MANAGEMENT

HISTORY MODULE

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-1
1a - 1
 LEARNING OBJECTIVES

1. Describe some early management examples.

2. Explain the various theories in the classical approach.
3. Discuss the development and uses of the behavioral
approach.
4. Describe the quantitative approach.
5. Explain the various theories in the contemporary approach.

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-2
 EARLY MANAGEMENT
Ancient Management
Egypt (pyramids) 10,000 workers to
construct one pyramid
City of Venice Venetians developed
early form of business enterprise
E.g.: Arsenal of Venice (warship)
Organize people and material, control, warehouse and
inventory system, HR function

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-3
 EARLY MANAGEMENT
Adam Smith The Wealth of Nations in 1776
Division of labor (job specialization) the
breakdown of jobs into narrow and repetitive
tasks.
Division of labor increased productivity increase skill and dexterity and
save time

Industrial Revolution
Substituted machine power for human labor
Created large organizations in need of
management
Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-4
 EXHIBIT MH-1
MAJOR APPROACHES TO MANAGEMENT

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-5
 CLASSICAL APPROACH
Classical approach first studies of
management, which emphasized
rationality and making organizations and
workers as efficient as possible.

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-6
 CLASSICAL APPROACH :
SCIENTIFIC MANAGEMENT
Fredrick Winslow Taylor
The father of scientific management
Scientific management an approach
that involves using the scientific method to
find the one best way for a job to be
done.

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-7
 TAYLORS SCIENTIFIC
MANAGEMENT PRINCIPLES

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-8
 DRAWBACKS TO SCIENTIFIC MANAGEMENT
It reduced the workers role to that of rigid adherence to methods and
procedures
It generated a carrot-and-stick approach to the motivation of employees
by enabling pay to be geared tightly to output
Led to fragmentation of work on account of its emphasis on the analysis
and organisation of individual tasks or operations
Planning and controlling of workplace activities exclusively in the hands of
the management
It ruled out any realistic bargaining about wage rates since every job was
measured, timed and rated scientifically
The creation of boring, repetitive jobs
The introduction of systems for tight control over work
The alienation of shop-floor employment from their management

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-9
BENEFITS OF SCIENTIFIC MANAGEMENT
Its a rational approach to the organisation of work enabled tasks and
processes to be measured with a considerable degree of accuracy
Measurement of tasks and processes provide useful information on
which to base improvements in working methods, plant design
By providing working methods it brought enormous increases in
productivity
Employees were paid by results
Stimulated managements into adopting a more positive role in
leadership at the shop-floor level
Contributed improvements in physical working conditions for
employees
It provided the foundations on which modern work study and other
quantitative techniques could be soundly based

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-10
 FRANK AND LILLIAN GILBRETH

Eliminate inefficient
hand and body motions
Devised Therbligs a
classification scheme for
labeling basic hand
motions 17 basic
motion such as search,
grasp, hold

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-11
TODAYS MANAGERS AND SCIENTIFIC MANAGEMENT

Many guidelines and techniques for

improving production efficiency are still used
in organization today.
Using time and motion study to eliminate
wasted motion
Hiring the best qualified workers
Designing incentive system based on
output
Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-12
 CLASSICAL APPROACH :
GENERAL ADMINISTRATIVE THEORY

General administrative theory an

approach to management that focuses on
describing what managers do and what
constitutes good management practice.

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-13
 HENRI FAYOL

Principles of
management
Fundamental rules of
management that could be
applied in all organizational
situations and taught in
schools.

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-14
 EXHIBIT MH-3
FAYOLS 14 PRINCIPLES OF MANAGEMENT

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-15
 EXHIBIT MH-3
FAYOLS 14 PRINCIPLES OF MANAGEMENT (CONT.)

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-16
 CLASSICAL APPROACH :
GENERAL ADMINISTRATIVE THEORY
Bureaucracy
a form of organization
characterized by division of labor,
a clearly defined hierarchy,
detailed rules and regulations,
and impersonal relationships.
- Basis for theorizing about
how work could be done in
large group
- This become the structural
design for many of todays
large organisation

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-17
 EXHIBIT MH-4
CHARACTERISTICS OF WEBERS BUREAUCRACY

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-18
 BEHAVIORAL APPROACH
Organizational behavior (OB) the study of the actions
of people at work.
managing peoplemotivating, leading, building trust,
working with a team, managing conflict, and so
forthhas come out of OB research.
Early OB Advocates
Robert Owen
Hugo Munsterberg
Mary Parker Follett
Chester Barnard

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-19
 EXHIBIT MH-5
EARLY OB ADVOCATES

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-20
 BEHAVIORAL APPROACH:
THE HAWTHORNE STUDIES
Hawthorne Studies a series of studies
during the 1920s and 1930s that provided
new insights into individual and group
behavior.
The effect of lighting on worker
productivity

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-21
 TODAYS MANAGERS AND BEHAVIORAL APPROACH

Largely shaped how today organisation are managed.

The way managers design job
The way they work with team
The way they communicate
Proposal and conclusion of OB advocates and Hawthorne
studies provided foundation:
Theories of motivation
Theories of leadership
Group behavior and development

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-22
THE QUANTITATIVE APPROACH

Quantitative approach
the use of quantitative
techniques to improve
decision making.
Evolved from
mathematical and
statistical solution
developed for military
problems

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-23
 QUANTITATIVE APPROACH:
TOTAL QUALITY MANAGEMENT (TQM)

Quality revolution W.
Edwards Deming and Joseph
M. Juran
Total quality management
(TQM) a philosophy of
management that is driven by
continuous improvement and
responsiveness to customer
needs and expectations.

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-24
1a - 24
 TODAYS MANAGERS AND QUANTITATIVE APPROACH

Queue Management
Budgeting
Scheduling
Quality control

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-25
 EXHIBIT MH-6
WHAT IS QUALITY MANAGEMENT?

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-26
 CONTEMPORARY APPROACHES
what was happening in the external environment
outside the boundaries of the organization
Two contemporary management perspectives
systems and contingencyare part of this approach
System a set of interrelated and interdependent parts
arranged in a manner that produces a unified whole.
Closed system systems that are not influenced by
and do not interact with their environment.
Open system systems that interact with their
environment.

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-27
 EXHIBIT MH-7
ORGANIZATION AS AN OPEN SYSTEM

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-28
 THE CONTINGENCY APPROACH
Contingency approach a management
approach that recognizes organizations as
different, which means they face different
situations (contingencies) and require
different ways of managing.

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-29
 EXHIBIT MH-8
POPULAR CONTINGENCY VARIABLES

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-30
 REVIEW LEARNING OBJECTIVE MH-1
Describe some early management examples.
Early examples of management practice in the
construction of the Egyptian pyramids.
Adam Smiths Wealth of Nations argued the benefits
of division of labor.
In the industrial revolution where it became more
economical to manufacture in factories than at home.

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-31
 REVIEW LEARNING OBJECTIVE MH-2
Explain the various theories in the classical
approach.
Frederick W. Taylor studied manual work using
scientific principles.
The Gilbreths studied efficient hand-and-body motions.
Fayol believed the functions of management were
common to all business endeavors.

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-32
REVIEW LEARNING OBJECTIVE MH-2 (CONT.)

Fayol developed 14 principles of

management.
Weber described an ideal type of
organization he called a bureaucracy.

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-33
 REVIEW LEARNING OBJECTIVE MH-3
Discuss the development and uses of the
behavioral approach.
Early OB advocates believed that people were the
most important asset of the organization and should
be managed accordingly.
The Hawthorne Studies dramatically affected
management beliefs about the role of people in
organizations.

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-34
REVIEW LEARNING OBJECTIVE MH-4
Describe the quantitative approach.
The quantitative approach involves applications of
statistics, optimization models, information models,
and computer simulations to management activities.
Total quality managementa management
philosophy devoted to continual improvement and
responding to customer needs and expectations
also makes use of quantitative methods to meet its
goals.

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-35
 REVIEW LEARNING OBJECTIVE MH-5
Explain the various theories in the
contemporary approach.
The systems approach says that an organization
takes in inputs (resources) from the environment and
transforms them into outputs that are distributed into
the environment.
The contingency approach says that organizations
are different, face different situations, and require
different ways of managing.

Copyright
Copyright
2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd. 1a-36