MANAGEMENT

YESTERDAY
AND TODAY
Chapter 2
2.1 2.1 2003 Pearson Education Canada Inc.
2003 Pearson Education Canada Inc.
LEARNING OBJECTIVES

You should be able to:

Ds!uss "a#a$e"e#t%s &elato#sh' to othe&

a!ade"! (elds o( stud)

E*'la# the +alue o( stud)#$ "a#a$e"e#t hsto&)

Ide#t() so"e "a,o& '&e-t.e#teth-!e#tu&)

!o#t&buto#s to "a#a$e"e#t

Su""a&/e the !o#t&buto#s o( the s!e#t(!

"a#a$e"e#t ad+o!ates

Des!&be the !o#t&buto#s o( the $e#e&al

ad"#st&at+e theo&sts
2.2 2.2
2003 Pearson Education Canada Inc.
LEARNING OBJECTIVES 0!o#t#ued1

You should be able to:

Su""a&/e the 2ua#ttat+e a''&oa!h to

"a#a$e"e#t

Des!&be the !o#t&buto#s o( the ea&l)

o&$a#/ato#al beha+ou& ad+o!ates

E*'la# the "'o&ta#!e o( the 3a.tho&#e

Studes to "a#a$e"e#t

Des!&be the e((e!ts o(: $lobal/ato#4

.o&5(o&!e d+e&st)4 e#t&e'&e#eu&sh'4 e-
bus#ess4 #eed (o& ##o+ato# a#d (le*blt)4
2ualt) "a#a$e"e#t4 lea&##$ o&$a#/ato#s4
a#d 5#o.led$e "a#a$e"e#t
2.3 2.3
2003 Pearson Education Canada Inc.
MANAGEMENT%S
CONNECTION TO OT3ER
6IELDS O6 ST7DY

A!ade"! Ds!'l#es that A((e!ted Ma#a$e"e#t

Anthropology - .o&5 o# !ultu&es a#d so!al e#+&o#"e#ts

Economics - !o#!e&# about the allo!ato# a#d dst&buto#

o( s!a&!e &esou&!es

Philosophy - e*a"#es the #atu&e o( th#$s

Political science - e((e!t o( 'olt!al e#+&o#"e#t o#

#d+duals a#d $&ou's

Psychology - see5s to "easu&e4 e*'la#4 a#d !ha#$e

hu"a# beha+o&

Sociology - studes 'eo'le # &elato# to the& (ello.

hu"a# be#$s
2.4 2.4
DEVELO8MENT O6 MAJOR
MANAGEMENT T3EORIES
Historical
Background
Scientiic
!anage"ent
#eneral
$d"inistrati%e
&heorists
'uantitati%e
$pproach
Ma#a$e"e#t Theo&es
Industrial
(e%olution
$da" S"ith
Earl) $d%ocates
Ha*thorne Studies
+rgani,ational
Beha%iour
Earl) E-a"ples
o !anage"ent
2.. 2.. 2003 Pearson Education Canada Inc.
2003 Pearson Education Canada Inc.
3ISTORICAL BAC9GRO7ND
O6 MANAGEMENT

O&$a#/ato#s 3a+e E*sted (o& Thousa#ds o(

Yea&s

S$#(!a#t 8&e-T.e#teth-Ce#tu&) E+e#ts

Ada" S"th

division of labour - b&ea5do.# o( ,obs #to #a&&o. a#d

&e'ett+e tas5s #!&eased '&odu!t+t)

Industrial Revolution

substtuto# o( "a!h#e 'o.e& (o& hu"a# 'o.e&

la&$e o&$a#/ato#s &e2u&ed (o&"al "a#a$e"e#t

2./ 2./
2003 Pearson Education Canada Inc.
SCIENTI6IC MANAGEMENT

6:;: Ta)lo& - 8&#!'les o( S!e#t(! Ma#a$e"e#t

7se o( s!e#t(! "ethods to de(#e the <o#e best .a)= (o&

a ,ob to be do#e

8e&s'e!t+e o( "'&o+#$ the '&odu!t+t) a#d e((!e#!)

o( "a#ual .o&5e&s

A''led the s!e#t(! "ethod to sho' (loo& ,obs

6&a#5 a#d Llla# Glb&eth

7se o( "oto# '!tu&es to stud) ha#d-a#d-bod)

"o+e"e#ts

Therbligs - !lass(!ato# s)ste" (o& >? bas! ha#d

"oto#s
2.0 2.0
2003 Pearson Education Canada Inc.
TAYLOR%S 6O7R 8RINCI8LES O6
MANAGEMENT 0E*hbt @:@1
2.1 2.1
1. Develop a science for each element of an individuals
work, which will replace the old rule-of-thumb method.
2. Scientifcally select and train, teach, and develop the
worker. !reviously, workers chose their own work and
trained themselves as best they could."
#. $eartily cooperate with the worker so as to ensure that
all work is done in accordance with the principles of the
science that has been developed.
%. Divide all work and responsibility e&ually between
mana'ement and workers. (ana'ement takes over all
work for which it is better ftted than the workers.
!reviously almost all the work and the 'reater part of
the responsibility were thrown on the workers."
2003 Pearson Education Canada Inc.
GENERAL ADMINISTRATIVE
T3EORISTS

3e#& 6a)ol

Co#!e&#ed .th "a5#$ the o+e&all

o&$a#/ato# "o&e e((e!t+e

De+elo'ed theo&es o( .hat !o#sttuted $ood

"a#a$e"e#t '&a!t!e

'&o'osed a u#+e&sal set o( "a#a$e"e#t (u#!to#s

'ublshed principles of management

(u#da"e#tal4 tea!hable &ules o( "a#a$e"e#t

2.2 2.2
2003 Pearson Education Canada Inc.
8RINCI8LES O6
MANAGEMENT 0E*hbt @:A1
2.10 2.10
2003 Pearson Education Canada Inc.
GENERAL ADMINISTRATIVE
T3EORISTS 0!o#t#ued1

Ma* ;ebe&

De+elo'ed a theo&) o( autho&t) st&u!tu&es a#d

&elato#s

Bureaucracy - deal t)'e o( o&$a#/ato#

d+so# o( labou&

!lea&l) de(#ed he&a&!h)

detaled &ules a#d &e$ulato#s

"'e&so#al &elato#sh's
2.11 2.11
2003 Pearson Education Canada Inc.
IDEAL B7REA7CRACY 0E*hbt @:B1
2.12 2.12
2003 Pearson Education Canada Inc.
C7ANTITATIVE A88ROAC3
TO MANAGEMENT

O'e&ato#s Resea&!h 0Ma#a$e"e#t S!e#!e1

7se o( 2ua#ttat+e te!h#2ues to "'&o+e

de!so# "a5#$

a''l!ato#s o( statst!s

o't"/ato# "odels

!o"'ute& s"ulato#s o( "a#a$e"e#t a!t+tes

Linear programming - "'&o+es &esou&!e

allo!ato# de!so#s

Criticalpath scheduling analysis - "'&o+es

.o&5 s!hedul#$
2.13 2.13
2003 Pearson Education Canada Inc.
TO;ARD 7NDERSTANDING
ORGANIDATIONAL BE3AVIO7R

O&$a#/ato#al Beha+o&

Stud) o( the a!to#s o( 'eo'le at .o&5

3a.tho&#e Studes

Sta&ted # >E@B at ;este&# Ele!t&! Co"'a#)

Elton !ayo - studes o( ,ob des$#

Cha#$ed the do"#a#t +e. that e"'lo)ees

.e&e #o d((e&e#t (&o" a#) othe& "a!h#es
2.14 2.14
2003 Pearson Education Canada Inc.
EARLY ADVOCATES O6 OB
0E*hbt @:F1
2.1. 2.1.
2003 Pearson Education Canada Inc.
C7RRENT TRENDS AND ISS7ES

Global/ato#

All o&$a#/ato#s a&e (a!ed .th the o''o&tu#tes a#d

!halle#$es o( o'e&at#$ # a $lobal "a&5et

;o&5(o&!e D+e&st)

3ete&o$e#eous .o&5(o&!e # te&"s o( $e#de&4 &a!e4

eth#!t)4 a$e4 a#d othe& !ha&a!te&st!s that &e(le!t
d((e&e#!es

.o&5(o&!e s $ett#$ olde&

h$h de$&ee o( ""$&ato# # Ca#ada

2.1/ 2.1/
2003 Pearson Education Canada Inc.
C7RRENT TRENDS AND
ISS7ES 0!o#t#ued1

E#t&e'&e#eu&sh'

Th&ee "'o&ta#t the"es

pursuit of opportunities - !a'tal/#$ o#

e#+&o#"e#tal !ha#$e to !&eate +alue

Innovation and uni"ueness - #t&odu!#$ #e.

a''&oa!hes to sats() u#(ul(lled "a&5et #eeds

gro#th - #ot !o#te#t to &e"a# s"all

;ll !o#t#ue to be "'o&ta#t # all so!etes

;ll #(lue#!e '&o(t a#d #ot-(o&-'&o(t

o&$a#/ato#s
2.10 2.10
2003 Pearson Education Canada Inc.
C7RRENT TRENDS AND
ISS7ES 0!o#t#ued1

Ma#a$#$ # a# E-Bus#ess ;o&ld

Ebusiness - !o"'&ehe#s+e te&" des!&b#$ the .a)

a# o&$a#/ato# does ts .o&5 b) us#$ ele!t&o#!
0I#te&#et-based1 l#5a$es .th 5e) !o#sttue#!es

Ebusiness - a#) (o&" o( bus#ess e*!ha#$e o&

t&a#sa!to# # .h!h 'a&tes #te&a!t ele!t&o#!all)

Intranet - a# #te&#al o&$a#/ato#al !o""u#!ato#

s)ste" that uses I#te&#et te!h#olo$) a#d s a!!essble
o#l) b) o&$a#/ato#al e"'lo)ees
2.11 2.11
TY8ES O6 E-COMMERCE TRANSACTIONS
E-Co""e&!e
Bus#ess-to-Co#su"e&
0B@C1
Ele!t&o#! &etal#$
Go+e&#"e#t-to-Bus#ess
0G@B1
All t&a#sa!to#s bet.ee#
!o"'a#es a#d
$o+e&#"e#t a$e#!es
Bus#ess-to-Bus#ess
0B@B1
All t&a#sa!to#s bet.ee# a
!o"'a#) a#d ts su''le&s
Co#su"e&-to-Co#su"e&
0G@C1
Ele!t&o#! "a&5ets (o&"ed
b) ;eb-based au!to#s
2.12 2.12
2003 Pearson Education Canada Inc.
CATEGORIES O6
E-B7SINESS INVOLVEMENT
E-bus#ess u#ts
.th#
t&adto#al
o&$a#/ato#
E-Bus#ess-E#ha#!ed
O&$a#/ato#
E-bus#ess tools
a#d a''l!ato#s
used .th# t&ad-
to#al o&$a#/ato#
E-Bus#ess-E#abled
O&$a#/ato#
O&$a#/ato#%s e#t&e .o&5
'&o!esses &e+ol+e a&ou#d
e-bus#ess "odel
2003 Pearson Education Canada Inc.
2.20 2.20
Total E-Bus#ess
O&$a#/ato#
2003 Pearson Education Canada Inc.
C7RRENT TRENDS AND
ISS7ES 0!o#t#ued1

Need (o& I##o+ato# a#d 6le*blt)

;thout a !o#sta#t (lo. o( #e. deas4 a# o&$a#/ato# s

doo"ed to obsoles!e#!e o& e+e# .o&se

Must be (le*ble to a!!o""odate !ha#$#$ !usto"e&s%

#eeds4 a''ea&a#!e o( #e. !o"'etto&s4 a#d sh(t#$
e"'lo)ees (&o" '&o,e!t to '&o,e!t

Cualt) Ma#a$e"e#t

Total $uality !anagement %T$!& - 'hloso'h) o(

"a#a$e"e#t based o# !o#t#ual "'&o+e"e#t a#d
&es'o#d#$ to !usto"e& #eeds a#d e*'e!tato#s

Customer - &e(e&s to #te&#al a#d e*te&#al e#ttes that

#te&a!t .th the o&$a#/ato#%s '&odu!t o& se&+!e
2.21 2.21
2003 Pearson Education Canada Inc.
;3AT IS TCMG 0E*hbt @:H1
2.22 2.22
2003 Pearson Education Canada Inc.
C7RRENT TRENDS AND
ISS7ES 0!o#t#ued1

Lea&##$ O&$a#/ato#s a#d 9#o.led$e Ma#a$e"e#t

Learning organi'ation - o#e that has de+elo'ed the

!a'a!t) to !o#t#uousl) lea&#4 ada't4 a#d !ha#$e

C&eate lea&##$ !a'abltes th&ou$hout the o&$a#/ato#

(no#ledge management - #+ol+es !ult+at#$ a

lea&##$ !ultu&e .he&e o&$a#/ato#al "e"be&s
s)ste"at!all) $athe& 5#o.led$e a#d sha&e t .th othe&s
# the o&$a#/ato# so as to a!he+e bette& 'e&(o&"a#!e

"a#a$e&s "ust t&a#s(o&" the"sel+es (&o" bosses to

tea" leade&s--lste##$4 !oa!h#$4 "ot+at#$ a#d
#u&tu&#$
2.23 2.23
2003 Pearson Education Canada Inc.
LEARNING ORGNAIDATION VERS7S
TRADITIONAL ORGANIDATION
2.24 2.24