Welcome back
today we start “looking
back”...
Ch.2 Management
Yesterday and Today
© Emily & Jian, MGTO120 Summer 2006,
HKUST
1
Today’s Agenda
reminder – rules and
expectations
 Short review – basic
concepts in Ch.1
 Ch.2 – development of
management ideas
 Tutorial –
 Some
© Emily & Jian, MGTO120 Summer 2006,
HKUST
2
Review—what did we learn last time?
• What is management?
Process, people, efficiency, effectiveness
• What is an organization?
People, structure, purpose
• What do Managers Do? (Management!)
• Functions involved (POLC)
• Skills required (CHT)
• Roles played (IID)
© Emily & Jian, MGTO120
Summer 2006, HKUST
3
Application of knowledge –Cases
we analyzed
© Emily & Jian, MGTO120
Summer 2006, HKUST
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Application of knowledge –Cases
we analyzed
Southwest Airline - Mr. Kelleher
You did a great job in your
case analysis!
© Emily & Jian, MGTO120
Summer 2006, HKUST
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Ch.2 Management Yesterday and
Today
? Why bother to
learn the history, since
we don’t major in
Management?
“Yesterday”
© Emily & Jian, MGTO120 Summer 2006,
HKUST
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Ch.2 Management Yesterday
and Today
Textbook: “Looking at the
management history can help us
understand today’s management
theory and practice. It can help us
see what worked and what didn’t
work.”
Emily: “the ‘history’ itself is
interesting! and it helps us to
THINK!”
© Emily & Jian, MGTO120 Summer 2006,
HKUST
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Where We Are Today
Management (Robbins & Coulter)
Part 1
Basic
Concepts
(Ch1)
Part 1
Part 2
Retrospect
(ch2)
Context
(ch3-5)
Part 3
Part 4
Planning Organizing
(ch6-9) (Ch10-13)
© Emily & Jian, MGTO120
Summer 2006, HKUST
Part 5
Part 6
Leading
Controlling
(Ch 14-17) (Ch 18,19)
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Ch.2 Management Yesterday
and Today
Learning objectives – after studying this
chapter, you’d be able to:





Describe some ancient evidences of
management practice
Describe major approaches to
management
Describe the important contributions made
by: Taylor, Fayol, Weber and other early
advocates of management approaches
Describe how these approaches related to
today’s management
Describe the trends and issues facing
managers today
© Emily & Jian, MGTO120 Summer 2006,
HKUST
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Development of Major
Management Theories
Management Theories
Historical
Background
Scientific
Management
General
Administrative
Theorists
Early Examples
of Management
Early Advocates
Hawthorne Studies
Adam Smith
Industrial
Revolution
Quantitative
Approach
Organizational
Behavior
© Emily & Jian, MGTO120
Summer 2006, HKUST
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Historical background
•
•
•
•
Egypt (pyramids)
China (Great Wall)
Wisdom in Bible (Moses)
Adam Smith,1776 “The Wealth
of Nations” (example of pin – an
exercise for you to think)
• Industrial Revolution
© Emily & Jian, MGTO120
Summer 2006, HKUST
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Ancient management
100,000workers for
20years for a single
pyramid – who told
each workers what to
do and make sure they
do it right?
compared to building the
Great Wall, building
the Pyramids was
nothing!
(p. 58)
© Emily & Jian, MGTO120
Summer 2006, HKUST
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Moses and Management (maybe 4000 BC?)
17 Moses' father-in-law replied, "What
you are doing is not good. 18 You and
these people who come to you will only
wear yourselves out. The work is too
heavy for you; you cannot handle it
alone. 19 Listen now to me and I will
give you some advice, and may God be
with you. You must be the people's
representative before God and bring
their disputes to him. 20 Teach them
the decrees and laws, and show them
the way to live and the duties they are
to perform. 21 But select capable men
from all the people—men who fear God,
trustworthy men who hate dishonest
gain—and appoint them as officials over
thousands, hundreds, fifties and tens.
22 Have them serve as judges for the
people at all times, but have them bring
every difficult case to you; the simple
cases they can decide themselves. That
will make your load lighter, because
they will share it with you. 23 If you do
this and God so commands, you will be
able to stand the strain, and all these
people will go home satisfied."
BIBLE (NIV) Exodus 18:13-26
摩 西 的 岳 父 说 ， 你 这 作 得 不 好 。你
和这些百姓必都疲惫，因为这事
太重，你独自一人办理不了。
现在你要听我的话。我为你出个
主意，愿神与你同在。你要替百
姓 到 神 面 前 ， 将 案 件 奏 告 神 ，又 要
将律例和法度教训他们，指示他
们 当 行 的 道 ， 当 作 的 事 ，并 要 从 百
姓中拣选有才能的人，就是敬畏
神，诚实无妄，恨不义之财的
人，派他们作千夫长，百夫长，
五 十 夫 长 ， 十 夫 长 ， 管 理 百 姓 ，叫
他们随时审判百姓，大事都要呈
到你这里，小事他们自己可以审
判。这样，你就轻省些，他们也
可 以 同 当 此 任 。你 若 这 样 行 ， 神 也
这样吩咐你，你就能受得住，这
百姓也都平平安安归回他们的住
处。
© Emily & Jian, MGTO120
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Summer 2006, HKUST
Wealth of Nations
Adam Smith, 1776
– a workman not educated to this business [pin making]
could scarce, perhaps, with his utmost industry, make
one pin in a day, and certainly could not make twenty.
Now this business is … divided … One man draws
out the wire, another straights it, a third cuts it, a
fourth points it, a fifth grinds it at the top for receiving,
the head; to make the head requires two or three
distinct operations; to put it on is a peculiar business,
to whiten the pins is another; it is even a trade by
itself to put them into the paper… (p.7)
© Emily & Jian, MGTO120
Summer 2006, HKUST
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Major Approaches to
Management






Scientific Management
General Administrative Theory
Quantitative Management
Organizational Behavior
Systems Approach
Contingency Approach
© Emily & Jian, MGTO120 Summer 2006,
HKUST
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Scientific Management
The “father” of scientific management –
Fredrick Winslow Taylor
“Principles of Scientific Management” (1911)
1.
2.
3.
4.
Develop a science for each element of an individual’s work,
which will replace the old rule-of-thumb method.
Scientifically select and then train, teach, and develop the
worker.
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.
Divide work and responsibility almost equally between
management and workers. Management takes over all work
for which it is better fitted than the workers.
© Emily & Jian, MGTO120
Summer 2006, HKUST
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THINK:
What is good? What is not good?
(think and hold the answer to
tutorial class)
© Emily & Jian, MGTO120
Summer 2006, HKUST
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General Administrative Theory

Henri Fayol



Believed that the practice of management
was distinct from other organizational
functions
Developed fourteen principles of
management that applied to all
organizational situations
Max Weber

Developed a theory of authority based on
an ideal type of organization
(bureaucracy)

Emphasized rationality, predictability,
impersonality, technical competence, and
authoritarianism
© Emily & Jian, MGTO120 Summer 2006,
HKUST
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Fayol’s 14 Principles of
Management
7.
Remuneration.
1. Division of work.
8.
Centralization.
2. Authority.
9.
Scalar chain.
3. Discipline.
10. Order.
4. Unity of command. 11. Equity.
5. Unity of direction. 12. Stability of tenure
of personnel.
6. Subordination of
individual interest 13. Initiative.
to the interests of
14. Esprit de corps.
the organization.
© Emily & Jian, MGTO120 Summer 2006,
HKUST
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Weber’s Ideal Bureaucracy
© Emily & Jian, MGTO120
Summer 2006, HKUST
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Organizational Behavior
OB — The study of the actions of people at
work; people are the most important asset of
an organization
Where much of current micro-level
management research and human resource
management (HRM) come from

Early OB Advocates (late 1800s and
early 1900s)




Robert Owen
Hugo Munsterberg
Mary Parker Follett
Chester Barnard
© Emily & Jian, MGTO120 Summer 2006,
HKUST
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Organizational Behavior
The Hawthorne Studies – the most
important contribution to the developing of OB
field
• A series of productivity experiments conducted
at Western Electric from 1927 to 1932.
• Experimental findings
– Productivity unexpectedly
increased under imposed
adverse working conditions.
– The effect of incentive plans
was less than expected.
© Emily & Jian, MGTO120
Summer 2006, HKUST
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The Hawthorne Studies
Dimmer Lights?
© Emily & Jian, MGTO120
Summer 2006, HKUST
Brighter Lights?
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The Hawthorne Studies

Research conclusion
Social norms, group standards and
attitudes strongly influence
individual output and work
behavior.
 people
matter
 attention to people matters
 groups matter
© Emily & Jian, MGTO120 Summer 2006,
HKUST
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• The Hawthorne Studies
TASK
Frederick
Taylor
PRODUCTIVITY
Employees are part
of the production
system =>
MACHINES that are
replaceable!
EMPLOYEE
Hawthorne
Effect
ATTITUDES
Personal
Characteristics
© Emily & Jian, MGTO120
Summer 2006, HKUST
Social
Situation
25
Quantitative Management
Also called operations research or
management science
Focuses on improving managerial decision making by
applying: Statistics, optimization models, information
models, and computer simulations.
© Emily & Jian, MGTO120
Summer 2006, HKUST
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Systems Approach
The Organization as an Open
System
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Contingency Approach
OR situational approach
There is no one universally applicable set of
management principles (rules) by which to
manage organizations. Organizations face
different situations (contingency variables),
and require different ways of managing.
 Popular Contingency Variables, e.g.:
Organization size
Routineness of task technology
Environmental uncertainty
Individual differences
© Emily & Jian, MGTO120 Summer 2006,
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•
•
•
•
•
•
•
•
•
•
For more info. about Management History
James C. Collins & Jerry I. Porras 1994
– Built to Last: Successful Habits of Visionary Companies. Harper Business Publishers, NY.
HF5386 .C735 1997.
Peter F. Drucker 1999
– Management Challenges for the 21st Century . Harper Business Publishers, NY. HD30.27 .D78
1999
Edgar H. Schein 1992
– Organizational Culture and Leadership, 2nd Ed. Jossey-Bass Publishers, San Francisco, CA.
HD58.7 .S33 1992
The Bible: c1984
– The Holy Bible : containing the Old and New Testaments in the King James version , Exodus 17.
Jethro Nashville : Thomas Nelson , BS185 1984 .N37
Pyramid: Parry Dick. 2004
– Engineering the Pyramids . Stroud : Sutton. DT63 .P377 2004
Great Wall: Gorbing-King Charles. 1973
– Wall of Death, London : Abelard-Schuman. DS 793 G67 G63 1973
Taylor, Frederick Winslow, 1856-1915 [1967, c1947]
– First published 1911 The Principles of Scientific Management. New York : Norton. HD31 .T39 1967
Fayol, Henri, 1841-1925. c1984
– General and industrial management / Henri Fayol ; revised by Irwin Gray . New York : Institute of
Electrical and Electronics Engineers. HD31 .F313 1984
Mayo, Elton, 1880-1949 1988
– The social problems of an industrial civilization , N.H. : Ayer, HD6331 .M38 1988
Operations Research. Management Science
– Operations Research/Management Science journals (Since 1961). Whippany, N.J. : Executive
Sciences Institute HD30.25 .O66
© Emily & Jian, MGTO120
Summer 2006, HKUST
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Current Trends and Issues
(more about this in later chapters)
•
•
•
•
•
•
•
•
Globalization
Workforce Diversity
Learning Organizations
Ethics
Entrepreneurship
E-business
Knowledge Management
Quality Management
© Emily & Jian, MGTO120
Summer 2006, HKUST
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What do we learn from Management
Yesterday and Today?
Video, cases, and discussions
© Emily & Jian, MGTO120 Summer 2006,
HKUST
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© Emily & Jian, MGTO120
Summer 2006, HKUST
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Homework (remember, this course is
to HELP you to think critically, but it is
YOU who THINK):

Think about Taylor, Fayol. What are their
contributions to management? What kind
of workplaces would they create based on
their theories? What are the drawbacks in
the views?

Review the famous Hawthorne studies.
What is it about? What are the findings and
conclusions?

Relate history to management today. In
your view, how do those different
approaches related to current management
practices?
© Emily & Jian, MGTO120 Summer 2006,
HKUST
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Next class (this Fri.)...


Next time, we will talk about
“the manger’s terrain”. We will
cover chapter 3 & 5 – culture &
ethics issues.
Will begin class at 2:00pm
sharp. Probably with PRS
questions from Chapter 2 and 3!
© Emily & Jian, MGTO120 Summer 2006,
HKUST
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