chapter 2

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ninth editionninth edition

STEPHEN P. ROBBINSSTEPHEN P. ROBBINS MARY COULTERMARY COULTER

PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie CookThe University of West AlabamaThe University of West Alabama

©© 2007 Prentice Hall, Inc. 2007 Prentice Hall, Inc. All rights reserved.All rights reserved.

Management Management Yesterday and TodayYesterday and Today

ChapterChapter

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L E A R N I N G O U T L I N E L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter.Follow this Learning Outline as you read and study this chapter.

•• Historical Background of ManagementHistorical Background of Management•• Explain why studying management history is important.Explain why studying management history is important.

•• Describe some early evidences of management practice.Describe some early evidences of management practice.

•• Scientific ManagementScientific Management

© 2007 Prentice Hall, Inc. All rights reserved. 2–2

gg•• Describe the important contributions made by Fredrick Describe the important contributions made by Fredrick

W. Taylor and Frank and Lillian Gilbreth.W. Taylor and Frank and Lillian Gilbreth.

•• Explain how todayExplain how today’’s managers use scientific s managers use scientific management.management.

L E A R N I N G O U T L I N E (contL E A R N I N G O U T L I N E (cont’’d) d) Follow this Learning Outline as you read and study this chapter.Follow this Learning Outline as you read and study this chapter.

•• General Administrative TheoryGeneral Administrative Theory•• Discuss FayolDiscuss Fayol’’s contributions to management theory.s contributions to management theory.

•• Describe Max WeberDescribe Max Weber’’s contribution to management s contribution to management theory.theory.


•• Explain how todayExplain how today’’s managers use general administrative s managers use general administrative theory.theory.

•• Quantitative ApproachQuantitative Approach•• Explain what the quantitative approach has contributed to Explain what the quantitative approach has contributed to

the field of management.the field of management.

•• Discuss how todayDiscuss how today’’s managers use the quantitative s managers use the quantitative approach.approach.


•• Toward Understanding Organizational BehaviorToward Understanding Organizational Behavior•• Describe the contributions of the early advocates of OB.Describe the contributions of the early advocates of OB.

•• Explain the contributions of the Hawthorne Studies to the Explain the contributions of the Hawthorne Studies to the field of management.field of management.


•• Discuss how todayDiscuss how today’’s managers use the behavioral s managers use the behavioral approach.approach.

•• The Systems ApproachThe Systems Approach•• Describe an organization using the systems approach.Describe an organization using the systems approach.

•• Discuss how the systems approach helps us Discuss how the systems approach helps us management.management.


•• The Contingency ApproachThe Contingency Approach•• Explain how the contingency approach differs from the Explain how the contingency approach differs from the

early theories of management.early theories of management.

•• Discuss how the contingency approach helps us Discuss how the contingency approach helps us understand managementunderstand management


understand management.understand management.

•• Current Issues and TrendsCurrent Issues and Trends•• Explain why we need to look at the current trends and Explain why we need to look at the current trends and

issues facing managers.issues facing managers.

•• Describe the current trends and issues facing managers.Describe the current trends and issues facing managers.

Historical Background of ManagementHistorical Background of Management•• Ancient ManagementAncient Management

Egypt (pyramids) and China (Great Wall)Egypt (pyramids) and China (Great Wall)Venetians (floating warship assembly lines)Venetians (floating warship assembly lines)

•• Adam SmithAdam SmithPublished Published ““The Wealth of NationsThe Wealth of Nations”” in 1776in 1776


Advocated the division of labor (job specialization) to increase Advocated the division of labor (job specialization) to increase the productivity of workersthe productivity of workers

•• Industrial RevolutionIndustrial RevolutionSubstituted machine power for human laborSubstituted machine power for human laborCreated large organizations in need of managementCreated large organizations in need of management

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Exhibit 2Exhibit 2––11 Development of Major Management TheoriesDevelopment of Major Management Theories


Major Approaches to ManagementMajor Approaches to Management•• Scientific ManagementScientific Management•• General Administrative TheoryGeneral Administrative Theory•• Quantitative ManagementQuantitative Management•• Organizational BehaviorOrganizational Behavior•• Systems ApproachSystems Approach


•• Systems ApproachSystems Approach•• Contingency ApproachContingency Approach

Scientific ManagementScientific Management•• Fredrick Winslow TaylorFredrick Winslow Taylor

The The ““fatherfather”” of scientific managementof scientific management

Published Published Principles of Scientific ManagementPrinciples of Scientific Management (1911)(1911)The theory of scientific managementThe theory of scientific management

–– Using scientific methods to define the Using scientific methods to define the ““one best wayone best way”” for a for a


job to be done:job to be done:

•• Putting the right person on the job with the correct tools Putting the right person on the job with the correct tools and equipment.and equipment.

•• Having a standardized method of doing the job.Having a standardized method of doing the job.

•• Providing an economic incentive to the worker.Providing an economic incentive to the worker.

Exhibit 2Exhibit 2––22 TaylorTaylor’’s Four Principles of Managements Four Principles of Management

1. Develop a science for each element of an individual’s work, which will replace the old rule-of-thumb method.

2. Scientifically select and then train, teach, and develop the worker.

3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science


work is done in accordance with the principles of the science that has been developed.

4. Divide work and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers.

Scientific Management (contScientific Management (cont’’d)d)•• Frank and Lillian GilbrethFrank and Lillian Gilbreth

Focused on increasing worker productivity through Focused on increasing worker productivity through the reduction of wasted motionthe reduction of wasted motionDeveloped the microchronometer to time worker Developed the microchronometer to time worker motions and optimize work performancemotions and optimize work performance

H D T dH D T d ’’ M U S i tifiM U S i tifi


•• How Do TodayHow Do Today’’s Managers Use Scientific s Managers Use Scientific Management?Management?

Use time and motion studies to increase productivityUse time and motion studies to increase productivityHire the best qualified employeesHire the best qualified employeesDesign incentive systems based on outputDesign incentive systems based on output

General Administrative TheoryGeneral Administrative Theory•• Henri FayolHenri Fayol

Believed that the practice of management was distinct Believed that the practice of management was distinct from other organizational functions from other organizational functions Developed fourteen principles of management that Developed fourteen principles of management that applied to all organizational situationsapplied to all organizational situations

M W bM W b


•• Max WeberMax WeberDeveloped a theory of authority based on an ideal Developed a theory of authority based on an ideal type of organization (bureaucracy)type of organization (bureaucracy)

Emphasized rationality, predictability, impersonality, technical Emphasized rationality, predictability, impersonality, technical competence, and authoritarianismcompetence, and authoritarianism

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Exhibit 2Exhibit 2––33 FayolFayol’’s 14 Principles of Managements 14 Principles of Management

1.1. Division of work.Division of work.

2.2. Authority.Authority.

3.3. Discipline.Discipline.

4.4. Unity of command.Unity of command.

7.7. Remuneration.Remuneration.

8.8. Centralization.Centralization.

9.9. Scalar chain.Scalar chain.

10.10. Order.Order.


5.5. Unity of direction.Unity of direction.

6.6. Subordination of Subordination of individual interests individual interests to the general to the general interest.interest.

11.11. Equity.Equity.

12.12. Stability of tenure Stability of tenure of personnel.of personnel.

13.13. Initiative.Initiative.

14.14. Esprit de corps.Esprit de corps.

Exhibit Exhibit 22––44 WeberWeber’’s Ideal Bureaucracys Ideal Bureaucracy


Quantitative Approach to ManagementQuantitative Approach to Management•• Quantitative ApproachQuantitative Approach

Also called Also called operations researchoperations research or or management management sciencescienceEvolved from mathematical and statistical methods Evolved from mathematical and statistical methods developed to solve WWII military logistics and quality developed to solve WWII military logistics and quality control problemscontrol problems


control problemscontrol problemsFocuses on improving managerial decision making by Focuses on improving managerial decision making by applying:applying:

Statistics, optimization models, information models, and Statistics, optimization models, information models, and computer simulationscomputer simulations

Understanding Organizational Behavior Understanding Organizational Behavior •• Organizational Behavior (OB)Organizational Behavior (OB)

The study of the actions of people at work; people are The study of the actions of people at work; people are the most important asset of an organizationthe most important asset of an organization

•• Early OB AdvocatesEarly OB AdvocatesRobert OwenRobert Owen


Hugo MunsterbergHugo MunsterbergMary Parker FollettMary Parker FollettChester BarnardChester Barnard

Exhibit 2Exhibit 2––55 Early Advocates of OBEarly Advocates of OB


••A series of productivity experiments conducted A series of productivity experiments conducted at Western Electric from 1927 to 1932.at Western Electric from 1927 to 1932.

••Experimental findingsExperimental findingsProductivity unexpectedly increased under imposed Productivity unexpectedly increased under imposed d ki ditid ki diti

The Hawthorne StudiesThe Hawthorne Studies


adverse working conditions.adverse working conditions.The effect of incentive plans was less than The effect of incentive plans was less than

expected.expected.

••Research conclusionResearch conclusionSocial norms, group standards and attitudes more Social norms, group standards and attitudes more

strongly influence individual output and work behavior strongly influence individual output and work behavior than do monetary incentives.than do monetary incentives.

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The Systems ApproachThe Systems Approach•• System DefinedSystem Defined

A set of interrelated and interdependent parts A set of interrelated and interdependent parts arranged in a manner that produces a unified whole.arranged in a manner that produces a unified whole.

•• Basic Types of SystemsBasic Types of SystemsClosed systemsClosed systems


Are not influenced by and do not interact with their Are not influenced by and do not interact with their environment (all system input and output is internal).environment (all system input and output is internal).

Open systemsOpen systemsDynamically interact to their environments by taking in inputs Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into and transforming them into outputs that are distributed into their environments.their environments.

Exhibit 2Exhibit 2––66 The Organization as an Open SystemThe Organization as an Open System


Implications of the Systems ApproachImplications of the Systems Approach•• Coordination of the organizationCoordination of the organization’’s parts is s parts is

essential for proper functioning of the entire essential for proper functioning of the entire organization.organization.

•• Decisions and actions taken in one area of the Decisions and actions taken in one area of the organization will have an effect in other areas of organization will have an effect in other areas of


ggthe organization.the organization.

•• Organizations are not selfOrganizations are not self--contained and, contained and, therefore, must adapt to changes in their therefore, must adapt to changes in their external environment.external environment.

The Contingency ApproachThe Contingency Approach•• Contingency Approach DefinedContingency Approach Defined

Also sometimes called the Also sometimes called the situational approach.situational approach.

There is no one universally applicable set of There is no one universally applicable set of management principles (rules) by which to manage management principles (rules) by which to manage organizations.organizations.


Organizations are individually different, face different Organizations are individually different, face different situations (contingency variables), and require situations (contingency variables), and require different ways of managing.different ways of managing.

Exhibit 2Exhibit 2––77 Popular Contingency VariablesPopular Contingency Variables

• Organization size• As size increases, so do the problems of coordination.

• Routineness of task technology• Routine technologies require organizational structures,

leadership styles, and control systems that differ from those required by customized or nonroutine technologies.


those required by customized or nonroutine technologies.• Environmental uncertainty

• What works best in a stable and predictable environment may be totally inappropriate in a rapidly changing and unpredictable environment.

• Individual differences• Individuals differ in terms of their desire for growth,

autonomy, tolerance of ambiguity, and expectations.

Current Trends and IssuesCurrent Trends and Issues•• GlobalizationGlobalization•• EthicsEthics•• Workforce DiversityWorkforce Diversity•• EntrepreneurshipEntrepreneurship•• EE--businessbusiness


•• EE--businessbusiness•• Knowledge ManagementKnowledge Management•• Learning OrganizationsLearning Organizations•• Quality ManagementQuality Management

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Current Trends and Issues (contCurrent Trends and Issues (cont’’d)d)•• GlobalizationGlobalization

Management in international organizationsManagement in international organizationsPolitical and cultural challenges of operating in a Political and cultural challenges of operating in a global marketglobal market

Working with people from different culturesWorking with people from different culturesCoping with anticapitalist backlashCoping with anticapitalist backlash


Coping with anticapitalist backlashCoping with anticapitalist backlashMovement of jobs to countries with lowMovement of jobs to countries with low--cost laborcost labor

•• EthicsEthicsIncreased emphasis on ethics education in college Increased emphasis on ethics education in college curriculumscurriculumsIncreased creation and use of codes of ethics by Increased creation and use of codes of ethics by businessesbusinesses

Exhibit 2Exhibit 2––88 A Process for Addressing Ethical DilemmasA Process for Addressing Ethical Dilemmas

Step 1: What is the ethical dilemma?

Step 2: Who are the affected stakeholders?

Step 3: What personal, organizational, and external factors are important to


external factors are important to my decision?

Step 4: What are possible alternatives?

Step 5: Make a decision and act on it.

Current Trends and Issues (contCurrent Trends and Issues (cont’’d)d)•• Workforce DiversityWorkforce Diversity

Increasing heterogeneity in the workforceIncreasing heterogeneity in the workforceMore gender, minority, ethnic, and other forms of diversity in More gender, minority, ethnic, and other forms of diversity in employeesemployees

Aging workforceAging workforceOlder employees who work longer and do not retireOlder employees who work longer and do not retire


O de e p oyees o o o ge a d do ot et eO de e p oyees o o o ge a d do ot et eThe increased costs of public and private benefits for older The increased costs of public and private benefits for older workersworkersAn increasing demand for products and services related to An increasing demand for products and services related to aging.aging.

Current Trends and Issues (contCurrent Trends and Issues (cont’’d)d)•• Entrepreneurship DefinedEntrepreneurship Defined

The process of starting new businesses, generally in The process of starting new businesses, generally in response to opportunities. response to opportunities.

•• Entrepreneurship processEntrepreneurship processPursuit of opportunitiesPursuit of opportunities


ppppInnovation in products, services, or business methodsInnovation in products, services, or business methodsDesire for continual growth of the organizationDesire for continual growth of the organization

Current Trends and Issues (contCurrent Trends and Issues (cont’’d)d)•• EE--Business (Electronic Business)Business (Electronic Business)

The work preformed by an organization using The work preformed by an organization using electronic linkages to its key constituencieselectronic linkages to its key constituencies

EE--commerce: the sales and marketing aspect of an ecommerce: the sales and marketing aspect of an e--businessbusiness


•• Categories of ECategories of E--BusinessesBusinessesEE--business enhanced organizationbusiness enhanced organization

EE--business enabled organizationbusiness enabled organization

Total eTotal e--business organizationbusiness organization

Exhibit 2Exhibit 2––99 Categories of ECategories of E--Business InvolvementBusiness Involvement


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Current Trends and Issues (contCurrent Trends and Issues (cont’’d)d)•• Learning OrganizationLearning Organization

An organization that has developed the capacity to An organization that has developed the capacity to continuously learn, adapt, and change.continuously learn, adapt, and change.

•• Knowledge ManagementKnowledge ManagementThe cultivation of a learning culture where The cultivation of a learning culture where


ggorganizational members systematically gather and organizational members systematically gather and share knowledge with others in order to achieve share knowledge with others in order to achieve better performance.better performance.

Exhibit Exhibit 22––1010 Learning Organization versus Traditional OrganizationLearning Organization versus Traditional Organization


Current Trends and Issues (contCurrent Trends and Issues (cont’’d)d)•• Quality ManagementQuality Management

A philosophy of management driven by continual A philosophy of management driven by continual improvement in the quality of work processes and improvement in the quality of work processes and responding to customer needs and expectationsresponding to customer needs and expectationsInspired by the total quality management (TQM) ideas Inspired by the total quality management (TQM) ideas of Deming and Juranof Deming and Juran


of Deming and Juranof Deming and JuranQuality is not directly related to costQuality is not directly related to costPoor quality results in lower productivityPoor quality results in lower productivity

Exhibit 2Exhibit 2––1111 What is Quality Management? What is Quality Management?

Intense focus on the customer.

Concern for continual improvement

Process-focused.

Improvement in the quality of everything


Improvement in the quality of everything.

Accurate measurement.

Empowerment of employees.

chapter 2

Education