The Pre-modern Era Ancient massive construction projects

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The Pre-modern Era

  • Ancient massive construction projects

    • Egyptian pyramids
    • Great Wall of China
  • Michelangelo, the manager.

Adam Smith’s Contribution To The Field Of Management

  • Wrote the Wealth of Nations (1776)

    • Advocated the economic advantages that organizations and society would reap from the division of labor:
      • Increased productivity by increasing each worker’s skill and dexterity.
      • Time saved that is commonly lost in changing tasks.
      • The creation of labor-saving inventions and machinery.

The Industrial Revolution’s Influence On Management Practices

  • Industrial revolution

    • Machine power began to substitute for human power
      • Lead to mass production of economical goods
    • Improved and less costly transportation systems became available
      • Created larger markets for goods.
    • Larger organizations developed to serve larger markets
      • Created the need for formalized management practices.

Classical Contributions

  • Classical approach

    • The term used to describe the hypotheses of the scientific management theorists and the general administrative theorists.
      • Scientific management theorists
        • Fredrick W. Taylor, Frank and Lillian Gilbreth, and Henry Gantt
      • General administrative theorists
        • Henri Fayol and Max Weber

Scientific Management

  • Frederick W. Taylor

    • The Principles of Scientific Management (1911)
      • Advocated the use of the scientific method to define the “one best way” for a job to be done
    • Believed that increased efficiency could be achieved by selecting the right people for the job and training them to do it precisely in the one best way.
    • To motivate workers, he favored incentive wage plans.
    • Separated managerial work from operative work.

Scientific Management Contributors

  • Frank and Lillian Gilbreth

    • Bricklaying efficiency improvements
    • Time and motion studies (therbligs)
  • Henry Gantt

    • Incentive compensation systems
    • Gantt chart for scheduling work operations

General Administrative Theory

  • General administrative theorists

    • Writers who developed general theories of what managers do and what constitutes good management practice
    • Henri Fayol (France)
      • Fourteen Principles of Management: Fundamental or universal principles of management practice
    • Max Weber (Germany)
      • Bureaucracy: Ideal type of organization characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships

Human Resources Approach

  • Robert Owen

    • Scottish businessman and reformer who advocated for better treatment of workers.
    • Claimed that a concern for employees was profitable for management and would relieve human misery.
  • Hugo Munsterberg

    • Created the field of industrial psychology—the scientific study of individuals at work to maximize their productivity and adjustment.
      • Psychology and Industrial Efficiency (1913)

Human Resources Approach

  • Mary Parker Follett

    • Recognized that organizations could be viewed from the perspective of individual and group behavior.
    • Believed that individual potential could only be released by group association.
  • Chester Barnard

    • Saw organizations as social systems that require human interaction and cooperation.
    • Expressed his views on the “acceptance of authority” in his book The Functions of the Executive (1938).

Hawthorne Studies

  • A series of studies done during the 1920s and 1930s that provided new insights into group norms and behaviors

    • Hawthorne effect
      • Social norms or standards of the group are the key determinants of individual work behavior.
  • Changed the prevalent view of the time that people were no different than machines.

Human Relations Movement

  • Based on a belief in the importance of employee satisfaction—a satisfied worker was believed to be a productive worker.

  • Advocates believed in people’s capabilities and were concerned with making management practices more humane.

    • Dale Carnegie
    • Abraham Maslow
    • Douglas McGregor

The Quantitative Approach

  • Operations Research (Management Science)

    • Evolved out of the development of mathematical and statistical solutions to military problems during World War II.
    • Involves the use of statistics, optimization models, information models, and computer simulations to improve management decision making for planning and control.

Social Events That Shaped Management Approaches

  • Classical approach

    • The desire for increased efficiency of labor intensive operations
  • Human resources approach

    • The backlash to the overly mechanistic view of employees held by the classicists.
    • The Great Depression.
  • The quantitative approaches

    • World War II

What is the Process Approach?

  • Management theory jungle (Harold Koontz)

    • The diversity of approaches to the study of management—functions, quantitative emphasis, human relations approaches—each offer something to management theory, but many are only managerial tools.
  • Process approach

    • Planning, leading, and controlling activities are circular and continuous functions of management.

The Systems Approach

  • Defines a system as a set of interrelated and interdependent parts arranged in a manner that produces a unified whole

    • Closed system :

      a system that is not influenced by and does not interact with its environment
    • Open system:

      a system that dynamically interacts with its environment
    • Stakeholders:

      any group that is affected by organizational decisions and policies


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