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MGMT Ch2 Summary
MGMT Ch2 Summary
MGMT Ch2 Summary
Management thought has been shaped over a period of centuries by three major sets of forces. These
forces are: Social, economic and political in nature, and they continue to affect management theory even
today. The development of management thought dates back to the days when people first attempted to
accomplish goals by working together in groups. Some examples in ancient times where management was
effectively used include the following:
EGYPT: the construction of Egyptian pyramid (5000-525BC) is a testimony of the ancient Egyptian
organization and managerial abilities.
Roman Catholic Church: Rome achieved greater colonies using the Catholic Church
Greece: exhibited a real skill capacity for management in the operation of trading companies
In Ethiopia: the construction of obelisks of Aksum, castle of Gonder,Rock Hewan church of lalibela, the
wall of Harare are example of modern management was practiced in ancient time.
the industrial revolution of the 19th century gave rise to the need for a systematic approach to
management. The challenge posed by the factories brought forth a number of individuals who began to
think in terms of innovative ways to run factories more effectively. This group, known as the pre-classical
contributors to management focused largely on particular techniques that might be applied to solve
specific problems.
A number of individuals in the pre-classical period of the middle and late 1800s began to offer ideas that
laid the groundwork for broader inquiries into the nature of management that followed. Among the
principal pre classical contributors are Robert Owen, Adam Smith, Henery Poor, and Charles Babbage.
The classical management theory had its foundation during the industrial revolution. This new
technology, combined with the concentration of vast amounts of raw material and labor, created a need
for management. Its ideas represent the first well-developed framework of management. The classical
viewpoint is a perspective on management that emphasizes finding ways to manage work and
organizations more efficiently. It is made up of two/three different approaches: scientific management,
administrative management (Classical Organization) theory, and bureaucratic management.
Administrative management theory: was concerned with managing the total organization. Classical
organization theory had two major purposes: (a) develop basic principles that could guide the design,
creation and maintenance of large corporations, and (b) identify the basic functions of managing
organizations. Among its pioneers were Henri Fayol, who identified the major functions of management
(planning, organizing, leading, controlling), and Max Weber, who identified five positive bureaucratic
features in a well-performing organization. Basic principles of management are :
Bureaucratic management theory: use of rules, hierarchy, a clear division of labor, and detailed
procedures to guide employees’ behaviors (max weber1864-1920).it organize a blue print of how an
entire organization should operate.
The second of the historical perspectives, the behavioral viewpoint emphasized the importance of
understanding human behavior and of motivating employees toward achievement. It developed over three
phases: (1) early behaviorism, (2) the human relations movement, and (3) the behavioral science
approach.
Early behaviorism had three pioneers: (a) Hugo Munsterberg suggested that psychologists could
Contribute to industry by studying jobs, identifying the psychological conditions for employees to
do their best work. (b) Mary Parker Follett thought organizations should be democratic, with
Traditional organizational theories used a highly structured closed system approach. But modern theories
have moved towards the open system approach. That is, the classical and neo classical approaches
focused on the internal management of the organization.
The system approach: The systems viewpoint regards the organizations as a system of interrelated parts
or collection of subsystems that operate together to achieve a common purpose. A system has four parts:
inputs, outputs, transformational processes, and feedback. A system can be closed, having little
interaction with the environment, or open, continually interacting with it. Open systems have the potential
of producing synergy, the idea that two or more forces combined create an effect that is greater than the
sum of their individual efforts. Organizations that operate closer to the open end of the system share
certain characteristics that help them survive and prosper. Some are: negative entropy, differentiation, and
synergy
The quantitative view point: emphasized the application to management of quantitative techniques. Two
approaches are (1) management science, which focuses on using mathematics to aid in problem solving
and decision making; and (2) operations management, which focuses on managing the production and
delivery of an organization’s products or services more effectively.
Contingency or situational approach: the contingency viewpoint emphasizes that a manager’s approach
should vary according to the individual and the environmental situation. In the spirit of the contingency
viewpoint is evidence based management, which means translating principles based on best evidence into
organizational practice, bringing rationality to the decision-making process.