History of Management Trends Supplement 1 History of Management Trends Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1- 1 Copyright © 2008 Pearson Education Canada

LEARNING OUTLINE Follow this Learning Outline as you read and study this chapter Management Theories List the six major management theories Scientific Management Describe the important contributions made by Fredrick W. Taylor and Frank and Lillian Gilbreth Explain how today’s managers use scientific management Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1- 2 Copyright © 2008 Pearson Education Canada

LEARNING OUTLINE (cont’d) Follow this Learning Outline as you read and study this chapter General Administrative Theorists Discuss Fayol’s 14 management principles. Describe Max Weber’s contribution to the general administrative theory of management. Explain how today’s managers use general administrative theories of management. The Quantitative Approach Explain what the quantitative approach has contributed to the field of management. Discuss how today’s managers use the quantitative approach. Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1- 3 Copyright © 2008 Pearson Education Canada

LEARNING OUTLINE (cont’d) Follow this Learning Outline as you read and study this chapter Organizational Behavior Describe the contributions of the early advocates of OB Explain the contributions of the Hawthorne Studies to the field of management Discuss how today’s managers use the behavioural approach The Systems Approach Describe an organization using the systems approach Discuss how the systems approach is appropriate for understanding management Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1- 4 Copyright © 2008 Pearson Education Canada

LEARNING OUTLINE (cont’d) Follow this Learning Outline as you read and study this chapter The Contingency Approach Explain how the contingency approach differs from the early theories of management Discuss how the contingency approach is appropriate for studying management Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1- 5 Copyright © 2008 Pearson Education Canada

Management Theories Six major management theories: Scientific management General administrative theory The quantitative approach Organizational behaviour The systems approach The contingency approach Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1- 6 Copyright © 2008 Pearson Education Canada

Exhibit S1.1 Development of Major Management Theories Scientific Quantitative Systems Contingency Management Approach Approach Approach Early Advocates Hawthorne Studies Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1- 7 Copyright © 2008 Pearson Education Canada

Scientific Management Fredrick Winslow Taylor The “father” of scientific management Published Principles of Scientific Management (1911) The theory of scientific management 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 Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1- 8 Copyright © 2008 Pearson Education Canada

Tips for Managers: Taylor’s Four Principles of Management Develop a science for each element of an individual’s work. Scientifically select and then train, teach, and develop employees. Heartily cooperate with employees to get work done using scientific methods. Divide work and responsibility almost equally between management and workers. Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1- 9 Copyright © 2008 Pearson Education Canada

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 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 Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1- 10 Copyright © 2008 Pearson Education Canada

General Administrative Theorists 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 Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1- 11 Copyright © 2008 Pearson Education Canada

Tips for Managers: Fayol’s 14 Principles of Management Division of work Authority Discipline Unity of command Unity of direction Subordination of individual interest to the general interest 7. Remuneration 8. Centralization 9. Scalar chain 10. Order 11. Equity 12. Stability of tenure of personnel 13. Initiative 14. Esprit de corps Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1- 12 Copyright © 2008 Pearson Education Canada

General Administrative Theorists (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 Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1- 13 Copyright © 2008 Pearson Education Canada

Exhibit S1.2 Weber’s Ideal Bureaucracy A bureaucracy should have Division of Labour Formal Rules and Regulations Impersonality Career Orientation Formal Selection Authority Hierarchy Managers are career professionals, not owners of units they manage Uniform application of rules and controls, not according to personalities Positions organized in a hierarchy with a clear chain of command People selected for jobs based on technical qualifications Jobs broken down into simple, routine, and well-defined tasks System of written rules and standard operating procedures Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1- 14 Copyright © 2008 Pearson Education Canada

The 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 Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1- 15 Copyright © 2008 Pearson Education Canada

Organizational Behaviour Organizational Behaviour (OB) The study of the actions of people at work; people are an organization’s most important assets Early OB Advocates Robert Owen Hugo Münsterberg Mary Parker Follett Chester Barnard Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1- 16 Copyright © 2008 Pearson Education Canada

Exhibit S1.3 Early Advocates of OB Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1- 17 Copyright © 2008 Pearson Education Canada

The Hawthorne Studies A series of productivity experiments conducted at Western Electric from 1927 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 behaviour than do monetary incentives Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1- 18 Copyright © 2008 Pearson Education Canada

The Systems Approach System Defined Basic Types of Systems A 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 with their environments by taking in inputs and transforming them into outputs, which are then distributed back into the environments Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1- 19 Copyright © 2008 Pearson Education Canada

Exhibit S1.4 The Organization as an Open System Employees ’ Work Activities Management Technology and Operations Methods Transformation Process System Raw Materials Human Resources Capital Information Inputs Products and Services Financial Results Human Results Outputs Feedback Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1- 20 Copyright © 2008 Pearson Education Canada

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 on other areas of the organization Organizations are not self-contained and, therefore, must adapt to changes in their external environment Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1- 21 Copyright © 2008 Pearson Education Canada

The Contingency Approach Contingency Approach Defined 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 Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1- 22 Copyright © 2008 Pearson Education Canada

Exhibit S1.5 Popular Contingency Variables Organization size Routineness of task technology Environmental uncertainty Individual differences Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1- 23 Copyright © 2008 Pearson Education Canada

Exhibit S1.6 Emphases of Major Management Theories Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1- 24 Copyright © 2008 Pearson Education Canada