8th edition

Steven P. Robbins
Mary Coulter

PowerPoint Presentation by Charlie Cook

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LEARNI NG O UTLI NE
Follow this Learning Outline as you read and study this chapter.

o Historical Background of Management

Explain why studying management history is important.
Describe some early evidences of management practice.

Scientific Management
Describe the important contributions made by Fredrick W.
Taylor and Frank and Lillian Gilbreth.
Explain how todays managers use scientific
management.

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22

L E A R N I N G O U T L I N E (contd)
Follow this Learning Outline as you read and study this chapter.

oGeneral Administrative Theorists

Discuss Fayols 14 management principles.
Describe Max Webers contribution to the general
administrative theory of management.
Explain how todays managers use general administrative
theory.

oQuantitative Approach to Management

Explain what the quantitative approach has contributed to
the field of management.
Discuss how todays managers use the quantitative
approach.
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23

L E A R N I N G O U T L I N E (contd)
Follow this Learning Outline as you read and study this chapter.

Toward Understanding 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 todays managers use the behavioral
approach.

oThe Systems Approach

Describe an organization using the systems approach.
Discuss how the systems approach is appropriate for
understanding management.
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24

L E A R N I N G O U T L I N E (contd)
Follow this Learning Outline as you read and study this chapter.

oThe Contingency Approach

Explain how the contingency approach differs from the
early theories of management.
Discuss how the contingency approach is appropriate for
studying management.

oCurrent Issues and Trends

Explain why we need to look at the current trends and
issues facing managers.
Describe the current trends and issues facing managers.

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25

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
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26

Development of Major Management Theories

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Exhibit 2.1

27

Major Approaches to Management

Scientific Management
General Administrative Theory
Quantitative Management
Organizational Behavior
Systems Approach
Contingency Approach

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28

Scientific Management
Fredrick Winslow 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.
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29

Taylors Five Principles of Management

1. Develop a science for each element of an
individuals work, which will replace the old ruleof-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.
5. Management takes over all work for which it is
better fitted than the workers.
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Exhibit 2.2

210

Scientific Management (contd)

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 Todays Managers Use Scientific

Management?
Use time and motion studies to increase productivity
Hire the best qualified employees
Design incentive systems based on output
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211

General Administrative Theorists

Henri Fayol
Believed that the practice of management was distinct
from other organizational functions
Developed fourteen principles of management that
applied to all organizational situations

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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212

Fayols 14 Principles of Management

1. Division of work.

7.

Remuneration.

2. Authority.

8.

Centralization.

3. Discipline.

9.

Scalar chain.

4. Unity of command.

10. Order.

5. Unity of direction.

11. Equity.

6. Subordination of
individual interest
to the interests of
the organization.

12. Stability of tenure

of personnel.
13. Initiative.
14. Esprit de corps.

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Exhibit 2.3

213

Webers Ideal Bureaucracy

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Exhibit 2.4

214

Quantitative Approach to Management

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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215

Understanding 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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216

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 behavior
than do monetary incentives.
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217

Early Advocates of OB

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Exhibit 2.5

218

The Systems Approach

System Defined
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 to their environments by taking in

inputs and transforming them into outputs that are
distributed into their environments.

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219

The Organization as an Open System

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Exhibit 2.6

220

Implications of the Systems Approach

Coordination of the organizations 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.
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221

The Contingency Approach

Contingency Approach Defined
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.

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222

Popular Contingency Variables

Organization size
Routineness of task technology
Environmental uncertainty
Individual differences

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Exhibit 2.7

223

Current Trends and Issues

Globalization
Ethics
Workforce Diversity
Entrepreneurship
E-business
Knowledge Management
Learning Organizations
Quality Management
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224

Current Trends and Issues (contd)

Globalization
Management in international organizations
Political and cultural challenges of operating in a
global market

Ethics
Increased emphasis on ethics education in college
curriculums
Increased creation and use of codes of ethics by
businesses

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225

A Process for Addressing Ethical Dilemmas

Step 1: What is the ethical dilemma?
Step 2: Who are the affected stakeholders?
Step 3: What personal, organizational, and
external factors are important to
my decision?
Step 4: What are possible alternatives?
Step 5: Make a decision and act on it.
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Exhibit 2.8

226

Current Trends and Issues (contd)

Workforce Diversity
Increasing heterogeneity in the workforce
More

gender, minority, ethnic, and other forms of

diversity in employees

Aging workforce
Older

employees who work longer and do not retire

The

increased costs of public and private benefits for

older workers

An

increasing demand for products and services related

to aging.

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227

Current Trends and Issues (contd)

Entrepreneurship Defined
The process whereby an individual or group of
individuals use organized efforts to create value and
grow by fulfilling wants and needs through innovation
and uniqueness.

Entrepreneurship process
Pursuit of opportunities
Innovation in products, services, or business methods
Desire for continual growth of the organization
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228

Current Trends and Issues (contd)

E-Business (Electronic Business)
The work preformed by an organization using
electronic linkages to its key constituencies
E-commerce: the sales and marketing component of
an e-business

Categories of E-Businesses
E-business enhanced organization
E-business enabled organization
Total e-business organization
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229

Categories of E-Business Involvement

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Exhibit 2.9

230

Current Trends and Issues (contd)

Knowledge Management
The cultivation of a learning culture where
organizational members systematically gather and
share knowledge with others in order to achieve
better performance.

Learning Organization
An organization that has developed the capacity to
continuously learn, adapt, and change.

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231

Learning Organization versus Traditional

Organization

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Exhibit 2.10

232

Current Trends and Issues (contd)

Quality Management
A philosophy of management driven by continual
improvement in the quality of work processes and
responding to customer needs and expectations
Inspired by the total quality management (TQM) ideas
of Deming and Juran
Quality is not directly related to cost

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233

What is Management Quality?

Intense focus on the customer
Concern for continual improvement
Process-focused
Improvement in the quality of everything
Accurate measurement
Empowerment of employees

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Exhibit 2.11

234