Management History Module

Management History
Erlan Bakiev, Ph. D.
Spring 2015
Early Management
 Management has been practiced a long time.
 Organized endeavors directed by people responsible for
planning, organizing, leading, and controlling activities
have existed for thousands of years.
 Ex: The Egyptian pyramids; Great Wall of China
 Four major approaches to management theory: classical,
behavioral, quantitative, and contemporary.
Classical Approach
 Scientific management (Frederick Winslow Taylor, 1911;
Frank and Lillian Gilbreth).
 Taylor’s Scientific Management Principles:
1. Develop a science for each element of an individual’s work.
2. Scientifically select and then train, teach, and develop the
3. Heartily cooperate with the workers.
4. Divide work and responsibility almost equally between
management and workers.
Classical Approach Cont.
 General administrative theory (Henri Fayol).
 Management was an activity common to all business endeavors,
government, and even the home
 Fayol’s 14 Principles of Management:
 Division of Work, Authority, Discipline, Unity of command, Unity
of direction, Subordination of individual interests to the general
interest, Remuneration, Centralization, Scalar chain, Order,
Equity, Stability of tenure of personnel, Initiative, and Esprit de
Classical Approach Cont.
 Weber’s Bureaucracy.
 Weber's ideal bureaucracy is characterized by hierarchical
organization, delineated lines of authority in a fixed area of
activity, action taken on the basis of and recorded in written
rules, bureaucratic officials need expert training, rules are
implemented by neutral officials, career advancement depends
on technical qualifications judged by organization, not individuals
Behavioral Approach
 Mary Follett (1918)
 Advanced the idea of "reciprocal relationships”
 Advocated the principle of "integration," or non-coercive power-
sharing based on the use of her concept of "power with" rather
than "power over." Her ideas on
 İnfluenced the field of organizational studies with terms like
negotiation, power, employee participation, alternative dispute
solution and human relations movement
Behavioral Approach Cont.
 Chester Barnard (1938)
 Actual manager who thought organizations were social systems
that required cooperation
 Believed manager’s job was to communicate and stimulate
employees’ high levels of effort
 First to argue that organizations were open systems
Behavioral Approach Cont.
 Hawthorne Studies (Known as Hawthorne Effect)
 Term was coined in 1950 by Henry A. Landsberger (Western Electric)
 İnfluenced a lot of scholars and experts in behavioral studies
 People’s behavior and attitudes are closely related, that group factors
significantly affect individual behavior, that group standards establish
individual worker output, and that money is less a factor in determining
output than are group standards, group attitudes, and security (Mayo,
Quantitative Approach
 Quantitative approach is the use of quantitative techniques to
improve decision making, evolved from mathematical and
statistical solutions.
 Quality Management is:
 Intense focus on the customer, Concern for continual improvement,
Process focused, Improvement in the quality of everything the
organization does, Accurate measurement, and Empowerment of
 Total quality management (TQM) is:
 A philosophy of management that is driven by continuous improvement
and responsiveness to customer needs and expectations
Contemporary Approaches
Two contemporary management perspectives—systems and
 System: A set of interrelated and interdependent parts arranged
in a manner that produces a unified whole
 Process closed system: Systems that are not influenced by and do not
interact with their environment.
 Open system: Systems that interact with their environment
 Contingency approach: A management approach that recognizes
organizations as different, which means they face different
situations (contingencies) and require different ways of
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