Management Learning Past to Present

Major Approaches to Management
1. Historical Background
a. Early Example of Mgmt (Great Wall, Pyramids)
b. Adam Smith (Weath of Nations – Division of Labor)
c. Industrial Revolution
2. Classical Approaches
a. Scientific Mgmt
b. General Administrative Theories
3. Quantative Approach
4. Behavioral Approaches
a. Organizational Behavior
b. Early Advocates
c. Hawthorn Studies
5. Contemporary Approaches
a. Systems approach
b. Contingency approach
Adam Smith (1723-1790)
Publishes “Wealth of Nations” in 1776 and advocated “division of labor” to increase skill and productivity of workers. First book written on mgmt.
Industrial Revolution (Late 1800s – 1900s)
Machine power began to substitute for human labor
Modern Era
Modern Era
1. Classical Approach
2. Quantitative Approach
3. Behavioral Approach
4. Contemporary Approach
Classical Approach
1. Scientific Management Theorists
Frederick W. Taylor
Frank & Lillian Gilbreth

2. General Administrative Theorists
Henri Fayol
Max Weber

Frederick W. Taylor (1756 - 1915)
Frederick W. Taylor (1756 – 1915)
1. He was “the Father of Scientific Mgt”,
2. Published the book “Principle of Scientific Mgt” and
3. defined “One Best Way.”
Considered father of mgt and scientific mgt.
One Best Way - What does it mean?
One Best Way – What does it mean?
It means “selecting the right people for the right job and training them to do it precisely in the one best way with the aim of increasing in productivity and efficiency.”
Frank Gilbreth (1868 – 1924)
Lilian Gilbreth (1878 – 1972)
They pioneered a work on time and motion study (therbligs) for work simplification. Both were inspired by Frederick W. Taylor.
Therbilgs
Therbilgs
1. Therbligs is the set of fundamental motions required for a worker to perform a manual operation or task.

2. “Therbligs” = “Gilbreth” spelled backwards with the “th” transposed.

Taylor’s 4 Principles of Management
1. (Scientific job analysis) – Develop a science for each element of an individual’s work, which replaces the old rule-of-thumb method.

2. (Scientific selection of personnel) – Scientifically select and then train, teach, and develop the worker.

3. (Management cooperation) – 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. (Functional supervising) – Divide work and responsibility almost equally between management and workers.

General Administrative Theorists
Henri Fayol (1841 – 1925)

Max Weber (1864 – 1920)

Henri Fayol (1841 – 1925)
1. He developed “14 Principles of Mgt” and
2. Proposed the “5 Primary Functions of Mgt.”
Fayol's 14 Principles of Management
Fayol’s 14 Principles of Management
Fayol's 5 Primary Functions of Mgt
Fayol’s 5 Primary Functions of Mgt
Max Weber (1864 - 1920)
Max Weber (1864 – 1920)
He was one of the pioneers of modern sociology and designed an organizational form, called “a bureaucracy.”
Weber's Bureaucracy
Weber’s Bureaucracy
Quantative Approach
It involves the use of statistics, optimization models, information models, and computer simulations to improve management decision making for planning and control.
Quantative Approach (Cont.)
This approach is also known as
“Operations Research or Management Science.”

It evolved out of the development of mathematical and statistical solutions to military problems during World War II.

Behavioral Approach
The study of individuals and group actions in an organization.

Organizational Behavior (OB)
A modern research-oriented approach seeking to discover the causes of work behavior and to develop better management techniques.

Behavioral Approach (Cont.)
Behavioral Approach (Cont.)
Early Advocate of Organizational Behavior
Early Advocate of Organizational Behavior
Robert Owen – (1771 – 1858)
Early Advocate of Organizational Behavior
A reformer who advocated for better treatment of workers and idealistic workplace.
Hugo Munsterberg – (1863 – 1916)
Early Advocate of Organizational Behavior
A pioneer in the field of industrial psychology – -scientific study of people at work.
Mary Parker Follett – (1868 – 1933)
Early Advocate of Organizational Behavior
A pioneer in the fields of human relations, organizational theory and organizational behavior.
Chester Barnard – (1886 – 1961)
Early Advocate of Organizational Behavior
The first who argued that org. were open systems and looked at org. as social systems that required cooperation.
Hawthorne Studies – Western Electric Company
Elton Mayo (Professor of Harvard)
1. He found that social norms or standards of the group are the key determinants of individual work behavior.

2. His most famous finding was the Hawthorne Effect.”

Contemporary Approaches (2 Types)
Contemporary Approaches (2 Types)
Systems Approach (what is a system?)
1. A collection of parts that operate interdependently to achieve a common purpose.

2. Systems are classified open (closed) by how much (how little) they interact with their environments.

Closed Vs. Open System
1. Closed systems
a. A self-sufficient entity.
b. A system that is not influenced by and does not interact with its environment.

2. Open systems
a. Something that depends on its surrounding environment for survival.
b. A system that dynamically interacts with its environment.

Organization as an Open System
Organization as an Open System
Contingency Approach
Also called the “situational approach.”

A research effort to determine which managerial practices and techniques are appropriate in specific situations.

Note:
Different situations require different managerial responses.

Contingency Approach (Cont.)
Variable 1 – Organization Size (Big/Small)

Variable 2 – Routineness of Task Technology (Salon/Factory)

Variable 3 – Environmental Uncertanity (Stock Broker)

Variable 4 – Individuals Differences