Management

Fifteenth Edition, Global Edition

Chapter M H-1
Management History Module

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Learning Objectives
MH1.1 Describe some early management examples.
MH1.2 Explain the various theories in the classical
approach.
MH1.3 Discuss the development and uses of the behavioral
approach.
MH1.4 Describe the quantitative approach.
MH1.5 Explain various theories in the contemporary
approach.

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Early Management
• 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.

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Job Specialization
• In 1776 Adam Smith published “The Wealth of Nations”
– division of labor (job specialization): the breakdown
of jobs into narrow and repetitive tasks

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Industrial Revolution
• Industrial revolution: a period during the late eighteenth
century when machine power was substituted for human
power, making it more economical to manufacture goods in
factories than at home

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Exhibit M H.1 Major Approaches to Management

Exhibit M H.1 shows the four major approaches to management theory: classical,
behavioral, quantitative, and contemporary.

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Classical Approach
• Classical approach: first studies of management, which
emphasized rationality and making organizations and
workers as efficient as possible

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Scientific Management
• Scientific management: an approach that involves using
the scientific method to find the “one best way” for a job to
be done

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Exhibit MH.2 Taylor’s Scientific
Management Principles
Principles
1. Develop a science for each element of an individual’s
work to replace the old rule-of-thumb method.
2. Scientifically select and then train, teach, and develop the
worker.
3. Heartily cooperate with the workers 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 does all work for
which it is better suited than the workers.

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Frank and Lillian Gilbreth
• Therbligs: a classification scheme for labeling basic hand
motions

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General Administrative Theory
• General administrative theory: an approach to
management that focuses on describing what managers
do and what constitutes good management practice

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Henri Fayol
• Principles of management: fundamental rules of
management that could be applied in all organizational
situations and taught in schools

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Exhibit MH.3 Fayol’s 14 Principles of
Management (1 of 2)
Principles

1. Division of work. Specialization increases output by making employees

more efficient.
2. Authority. Managers must be able to give orders, and authority gives them
this right.
3. Discipline. Employees must obey and respect the rules that govern the
organization.
4. Unity of command. Every employee should receive orders from only one
superior.
5. Unity of direction. The organization should have a single plan of action to
guide managers and workers.
6. Subordination of individual interests to the general interest. The interests
of any one employee or group of employees should not take precedence over
the interests of the organization as a whole.
7. Remuneration. Workers must be paid a fair wage for their services.

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Exhibit MH.3 Fayol’s 14 Principles of
Management (2 of 2)
Principles

8. Centralization. This term refers to the degree to which subordinates are

involved in decision making.
9. Scalar chain. The line of authority from top management to the lowest ranks
is the scalar chain.
10. Order. People and materials should be in the right place at the right time.
11. Equity. Managers should be kind and fair to their subordinates.
12. Stability of tenure of personnel. Management should provide orderly
personnel planning and ensure that replacements are available to fill
vacancies.
13. Initiative. Employees allowed to originate and carry out plans will exert high
levels of effort.
14. Esprit de corps. Promoting team spirit will build harmony and unity within the
organization.

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Max Weber
• Bureaucracy: a form of organization characterized by
division of labor, a clearly defined hierarchy, detailed rules
and regulations, and impersonal relationships

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Exhibit MH.4 Characteristics of Weber’s
Bureaucracy

Exhibit M H.4 shows Weber’s ideal bureaucracy

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Behavioral Approach
• Organizational behavior (OB): the study of the actions of
people at work

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Exhibit MH.5 Early OB Advocates

Exhibit M H.5 summarizes each individual’s most important ideas.

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Hawthorne Studies
• Hawthorne studies: a series of studies during the 1920s
and 1930s that provided new insights into individual and
group behavior

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Quantitative Approach
• Quantitative approach: the use of quantitative
techniques to improve decision making

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Total Quality Management
• Total quality management (TQM): a philosophy of
management that is driven by continuous improvement
and responsiveness to customer needs and expectations

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Exhibit MH.6 What is Quality Management?
Characteristic

1. Intense focus on the customer. The customer includes outsiders who buy the
organization’s products or services and internal customers who interact with and serve
others in the organization.
2. Concern for continual improvement. Quality management is a commitment to never
being satisfied. “Very good” is not good enough. Quality can always be improved.
3. Process focused. Quality management focuses on work processes as the quality of
goods and services is continually improved.
4. Improvement in the quality of everything the organization does. This relates to the
final product, how the organization handles deliveries, how rapidly it responds to
complaints, how politely the phones are answered, and the like.
5. Accurate measurement. Quality management uses statistical techniques to measure
every critical variable in the organization’s operations. These are compared against
standards to identify problems, trace them to their roots, and eliminate their causes.
6. Empowerment of employees. Quality management involves the people on the line in
the improvement process. Teams are widely used in quality management programs as
empowerment vehicles for finding and solving problems.

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Contemporary Approaches
• System: a set of interrelated and interdependent parts
arranged in a manner that produces a unified whole
• Closed systems: systems that are not influenced by and
do not interact with their environment
• Open systems: systems that interact with their
environment

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Exhibit M H.7 Great Moments in American Business
The $5 Workday (1914). Ford doubles its employees’ pay and helps create
the middle class.
Comprehensive Employee Benefits (1928). Kodak grants benefits that were
lavish for the time—such as life insurance, tuition assistance, and a retirement
annuity.
The Innovation Lab (1944). 3M set up the Products Fabrication Laboratory for
lab technicians to dream big without constraints.
ENIAC (1946). The first digital computer begins operation.
The Personal Computer (1977). The Apple II is introduced, starting the era of
the personal computer.
Flexible Workplaces (1993). Ad agency Chiat/Day builds new offices designed
to boost creativity by eliminating assigned desks and replacing them with mobile
workstations.
Domestic-Partner Benefits (1996). IBM extends healthcare benefits to its
employees’ gay and lesbian partners.
Going Green (2005). GE introduces Ecomagination, a suite of environmentally
friendly products.

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Exhibit MH.8 Organization as an Open System

Exhibit M H.8 shows a diagram of an organization from an open systems perspective

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Contingency Approach
• Contingency approach: a management approach that
recognizes organizations as different, which means they
face different situations (contingencies) and require
different ways of managing

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Exhibit MH.9 Popular Contingency Variables
Variable

Organization Size. As size increases, so do the problems of coordination. For

in- stance, the type of organization structure appropriate for an organization of
50,000 employees is likely to be inefficient for an organization of 50 employees.
Routineness of Task Technology. To achieve its purpose, an organization uses
technology. Routine technologies require organizational structures, leadership
styles, and control systems that differ from those required by customized or
nonroutine technologies.
Environmental Uncertainty. The degree of uncertainty caused by environmental
changes influences the management process. What works best in a stable and
predictable environment may be totally inappropriate in a rapidly changing and
unpredictable environment.
Individual Differences. Individuals differ in terms of their desire for growth,
autonomy, tolerance of ambiguity, and expectations. These and other individual
differences are particularly important when managers select motivation
techniques, leadership styles, and job designs.

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Review Learning Objective MH1.1
• 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.

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Review Learning Objective MH1.2
• Explain the various theories in the classical approach.
– Frederick W. Taylor
– The Gilbreths
– Henri Fayol
– Max Weber

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Review Learning Objective MH1.3
• Discuss the development and uses of the behavioral
approach.
– Early advocates of OB
– The Hawthorne Studies

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Review Learning Objective MH1.4
• Describe the quantitative approach.
– The quantitative approach
– Total quality management (TQM)

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Review Learning Objective MH1.5
• Explain various theories in the contemporary
approach.
– Systems approach
– Contingency approach

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