MANAGEMENT

HISTORY MODULE

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The construction of a single pyramid occupied more
than 100,000 workers for 20 years.

Who told each worker what to do?

Who ensured that there would be enough stones at
the site to keep workers busy?
https://www.youtube.com/watch?v=fF_YvY7jfiE

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 EARLY MANAGEMENT
• Adam Smith The Wealth of Nations in 1776
– Division of labor (job specialization) – the
breakdown of jobs into narrow and repetitive
tasks.
• 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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 CLASSICAL APPROACH
• Classical approach – first studies of
management, which emphasized
rationality and making organizations and
workers as efficient as possible.

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 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.

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 EXHIBIT MH-2
TAYLOR’S SCIENTIFIC
MANAGEMENT PRINCIPLES

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 GENERAL ADMINISTRATIVE
THEORY
• General administrative theory – an
approach to management that focuses on
describing what managers do and what
constitutes (establishes) good
management practice.

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 HENRI FAYOL

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

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 EXHIBIT MH-3
FAYOL’S 14 PRINCIPLES OF MANAGEMENT

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 EXHIBIT MH-3
FAYOL’S 14 PRINCIPLES OF MANAGEMENT
(CONT.)

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 GENERAL ADMINISTRATIVE THEORY
• Bureaucracy –
a form of organization
characterized by division of
labor, a clearly defined
hierarchy, detailed rules and
regulations, and impersonal
relationships.

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 BEHAVIORAL APPROACH
• Organizational behavior (OB) – the
study of the actions of people at work.
• Early OB Advocates
– Robert Owen
– Hugo Munsterberg
– Mary Parker Follett
– Chester Barnard

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 THE HAWTHORNE STUDIES
• Hawthorne Studies – a series of studies
during the 1920s and 1930s that provided
new insights into individual and group
behavior.

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 THE QUANTITATIVE APPROACH
• Quantitative approach – the use
of quantitative techniques to
improve decision making.
• Quantitative approach applies
statistics, optimization models,
information models, computer
simulations, and other
quantitative techniques to the
management process. Central to
the quantitative approach is the
principle that organizations are
decision-making units.

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 TOTAL QUALITY MANAGEMENT (TQM)
• Total quality
management (TQM) –
a philosophy of
management that is driven
by continuous improvement
and responsiveness to
customer needs and
expectations.

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 EXHIBIT MH-6
WHAT IS QUALITY MANAGEMENT?

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 CONTEMPORARY APPROACHES
• 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. rary
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 EXHIBIT MH-7
ORGANIZATION AS AN OPEN SYSTEM

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 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.
• The contingency approach to management, also known
as the situational approach, holds that there is no single,
textbook rule for the best way to manage an
organization. In each company's case, the “best”
approach will be contingent upon the company's internal
and external needs.

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 EXHIBIT MH-8
POPULAR CONTINGENCY VARIABLES

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 REVIEW LEARNING OBJECTIVE MH-1
• Describe some early management examples.
– Early examples of management practice in the
construction of the Egyptian pyramids.
– Adam Smith’s 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.

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 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.

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REVIEW LEARNING OBJECTIVE MH-2 (CONT.)

• Fayol developed 14 principles of

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

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 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.

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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 management—a management
philosophy devoted to continual improvement and
responding to customer needs and expectations—
also makes use of quantitative methods to meet its
goals.

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 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.

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