Management History Module (R&C Ch.1 Module) PDF

Management Fifteenth Edition, Global Edition Topic 2 Management History Module (R&C Ch.1 Module)...

Management Fifteenth Edition, Global Edition Topic 2 Management History Module (R&C Ch.1 Module) Chapter M H-1 Management History Module Copyright © 2021 Pearson Education Ltd. Learning Objectives 1. Describe some early management examples (under historical background). 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. 2 HISTORICAL BACKGROUND Early Examples of Management 3000BC - 1776 The Egyptian pyramids and the Great Wall of China are proof that projects of tremendous scope, employing tens of thousands of people, were completed in ancient times. 3  HISTORICAL BACKGROUND – In 1776 Adam Smith published “The Wealth of Nations” – Division of labor (job specialization) – the breakdown of jobs into narrow and repetitive tasks. Industrial Revolution – a period during the late eighteenth century when – machine power was substituted for human labor – making it more economical to manufacture 4  EXHIBIT MH-1 MAJOR APPROACHES TO MANAGEMENT 5  CLASSICAL APPROACH1911 - 1947 Classical approach – first studies of management, which emphasized rationality and making organizations and workers as efficient as possible. 6  CLASSICAL APPROACH - 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. 7  Exhibit MH-2 Taylor’s Scientific Management Principles 8  CLASSICAL APPROACH - SCIENTIFIC MANAGEMENT: - FOLLOWERS: FRANK AND LILLIAN GILBRETH Therbligs – a classification scheme for labeling basic hand and body motions. 9  CLASSICAL APPROACH - GENERAL ADMINISTRATIVE THEORY General administrative theory – an approach to management that focuses on describing what managers do and what constitutes good management practice. 10  CLASSICAL APPROACH - GENERAL ADMINISTRATIVE THEORY HENRI FAYOL Fayol’s 14 Principles of management – Fundamental rules of management that could be applied in all organizational situations and taught in schools. 11  EXHIBIT MH-3 FAYOL’S 14 PRINCIPLES OF MANAGEMENT 12  Exhibit MH-3 Fayol’s 14 Principles of Management (cont.) 13  Classical Approach - General Administrative Theory Max Weber Bureaucracy – a form of organization characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships. 14 Exhibit M H.4 Characteristics of Weber’s Bureaucracy Exhibit M H.4 shows Weber’s ideal bureaucracy Copyright © 2021 Pearson Education Ltd.  BEHAVIORAL APPROACHLate 1700 – 1950’s Organizational behavior (OB) – the study of the actions of people at work. Early OB Advocates – Robert Owen – Hugo Munsterberg – Mary Parker Follett – Chester Barnard 16 Exhibit M H.5 Early O B Advocates Exhibit M H.5 summarizes each individual’s most important ideas. 17 Copyright © 2021 Pearson Education Ltd.  BEHAVIORAL APPROACH THE HAWTHORNE STUDIES Hawthorne Studies – a series of studies during the 1920s and 1930s that provided new insights into individual and group behavior.  Implications: e.g. Workers' feelings affect performance 18 QUANTITATIVE APPROACH1940s – 1950’s Quantitative approach (also called Management Science) – the use of quantitative techniques to improve decision 19  CONTEMPORARY 1960’s - presen APPROACHES Systems Approach System – a set of interrelated and interdependent parts arranged in a manner that produces a unified whole.  Actions taken in one organisational area (part) will affect others  inputs stage, transformational process, outputs stage – Takes in inputs (resources) from the environment and transforms them 20 into outputs that are distributed into Exhibit M H.8 Organization as an Open System Exhibit M H.8 shows a diagram of an organization from an open systems perspective 21 Copyright © 2021 Pearson Education Ltd. CONTEMPORARY APPROACHES (CONT.) Systems Approach (cont.) Closed system – systems that are not influenced by and do not interact with their environment. Open system – systems that interact with their environment. 22 Contemporary Approaches (cont.) Contingency approach – a management approach that recognizes organizations as different, which means they face different situations (contingencies) and require different ways of managing.  (contingent  depends on [situation])  (There is No one best way to organise) 23 Review Learning Objective 1 Describe some early management examples. Early examples of management practice include the construction of the Egyptian pyramids and the Great Wall of China. One important historical event was the publication of Adam Smith’s “Wealth of Nations,” in which he argued the benefits of division of labor (job specialization). Another was the industrial revolution, where it became more economical to manufacture in factories than at home. 24  REVIEW LEARNING OBJECTIVE 2 Explain the various theories in the classical approach. – Scientific Management: – Q: How to improve individual’s productivity? – Frederick W. Taylor studied manual work using scientific principles. – The Gilbreths’ studied efficient hand-and-body motions. 25  REVIEW LEARNING OBJECTIVE 2 (CONT.) Explain the various theories in the classical approach (cont.). – - General Administrative Theory (cont.): – Q: How to improve organization's productivity in general? - Fayol developed 14 principles of management. - Division of work, authority, discipline, unity of command, unity of direction, subordination of individual interests to the general interest, remuneration , centralization, scalar chain, order, equity, stability of tenure of personnel, initiative, esprit de corps - Weber described an ideal type of organization he 26 called a bureaucracy.  Review Learning OBJECTIVE 3 Discuss the development and uses of the behavioral approach. – Early OB advocates believed that people were the most important asset of the organization and should be managed accordingly. – The Hawthorne Studies dramatically affected management beliefs about the role of people in organizations. 27 REVIEW LEARNING OBJECTIVE 4 Describe the quantitative approach (management science). – The quantitative approach involves applications of statistics, optimization models, information models, and computer simulations to management activities. 28  REVIEW LEARNING OBJECTIVE 5 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. – The contingency approach says that organizations are different, face different situations, and require different ways of managing. 29 Chapter Review 30 Review Question 1 In ABC company, every employee should receive orders from only one superior. According to Fayol’s 14 Principles of management, this is an example of ____________. A. division of work B. discipline C. unity of command D. unity of direction 31 Review Question 2 The idea that “managers should encourage employees to act on one’s own without direction from a superior” is an example of _____________ according to Fayol’s 14 Principles of management. A. Unity of command B. Initiative C. Line of authority D. Centralization 32 Review Question 3 Which of the following is one of the main implications of the Hawthorne Studies? A. Illumination affects workers' productivity. B. Illumination effects workers' satisfaction. C. Workers' feelings and thoughts can affect performance. D. Workers are inherently lazy. 33 Review Question 4 Joan enjoys her work because she gets along well with her coworkers who have similar work attitudes and standards. Together they have won many good performance awards as a team in the hotel. Recently, Joan has declined an offer with higher salary to work in another hotel because she knows she would not get along well with the people there. Joan’s behavior is related to __________. A. management science theory B. contingency approach C. open system view D. Hawthorne Studies 34 Review Question 5 The management theory that focuses on the use of rigorous, quantitative techniques that are intended to assist managers to make the best use of organizational resources is called __________. A. contingency approach B. general administrative theory C. behavioral approach D. management science 35 Review Question 6 Juanita alters her management style depending on the particular issue which she is dealing with. She is acting consistently with the principles of __________. A. management science theory B. contingency approach C. open system view D. administrative management theory 36  Question 7 In a supermarket that follows ____________ Science approach, quantitative techniques are used to improve decision making. Question 8 An organization that is NOT influenced by and does NOT interact with its environment is an example of ____________ system. 37 Terms to Know division of labor (or job organizational behavior specialization) (OB) industrial quantitative approach revolution Management science classical approach Hawthorne Studies scientific system management closed systems general open systems administrative contingency approach theory 14 principles of management bureaucracy 38