PMM CH 2
PMM CH 2
Chapter
Management
2 History
Learning Outcomes
Follow this Learning Outline as you read and study
this chapter.
2.1 Historical Background Of Management.
• Explain why studying management history is important.
• Describe some early evidences of management practice.
• Describe two important historical events that are significant to
the study of management.
2.2 Classical Approach.
• Describe the important contributions made by Frederick W.
Taylor and Frank and Lillian Gilbreth.
• Discuss Fayol’s and Weber’s contributions to management
theory.
• Explain how today’s managers use scientific management and
general administrative theory.
Learning Outcomes
2.3 Quantitative Approach.
• Explain what the quantitative approach has
contributed to the field of management.
• Describe total quality management.
• Discuss how today’s managers use the quantitative
approach.
2.4 Behavioral approach.
• Describe the contributions of the early advocates of
OB.
• Explain the contributions of the Hawthorne Studies to
the field of management.
• Discuss how today’s managers use the behavioral
approach.
Learning Outcomes
2.5 Contemporary Approach
• Describe an organization using the systems approach.
• Discuss how the systems approach helps us
understand management.
• Explain how the contingency approach is appropriate
for studying management.
management
Historical Background of
Management
• Ancient Management
Egypt (pyramids) and China (Great Wall)
Venetians (floating warship assembly lines)
• 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
Exhibit 2–1 Major Approaches to Management
Major Approaches to
Management
• Classical
• Quantitative
• Behavioral
• Contemporary
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.
Exhibit 2–2 Taylor’s Scientific Management Principles
2. Authority 8. Centralization
•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.
Exhibit 2–7 The Organization as an Open
System
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.
Exhibit 2–8 Popular 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 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.
Terms to Know
• division of labor (or job • quantitative approach
specialization) • organizational behavior
• Industrial Revolution (OB)
• scientific management • Hawthorne Studies
• therbligs • system
• general administrative • closed systems
theory • open systems
• principles of management • contingency approach
• bureaucracy