Expected Learning

Outcomes
• 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.

11/16/2024
 Question

Why History is important to

study?

11/16/2024
 Historical Management
Approaches

11/16/2024
Historical Background of Management
(Early Management 3000 BC-1776)
• Ancient Management
• Egypt (pyramids) Over 100,000 workers
took 20 years to build a single pyramid.
• China (Great Wall) 771–476 BC
• Venice (floating warship assembly lines)

• Key Questions:
• Who directed the workers?
• Who ensured materials were
available?

11/16/2024
Historical Background of Management
(Early Management 3000 BC-1776)

• Adam Smith The Wealth of

Nations in 1776
Key Concept:
•Division of labor (job specialization) breaks
down jobs into narrow, repetitive tasks.
Example: Pin Industry
•10 specialized workers produced 48,000
pins/day, 1 person alone: could barely
produce 10 pins/day.
Benefits:
•Increased skill and dexterity.
•Saved time on task switching.
•Led to labor-saving inventions and machinery.
•Hospital surgery teams
•Restaurant kitchens
•Football team positions
11/16/2024
Historical Background of Management
(Early Management 3000 BC-1776)
• Industrial Revolution
• Substituted machine power
for human labor.
• Created large organizations
in need of management.

Key Historical Shift:

•Industrial Revolution (Late 18th century):
• Machine power replaced human labor.
• Goods began to be manufactured in factories instead of
homes.

11/16/2024
 Causes of Industrial
Revolution

Role of Managers:
•Forecast demand. Ensure material availability. Assign tasks and direct activities.
Need for Management Theories:
•Formal theories became essential for managing large organizations.
•The first steps toward these theories emerged in the early 1900s.

11/16/2024
 Classical Approach
•The formal study of management began in the early 20th century.
•Emphasized rationality and efficiency in organizations and the workforce.

Key Components:
•Two major theories comprise the classical
approach:
• Scientific Management
• General Administrative Theory

Contributors to Scientific Management:

• Frederick W. Taylor
• Frank and Lillian Gilbreth

Contributors to General Administrative Theory:

• Henri Fayol
• Max Weber

11/16/2024
Major Approaches to Management

Historical Context:
•Each approach reflects the time period and interests of its researchers.
Contribution to Management:
•All four approaches enhance our overall understanding.
•However, each offers a limited perspective on management practice.
11/16/2024
 Classical Approach
(Scientific Management)
• 1911: Birth of modern management theory with Taylor's
Principles of Scientific Management.
• Scientific Management:
• Taylor used scientific methods to define the “one best
way” to perform a job.
• Workplace Challenges:
• Workers used different techniques and lacked standards.
• Taylor believed output was only one-third of potential.
Fredrick Winslow Taylor
• Pig Iron Experiment:
(1856-1915)
• Increased productivity from 12.5 tons to 47-48 tons/day.
Also known as the
• Achieved by:
“father” of scientific
• Assigning the right person to the job.
management.
• Providing correct tools.
• Motivating workers with economic incentives.

11/16/2024
 Taylor, Frederick Winslow, Principles of
Scientific Management (New York: Harper, 1911)

11/16/2024
Frank and Lillian Gilbreth: Pioneers of
Efficiency
•Frank Gilbreth and Lillian: Construction contractor turned
scientific management advocate after hearing Frederick
Taylor.
Focus on Motion Efficiency:
•Studied hand-and-body motions to eliminate inefficiencies.
•Developed proper tools and equipment to improve work
performance.
Bricklaying Experiment:
•Analyzed and reduced motions in bricklaying.
• Exterior brick: Reduced from 18 to 5 motions. (1868-1924)
• Interior brick: Reduced from 18 to 2 motions.
•Result: Bricklayers were more productive and less fatigued.

Innovations in Motion Study:

•Invented the microchronometer to record hand-and-body
motions.
•Identified wasted motions invisible to the naked eye.
•Developed a classification of 17 basic hand motions to
precisely analyze workers’ movements.
11/16/2024
 Henri Fayol and General
Administrative Theory
Believed that the practice of management was distinct from other
organizational functions.

Focus of General Administrative Theory:

Examines what managers do and what constitutes good
management practice.
Fayol Identified five functions of management: (Planning,
Organizing, Commanding, Coordinating, and Controlling)

Difference from Taylor:

While Taylor focused on first-line managers and the scientific
method, Fayol focused on all managers. (1841-1925)

14 Principles of Management:
Fayol developed 14 principles to guide management across all
organizational settings.

11/16/2024
Fayol’s Fourteen Principles of Management

11/16/2024
 Week-4

11/16/2024
 Max Weber and Bureaucracy

Who was Max Weber?

German sociologist who studied organizations in the early 1900s.
Developed a theory of authority structures called bureaucracy.

Key Features of Bureaucracy:

 Division of labor
 Clearly defined hierarchy
 Detailed rules and regulations
 Impersonal relationships
 Weber's Ideal Bureaucracy: (1864-1920)

An "ideal type" to theorize how work could be structured in large groups.

Although not practical, it shaped the design of many large organizations today.

Comparison with Scientific Management:

Both emphasize rationality, predictability, impersonality, and technical competence.
Weber's ideas were less practical than Taylor’s but still influential.

11/16/2024
 Characteristics of Weber’s
Bureaucracy

11/16/2024
Behavioral Approach to Management
Focus on People:
•Managers achieve results by working with people.
•Organizational Behavior (OB) studies the actions and behaviors of individuals at work.
Key Aspects of OB:
•Emphasizes:
• Motivating.
• Leading.
• Building trust.
• Teamwork.
• Conflict management.

Pioneers of the Behavioral Approach: Robert Owen: Advocated for humane working
conditions. Hugo Munsterberg: Focused on psychology’s role in work efficiency. Mary
Parker Follett: Emphasized collaboration and empowerment. Chester Barnard: Highlighted
the importance of cooperation and communication.
Impact on Management Practices:
•Foundation for: (Employee selection procedures, Motivation programs, Work teams

11/16/2024
 Early OB Advocates

11/16/2024
 The Hawthorne Studies
• Research Conducted at Western Electric
Company in Cicero, Illinois, starting in 1924.
• Initially designed to study the effect of
lighting levels on worker productivity.
• Experimental Design:
• Control and experimental groups set up:
• Experimental group: Exposed to varying lighting
intensities.
• Control group: Worked under constant light
intensity.
• Unexpected Findings:
• Increased lighting levels led to increased
productivity for both groups.
• Productivity continued to rise even as lighting
was decreased, except when it was reduced
to moonlight levels.
11/16/2024
 The Hawthorne Studies

11/16/2024
 The Hawthorne Studies
• Overview:
• Conducted at Western Electric
Company in Cicero, Illinois,
starting in 1924.
• Initially designed to study the
effect of lighting levels on worker
productivity.
Experimental Design:
Control and experimental groups set up:
Experimental group: Exposed to varying lighting intensities.
Control group: Worked under constant light intensity.
Unexpected Findings:
Increased lighting levels led to increased productivity for both groups.
Productivity continued to rise even as lighting was decreased, except when it
was reduced to moonlight levels.

11/16/2024
 Quantitative Approach to
Management
• Quantitative techniques are used to
improve decision-making in
management, also known as
management science.
Origins:
Evolved from military problem-solving techniques during World War II.
Example: The Whiz Kids applied statistical methods at Ford Motor Company to
improve decision-making in the 1940s.
Applications:
Airlines use the "reverse pyramid" boarding method to reduce boarding times.
Techniques include:
Linear programming: Optimizes resource allocation.
Critical-path scheduling: Improves work scheduling efficiency.
Economic order quantity model: Determines optimal inventory levels.
Impact:
Frequently applied in total quality management to enhance overall organizational
performance.
11/16/2024
What Is Quality Management?

11/16/2024
 Quality Revolution and the
Quantitative Approach
•The 1980s and 1990s saw a quality revolution driven by experts like W.
Edwards Deming and Joseph M. Juran.
•Initially, their ideas were embraced in Japan, leading to significant
quality improvements that prompted Western managers to adopt these
concepts.
Total Quality Management (TQM):
•A management philosophy focused on continual improvement and responding to customer
needs.
•Customer Definition: Includes everyone interacting with the organization's products or
services, such as employees and suppliers.
Key Principles:
•Accurate Measurements: Utilize statistical techniques to measure critical variables in work
processes. Problem Identification: Measurements are compared against standards to identify
and correct issues.
Practical Application:
•Queue Management at Whole Foods: Serpentine lines allow for shorter wait times,
enhancing customer satisfaction and driving sales.
Management Decision-Making:
•Quantitative techniques aid in: Budgeting, Scheduling, Quality Control
11/16/2024
Contemporary Management Perspectives:
Systems and Contingency Approaches

Shift in Focus:
•Management theories evolved from internal organizational
concerns to include the external environment starting in the
1960s.

Systems Theory:
•Originated from Chester Barnard's
1938 work, emphasizing organizations
as cooperative systems.

•Defined as a set of interrelated and

interdependent parts that function as a
unified whole.

11/16/2024
 Contemporary Management
Perspectives: Systems and Contingency
Approaches
Types of Systems:

•Closed Systems: Do not interact with

their environment.
•Open Systems: Interact with and are
influenced by their environment.
Open Systems Perspective:
•Organizations take in inputs (resources)
and transform them into outputs for the
environment.

Management Implications:
•Understanding organizations as systems helps managers coordinate
interdependent factors:
• Individuals, groups, attitudes, formal structures, and goals.

11/16/2024
Organization as an Open
System

11/16/2024
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.

11/16/2024
Variables for Contingency

11/16/2024
 Visual Aid

11/16/2024
 Terms to Know

• division of labor (or job • quantitative approach

specialization) • organizational behavior
• Industrial Revolution (OB)
• scientific management • Hawthorne Studies
• therbligs • system
• general administrative • closed systems
theory • open systems
• principles of • contingency approach
management
• bureaucracy
11/16/2024
 Case Study

11/16/2024
 QUIZ

11/16/2024
 DISCUSSION QUESTIONS
MH-1. Explain why studying management history is important.
MH-2. What early evidence of management practice can you describe?
MH-3. Describe the important contributions made by the classical theorists.
MH-4. What did the early advocates of OB contribute to our understanding of
management?
MH-5. Why were the Hawthorne Studies so critical to management history?
MH-6. What kind of workplace would Henri Fayol create? How about Mary
Parker Follett? How about Frederick W. Taylor?
MH-7. Explain what the quantitative approach has contributed to the field of
management.
MH-8. Describe total quality management.
MH-9. How do systems theory and the contingency approach make managers
better at what they do?
MH-10. How do societal trends influence the practice of management? What
are the implications for someone studying management?

11/16/2024