Chapter (2)
Management History
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Chapter outcomes:
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describe the historical background of management.
Explain the various theories in the classical approach.
Describe the quantitative approach.
Discuss the development and uses of the behavioral
approach.
Explain the various theories in the contemporary
approach.
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Continued:
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Two events are especially to management history:
First: 1776 Adam smith, his published (the wealth of
nations), his main contributions were:
the division of labor or job specification: the
breakdown of jobs into narrow and repetitive tasks;
he concluded that the division of labor increase
productivity by increasing each worker’s skill and
dexterity, saving time lost in changing task, and
creating labor saving inventions and machinery.
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Continued:
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Second: in the late eighteenth century, early
1900 (industrial revolution); when the
machine power start and was substituted for
human power. The factories needed someone
to forecast demand, ensure that enough
materials was on hand, assign tasks to
people, and direct daily activities. After that
start the management theories.
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Continued:
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Exhibit 2-1 page 41 showing the major
approaches to management:
Classical Approach: two major theories
comprise this approach: scientific and
general administrative approach.
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Exhibit 2-1
Major Approaches to Management
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1) Classical Approach:
1) Classical Approach: the first study of management,
which emphasizes rationality and making
organizations and workers as efficient as possible.
two major theories comprise this approach: scientific
and general administrative approach.
a) Scientific management: Principles of management:
the fundamental rules of management that could be applied
in all organizational situations and taught in school.
Means the use of scientific methods to define the one
best way for a job to be done.
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1) Classical Approach:
Continued:
the prominent of this approach:
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aa-Fredrick Taylor, consider as the father of management, his
book (the principles of scientific management): the fundamental
rules of management that could be applied in all organizational
situations and taught in schools.
His main contributions:
see exhibit 2-2 page 43. also:
-Taylor, believed that worker output was only about one third of
what was possible (no work standard existed. also:
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Exhibit 2-2 Taylor’s Scientific
Management Principles
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1) Classical Approach:
continued
- he put the right person on the job with
the correct tools and equipment
- he had the worker follow his
instructions exactly
- he motivate the worker with an
economic incentive of a significantly
higher daily wage.
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1) Classical Approach:
Continued:
ab- Frank and Lillian gilbreth, the main contributions:
 they studied work to eliminate inefficient hand and body
motions
 they reduce the number of motions to perform the job.
 They invented a device called a microchronometer that
recorded a worker’s motions and the amount of time
spent doing each motion.
 They devised a classification scheme to label 17 basic
hand motions called (therbligs).
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1) Classical Approach:
Continued:
b) General Administrative Theory: its focused more on
what managers do and what constituted good
management practice.
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the prominent of this approach:
ba- Henri Fayol, he was concerned with first line
managers and the scientific method, he described the
practice of management as something distinct (vary)
from accounting, finance, production, distribution,
and other business functions.
His main contributions 14 (principles): exhibit 2-3 page 45
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Exhibit 2-3 Fayol’s
14 Principles of Management
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Exhibit 2-3 Fayol’s
14 Principles of Management (cont.)
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1) Classical Approach:
Continued:
bb- Max Weber, he developed a theory of authority
structure and relations called (Bureaucracy): a form
of organization characterized by division of labor, a
clearly defined hierarchy, detailed rules and
regulations, and impersonal relationships.
weber recognized that the “ideal bureaucracy didn’t
exist in reality”.
His main contributions (principles): exhibit 2-4 page 45
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Exhibit 2-4
Characteristics of Weber’s
Bureaucracy
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1) Classical Approach:
Continued:
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Bureaucracy like scientific management that both:
emphasize rationality, predictability, impersonality,
technical competence and authoritarianism.
Bureaucracy was an attempt to formulate an ideal
prototype for organizations, but many managers feel
that a bureaucratic structure hinders individual
employee’s creativity and limits an organization’s
ability to respond quickly to the dynamic
environment.
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2) Quantitative Approach:
2) Quantitative Approach: or management
science: the use of quantitative techniques to
improve decision making.
 Its evolved from mathematical and statistics
solutions developed for military problems
during world war 2, then applied to business.
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2) Quantitative Approach:
continued:
The main important contributions:
 it involves applying statistics, optimization
models, information models, computer
simulations, linear programming (managers
use to improve resource allocation decisions),
critical path analysis, the economic order
quantity model (to determine the optimum
inventory levels), to management activities.
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2) Quantitative Approach:
continued:
a) Total Quality Management (TQM) comprised
by: edwards Deming: A philosophy of
management that is driven continuous
improvement and responsiveness to
customer needs and expectations.
The main contributions (principles): exhibit 2-5
page 48, also:
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Exhibit 2-5
What Is Quality Management?
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2) Quantitative Approach:
continued:
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continuous improvement require
statistics techniques that measure every
critical variables in organization’s work
process, and this need accurate
measurements to compare against
standards to identify and correct
problems.
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2) Quantitative Approach:
continued:
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TQM was departure from earlier
management approaches that were based on
the belief that keeping costs low was the only
way to increase productivity.
Quantitative approach contribute directly to
management decision making in the area of
planning and control, quality control,
scheduling.
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3) Behavioral Approach:
3) Behavioral Approach: organizational behavior (OB): a
field of study that researches the actions (behavior)
of people at work.
 Early Advocate Of Organizational Behavior: believed
that people were the most important assets of the
organization and should be managed accordingly.
exhibit 2-6 page 49. and the contributions for every
one.
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Exhibit 2-6
Early OB Advocates
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3) Behavioral Approach:
continued
the prominent of this approach:
a) Hawthorne Studies(1924): a series of study
designed by engineers to examine the effect
of various lighting levels on worker
productivity, they set up two group:
experimental group: being exposed to various
lighting intensities, and control group working
under a constant intensity. They found that:
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3) Behavioral Approach:
continued
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as the level of light was increased in the
experimental group, output for both
groups increased.
As the light level was decreased in the
experimental group, productivity
continue to increase in both groups.
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3) Behavioral Approach:
continued
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Productivity decrease was observed in the
experimental group only when the level of
light was reduced to that of a moonlit night.
The engineers concluded that lighting
intensity was not directly related to group
productivity, and that something else must
have contributed to the results.
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3) Behavioral Approach:
continued
b) Elton Mayo (1927): experiment
designed to evaluate the effect of a
group piecework incentives pay
system on group productivity, he
found that:
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the incentives plan had less effect on
a worker’s than did group pressure,
acceptance and security.
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3) Behavioral Approach:
continued
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The researchers concluded that the
social norms or group standards were
the key determinants of individual work
behavior.
Mayo concluded that people’s behavior
and attitudes are closely related.
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4) Contemporary Approach:
4) Contemporary Approach: two approach:
a) system theory: a set of interrelated and
interdependent parts arranged in a manner
that produces a unified whole. The two basic
types of systems are closed and open:
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4) Contemporary Approach:
continued
- closed system: system that not
influenced by and do not interact with
their environment.
 - open system: system that are
influence by and interact with their
environment.
See Exhibit 2-7 page 51
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Exhibit 2-7 Organization as an
Open System
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4) Contemporary Approach:
continued
The main contributions by the system theory:
 the manager coordinate the work activities in the various parts
of the organization to ensure that all these parts are working
together.
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Implies that decisions and actions in one organization area will
affect other areas.
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Recognizes that organizations are not self contained, they rely
on their environment for essential inputs.
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No organization can survive for long if it ignores government
regulations, supplier relations, and external constituencies on
which it depends.
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4) Contemporary Approach:
continued
b) the contingency approach: or situational approach:
Management is not and cannot be based on simplistic
principles, or universal rules to be applied or follow in
all situations, different and changing situations
require managers to use different approaches and
techniques.
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Contingency approach: is approach says that
organizations are different, face different situations
and require different ways of managing.
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The primary value of the contingency approach is
that: there are no simplistic or universal rules for
managers to follow.
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4) Contemporary Approach:
continued
Exhibit 2-8 page 53 showing the popular
contingency variables:
 organization size.
 Routineness of task technology.
 Environmental uncertainty.
 Individual differences.
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Exhibit 2-8
Popular Contingency Variables
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