MANAGEMENT HISTORY

MODULE
CHAPTER 2

BY AMBREEN SHAUKAT
LEARNING GOALS
 Describe the three branches of the traditional view point of management:
1. Bureaucratic
2. Scientific
3. Administrative

 Explain the behavioral viewpoint`s contribution to management.

 Describe how managers can use systems and quantitative techniques to

improve employees performance

 State the two major components of the contingency viewpoint

 Explain the impact of the need for quality on management practices

HISTORY OF MANAGEMENT THOUGHT
1890-2000 : Traditional viewpoint.

1930-2000 : Behavioral viewpoint.

1940-2000 : Systems viewpoint.

1960-2000 : Contingency viewpoint.

1980-2000 : Quality viewpoint.

BUREAUCRATIC MANAGEMENT
CONTINUE…
SEVEN CHARACHTERISTICS:

1. Use of rules- formal guidelines for the behavior of employees on the job.
2. A clear division of labor – splitting work into specialized positions.
3. Impersonality – employees are evaluated according to rules and objectives data.
4. Hierarchical structure- ranks jobs according to the amount of authority in each job.
5. Authority- who has the right to make decisions of varying importance at different
organization levels.
6. Lifelong career commitments – both the employee and the organization view
themselves committed to each other over the working life of the employee.
7. Rationality – the use of the most efficient means available to accomplish a goal.
SCIENTIFIC MANAGEMENT
 TAYLOR’S SCIENTIFIC MANAGEMENT PRINCIPLE
Develop a science for each element of an individual’s work,
which will replace the old rule-of-thumb method.

Scientifically select and train, teach, and develop the worker.

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.

Divide work and responsibility almost equally between

management and workers.
ADMINISTRATIVE MANAGEMENT
Focus on the manager and basic managerial functions of planning,
organizing, controlling and leading.

Unity of command principle: an employee should report to only one

manager

Authority principle: managers have the right to give orders to get

things done.
 HENRI FAYOL’S PRINCIPLE OF EFECTIVE MANAGEMENT
1. DIVISION OF WORK: allows for job specialization ( work
should be divided among individuals and groups).
2. AUTHORITY AND RESPONSIBILITY:
 Authority right to give orders
 Responsibility to involves being answerable.
3. DISCIPLINE: common efforts of workers.
4. UNITY OF COMMAND:
 Employees should have only one boss.
5. UNITY OF DIRECTION:
 A single plan of action to guide the organization.
CONTINUE..
6. SUBORDINATION OF INDIVIDUAL INTERSETS TO THE GENERAL
INTERSETS OF ORGANIZATION.
7. REMUNERATION: an equitable uniform payment system that motives
contributes to organizational success.
8. CENTRALIZATION: the degree to which authority rests at the top of
the organization.
9. Scalar chain:
 Chainlike authority scale
 Most vs least authority
 CONTINUE..
10. ORDER: the arrangement of employees where they will be of the most
value to the organization and to provide career opportunities.
11. EQUITY: the provision of justice and the fair and impartial treatment of
all employees
12. STABILITY: long-term employment is important for the development of
skills that improve the organization’s performance. Subordination of
individual interest to common interest.
13. INITIATIVE: the fostering of creativity and innovation by encouraging
employees to act on their own.
14. ESPRIT DE CROPS: coordination, general good feelings among
employees, shared enthusiasm, short-term devotion to the common cause(
organization).
BEHAVIORAL VIEWPOINT: OVERVIEW
Focuses on dealing effectively with the human aspects of
organizations

Started in the 1930’s

Emphasis on working conditions

Workers wanted respect

Workers formed unions to bargain with management

 THE HAWTHORNE STUDIES
Studies of how characteristics of the work setting affected
worker fatigue and performance at the Hawthorne Works of the
Western Electric company from 1924-1932.

 Employees are motivated by social needs and association with

others.
Employees' performance is more a result of peer pressure than
management’s incentives and rules.
Employees want to participate in decisions that affect them.
Managers need to involves subordinates in coordinating their
work to improve efficiency.
 SYSTEMS VIEWPOINT: SYSTEMS CONCEPT
Systems viewpoint: an approach to solving problems by
diagnosing them within a framework of transformation
processes, outputs, and feedback

System types:
• Closed system: limits its interactions with the environment
(e.g., stamping department in GM assembly plant)
• Open system: interacts with the external environment (e.g.,
marketing department)
QUANTITATIVE APPROACH TECHNIQUES
Evolved for mathematical and statically methods to
developed to solve military logistic and quality control
problems.
• British and American military had developed techniques
using math/states to plan for attack and bombing raids etc.

Focusing on improving managerial decision making by

applying:
• Statistics, informational model and computer stimulations
CONTINGENCY VIEWPOINT: OVERVEIW
MANAGEMENT practices should be consistent with the
requirements of the external environment, the technology
used to make a product or provide a service, and
capabilities of the people who work for the organization.

Uses concept of the traditional, behavioral and system

viewpoints
CONTINGENCY VARIABLES
ORGANIZATION SIZE – as the size increases, so do the
problems of coordination

EXTERNAL ENVIRONMENT- stable or changing

TECHNOLOGY – simple or complex

PEOPLE – ways they are similar and different from each

other
 CONTINGENCY VIEWPOINT: DRAWS ON OTHER
VEIWPOINTS, AS NECESSARY
BEHAVIORAL VEIWPONT
How mangers influences
TRADITIONAL VEIWPONT
others:
What managers do:
 informal group
 plan
 cooperation among
 organize
employees
 Lead
 employees’ social needs
 control

SYSYTEMS VEIWPONT
CONTINGENCY VEIWPONT
How the parts fit together:
Mangers’ use of other
 input
viewpoints to solve problems
 transformations
involving:
 outputs
 External environment
 Technology
 individuals