Management Yesterday and Today

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  • Topic: Management, Chester Barnard, Division of labour
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8th edition
Steven P. harles Renard
C Robbins
Mary Coulter

LEARNING OUTLINE
Follow this Learning Outline as you read and study this chapter.

o  Historical Background of Management
•  Scientific Management
o  General Administrative Theorists
o  Quantitative Approach to Management
•  Toward Understanding Organizational Behavior
o  The Systems Approach
o  The Contingency Approach

2–2

Historical Background of Management
•  Ancient Management
Ø། Egypt (pyramids) and China (Great Wall)
Ø། Venetians (floating warship assembly lines)

•  Adam Smith
Ø། Published “The Wealth of Nations” in 1776
v༇  Advocated

the division of labor (job specialization) to
increase the productivity of workers

•  Industrial Revolution
Ø། Substituted machine power for human labor
Ø། Created large organizations in need of management
2–3

Development of Major Management Theories

Exhibit 2.1
2–4

Major Approaches to Management
•  Scientific Management
•  General Administrative Theory
•  Quantitative Management
•  Organizational Behavior
•  Systems Approach
•  Contingency Approach
• 

2–5

Scientific Management
•  Fredrick Winslow Taylor
Ø། The “father” of scientific management
Ø། Published Principles of Scientific Management (1911) v༇  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.

2–6

Taylor’s Four Principles of Management
1.  Develop a science for each element of an individual’s work, which will replace the old rule-of-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.

Exhibit 2.2
2–7

Scientific Management (cont’d)
•  Frank and Lillian Gilbreth
Ø། Focused on increasing worker productivity through
the reduction of wasted motion
Ø། Developed the microchronometer to time worker
motions and optimize performance

•  How Do Today’s Managers Use Scientific
Management?
Ø། Use time and motion studies to increase productivity Ø། Hire the best qualified employees
Ø། Design incentive systems based on output
2–8

General Administrative Theorists
•  Henri Fayol
Ø། Believed that the practice of management was distinct from other organizational functions
Ø། Developed fourteen principles of management that
applied to all organizational situations

•  Max Weber
Ø། Developed a theory of authority based on an ideal
type of organization (bureaucracy)
v༇  Emphasized

rationality, predictability, impersonality,
technical competence, and authoritarianism

2–9

Fayol’s 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.
Exhibit 2.3
2–10

Weber’s Ideal Bureaucracy

Exhibit 2.4
2–11

Quantitative Approach to Management
•  Quantitative Approach
Ø། Also called operations research or management
science
Ø། Evolved from mathematical and statistical methods
developed to solve WWII military logistics and quality
control problems
Ø། Focuses on improving managerial decision making by
applying:
v༇  Statistics,

optimization models, information models, and
computer simulations

2–12

Understanding Organizational Behavior
•  Organizational Behavior (OB)
Ø། The study of the actions of people...
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