History of Management Trend - Stephen Robbins

Supplement 1
History of Management Trends
Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1- 1
Copyright © 2008 Pearson Education Canada
LEARNING OUTLINE
Follow this Learning Outline as you read and study this chapter
• Management Theories
– List the six major management theories
• Scientific Management
– Describe the important contributions made by Fredrick W.
Taylor and Frank and Lillian Gilbreth
– Explain how today’s managers use scientific management
LEARNING OUTLINE (cont’d)
• General Administrative Theorists
– Discuss Fayol’s 14 management principles.
– Describe Max Weber’s contribution to the general
administrative theory of management.
– Explain how today’s managers use general administrative
theories of management.
• The Quantitative Approach
– Explain what the quantitative approach has contributed to the
field of management.
– Discuss how today’s managers use the quantitative approach.
• Organizational Behavior
– Describe the contributions of the early advocates of OB
– Explain the contributions of the Hawthorne Studies to the field
of management
– Discuss how today’s managers use the behavioural approach
• The Systems Approach
– Describe an organization using the systems approach
– Discuss how the systems approach is appropriate for
understanding management
• The Contingency Approach

– Explain how the contingency approach differs from
the early theories of management
– Discuss how the contingency approach is appropriate
for studying management
Management Theories
• Six major management theories:

– Scientific management
– General administrative theory
– The quantitative approach
– Organizational behaviour
– The systems approach
– The contingency approach
Exhibit S1.1 Development of
Major Management Theories
Management Theories
Scientific Quantitative Systems Contingency

Management Approach Approach Approach
Early
Advocates
Hawthorne
Studies
Scientific Management
• Fredrick Winslow Taylor
– The “father” of scientific management
– Published Principles of Scientific Management
(1911)
• The theory of scientific management
– Scientific methods to define the “one best way” for a job to be
done:
» Putting the right person on the job with the correct tools and
equipment
» Having a standardized method of doing the job
» Providing an economic incentive to the worker
Tips for Managers: Taylor’s Four
Principles of Management
1. Develop a science for each element of an individual’s
work.
2. Scientifically select and then train, teach, and develop
employees.
3. Heartily cooperate with employees to get work done
using scientific methods.
4. Divide work and responsibility almost equally between
management and workers.
Scientific Management (cont’d)
• Frank and Lillian Gilbreth
– Focused on increasing worker productivity through
the reduction of wasted motion
– Developed the microchronometer to time worker
motions and optimize performance
• How Do Today’s Managers Use Scientific
Management?
– Use time and motion studies to increase productivity
– Hire the best qualified employees
– Design incentive systems based on output
Supplement 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition S1-
10
General Administrative Theorists
• Henri Fayol
– Believed that the practice of management was
distinct from other organizational functions
– Developed 14 principles of management that
applied to all organizational situations
11
Tips for Managers: Fayol’s 14 Principles
of Management
1. Division of work 7. Remuneration
2. Authority 8. Centralization
9. Scalar chain
3. Discipline
10. Order
4. Unity of command 11. Equity
5. Unity of direction 12. Stability of tenure of
6. Subordination of personnel
individual interest to the 13. Initiative
general interest 14. Esprit de corps
12
General Administrative Theorists
(cont’d)
• Max Weber
– Developed a theory of authority based on an
ideal type of organization (bureaucracy)
• Emphasized rationality, predictability, impersonality,
technical competence, and authoritarianism
13
Exhibit S1.2 Weber’s Ideal
Bureaucracy
Jobs broken down
into simple, routine,
and well-defined tasks
Managers are career Positions organized
professionals, not in a hierarchy with
owners of units they a clear chain
manage of command
Division
of Labour
Career Authority
Orientation Hierarchy
A bureaucracy
should have
Impersonality Formal
Selection
Formal Rules
Uniform application and Regulations People selected for
of rules and controls, jobs based on
not according to technical qualifications
personalities
System of written
rules and standard
operating procedures
14
The Quantitative Approach
• Quantitative Approach
– Also called operations research or management
science
– Evolved from mathematical and statistical
methods developed to solve WWII military
logistics and quality-control problems
– Focuses on improving managerial decision
making by applying:
• Statistics, optimization models, information models, and
computer simulations
15
Organizational Behaviour
• Organizational Behaviour (OB)
– The study of the actions of people at work;
people are an organization’s most important
assets
• Early OB Advocates
– Robert Owen
– Hugo Münsterberg
– Mary Parker Follett
– Chester Barnard
16
Exhibit S1.3 Early Advocates of OB
17
The Hawthorne Studies
• 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
• Research conclusion
– Social norms, group standards, and attitudes more
strongly influence individual output and work
behaviour than do monetary incentives
18
The Systems Approach
• System Defined
– A set of interrelated and interdependent parts arranged in
a manner that produces a unified whole
• Basic Types of Systems
– Closed systems
• Are not influenced by and do not interact with their
environment (all system input and output is internal)
– Open systems
• Dynamically interact with their environments by taking in
inputs and transforming them into outputs, which are then
distributed back into the environments
19
Exhibit S1.4 The Organization as an
Open System
System
Transformation
Inputs Process Outputs
Raw Materials Employees ’ Work Products and Services

Human Resources Activities Financial Results
Capital Management Activities Information
Technology Technology and Human Results
Information Operations Methods
Feedback
20
Implications of the Systems
Approach
• Coordination of the organization’s parts is
essential for proper functioning of the entire
organization
• Decisions and actions taken in one area of the
organization will have an effect on other areas
of the organization
• Organizations are not self-contained and,
therefore, must adapt to changes in their
external environment
21
The Contingency Approach
• Contingency Approach Defined

– There is no one universally applicable set of
management principles (rules) by which to
manage organizations
– Organizations are individually different, face
different situations (contingency variables), and
require different ways of managing
22
Exhibit S1.5 Popular Contingency
Variables
• Organization size
• Routineness of task technology
• Environmental uncertainty
• Individual differences
23
Exhibit S1.6 Emphases of Major
Management Theories
Management Theories
24

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Supplement 1

History of Management Trends

• The Contingency Approach

• Six major management theories:

Scientific Quantitative Systems Contingency

Raw Materials Employees ’ Work Products and Services

• Contingency Approach Defined

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