Management: Second Arab World Edition Chapter 2 PDF

Management: Second Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 2: Management History Lecturer: [Insert your name here]  Describe the Historical Background Of Management 1. Explain why...

Management: Second Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 2: Management History Lecturer: [Insert your name here]  Describe the Historical Background Of Management 1. Explain why studying management history is important. 2. Describe some early evidences of management practice. 3. Describe two important historical events that are significant to the study of management. 2-2 Copyright © 2015 Pearson Education  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 Advocated the division of labor (job specialization) to increase the productivity of workers Industrial Revolution Substituted machine power for human labor Created large organizations in need of management 2-3 Copyright © 2015 Pearson Education  Exhibit 2–1 Major Approaches to Management 2-4 Copyright © 2015 Pearson Education  Major Approaches to Management Classical Quantitative Behavioral Contemporary 2-5 Copyright © 2015 Pearson Education  Quick Learning Review Division of labor refers to: a. One worker doing multiple jobs at separate times b. Many workers doing one job at the same time c. One worker rotating between one job and another d. One worker doing one job in a narrow and repetitive manner The four major approaches to management theory are: a. Classical, quantitative, qualitative, and contingency b. Classical, quantitative, behavioral, and contemporary c. Classical, interactive, quantifiable, and traditional d. Quantitative, qualitative, traditional, and contingency 2-6 Copyright © 2015 Pearson Education  Explain the Various Theories in the Classical Approach 1. Describe the important contributions made by Frederick W. Taylor and Frank and Lillian Gilbreth. 2. Discuss Fayol’s and Weber’s contributions to management theory. 3. Explain how today’s managers use scientific management and general administrative theory. 2-7 Copyright © 2015 Pearson Education  Scientific Management Scientific Management Fredrick W. Taylor: The “father” of scientific management Published Principles of Scientific Management (1911)  The theory of scientific management – Using scientific methods to define the “one best way” for a job to be done: ○ Putting the right person on the job with the correct tools and equipment. ○ Having a standardized method of doing the job. ○ Providing an economic incentive to the worker. 2-8 Copyright © 2015 Pearson Education  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. 2-9 Copyright © 2015 Pearson Education  Scientific Management (cont’d) Frank and Lillian Gilbreth Focused on increasing worker productivity through the reduction of wasted motion. Developed the microchronometer to time worker motions and optimize work performance. How Do Today’s Managers Use Scientific Management? Use time and motion studies to increase productivity. Hire the best qualified employees. Design incentive systems based on output. 2-10 Copyright © 2015 Pearson Education  General Administrative Theory Henri Fayol Believed that the practice of management was distinct from other organizational functions. Developed 14 principles of management that applied to all organizational situations. 2-11 Copyright © 2015 Pearson Education  Exhibit 2–3 Fayol’s 14 Principles of Management 2-12 Copyright © 2015 Pearson Education  General Administrative Theory (cont’d) Max Weber Developed a theory of authority based on an ideal type of organization (bureaucracy).  Emphasized rationality, predictability, impersonality, technical competence, and authoritarianism. 2-13 Copyright © 2015 Pearson Education  Exhibit 2–4 Weber’s Bureaucracy 2-14 Copyright © 2015 Pearson Education  Quick Learning Review Scientific management principles include: a. Worker training b. Division of labor c. The understanding that work is a science that can be studies and applied d. All of the above Max Weber’s definition of bureaucracy included all of the following except: a. Division of labor and hierarchy b. Formal selection and formal rules c. Impersonality and career orientation d. Harmony and team spirit 2-15 Copyright © 2015 Pearson Education  Describe the Quantitative Approach 1. Explain what the quantitative approach has contributed to the field of management. 2. Describe total quality management. 3. Discuss how today’s managers use the quantitative approach. 2-16 Copyright © 2015 Pearson Education  Quantitative Approach Also called operations research or management science. Evolved from mathematical and statistical methods developed to solve WWII military logistics and quality control problems. Focuses on improving managerial decision making by applying:  statistics  optimization models  information models  computer simulations 2-17 Copyright © 2015 Pearson Education  Total quality management (TQM) A management philosophy devoted to continual improvement and responding to customer needs and expectations. TQM was a departure from earlier management approaches that were based on the belief that keeping costs low was the only way to increase productivity. 2-18 Copyright © 2015 Pearson Education  How do Today’s Manager’s Use the Quantitative Approach?  Customer focus and continuous improvement  Management commitment to quality  Training and empowerment  Benchmarking 2-19 Copyright © 2015 Pearson Education  Exhibit 2–5 What is Quality Management? 2-20 Copyright © 2015 Pearson Education  Quick Learning Review Quality management refers to: a. Intense focus on the customer b. Accurate measurement c. Continuous improvement d. All of the above The quantitative approach contributes directly to management decision making in the areas of: a. Planning and organizing b. Organizing and leading c. Planning and control d. Leading and control 2-21 Copyright © 2015 Pearson Education  Discuss the Development and Uses of the Behavioral Approach 1. Describe the contributions of the early advocates of OB. 2. Explain the contributions of the Hawthorne Studies to the field of management. 3. Discuss how today’s managers use the behavioral approach. 2-22 Copyright © 2015 Pearson Education  Behavioral Approach Organizational Behavior (OB) The study of the actions of people at work; people are the most important asset of an organization. Early OB Advocates Robert Owen Hugo Munsterberg Mary Parker Follett Chester Barnard 2-23 Copyright © 2015 Pearson Education  Exhibit 2–6 Early OB Advocates 2-24 Copyright © 2015 Pearson Education  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. 2-25 Copyright © 2015 Pearson Education  How Today’s Managers Use the Behavioral Approach The behavioral approach has largely shaped how today’s organizations are managed: – How managers design jobs – The way that they work with employee teams – The way that they communicate 2-26 Copyright © 2015 Pearson Education  Quick Learning Review Which is a primary implication of the Hawthorne studies? a. People’s behaviors and attitudes are closely related b. Attending to customer needs takes priority over all other things c. The field of management is a science not an art d. Division of labor is a key to productivity Organizational behavior (OB) is a field of study that tackles: a. How organizations – as formal entities – operate b. How bureaucracies operate under ideal situations c. How people behave at work d. How the behavior of organizations is distinct from behavior of people working there 2-27 Copyright © 2015 Pearson Education  Explain the Various Theories in the Contemporary Approach 1. Describe an organization using the systems approach. 2. Discuss how the systems approach helps us understand management. 3. Explain how the contingency approach is appropriate for studying management. 2-28 Copyright © 2015 Pearson Education  Systems Theory A system is set of interrelated and interdependent parts arranged in a manner that produces a unified whole. Basic Types of Systems Closed systems  Are not influenced by and do not interact with their environment (all system input and output is internal). Open systems  Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments. 2-29 Copyright © 2015 Pearson Education  Exhibit 2–7 Organization as an Open System 2-30 Copyright © 2015 Pearson Education  Systems Theory (cont’d) The Systems Approach and Managers 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. 2-31 Copyright © 2015 Pearson Education  Contingency Approach 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. The Contingency Approach and Managers The primary value of the contingency approach is that it stresses that there are no simplistic or universal rules for managers to follow. 2-32 Copyright © 2015 Pearson Education  Exhibit 2–8 Popular Contingency Variables 2-33 Copyright © 2015 Pearson Education  Quick Learning Review A system: a. Is a set of interrelated and interdependent parts working together as a whole b. Is a code of proper behavior in organizations c. Implies that decisions in one part of the organization do not necessarily impact other areas d. Refers to goals, attitude, and formal structures Popular contingency variables include: a. Organization size b. Environmental uncertainty c. Individual differences d. All of the above 2-34 Copyright © 2015 Pearson Education  Discuss Administrative Perspectives In The Early Arab Context 1. Discuss managerial perspectives from an Islamic perspective. 2. Explain which factors have impacted Arab managerial practice. 3. Recognize the complexity of factors impacting Arab management thought and practice. 2-35 Copyright © 2015 Pearson Education  Administrative perspectives in the Early Arab context Early Arabs lived in relatively small communities. Their tribal life emphasized the role of endurance, generosity, and communal cohesion, but this did not necessitate any type of advanced managerial thinking. The relationship between the employer and the employee was simple and issues of fairness and equality were not a priority at the time. With the advent of Islam in the year 622 C.E., attitudes towards certain professions were drastically changed. 2-36 Copyright © 2015 Pearson Education  Administrative perspectives in the Early Arab context (cont’d) Prophet Muhammad (PBUH) developed a perspective of work and management that was radically different from the earlier perspectives. The relationship between the employer and the employee changed. Under the new paradigm, the employee was supposed to get his fair share quickly. 2-37 Copyright © 2015 Pearson Education  Administrative perspectives in the Early Arab context (cont’d) There isn’t a widespread accepted Arab theory of management. The managerial perspectives based on Islam, as idealistic and desirable as they are, cannot be presented as representing an Arab theory of management. Reasons? Other cultural, political, and historical influences are also present. Sometimes actual administrative practices diverge from what is recommended. 2-38 Copyright © 2015 Pearson Education  Exhibit 2–9 Islamic Managerial Perspectives Source: Adapted from Ali, A. & Al-Owaihan, A. “Islamic Work Ethic, a critical review,” Cross Cultural Management: An International Journal, Vol. 15 No. 1, 2008, pp. 5–19. 2-39 Copyright © 2015 Pearson Education  Quick Learning Review Arab managerial thinking is impacted by: a. Western managerial thinking b. Religion and traditions c. Colonial influences d. All of the above Which of the below is false: a. Arab history witnessed the emergence of workers’ associations b. There is a clear widely accepted Arab theory of management c. Early Arab communities did not develop sophisticated business organizations d. Political constraints impact Arab managerial thinking and behavior 2-40 Copyright © 2015 Pearson Education