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Management                                                                tenth edition

  Stephen P. Robbins                                                   Mary Coulter



                        Chapter
                                                 Management
                            2                    History

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
                                                                                          2–1
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
                                                                        2–2
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




Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
                                                                       2–3
Exhibit 2–1 Major Approaches to Management




Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
                                                                       2–4
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
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
                                                                          2–6
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
                                                                              2–7
Exhibit 2–3 Fayol’s 14 Principles of
            Management
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
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
                                                                                            2–8
Exhibit 2–4 Weber’s Bureaucracy




Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
                                                                       2–9
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
                                                                        2–10
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
                                                                       2–11
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
                                                                       2–12
The Hawthorne Studies
•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.
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
                                                                       2–13
Exhibit 2–7 The Organization as an Open
            System




Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
                                                                       2–14
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
                                                                       2–15
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
                                                                       2–16
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.
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
                                                                       2–17

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Ch 2 Management History

  • 1. Management tenth edition Stephen P. Robbins Mary Coulter Chapter Management 2 History Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–1
  • 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 2–2
  • 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 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–3
  • 4. Exhibit 2–1 Major Approaches to Management Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–4
  • 5. 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
  • 6. 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 2–6
  • 7. 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 2–7
  • 8. Exhibit 2–3 Fayol’s 14 Principles of Management 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 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–8
  • 9. Exhibit 2–4 Weber’s Bureaucracy Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–9
  • 10. 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 2–10
  • 11. 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 2–11
  • 12. 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 2–12
  • 13. The Hawthorne Studies •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. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–13
  • 14. Exhibit 2–7 The Organization as an Open System Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–14
  • 15. 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 2–15
  • 16. 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 2–16
  • 17. 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. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2–17