Ethics
• Routineness of task technology • Workforce Diversity
• Routine technologies require organizational structures,
leadership styles, and control systems that differ from • Entrepreneurship
those required by customized or nonroutine technologies. • E-business
• Environmental uncertainty • Knowledge Management
• What works best in a stable and predictable environment
may be totally inappropriate in a rapidly changing and • Learning Organizations
unpredictable environment.
• Quality Management
• Individual differences
• Individuals differ in terms of their desire for growth,
autonomy, tolerance of ambiguity, and expectations.

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Current Trends and Issues (cont’d)
(cont’ Exhibit 2–8 A Process for Addressing Ethical Dilemmas
2–

• Globalization
Management in international organizations Step 1: What is the ethical dilemma?
Political and cultural challenges of operating in a Step 2: Who are the affected stakeholders?
global market
Working with people from different cultures Step 3: What personal, organizational, and
Coping with anticapitalist backlash
external factors are important to
Movement of jobs to countries with low-cost labor
low-
my decision?
• Ethics
Increased emphasis on ethics education in college Step 4: What are possible alternatives?
curriculums
Increased creation and use of codes of ethics by Step 5: Make a decision and act on it.
businesses


(cont’ Current Trends and Issues (cont’d)
(cont’
• Workforce Diversity • Entrepreneurship Defined
Increasing heterogeneity in the workforce The process of starting new businesses, generally in
More gender, minority, ethnic, and other forms of diversity in response to opportunities.
employees
Aging workforce • Entrepreneurship process
O de employees
Older e p oyees who work longer a d do not retire
o o o ge and ot et e Pursuit of opportunities
pp
The increased costs of public and private benefits for older Innovation in products, services, or business methods
workers
An increasing demand for products and services related to
Desire for continual growth of the organization
aging.


(cont’ Exhibit 2–9 Categories of E-Business Involvement
2– E-

• E-Business (Electronic Business)
The work preformed by an organization using
electronic linkages to its key constituencies
E-commerce: the sales and marketing aspect of an e-
e-
business
• Categories of E-Businesses
E-
E-business enhanced organization
E-business enabled organization
Total e-business organization
e-


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(cont’ Exhibit 2–10 Learning Organization versus Traditional Organization

• Learning Organization
An organization that has developed the capacity to
continuously learn, adapt, and change.
• Knowledge Management
The cultivation of a learning culture where
g
organizational members systematically gather and
share knowledge with others in order to achieve
better performance.


(cont’ Exhibit 2–11 What is Quality Management?
2–

• Quality Management Intense focus on the customer.
A philosophy of management driven by continual
improvement in the quality of work processes and Concern for continual improvement
responding to customer needs and expectations
Process-focused.
Inspired by the total quality management (TQM) ideas
of Deming and Juran Improvement in the quality of everything.
everything
Quality is not directly related to cost Accurate measurement.
Poor quality results in lower productivity
Empowerment of employees.


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