Management Yesterday &

Today

2nd Lecture
 Management
ManagementTheories
Theories

General
General
Historical
Historical Scientific
Scientific Quantitative
Quantitative Organizational
Organizational System
System Contingency
Contingency
Administrator
Administrator
Background
Background Management
Management Approach
Approach Behavior
Behavior Approach
Approach Approach
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Theories

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Industrial
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Historical Background of Management
• Ancient Management
 Egypt (pyramids)
 China (Great Wall)
• Adam Smith
 Published “The Wealth of Nations” in 1776
• Advocated the division of labor (job specialization) to
increase the productivity of workers
• Industrial Revolution
 Substituted machine power for human labor
 Created large organizations in need of management
 Egyptian Pyramids
• For centuries, they were the tallest structures on the planet.
• 2780 B.C., King Djoser' Built Steps Pyramid
• King Snefru, founder of the Fourth Dynasty (2680-2560 BC)
built the first smooth-sided pyramid.
• The largest and most famous of all, the Great Pyramid at Giza,
• Built by Snefru's son, Khufu,
 The pyramid's base covered over 13 acres
 sides rose at an angle of 51 degrees 52 minutes
 over 755 feet long.
 originally stood over 481 feet high; today it is 450 feet high.
 stone blocks average over two tons a piece,
 the largest weighing as much as fifteen tons each.
Egyptian Pyramids
The Great Wall of China
• Stretches 3,000km across northwestern China
• Dating back to 220BC.
• Built by Emperor Qin Shin Huang during the
Ming Dynasty (208 -1644 AD)
• The only man-made object visible from the moon
• One million workers died building the wall
Sydney Opera House
Microsoft Windows
Major Approaches to Management
Scientific Management
General Administrative Theory
Quantitative Management
Organizational Behavior
Systems Approach
Contingency Approach
 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
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 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
 General Administrative Theorists
• Henri Fayol
 Believed that the practice of management was distinct from
other organizational functions
 Developed fourteen principles of management that applied to all
organizational situations.
1. Division of labor.
2. Authority.
3. Discipline.
4. Unity of command.
5. Unity of direction.
6. Subordination of individual interests to the general interests.
7. Remuneration.
8. Centralization.
9. Scalar chain.
10. Order.
11. Equity.
12. Stability.
13. Initiative.
14. Esprit de corps.
• Max Weber.
 Developed a theory of authority structures and
relation in 1900s,called bureaucracy.
Bureaucracy.
A form of organization characterized by division
of labor ,a clear defined hierarcy,detailed rules
and regulations, and impersonal relationships.
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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, and computer simulations
Understanding Organizational
Behavior

• Organizational Behavior (OB).

The field of study concerned with the actions
(behavior) of people at work.
Understanding Organizational
Behavior

• Early Advocates.
The study of the actions of people at work; people
are the most important asset of an organization
 Robert Owen
Late 1700s

Chester Barnard Early Advocates Hugo Munsterberg

1930s Of OB Early 1900s

Mary Parker Oollent

Early 1900s
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.
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
Implications of the Systems
Approach
• Coordination of the organization’s parts is
essential for proper functioning of the entire
organization.
• 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.
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.
Current Trends and Issues
• Globalization
• Workforce Diversity
• Entrepreneurship
• E-business
• Knowledge Management
• Learning Organizations
• Quality Management
• Ethics
Current Trends and Issues
(cont’d)
• Globalization
 Management in international organizations
 Political and cultural challenges of operating in a
global market
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 not
retire
• The cost of public and private benefits for
older workers will increase
• Increased demand for products and services
related to aging
Current Trends and Issues
(cont’d)
• Entrepreneurship Defined
 The process whereby an individual or group of
individuals use organized efforts to create value
and grow by fulfilling wants and needs through
innovation and uniqueness.
• Entrepreneurship process
 Pursuit of opportunities
 Innovation in products, services, or business
methods
 Desire for continual growth of the organization
Current Trends and Issues
(cont’d)
• E-Business (Electronic Business)
 The work preformed by an organization using
electronic linkages to its key constituencies
E-commerce:
The sales and marketing component of an e-
business
Current Trends and Issues
(cont’d)
• Knowledge Management.
The cultivation of a learning culture where
organizational members systematically gather and
share knowledge with others in order to achieve better
performance.
• Learning Organization.
 An organization that has developed the capacity to
continuously learn, adapt, and change.
Current Trends and Issues
(cont’d)
• Quality Management.
 A philosophy of management driven by continual
improvement in the quality of work processes
and responding to customer needs and
expectations
 Inspired by the total quality management (TQM)
ideas of Deming and Juran
 Quality is not directly related to cost.
Managerial Ethics
• Ethics
 The term ethics refers to principles, values and
beliefs that define what is right and wrong
behavior
 Many decisions that managers make require
them to consider who may be affected – in terms
of the result as well as the process
Factors that affect employee ETHICS
Improving ethical behavior
• Employee selection
• Codes of ethics and decision rules
• Top managements leadership
• Job goals and performance appraisals
• Ethics training
• Independent social audits