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Chapter 1 - History

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7 views15 pages

Chapter 1 - History

Uploaded by

Aya Yasser
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Contemporary Management

•Chapter 1: History of Management


•Lecturer: Dr. Monika Fayez

1-1 Copyright © 2011 Pearson Education


Major Approaches to Management

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Major Approaches to Management
A. Classical
B. Quantitative
C. Behavioral
D. Contemporary

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A. Classical Approach
1. Scientific Management
•Fredrick Winslow Taylor
• The “father” of scientific management
• Published Principles of Scientific Management (1911)
• 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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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.
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Scientific Management (cont’d)
•Frank and Lillian Gilbreth
• Focused on increasing worker productivity through the reduction of
wasted motion (Time & Motion Studies).
• Developed the microchronometer to time worker motions and
optimize work performance.

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2. 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.

https://www.youtube.com/watch?v=aMwm2zq1KrI

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Fayol’s 14 Principles of Management

1. Division of Work. Specialization increases output by making employees more efficient.

2. Authority. Managers must be able to give orders and authority gives them this right.

3. Discipline. Employees must obey and respect the rules that govern the organization.

4. Unity of command. Every employee should receive orders from only one superior.

5. Unity of direction. The organization should have a single plan of action to guide
managers and workers.

6. Subordination of individual interests to the general interest. The interests of any one
employee or group of employees should not take precedence over the interests of the
organization as a whole.

7. Remuneration. Workers must be paid a fair wage for their services.

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Fayol’s 14 Principles of Management
8. Centralization. This term refers to the degree to which subordinates are involved in
decision making.

9. Scalar chain. The line of authority from top management to the lowest ranks is the
scalar chain.

10. Order. People and materials should be in the right place at the right time.

11. Equity. Managers should be kind and fair to their subordinates.

12. Stability of tenure of personnel. Management should provide orderly personnel


planning and ensure that replacements are available to fill vacancies.

13. Initiative. Employees who are allowed to originate and carry out plans will exert high
levels of effort.

14. Esprit de corps. Promoting team spirit will build harmony and unity within the
organization.
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General Administrative Theory
•Max Weber
• Developed a theory of authority based on an ideal type of organization
(bureaucracy).
• This bureaucracy should have:
1. Division of labor
2. Career orientation (managers are professionals, not owners of the division)
3. Impersonality (uniform application of rules, not based on personality)
4. Formal rules and regulations
5. Formal selection of employees by HR
6. Authority hierarchy

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B. Quantitative Approach to
Management
•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
• computer simulations

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C. Behavioral Approach
1. Understanding Organizational
Behavior

•Organizational Behavior
(OB)
• The study of the actions of
people at work; people are the
most important asset of an
organization.

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2. 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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3. 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.

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Popular Contingency Variables

1. Organization size
As size increases, so do the problems of coordination.

2. 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.

3. Environmental uncertainty
What works best in a stable and predictable environment may be totally inappropriate in
a rapidly changing and unpredictable environment.

4. Individual differences
Individuals differ in terms of their desire for growth, autonomy, tolerance of ambiguity,
and expectations.

1-15 Copyright © 2011 Pearson Education

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