Management History

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Management History- Major Approaches to
management

2–2
Historical Background of Management

i. Ancient Management
Egyptian Pyramids Great Wall of China

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i. Ancient Management
• Adam Smith
 Advocated the division of labor (job specialization) to
increase the productivity of workers

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• Industrial Revolution
• https://www.youtube.com/watch?v=eHOEau-QV1M

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Major Approaches to Management
Theory
• Classical Approaches
• Quantitative Approach
• Behavioral Approach
• Contemporary Approaches

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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.

• https://www.youtube.com/watch?v=vNfy_AHG-MU
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Exhibit 2–2 Taylor’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.

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Scientific Management (cont’d)
• Frank and Lillian Gilbreth
 Focused on increasing worker productivity through
the reduction of wasted motion
 Developed the microchronometer to time worker
motions and optimize work performance
• How Do Today’s Managers Use Scientific
Management?
 Use time and motion studies to increase productivity
 Hire the best qualified employees
 Design incentive systems based on output
 Design different sizes, weights, materials etc of equipment and
tools to maximize efficiency

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General Administrative Theory
• Henri Fayol
 Developed fourteen 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 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.

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Exhibit 2–4 Weber’s Ideal Bureaucracy

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Quantitative Approach
 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 for managerial decision making and
organizational effectiveness

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Behavioral Approach
• Focuses on an organization’s people.

• 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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The Hawthorne Studies
•A series of productivity experiments conducted
at Western Electric from 1927 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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The Systems Approach
• System Defined
 A set of interrelated and interdependent parts
arranged in a manner that produces a unified whole.
• Basic Types of Systems
 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 2–6 The Organization as an Open System

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Implications of the Systems Approach
• For proper functioning of the entire organization,
it is essential to establish coordination of the
organization’s parts
• 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.

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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.

 ONE WAY OF MANAGING DOES NOT FIT ALL.

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Exhibit 2–7 Popular Contingency Variables

• Organization size
• As size increases, so do the problems of coordination.
• Routine technologies
• 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.
Current Trends and Issues
• Globalization
• Ethics
• Workforce Diversity
• Entrepreneurship
• E-business
• Knowledge Management
• Learning Organizations
• Quality Management

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Current Trends and Issues (cont’d)
• Globalization
 Management in international organizations
 Political and cultural challenges of operating in a
global market
 Working with people from different cultures
 Movement of jobs to countries with low-cost labor

• Ethics
 Increased emphasis on ethics education in college
curriculums
 Increased creation and use of codes of ethics by
businesses

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Exhibit 2–8 A Process for Addressing Ethical Dilemmas

Step 1: What is the ethical dilemma?

Step 2: Who are the affected stakeholders?

Step 3: What personal, organizational, and

external factors are important to
my decision?

Step 4: What are possible alternatives?

Step 5: Make a decision and act on it.

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Quick tests for addressing Dilemma between what
ethical dilemma principles?

The legal test Truth vs loyalty

The stench test Individual vs community
The front page test Short term vs long term
The mom test Justice vs mercy

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Current Trends and Issues (cont’d)
• Workforce Diversity
 Increasing heterogeneity in the workforce
 More gender, minority, ethnic, and other forms of diversity in
employees
 Aging workforce
 Older employees who work longer and do not retire
 The increased costs of public and private benefits for older
workers
 An increasing demand for products and services related to
aging.

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Current Trends and Issues (cont’d)
• Entrepreneurship Defined
 The process of starting new businesses, generally in
response to opportunities.
• Entrepreneurship process
 Pursuit of opportunities
 Innovation in products, services, or business methods
 Desire for continual growth of the organization

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Current Trends and Issues (cont’d)
• Learning Organization
 An organization that has developed the capacity to
continuously learn, adapt, and change.
• Knowledge Management
 The cultivation of a learning culture where
organizational members systematically gather and
share knowledge with others in order to achieve
better performance.

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 Terms to Know
• division of labor (or job • closed systems
specialization) • open systems
• Industrial Revolution • contingency approach
• scientific management • workforce diversity
• therbligs • Entrepreneurship
• general administrative theory • learning organization
• principles of management • knowledge management
• bureaucracy • quality management
• quantitative approach
• organizational behavior (OB)
• Hawthorne Studies
• system

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 Assignment 1- MEET A MANAGER
• Interview a manager and make a • -An ethical dilemma they faced and
brief report on: how they resolved it
• -What skills do good managers
• -Name & Organization need?
• -Designation • How is their job rewarding? The
• best part of their job?
-Managerial level in the hierarchy
• The most challenging part of their
• -job tasks/ role/ responsibilities
job?
• -Skills needed to perform them
• -How has their job changed as a
• -Planning, Organizing , Leading, result of COVID-19?
Controlling, how?
• -How is their organization going
• - The best part of their job
‘green’ or pursuing corporate social
• -The most challenging part of their responsibility?
job • -One key lesson they have learnt
in their professional career so far.

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