 Egyptian
Pyramids
 Great Wall
of China


Division of Labor (Job Specialization)
from The Wealth of Nations by Adam
Smith
Industrial Revolution


The breakdown of jobs into narrow & repetitive
tasks.
Example of the pin industry among 10
individuals:
• They doing a specialized task = 48,000 pins a day
• They performing each task separately = 10 pins a day

Smith concluded that it increased productivity by
increasing each worker’s skill and dexterity,
saving time lost in changing tasks, and creating
labor-saving inventions and machinery.
 Machine
power was substituted for
human power as it was more economical
to manufacture goods in factories than at
home.
 “Managers” are
required in these
factories in order to forecast demand,
ensure that enough material was on hand
to make products, assign tasks to people,
direct daily activities, and etc.
 Classical
Approach
 Quantitative
 Behavioral
Approach
Approach
 Contemporary
Approach
 Emphasis
on ways to manage work more
efficiently
2
major theories:
• A) Scientific Management
• B) Administrative Management
 Emphasized
scientific study of work
methods to improve productivity (the rate
at which goods are produced) of
individual workers
 Proponents:
Frederick Winslow Taylor
Frank and Lillian Gilbreth


Known as “the father of scientific management”
He used the scientific methods to define the “one
best way” for doing each job which included:
• put the right person on the job with the correct tools &
equipment,
• had the worker follow his instructions exactly,
• and motivated the worker with an economic incentive of
significantly higher daily wage differential rate system
(piece rate system.)

4 principles of scientific management
1.
Evaluate a task by scientifically studying
each part of the task
2.
Carefully select workers with the right
abilities for the task
3.
Give workers the training and incentives to
do the task with proper work methods
4.
Use scientific principles to plan the work
methods and ease the way for workers to
do their jobs




They studied work to eliminate inefficient hand-and-body
motions for more productive work performance.
Invented a microchronometer for recording a worker’s
motions and amount of time spend doing each motion to
reduce wasted motions missed by naked eye.
Created “therbligs” to classify 17 basic hand motions for
more precise way of analyzing a worker’s exact hand
movements.
Applied scientific management principles and techniques in
raising their 12 children and running their household
efficiently as known in book wrote by 2 of their children,
movies and TV sitcom “Cheaper by the Dozen”.
 Concerned
with managing the total
organization
 Proponents:
• Henry Fayol
• Max Weber
 Was
the first to identify 5 functions of
management: planning, organizing,
commanding, coordinating, controlling
 Developed
14 principles of management
which are fundamental rules for
managing all kind of organizations
 Developed
theory of authority structures
and relations based on ideal type of
organization called “bureaucracy.”

Division of Labor: clear and well-defined tasks in each
division

Authority Hierarchy: clear and well-defined positions and
chain of command

Formal Selection: recruitment is based on
ability/qualification

Formal Rules and Regulations: clear system of written rules
& procedures

Impersonality: same rules and controls are applied for
everyone

Career Orientation: understand the concept of being a
manager
 Later
on, he recognized this ‘ideal
bureaucracy’ didn’t exist in reality after
many people were in positions of
authority (esp. government) not because
of their abilities but because of their
social status.
 Applies
quantitative techniques involve
applying statistics, optimization models,
information models, computer
simulations, and etc. to management
activities such as decision making
process
 Example: Linear
programming is a
technique managers use to improve
resource allocation decision
A
comprehensive approach--led by top
management and supported throughout the
organization—dedicated to continuous
quality improvement, training, and customer
satisfaction
 TQM components are:
• Make continuous improvement a priority
• Get every employee involved
• Listen to & learn from customers & employees
• Use accurate standards to identify & eliminate
problems
 Emphasis
on importance of
understanding human behavior and
motivating and encouraging employees
toward achievement
A
series of studies by Elton Mayo and
associates during the 1920s and 1930s
that provided new insights into individual
and group behavior
 It
began with an experiment of whether
workplace lighting level affected worker
productivity, however, the result was
totally contrast with the first assumption.
High
Experimental Group
Control Group
Control Group (assumption)
Experimental Group (assumption)
Productivity
Low
Adjusted Low-Light Intensity Level
High
 In
later experiments, other variables were
altered, such as wage levels, rest periods,
and length of workday.
 Finally, according
to the later experiments’
results, these studies conclude people’s
behavior and attitudes are closely related in
which group factors/standards establish
individual worker output, namely,
employees will work harder they if received
added attention, cared welfare from
managers.
 This
management approach concerns
more on what was happening in the
external environment outside the
organization, then determine which
method should be the best practice
2
contemporary perspectives are:
A. System
B. Contingency
 Regards
the organization as systems of
interrelated parts that operate together to
achieve a common purpose
 Open
& Close Systems
• Open Systems: Systems that interact with their
environment
• Closed Systems: Systems that are not influenced by
do not interact with their environment
1.
2.
Inputs: people, money, information,
equipment, materials required to
produce an organization’s goods or
services
Output: products, services, profits,
losses, employee satisfaction or
discontent, etc. produced by the
organization
3.
4.
Transformational processes: the
organization’s capabilities in
management and technology that are
applied to converting inputs into
outputs
Feedback: information about reaction of
the environment to the output that
affects the inputs
External Environment
Raw materials
Human Resources
Energy
Financial
Resources
Information
Equipment
inputs
Organization outputs
Transformation
Process
Feedback
Goods
Services
 Emphasizes
that a manager’s approach
should vary according to the organization
size, technologies, individual and the
environmental situation
 “one
size doesn’t fit all”
 Manager
will apply method is the best to
use under the particular circumstances
 “flexible”
End of Chapter