1

Chapter
Management and Its Evolution
McGraw-Hill 2004 The McGraw-Hill Companies, Inc. All rights reserved.
EARLY MANAGEMENT THOUGHT
Early ideas about management strategy
Sun Tzu, The Art of War

Early ideas about leadership
Nicol Machiavelli, The Prince

Early ideas about the design and
organization of work
Adam Smith, The Wealth of Nations
division of labor
McGraw-Hill 2004 The McGraw-Hill Companies, Inc. All rights reserved.
THE OPERATIONAL PERSPECTIVE
Scientific Management
Frederick W. Taylor
Quantitative Management
Ford W. Harris
Quality Management
Walter A. Shewhart
Bureaucratic Management
Max Weber
Administrative Management
Henri Fayol
McGraw-Hill 2004 The McGraw-Hill Companies, Inc. All rights reserved.
SCIENTIFIC MANAGEMENT
Scientific management, also called
Taylorism,
[1]
was a theory of
management that analyzed and
synthesized workflows. Its main
objective was improving economic
efficiency, especially labor
productivity. It was one of the
earliest attempts to apply science to
the engineering of processes and to
management.
TAYLORS FOUR PRINCIPLES OF SCIENTIFIC
MANAGEMENT
Scientifically study each part of a task and develop
the best method of performing the task.

Carefully select workers and train them to perform
the task by using the scientifically developed method.

Cooperate fully with workers to ensure that they use
the proper method.

Divide work and responsibility so that management is
responsible for planning work methods using
scientific principles and workers are responsible for
executing the work accordingly.
McGraw-Hill 2004 The McGraw-Hill Companies, Inc. All rights reserved.
BUREAUCRACY MANAGEMENT
Bureaucratic management
may be described as "a
formal system of
organisation based on
clearly defined hierarchical
levels and roles in order to
maintain efficiency and
effectiveness."
KEY CHARACTERISTICS OF WEBERS
IDEAL BUREAUCRACY
Specialization of labor

Formal rules and procedures

Impersonality

Well-defined hierarchy

Career advancement based on merit
McGraw-Hill 2004 The McGraw-Hill Companies, Inc. All rights reserved.
FAYOLS 14 PRINCIPLES OF
MANAGEMENT
Division of work
Authority
Discipline
Unity of command
Unity of direction
Subordination of
individual interest to
the general interest
Remuneration
Centralization
Scalar chain
Order
Equity
Stability and tenure
Initiative
Esprit de corps
McGraw-Hill 2004 The McGraw-Hill Companies, Inc. All rights reserved.
BEHAVIORAL PERSPECTIVE
The behavioral perspective acknowledges
that psychological and social processes of
human behavior can result in improvements
in productivity and work satisfaction.
The Hawthorne effect - when a manager shows
concern for employees, their motivation and
productivity levels are likely to improve.
Human Relations Approach - the relationship
between employees and a supervisor is a vital
aspect of management.
Employee motivation
Leadership style
McGraw-Hill 2004 The McGraw-Hill Companies, Inc. All rights reserved.
HAWTHORNE EFFECT
The discovery that paying special
attention to employees motivates them to
put greater effort into their jobs.
(from the Hawthorne management studies, performed from 1924
1932 at Western Electric Companys plant near Chicago)
McGraw-Hill 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Physical Needs
Need for Security
Need for Social Relations
Need for Self Esteem
Self-Actualization
Maslows Hierarchy of
Needs
McGraw-Hill 2004 The McGraw-Hill Companies, Inc. All rights reserved.
CONTEMPORARY MANAGEMENT
PERSPECTIVES
Systems Theory

Contingency Theory

The Learning Organization
Perspective
McGraw-Hill 2004 The McGraw-Hill Companies, Inc. All rights reserved.
SYSTEMS THEORY
Views the organization as a system of
interrelated parts that function in a
holistic way to achieve a common
purpose.

Systems theory concepts that affect
management thinking:
Open and closed systems
Subsystems
Synergy
Equifinality
McGraw-Hill 2004 The McGraw-Hill Companies, Inc. All rights reserved.
CONTINGENCY THEORY
States that there is no one best way
to manage an organization.

Because what works for one organization may
not work for another

Situational characteristics (contingencies)
differ

Managers need to understand the key
contingencies that determine the most
effective management practices in a given situation
McGraw-Hill 2004 The McGraw-Hill Companies, Inc. All rights reserved.