MANAGEMENT HISTORY
The first pyramid was the Step Pyramid at Saqqara, built for King Zoser in
2750 BC.
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Construction of the Great Wall of China was begun during the third century
B.C. by Emperor Shih Huang-ti (c. 259210 B.C.) of the Ch'in dynasty
(family of rulers). The immense structure was built as a protective barricade
against invasion and was expanded over many centuries. The wall now
stretches 1,500 miles, ranging in heights between 20 and 50 feet (6.1 and 15
meters), and is 15 to 25 feet (4.6 to 7.6 meters) thick.
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The most recent portion of the Great Wall, the one that pops into
your mind when you think of the Great Wall of China, was finished
toward the end of the Ming Dynasty (1368-1644).
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LEARNING OUTLINE
Follow this Learning Outline as you read and study this chapter.
o Historical Background of Management
Explain why studying management history is important.
Describe some early evidences of management practice.
Scientific Management
Describe the important contributions made by Fredrick W.
Taylor and Frank and Lillian Gilbreth.
Explain how todays managers use scientific
management.
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L E A R N I N G O U T L I N E (contd)
Follow this Learning Outline as you read and study this chapter.
oGeneral Administrative Theorists
Discuss Fayols 14 management principles.
Describe Max Webers contribution to the general
administrative theory of management.
Explain how todays managers use general administrative
theory.
oQuantitative Approach to Management
Explain what the quantitative approach has contributed to
the field of management.
Discuss how todays managers use the quantitative
approach.
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L E A R N I N G O U T L I N E (contd)
Follow this Learning Outline as you read and study this chapter.
Toward Understanding Organizational Behavior
Describe the contributions of the early advocates of OB.
Explain the contributions of the Hawthorne Studies to the
field of management.
Discuss how todays managers use the behavioral
approach.
oThe Systems Approach
Describe an organization using the systems approach.
Discuss how the systems approach is appropriate for
understanding management.
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L E A R N I N G O U T L I N E (contd)
Follow this Learning Outline as you read and study this chapter.
oThe Contingency Approach
Explain how the contingency approach differs from the
early theories of management.
Discuss how the contingency approach is appropriate for
studying management.
oCurrent Issues and Trends
Explain why we need to look at the current trends and
issues facing managers.
Describe the current trends and issues facing managers.
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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
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Development of Major Management Theories
Classical
Approaches
Contemporary
Approach
Organizational
Behavior
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Major Approaches to Management
Scientific Management
General Administrative Theory
Quantitative Management
Organizational Behavior
Systems Approach
Contingency Approach
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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.
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Scientific Management (contd)
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 Todays Managers Use Scientific
Management?
Use time and motion studies to increase productivity
Hire the best qualified employees
Design incentive systems based on output
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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
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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Fayols 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
individual interest
to the interests of
the organization.
12. Stability of tenure
of personnel.
13. Initiative.
14. Esprit de corps.
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Webers Ideal Bureaucracy
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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
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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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Understanding Organizational Behavior
Organizational Behavior (OB)
The study of the actions of people at work; people are
the most important asset of an organization
Early OB Advocates
Robert Owen
Hugo Munsterberg
Mary Parker Follett
Chester Barnard
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Early Advocates of OB
Working
conditions
Industrial
psychology
Social
system,
motivation
Group
behavior
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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 (Barnard)
Dynamically
interact to their environments by taking in
inputs and transforming them into outputs that are
distributed into their environments.
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The Organization as an Open System
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Implications of the Systems Approach
Coordination of the organizations 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.
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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.
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Popular Contingency Variables
Organization size
Routineness of task technology
Environmental uncertainty
Individual differences
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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 (contd)
Globalization
Management in international organizations
Political and cultural challenges of operating in a
global market
Ethics
Increased emphasis on ethics education in college
curriculums
Increased creation and use of codes of ethics by
businesses
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Three Moral Frameworks (of Ethics):
Ends Based Thinking: The greatest good for the greatest
number.
Rule Based Thinking: A suitable rule for everyone else to
follow in similar situations.
Care Based Thinking: (The Golden Rule) Do unto others as
you would have them do unto you.
Sally Rhys, Focus on Business
Ethics, 4/28/2011
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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Current Trends and Issues (contd)
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 (contd)
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
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Current Trends and Issues (contd)
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
Categories of E-Businesses
E-business enhanced organization
E-business enabled organization
Total e-business organization
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Categories of E-Business Involvement
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Current Trends and Issues (contd)
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.
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Learning Organization versus Traditional
Organization
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Current Trends and Issues (contd)
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
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What is Management Quality?
Intense focus on the customer
Concern for continual improvement
Process-focused
Improvement in the quality of everything
Accurate measurement
Empowerment of employees
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