Steven P. harles Renard
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
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
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
Development of Major Management Theories
Major Approaches to Management
• Scientific Management
• General Administrative Theory
• Quantitative Management
• Organizational Behavior
• Systems Approach
• Contingency Approach
• 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.
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.
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
Ø། Use time and motion studies to increase productivity Ø། Hire the best qualified employees
Ø། Design incentive systems based on output
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)
rationality, predictability, impersonality,
technical competence, and authoritarianism
Fayol’s 14 Principles of Management
1. Division of work.
9. Scalar chain.
4. Unity of command.
5. Unity of direction.
6. Subordination of
to the interests of
12. Stability of tenure
14. Esprit de corps.
Weber’s Ideal Bureaucracy
Quantitative Approach to Management
• Quantitative Approach
Ø། Also called operations research or management
Ø། Evolved from mathematical and statistical methods
developed to solve WWII military logistics and quality
Ø། Focuses on improving managerial decision making by
optimization models, information models, and
Understanding Organizational Behavior
• Organizational Behavior (OB)
Ø། The study of the actions of people...