3 AFTER STUDYING THIS CHAPTER YOU SHOULD BE ABLE TO: Historical Background Of Management.Classical Approach.Quantitative Approach.Behavioral Approach.Contingency/Contemporary Approach
4 Major Approaches Of Management HistoricalBackgroundContemporaryApproachClassicalBehavioralQuantitativeEarly ExamplesofManagementAdam SmithIndustrialRevolutionEarlyAdvocateHawthornStudiesScientificManagementSystemApproachGeneralAdministrationContingencyApproachOrganizationBehavior
6 Industrial Revolution Ancient ManagementEgypt (pyramids)China (Great Wall)Adam SmithPublished “The Wealth of Nations” in 1776Advocated the division of labor (job specialization) to increase the productivity of workersIndustrial RevolutionSubstituted machine power for human laborCreated large organizations in need of management
7 Scientific Management 2-ClassicalApproachScientific ManagementGeneral Administrative TheoryThe first studies of management, which emphasized rationality and making organizations and workers as efficient as possible.
8 Scientific Management Classical ApproachScientific ManagementAn approach that involves using the scientific method to determine the “One Best Way” for a job to be done.
9 Fredrick Winslow Taylor The “father” of scientific managementPublished Principles of Scientific Management (1911)The theory of scientific managementUsing scientific methods to define the “one best way” for a job to be donePutting the right person on the job with the correct tools and equipmentHaving a standardized method of doing the jobProviding an economic incentive to the worker
10 Frank and Lillian Gilbreth Focused on increasing worker productivity through the reduction of wasted motionDeveloped the micro chronometer to time worker motions and optimize performance.How Do Today’s Managers Use Scientific Management?Use time and motion studies to increase productivityHire the best qualified employeesDesign incentive systems based on output
11 General Administrative Theory An Approach to management that focuses on describing what mangers do and what constitutes good management practice.
12 Henri FayolBelieved that the practice of management was distinct from other organizational functions like Finance, Production, Distribution, and other typical business functions.
13 Fayal's 14 Principles of Management Developed fourteen principles of management that applied to all organizational situations.Division of labor.Authority.Discipline.Unity of command.Unity of direction.Subordination of individual interests to the general interests.Remuneration.Centralization.Scalar chain.Order.Equity.Stability.Initiative.Esprit de corps.
14 Max Weber.Developed a theory of authority structures and relation in 1900s,called bureaucracy.Bureaucracy.A form of organization characterized by division of labor ,a clear defined hierarchy, detailed rules and regulations, and impersonal relationships.
16 3- Quantitative Approach Also called operations research or management scienceEvolved from mathematical and statistical methods developed to solve WWII military logistics and quality control problemsFocuses on improving managerial decision making by applying:Statistics, optimization models, information models, and computer simulations3-
17 Quality ManagementA philosophy of management driven by continual improvement in the quality of work processes and responding to customer needs and expectations
18 What is Quality Management? Intense focus on the customer.Concern for continual improvementProcess-focused.Improvement in the quality of everything.Accurate measurement.Empowerment of employees.
22 Hawthorne studiesA series of studies during the 1920s and 1930s that provided new insights into individual and group behavior
23 A series of productivity experiments conducted at Western Electric from 1927 to 1932. Experimental findingsProductivity unexpectedly increased under imposed adverse working conditions.The effect of incentive plans was less than expected.Research conclusionSocial norms, group standards and attitudes more strongly influence individual output and work behavior than do monetary incentives.
24 Organizational Behavior The field of study concerned with the actions (behavior) of people at work.
26 System ApproachA set of interrelated and interdependent parts arranged in a manner that produces a unified whole.
27 Basic Types of SystemsClosed systemsAre not influenced by and do not interact with their environment (all system input and output is internal).Open systemsDynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments.
29 Contingency ApproachA management approach which says that organization are different, face different situations (contingencies), and require different ways of managing
30 Popular Contingency Variables Organization sizeAs size increases, so do the problems of coordination.Routineness of task technologyRoutine technologies require organizational structures, leadership styles, and control systems that differ from those required by customized or non-routine technologies.Environmental uncertaintyWhat works best in a stable and predictable environment may be totally inappropriate in a rapidly changing and unpredictable environment.Individual differencesIndividuals differ in terms of their desire for growth, autonomy, tolerance of ambiguity, and expectations.