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MANAGEMENT

HISTORY MODULE

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Copyright
© 2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd.

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LEARNING OBJECTIVES
1.

Describe some early management examples.

2.

Explain the various theories in the classical
approach.

3.

Discuss the development and uses of the
behavioral approach.

4.

Describe the quantitative approach.

5.

Explain the various theories in the
contemporary approach.

Copyright ©
Copyright
© 2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd.

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EARLY MANAGEMENT
• Ancient Management – Egypt (pyramids)
and China (Great Wall)

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Copyright
© 2014
2016 Pearson
Pearson Education,
Education, Ltd
Ltd.

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Ltd Ltd.EARLY MANAGEMENT • Adam Smith The Wealth of Nations in 1776 – Division of labor (job specialization) – the breakdown of jobs into narrow and repetitive tasks. Education. • Industrial Revolution – Substituted machine power for human labor – Created large organizations in need of management Copyright © Copyright © 2014 2016 Pearson Pearson Education. 1a-4 .

EXHIBIT MH-1 MAJOR APPROACHES TO MANAGEMENT Copyright © Copyright © 2014 2016 Pearson Pearson Education. 1a-5 . Ltd Ltd. Education.

Copyright © Copyright © 2014 2016 Pearson Pearson Education. Education. which emphasized rationality and making organizations and workers as efficient as possible. 1a-6 .CLASSICAL APPROACH • Classical approach – first studies of management. Ltd Ltd.

Education.SCIENTIFIC MANAGEMENT • Fredrick Winslow Taylor – The “father” of scientific management • Scientific management – an approach that involves using the scientific method to find the “one best way” for a job to be done. Ltd Ltd. Copyright © Copyright © 2014 2016 Pearson Pearson Education. 1a-7 .

Education. 1a-8 .EXHIBIT MH-2 TAYLOR’S SCIENTIFIC MANAGEMENT PRINCIPLES Copyright © Copyright © 2014 2016 Pearson Pearson Education. Ltd Ltd.

Education.FRANK AND LILLIAN GILBRETH • Therbligs – a classification scheme for labeling basic hand motions. Ltd Ltd. Copyright © Copyright © 2014 2016 Pearson Pearson Education. 1a-9 .

1a-10 . Education. Ltd Ltd. Copyright © Copyright © 2014 2016 Pearson Pearson Education.GENERAL ADMINISTRATIVE THEORY • General administrative theory – an approach to management that focuses on describing what managers do and what constitutes good management practice.

Education. Copyright © Copyright © 2014 2016 Pearson Pearson Education.HENRI FAYOL • Principles of management – Fundamental rules of management that could be applied in all organizational situations and taught in schools. 1a-11 . Ltd Ltd.

Education.EXHIBIT MH-3 FAYOL’S 14 PRINCIPLES OF MANAGEMENT Copyright © Copyright © 2014 2016 Pearson Pearson Education. Ltd Ltd. 1a-12 .

Education. 1a-13 . Ltd Ltd.EXHIBIT MH-3 FAYOL’S 14 PRINCIPLES OF MANAGEMENT (CONT.) Copyright © Copyright © 2014 2016 Pearson Pearson Education.

GENERAL ADMINISTRATIVE THEORY • Bureaucracy – a form of organization characterized by division of labor. Ltd Ltd. a clearly defined hierarchy. Copyright © Copyright © 2014 2016 Pearson Pearson Education. Education. and impersonal relationships. detailed rules and regulations. 1a-14 .

Ltd Ltd. Education.EXHIBIT MH-4 CHARACTERISTICS OF WEBER’S BUREAUCRACY Copyright © Copyright © 2014 2016 Pearson Pearson Education. 1a-15 .

Ltd Ltd. 1a-16 .BEHAVIORAL APPROACH • Organizational behavior (OB) – the study of the actions of people at work. • Early OB Advocates – Robert Owen – Hugo Munsterberg – Mary Parker Follett – Chester Barnard Copyright © Copyright © 2014 2016 Pearson Pearson Education. Education.

Ltd Ltd.EXHIBIT MH-5 EARLY OB ADVOCATES Copyright © Copyright © 2014 2016 Pearson Pearson Education. Education. 1a-17 .

THE HAWTHORNE STUDIES • Hawthorne Studies – a series of studies during the 1920s and 1930s that provided new insights into individual and group behavior. Ltd Ltd. Education. 1a-18 . Copyright © Copyright © 2014 2016 Pearson Pearson Education.

1a-19 . Education.THE QUANTITATIVE APPROACH • Quantitative approach – the use of quantitative techniques to improve decision making. Ltd Ltd. Copyright © Copyright © 2014 2016 Pearson Pearson Education.

Education. 1a-20 1a .TOTAL QUALITY MANAGEMENT (TQM) • Total quality management (TQM) – a philosophy of management that is driven by continuous improvement and responsiveness to customer needs and expectations. Ltd Ltd.20 . Copyright © Copyright © 2014 2016 Pearson Pearson Education.

Ltd Ltd.EXHIBIT MH-6 WHAT IS QUALITY MANAGEMENT? Copyright © Copyright © 2014 2016 Pearson Pearson Education. 1a-21 . Education.

Education. Ltd Ltd. • Closed system – systems that are not influenced by and do not interact with their environment.CONTEMPORARY APPROACHES • System – a set of interrelated and interdependent parts arranged in a manner that produces a unified whole. • Open system – systems that interact with their environment. 1a-22 . Copyright © Copyright © 2014 2016 Pearson Pearson Education.

Education.EXHIBIT MH-7 ORGANIZATION AS AN OPEN SYSTEM Copyright © Copyright © 2014 2016 Pearson Pearson Education. 1a-23 . Ltd Ltd.

THE CONTINGENCY APPROACH • Contingency approach – a management approach that recognizes organizations as different. Education. 1a-24 . Copyright © Copyright © 2014 2016 Pearson Pearson Education. which means they face different situations (contingencies) and require different ways of managing. Ltd Ltd.

EXHIBIT MH-8 POPULAR CONTINGENCY VARIABLES Copyright © Copyright © 2014 2016 Pearson Pearson Education. Education. Ltd Ltd. 1a-25 .

Education. 1a-26 . – In the industrial revolution where it became more economical to manufacture in factories than at home. Ltd Ltd.REVIEW LEARNING OBJECTIVE MH1 • Describe some early management examples. – Early examples of management practice in the construction of the Egyptian pyramids. Copyright © Copyright © 2014 2016 Pearson Pearson Education. – Adam Smith’s Wealth of Nations argued the benefits of division of labor.

Ltd Ltd. Education. – Frederick W. – Fayol believed the functions of management were common to all business endeavors. – The Gilbreths’ studied efficient hand-and-body motions. Taylor studied manual work using scientific principles. 1a-27 . Copyright © Copyright © 2014 2016 Pearson Pearson Education.REVIEW LEARNING OBJECTIVE MH2 • Explain the various theories in the classical approach.

Copyright © Copyright © 2014 2016 Pearson Pearson Education. Ltd Ltd. 1a-28 .REVIEW LEARNING OBJECTIVE MH-2 (CONT.) • Fayol developed 14 principles of management. • Weber described an ideal type of organization he called a bureaucracy. Education.

REVIEW LEARNING OBJECTIVE MH-3 • Discuss the development and uses of the behavioral approach. Copyright © Copyright © 2014 2016 Pearson Pearson Education. 1a-29 . – The Hawthorne Studies dramatically affected management beliefs about the role of people in organizations. – Early OB advocates believed that people were the most important asset of the organization and should be managed accordingly. Education. Ltd Ltd.

Education. 1a-30 . optimization models. – Total quality management—a management philosophy devoted to continual improvement and responding to customer needs and expectations— also makes use of quantitative methods to meet its goals. and computer simulations to management activities. Ltd Ltd.REVIEW LEARNING OBJECTIVE MH4 • Describe the quantitative approach. Copyright © Copyright © 2014 2016 Pearson Pearson Education. – The quantitative approach involves applications of statistics. information models.

– The contingency approach says that organizations are different.REVIEW LEARNING OBJECTIVE MH5 • Explain the various theories in the contemporary approach. – The systems approach says that an organization takes in inputs (resources) from the environment and transforms them into outputs that are distributed into the environment. Copyright © Copyright © 2014 2016 Pearson Pearson Education. face different situations. 1a-31 . Education. and require different ways of managing. Ltd Ltd.