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Describe some early management examples
Explain the various theories in the classical approach
Discuss the development and uses of the behavioral approach
Describe the quantitative approach
Explain the various theories in the contemporary approach
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3. Historical Background of Management
Ancient Management
Egypt (pyramids) and China (Great Wall)
Venetians (floating warship assembly lines)
Adam Smith The Wealth of Nations in 1776
Industrial Revolution
Substituted machine power for human labor
Created large organizations in need of management
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4. Exhibit MH-1: Major Approaches to Management
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5. Scientific Management
Fredrick Winslow Taylor
The “father” of scientific management
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
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Exhibit MH-2
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7. General Administrative Theory
Henri Fayol
Believed that the practice of management was distinct from other organizational functions
Developed principles of management that applied to all organizational situations
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8. Administrative principles (Henri Fayol)—rules of management
Foresight—to complete plan of action for the future.
Organization—to provide and mobilize resources to implement the plan.
Command—to lead, select, and evaluate workers to get the best work toward the plan.
Coordination—to fit diverse efforts together, ensure information is shared and problems solved.
Control—to make sure things happen according to plan and to take necessary corrective action.

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Exhibit MH-3
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10. General Administrative Theory
Max Weber
Developed a theory of authority based on an ideal type of organization (bureaucracy)
Emphasized rationality, predictability, impersonality, technical competence, and authoritarianism
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11. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Exhibit MH-4
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Discussion
Is there any similarities in the way of thinking between Fayol and Weber?!!
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13. 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, and computer simulations
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14. Quantitative management
Use of specialists to help managers apply techniques.
Software and hardware developments have expanded potential quantitative applications .
Personal judgment?!
Techniques and applications include:
Mathematical forecasting
Inventory modeling
Linear programming
Queuing theory
Network models
Simulations

15. Organizational Behavior
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
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Exhibit MH-5
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17. Mary Parker Follett Groups and human cooperation
Groups are mechanisms through which individuals could combine their talents for a greater good.
Organizations as cooperating “communities” of managers and workers.
Manager’s job is to help people in the organization cooperate and achieve an integration of interests.

18. Mary Parker Follett Forward-looking management insights
Employee ownership creates sense of collective responsibility (precursor of employee ownership, profit sharing, and gain-sharing)
Business problems involve variety of inter-related factors (precursor of systems thinking)
Private profits relative to public good (precursor of managerial ethics and social responsibility)

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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.
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Exhibit MH-6
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The Systems Approach
System - a set of interrelated and interdependent parts arranged in a manner that produces a unified whole.
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
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Exhibit MH-7
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23. The Contingency Approach
Contingency Approach - 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.
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24. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Exhibit MH-8
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25. Teamwork activity Assume the identity of one of the following:
Fredrick Taylor
Henri Fayol
Max Weber
Mary Parker Follet
System’s thinking
Contingency theories
Answer the following questions (within teams)

26. Teamwork activity
Q1: what are your basic beliefs about good management and organizational practices (according to your school of thoughts)?!
Q2: What is the best thing a manager can do to improve productivity in his or her work unit (according to your school of thoughts)?!
Q3: Disregard the school of thoughts you have chosen, how can you – as a manger – improve the productivity of a low performance employee in your organization?!
(make use of what you have learned from the different schools of thoughts)

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Terms to Know
division of labor (or job specialization)
Industrial Revolution
scientific management
therbligs
general administrative theory
principles of management
bureaucracy
quantitative approach
organizational behavior (OB)
Hawthorne Studies
system
closed systems
open systems
contingency approach
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