• Describe some early management examples
• Explain the various theories in the classical approach
• Discuss the development and uses of the behavioral
approach
• Describe the quantitative approach
• Explain the various theories in the contemporary
approach
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Historical Background of
Management
• Ancient Management
– Egypt (pyramids) and China (Great Wall)
– Venetians (floating warship assembly lines)
• Adam Smith The Wealth of Nations in 1776
• Industrial Revolution
– Substituted machine power for human labor
– Created large organizations in need of
management
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Exhibit MH-1: Major Approaches
to Management
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Scientific Management
• Fredrick Winslow Taylor
– The “father” of scientific management
• The theory of scientific management
– Using scientific methods to define the “one best
way” for a job to be done:
• Putting the right person on the job with the correct
tools and equipment
• Having a standardized method of doing the job
• Providing an economic incentive to the worker
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Exhibit MH-2
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General Administrative Theory
• Henri Fayol
– Believed that the practice of management was
distinct from other organizational functions
– Developed principles of management that applied
to all organizational situations
• Max Weber
– Developed a theory of authority based on an ideal
type of organization (bureaucracy)
• Emphasized rationality, predictability, impersonality,
technical competence, and authoritarianism
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Exhibit MH-3
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Exhibit MH-4
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Quantitative Approach
• Quantitative Approach
– Also called operations research or management
science
– Evolved from mathematical and statistical
methods developed to solve WWII military
logistics and quality control problems
– Focuses on improving managerial decision making
by applying:
• Statistics, optimization models, information models,
and computer simulations
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Organizational Behavior
• Organizational Behavior (OB)
– The study of the actions of people at work; people
are the most important asset of an organization
• Early OB Advocates
– Robert Owen
– Hugo Munsterberg
– Mary Parker Follett
– Chester Barnard
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Exhibit MH-5
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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.
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Exhibit MH-6
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The Systems Approach
• System - a set of interrelated and
interdependent parts arranged in a manner
that produces a unified whole.
• 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
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Exhibit MH-7
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The Contingency Approach
• Contingency Approach - 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.
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Exhibit MH-8
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Terms to Know
• division of labor (or job • quantitative approach
specialization) • organizational behavior
• Industrial Revolution (OB)
• scientific management • Hawthorne Studies
• therbligs • system
• general administrative • closed systems
theory • open systems
• principles of management • contingency approach
• bureaucracy
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