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Chapter 2 Management

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Management tenth edition

Stephen P. Robbins Mary Coulter

Chapter
Management
2 History

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall


2–1
Learning Outcomes
Follow this Learning Outline as you read and study
this chapter.
2.1 Historical Background Of Management.
2.2 Classical Approach.
2.3 Quantitative Approach.
2.4 Behavioral Approach
2.5 Contingency/Contemporary Approach

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall


2–2
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
• Industrial Revolution

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall


2–3
Exhibit 2–1 Major Approaches to Management

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall


2–4
Scientific Management
• Fredrick Winslow Taylor
 The “father” of scientific management
 Published Principles of Scientific Management (1911)
Says “Management is a science. There is one
best way and one best person to do the task. I
love efficiency and I love to study people at
work. Management should be an academic
discipline.” (He had a point…)

His work influenced:


Bringing psychology into the workplace
Gantt Chart and planning
Harvard University Offering Management
Degree

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall


Exhibit 2–2 Taylor’s Scientific Management Principles

1. Develop a science for each element of an individual’s work, which will


replace the old rule-of-thumb method.
2. Scientifically select and then train, teach, and develop the worker.
3. 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. Divide work and responsibility almost equally between management


and workers. Management takes over all work for which it is better
fitted than the workers.

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall


2–6
General Administrative Theory
• Henri Fayol
 Principles of Management

• Max Weber
 Developed a theory of authority based on an ideal
type of organization (bureaucracy)
 Emphasized rationality, predictability, impersonality, technical
competence, and authoritarianism

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall


2–7
Exhibit 2–3 Fayol’s 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 12. Stability of tenure


individual interests of personnel
to the general 13. Initiative
interest
14. Esprit de corps
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–8
Exhibit 2–4 Weber’s Bureaucracy

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall


2–9
Quantitative Approach to
Management
• Quantitative Approach
 Evolved from mathematical and statistical methods
developed to solve WWII military logistics and quality
control problems
 British and American military had developed techniques using
math/stats to plan for attacks, convoy sizes, bombing raids,
etc…
 Focuses on improving managerial decision making by
applying:
 Statistics, optimization models, information models, and
computer simulations
 Computers do most of this work today
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–10
Exhibit 2–5 What Is Quality Management?
Intense focus on the customer
Concern for continual improvement
Process-focused
Improvement in the quality of everything
Accurate measurement
Empowerment of employees

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall


2–11
Understanding Organizational
Behavior
• Organizational Behavior (OB)
 People are the MOST important asset of an
organization or firm (True or False?)

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall


2–12
The Hawthorne Studies
•A series of productivity experiments conducted
at Western Electric from 1924 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.
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–13
Exhibit 2–7 The Organization as an Open
System

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2–14
Implications of the Systems
Approach
• Coordination of the organization’s 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.
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–15
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.

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall


2–16
Exhibit 2–8 Popular Contingency Variables

• Organization size
• As size increases, so do the problems of coordination.
• Routineness of task technology
• Routine technologies require organizational structures,
leadership styles, and control systems that differ from
those required by customized or non-routine
technologies.
• Environmental uncertainty
• What works best in a stable and predictable environment
may be totally inappropriate in a rapidly changing and
unpredictable environment.
• Individual differences
• Individuals differ in terms of their desire for growth,
autonomy, tolerance of ambiguity, and expectations.
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
2–17

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