Principal of management 9erobbins ppt02 lecture_2

© 2007 Prentice Hall, Inc. All rights reserved. 2–1

Chapter 2Chapter 2

Management Yesterday and Today (History)Management Yesterday and Today (History)


L E A R N I N G O U T L I N E L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter.Follow this Learning Outline as you read and study this chapter.

•Historical Background of ManagementHistorical Background of Management

• Explain why studying management history is important.Explain why studying management history is important.

• Describe some early evidences of management practice.Describe some early evidences of management practice.

•Scientific ManagementScientific Management

• Describe the important contributions made by Fredrick Describe the important contributions made by Fredrick W. Taylor and Frank and Lillian Gilbreth.W. Taylor and Frank and Lillian Gilbreth.

• Explain how today’s managers use scientific Explain how today’s managers use scientific management.management.


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

•General Administrative TheoryGeneral Administrative Theory

• Discuss Fayol’s contributions to management theory.Discuss Fayol’s contributions to management theory.

• Describe Max Weber’s contribution to management Describe Max Weber’s contribution to management theory.theory.

• Explain how today’s managers use general administrative Explain how today’s managers use general administrative theory.theory.

•Quantitative ApproachQuantitative Approach

• Explain what the quantitative approach has contributed Explain what the quantitative approach has contributed to the field of management.to the field of management.

• Discuss how today’s managers use the quantitative Discuss how today’s managers use the quantitative approach.approach.



•Toward Understanding Organizational BehaviorToward Understanding Organizational Behavior

• Describe the contributions of the early advocates of OB.Describe the contributions of the early advocates of OB.

• Explain the contributions of the Hawthorne Studies to the Explain the contributions of the Hawthorne Studies to the field of management.field of management.

• Discuss how today’s managers use the behavioral Discuss how today’s managers use the behavioral approach.approach.

•The Systems ApproachThe Systems Approach

• Describe an organization using the systems approach.Describe an organization using the systems approach.

• Discuss how the systems approach helps us Discuss how the systems approach helps us management.management.



•The Contingency ApproachThe Contingency Approach

• Explain how the contingency approach differs from the Explain how the contingency approach differs from the early theories of management.early theories of management.

•Current Issues and TrendsCurrent Issues and Trends

• Explain why we need to look at the current trends and Explain why we need to look at the current trends and issues facing managers.issues facing managers.


Historical Background of ManagementHistorical Background of Management

• Ancient ManagementAncient Management Shahi Fort and Mosque, LahoreShahi Fort and Mosque, Lahore Egypt (pyramids) and China (Great Wall)Egypt (pyramids) and China (Great Wall) Venetians (floating warship assembly lines)Venetians (floating warship assembly lines)

• Adam SmithAdam Smith Published Published “The Wealth of Nations” “The Wealth of Nations” in 1776in 1776

Advocated the division of labor (job specialization) to increase Advocated the division of labor (job specialization) to increase the productivity of workersthe productivity of workers

• Industrial RevolutionIndustrial Revolution Substituted machine power for human laborSubstituted machine power for human labor Created large organizations in need of managementCreated large organizations in need of management


Exhibit 2–1Exhibit 2–1 Development of Major Management TheoriesDevelopment of Major Management Theories


Major Approaches to ManagementMajor Approaches to Management

• Classical ApproachClassical Approach Scientific ManagementScientific Management General Administrative TheoryGeneral Administrative Theory

• Quantitative ApproachQuantitative Approach• Behavioral ApproachBehavioral Approach• Contemporary ApproachContemporary Approach

Systems TheorySystems Theory Contingency ApproachContingency Approach


Classical ApproachClassical ApproachScientific ManagementScientific Management

• Fredrick Winslow TaylorFredrick Winslow Taylor The “father” of scientific managementThe “father” of scientific management

Published Published Principles of Scientific ManagementPrinciples of Scientific Management (1911) (1911) The theory of scientific managementThe theory of scientific management

– Using scientific methods to define the “one best way” for a Using scientific methods to define the “one best way” for a job to be done:job to be done:

• Putting the right person on the job with the correct tools Putting the right person on the job with the correct tools and equipment.and equipment.

• Having a standardized method of doing the job.Having a standardized method of doing the job.

• Providing an economic incentive to the worker.Providing an economic incentive to the worker.


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

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.


Scientific Management (cont’d)Scientific Management (cont’d)

• Frank and Lillian GilbrethFrank and Lillian Gilbreth Focused on increasing worker productivity through Focused on increasing worker productivity through

the reduction of wasted motionthe reduction of wasted motion Developed the microchronometer to time worker Developed the microchronometer to time worker

motions and optimize work performancemotions and optimize work performance

• How Do Today’s Managers Use Scientific How Do Today’s Managers Use Scientific Management?Management? Use time and motion studies to increase productivityUse time and motion studies to increase productivity Hire the best qualified employeesHire the best qualified employees Design incentive systems based on outputDesign incentive systems based on output


General Administrative TheoryGeneral Administrative Theory

• Henri FayolHenri Fayol Believed that the practice of management was distinct Believed that the practice of management was distinct

from other organizational functions from other organizational functions Developed fourteen principles of management that Developed fourteen principles of management that

applied to all organizational situationsapplied to all organizational situations

• Max WeberMax Weber Developed a theory of authority based on an ideal Developed a theory of authority based on an ideal

type of organization (bureaucracy)type of organization (bureaucracy) Emphasized rationality, predictability, impersonality, technical Emphasized rationality, predictability, impersonality, technical

competence, and authoritarianismcompetence, and authoritarianism


Exhibit 2–3Exhibit 2–3 Fayol’s 14 Principles of ManagementFayol’s 14 Principles of Management

1.1. Division of work.Division of work.

2.2. Authority.Authority.

3.3. Discipline.Discipline.

4.4. Unity of command.Unity of command.

5.5. Unity of direction.Unity of direction.

6.6. Subordination of Subordination of individual interests individual interests to the general to the general interest.interest.

7.7. Remuneration.Remuneration.

8.8. Centralization.Centralization.

9.9. Scalar chain.Scalar chain.

10.10. Order.Order.

11.11. Equity.Equity.

12.12. Stability of tenure Stability of tenure of personnel.of personnel.

13.13. Initiative.Initiative.

14.14. Esprit de corps.Esprit de corps.


Exhibit 2–4Exhibit 2–4 Weber’s Ideal BureaucracyWeber’s Ideal Bureaucracy


Quantitative Approach to ManagementQuantitative Approach to Management

• Quantitative ApproachQuantitative Approach Also called Also called operations researchoperations research or or management management

sciencescience Evolved from mathematical and statistical methods Evolved from mathematical and statistical methods

developed to solve WWII military logistics and quality developed to solve WWII military logistics and quality control problemscontrol problems

Focuses on improving managerial decision making by Focuses on improving managerial decision making by applying:applying: Statistics, optimization models, information models, and Statistics, optimization models, information models, and

computer simulationscomputer simulations


Quantitative Approach to ManagementQuantitative Approach to Management (cont’d) …..(cont’d) …..

• Total Quality ManagementTotal Quality Management Another area where quantitative techniques are usedAnother area where quantitative techniques are used

A philosophy of management driven by continual A philosophy of management driven by continual improvement in the quality of work processes and improvement in the quality of work processes and responding to customer needs and expectationsresponding to customer needs and expectations

Inspired by the total quality management (TQM) ideas Inspired by the total quality management (TQM) ideas of Deming and Juranof Deming and Juran

Quality is not directly related to costQuality is not directly related to cost

Poor quality results in lower productivityPoor quality results in lower productivity


Behavioral Approach Behavioral Approach

• Organizational Behavior (OB)Organizational Behavior (OB) The study of the actions of people at work; people are The study of the actions of people at work; people are

the most important asset of an organizationthe most important asset of an organization

• Early OB AdvocatesEarly OB Advocates Robert OwenRobert Owen

Hugo MunsterbergHugo Munsterberg

Mary Parker FollettMary Parker Follett

Chester BarnardChester Barnard


Exhibit 2–6Exhibit 2–6 Early Advocates of OBEarly Advocates of OB


•A series of productivity experiments conducted A series of productivity experiments conducted at Western Electric from 1927 to 1932.at Western Electric from 1927 to 1932.

•Experimental findingsExperimental findingsProductivity unexpectedly increased under imposed Productivity unexpectedly increased under imposed adverse working conditions.adverse working conditions.The effect of incentive plans was less than The effect of incentive plans was less than expected.expected.

•Research conclusionResearch conclusionSocial norms, group standards and attitudes more Social norms, group standards and attitudes more strongly influence individual output and work behavior strongly influence individual output and work behavior than do monetary incentives.than do monetary incentives.

The Hawthorne StudiesThe Hawthorne Studies


Contemporary ApproachContemporary Approach

• System DefinedSystem Defined A set of interrelated and interdependent parts A set of interrelated and interdependent parts

arranged in a manner that produces a unified whole.arranged in a manner that produces a unified whole.

• Basic Types of SystemsBasic Types of Systems Closed systemsClosed systems

Are not influenced by and do not interact with their Are not influenced by and do not interact with their environment (all system input and output is internal).environment (all system input and output is internal).

Open systemsOpen systems Dynamically interact to their environments by taking in inputs Dynamically interact to their environments by taking in inputs

and transforming them into outputs that are distributed into and transforming them into outputs that are distributed into their environments.their environments.


Exhibit 2–7Exhibit 2–7 The Organization as an Open SystemThe Organization as an Open System


Implications of the Systems ApproachImplications of the Systems Approach

• Coordination of the organization’s parts is Coordination of the organization’s parts is essential for proper functioning of the entire essential for proper functioning of the entire organization.organization.

• Decisions and actions taken in one area of the Decisions and actions taken in one area of the organization will have an effect in other areas of organization will have an effect in other areas of the organization.the organization.

• Organizations are not self-contained and, Organizations are not self-contained and, therefore, must adapt to changes in their therefore, must adapt to changes in their external environment.external environment.


The Contingency ApproachThe Contingency Approach

• Contingency Approach DefinedContingency Approach Defined

Also sometimes called the Also sometimes called the situational approach.situational approach.

There is no one universally applicable set of There is no one universally applicable set of management principles (rules) by which to manage management principles (rules) by which to manage organizations.organizations.

Organizations are individually different, face different Organizations are individually different, face different situations (contingency variables), and require situations (contingency variables), and require different ways of managing.different ways of managing.


Exhibit 2–8Exhibit 2–8 Popular Contingency VariablesPopular 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 nonroutine 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.


Advance Case for next classAdvance Case for next class

• Chapter: 5, Case on page: 148-149Chapter: 5, Case on page: 148-149• Title: “Title: “You’ve Got Questions”You’ve Got Questions”

Answer the questions in the end.Answer the questions in the end. Bring along in the next lecture for discussionBring along in the next lecture for discussion Class participation will be checkedClass participation will be checked

Principal of management 9erobbins ppt02 lecture_2

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