The document outlines a learning outline for a chapter that discusses the history and evolution of management theories. It covers early management practices, scientific management, general administrative theory, quantitative approaches, organizational behavior, systems approaches, contingency approaches, and current trends/issues in management. The chapter aims to explain the important contributions of early theorists and how modern managers apply various theoretical approaches in practice today.

1. 2–1
L E A R N I N G O U T L I N EL 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
• Describe the important contributions made by FredrickDescribe the important contributions made by Fredrick
W. Taylor and Frank and Lillian Gilbreth.W. Taylor and Frank and Lillian Gilbreth.
• Explain how today’s managers use scientificExplain how today’s managers use scientific
management.management.

2. 2–2
L E A R N I N G O U T L I N E (cont’d)L E A R N I N G O U T L I N E (cont’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 Fayol’s contributions to management theory.Discuss Fayol’s contributions to management theory.
• Describe Max Weber’s contribution to managementDescribe Max Weber’s contribution to management
theory.theory.
• Explain how today’s managers use general administrativeExplain how today’s managers use general administrative
theory.theory.
•Quantitative ApproachQuantitative Approach
• Explain what the quantitative approach has contributedExplain what the quantitative approach has contributed
to the field of management.to the field of management.
• Discuss how today’s managers use the quantitativeDiscuss how today’s managers use the quantitative
approach.approach.

3. 2–3
L E A R N I N G O U T L I N E (cont’d)L E A R N I N G O U T L I N E (cont’d)
Follow this Learning Outline as you read and study this chapter.Follow this Learning Outline as you read and study this chapter.
•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 theExplain the contributions of the Hawthorne Studies to the
field of management.field of management.
• Discuss how today’s managers use the behavioralDiscuss how today’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 usDiscuss how the systems approach helps us
management.management.

4. 2–4
L E A R N I N G O U T L I N E (cont’d)L E A R N I N G O U T L I N E (cont’d)
Follow this Learning Outline as you read and study this chapter.Follow this Learning Outline as you read and study this chapter.
•The Contingency ApproachThe Contingency Approach
• Explain how the contingency approach differs from theExplain how the contingency approach differs from the
early theories of management.early theories of management.
• Discuss how the contingency approach helps usDiscuss how the contingency approach helps us
understand management.understand management.
•Current Issues and TrendsCurrent Issues and Trends
• Explain why we need to look at the current trends andExplain 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.

5. 2–5
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 Smith
 PublishedPublished “The Wealth of Nations”“The Wealth of Nations” in 1776in 1776
 Advocated the division of labor (job specialization) toAdvocated the division of labor (job specialization) to
increase the productivity of workersincrease the productivity of workers
• Industrial RevolutionIndustrial Revolution
 Substituted machine power for human laborSubstituted machine power for human labor
 Created large organizations in need of managementCreated large organizations in need of management

6. 2–6
Exhibit 2–1Exhibit 2–1 Development of Major Management TheoriesDevelopment of Major Management Theories

7. 2–7
Major Approaches to ManagementMajor Approaches to Management
• Scientific ManagementScientific Management
• General Administrative TheoryGeneral Administrative Theory
• Quantitative ManagementQuantitative Management
• Organizational BehaviorOrganizational Behavior
• Systems ApproachSystems Approach
• Contingency ApproachContingency Approach

8. 2–8
Scientific ManagementScientific Management
• Fredrick Winslow TaylorFredrick Winslow Taylor
 The “father” of scientific managementThe “father” of scientific management
 PublishedPublished Principles of Scientific ManagementPrinciples of Scientific Management (1911)(1911)
 The theory of scientific managementThe theory of scientific management
– Using scientific methods to define the “one best way” for aUsing scientific methods to define the “one best way” for a
job to be done:job to be done:
• Putting the right person on the job with the correct toolsPutting 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.

9. 2–9
Exhibit 2–2Exhibit 2–2 Taylor’s Four Principles of ManagementTaylor’s 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 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.

10. 2–10
Scientific Management (cont’d)Scientific Management (cont’d)
• Frank and Lillian GilbrethFrank and Lillian Gilbreth
 Focused on increasing worker productivity throughFocused on increasing worker productivity through
the reduction of wasted motionthe reduction of wasted motion
 Developed the microchronometer to time workerDeveloped the microchronometer to time worker
motions and optimize work performancemotions and optimize work performance
• How Do Today’s Managers Use ScientificHow Do Today’s Managers Use Scientific
Management?Management?
 Use time and motion studies to increase productivityUse time and motion studies to increase productivity
 Hire the best qualified employeesHire the best qualified employees
 Design incentive systems based on outputDesign incentive systems based on output

11. 2–11
General Administrative TheoryGeneral Administrative Theory
• Henri FayolHenri Fayol
 Believed that the practice of management was distinctBelieved that the practice of management was distinct
from other organizational functionsfrom other organizational functions
 Developed fourteen principles of management thatDeveloped fourteen principles of management that
applied to all organizational situationsapplied to all organizational situations
• Max WeberMax Weber
 Developed a theory of authority based on an idealDeveloped a theory of authority based on an ideal
type of organization (bureaucracy)type of organization (bureaucracy)
 Emphasized rationality, predictability, impersonality, technicalEmphasized rationality, predictability, impersonality, technical
competence, and authoritarianismcompetence, and authoritarianism

12. 2–12
Exhibit 2–3Exhibit 2–3 Fayol’s 14 Principles of ManagementFayol’s 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.
5.5. Unity of direction.Unity of direction.
6.6. Subordination ofSubordination of
individual interestsindividual interests
to the generalto the general
interest.interest.
7.7. Remuneration.Remuneration.
8.8. Centralization.Centralization.
9.9. Scalar chain.Scalar chain.
10.10. Order.Order.
11.11. Equity.Equity.
12.12. Stability of tenureStability of tenure
of personnel.of personnel.
13.13. Initiative.Initiative.
14.14. Esprit de corps.Esprit de corps.

13. 2–13
Exhibit 2–4Exhibit 2–4 Weber’s Ideal BureaucracyWeber’s Ideal Bureaucracy

14. 2–14
Quantitative Approach to ManagementQuantitative Approach to Management
• Quantitative ApproachQuantitative Approach
 Also calledAlso called operations researchoperations research oror managementmanagement
sciencescience
 Evolved from mathematical and statistical methodsEvolved from mathematical and statistical methods
developed to solve WWII military logistics and qualitydeveloped to solve WWII military logistics and quality
control problemscontrol problems
 Focuses on improving managerial decision making byFocuses on improving managerial decision making by
applying:applying:
 Statistics, optimization models, information models, andStatistics, optimization models, information models, and
computer simulationscomputer simulations

15. 2–15
Understanding Organizational BehaviorUnderstanding Organizational Behavior
• Organizational Behavior (OB)Organizational Behavior (OB)
 The study of the actions of people at work; people areThe 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 Advocates
 Robert OwenRobert Owen
 Hugo MunsterbergHugo Munsterberg
 Mary Parker FollettMary Parker Follett
 Chester BarnardChester Barnard

16. 2–16
Exhibit 2–5Exhibit 2–5 Early Advocates of OBEarly Advocates of OB

17. 2–17
•A series of productivity experiments conductedA series of productivity experiments conducted
at Western Electric from 1927 to 1932.at Western Electric from 1927 to 1932.
•Experimental findingsExperimental findings
Productivity unexpectedly increased under imposedProductivity unexpectedly increased under imposed
adverse working conditions.adverse working conditions.
The effect of incentive plans was less thanThe effect of incentive plans was less than
expected.expected.
•Research conclusionResearch conclusion
Social norms, group standards and attitudes moreSocial norms, group standards and attitudes more
strongly influence individual output and work behaviorstrongly influence individual output and work behavior
than do monetary incentives.than do monetary incentives.
The Hawthorne StudiesThe Hawthorne Studies

18. 2–18
The Systems ApproachThe Systems Approach
• System DefinedSystem Defined
 A set of interrelated and interdependent partsA 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 Systems
 Closed systemsClosed systems
 Are not influenced by and do not interact with theirAre 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 systems
 Dynamically interact to their environments by taking in inputsDynamically interact to their environments by taking in inputs
and transforming them into outputs that are distributed intoand transforming them into outputs that are distributed into
their environments.their environments.

19. 2–19
Exhibit 2–6Exhibit 2–6 The Organization as an Open SystemThe Organization as an Open System

20. 2–20
Implications of the Systems ApproachImplications of the Systems Approach
• Coordination of the organization’s parts isCoordination of the organization’s parts is
essential for proper functioning of the entireessential for proper functioning of the entire
organization.organization.
• Decisions and actions taken in one area of theDecisions and actions taken in one area of the
organization will have an effect in other areas oforganization will have an effect in other areas of
the organization.the organization.
• Organizations are not self-contained and,Organizations are not self-contained and,
therefore, must adapt to changes in theirtherefore, must adapt to changes in their
external environment.external environment.

21. 2–21
The Contingency ApproachThe Contingency Approach
• Contingency Approach DefinedContingency Approach Defined
 Also sometimes called theAlso sometimes called the situational approach.situational approach.
 There is no one universally applicable set ofThere is no one universally applicable set of
management principles (rules) by which to managemanagement principles (rules) by which to manage
organizations.organizations.
 Organizations are individually different, face differentOrganizations are individually different, face different
situations (contingency variables), and requiresituations (contingency variables), and require
different ways of managing.different ways of managing.

22. 2–22
Exhibit 2–7Exhibit 2–7 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.
• 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.

23. 2–23
Current Trends and IssuesCurrent Trends and Issues
• GlobalizationGlobalization
• EthicsEthics
• Workforce DiversityWorkforce Diversity
• EntrepreneurshipEntrepreneurship
• E-businessE-business
• Knowledge ManagementKnowledge Management
• Learning OrganizationsLearning Organizations
• Quality ManagementQuality Management

24. 2–24
Current Trends and Issues (cont’d)Current Trends and Issues (cont’d)
• GlobalizationGlobalization
 Management in international organizationsManagement in international organizations
 Political and cultural challenges of operating in aPolitical and cultural challenges of operating in a
global marketglobal market
 Working with people from different culturesWorking with people from different cultures
 Coping with anticapitalist backlashCoping with anticapitalist backlash
 Movement of jobs to countries with low-cost laborMovement of jobs to countries with low-cost labor
• EthicsEthics
 Increased emphasis on ethics education in collegeIncreased emphasis on ethics education in college
curriculumscurriculums
 Increased creation and use of codes of ethics byIncreased creation and use of codes of ethics by
businessesbusinesses

25. 2–25
Exhibit 2–8Exhibit 2–8 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
my decision?
Step 4: What are possible alternatives?
Step 5: Make a decision and act on it.

26. 2–26
Current Trends and Issues (cont’d)Current Trends and Issues (cont’d)
• Workforce DiversityWorkforce Diversity
 Increasing heterogeneity in the workforceIncreasing heterogeneity in the workforce
 More gender, minority, ethnic, and other forms of diversity inMore gender, minority, ethnic, and other forms of diversity in
employeesemployees
 Aging workforceAging workforce
 Older employees who work longer and do not retireOlder employees who work longer and do not retire
 The increased costs of public and private benefits for olderThe increased costs of public and private benefits for older
workersworkers
 An increasing demand for products and services related toAn increasing demand for products and services related to
aging.aging.

27. 2–27
Current Trends and Issues (cont’d)Current Trends and Issues (cont’d)
• Entrepreneurship DefinedEntrepreneurship Defined
 The process of starting new businesses, generally inThe process of starting new businesses, generally in
response to opportunities.response to opportunities.
• Entrepreneurship processEntrepreneurship process
 Pursuit of opportunitiesPursuit of opportunities
 Innovation in products, services, or business methodsInnovation in products, services, or business methods
 Desire for continual growth of the organizationDesire for continual growth of the organization

28. 2–28
Current Trends and Issues (cont’d)Current Trends and Issues (cont’d)
• E-Business (Electronic Business)E-Business (Electronic Business)
 The work preformed by an organization usingThe work preformed by an organization using
electronic linkages to its key constituencieselectronic linkages to its key constituencies
 E-commerce: the sales and marketing aspect of an e-E-commerce: the sales and marketing aspect of an e-
businessbusiness
• Categories of E-BusinessesCategories of E-Businesses
 E-business enhanced organizationE-business enhanced organization
 E-business enabled organizationE-business enabled organization
 Total e-business organizationTotal e-business organization

29. 2–29
Exhibit 2–9Exhibit 2–9 Categories of E-Business InvolvementCategories of E-Business Involvement

30. 2–30
Current Trends and Issues (cont’d)Current Trends and Issues (cont’d)
• Learning OrganizationLearning Organization
 An organization that has developed the capacity toAn organization that has developed the capacity to
continuously learn, adapt, and change.continuously learn, adapt, and change.
• Knowledge ManagementKnowledge Management
 The cultivation of a learning culture whereThe cultivation of a learning culture where
organizational members systematically gather andorganizational members systematically gather and
share knowledge with others in order to achieveshare knowledge with others in order to achieve
better performance.better performance.

31. 2–31
Exhibit 2–10Exhibit 2–10 Learning Organization versus Traditional OrganizationLearning Organization versus Traditional Organization

32. 2–32
Current Trends and Issues (cont’d)Current Trends and Issues (cont’d)
• Quality ManagementQuality Management
 A philosophy of management driven by continualA philosophy of management driven by continual
improvement in the quality of work processes andimprovement in the quality of work processes and
responding to customer needs and expectationsresponding to customer needs and expectations
 Inspired by the total quality management (TQM) ideasInspired by the total quality management (TQM) ideas
of Deming and Juranof Deming and Juran
 Quality is not directly related to costQuality is not directly related to cost
 Poor quality results in lower productivityPoor quality results in lower productivity

33. 2–33
Exhibit 2–11Exhibit 2–11 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.
Accurate measurement.
Empowerment of employees.

34. 2–34
Terms to KnowTerms to Know
• division of labor (or jobdivision of labor (or job
specialization)specialization)
• Industrial RevolutionIndustrial Revolution
• scientific managementscientific management
• therbligstherbligs
• general administrative theorygeneral administrative theory
• principles of managementprinciples of management
• bureaucracybureaucracy
• quantitative approachquantitative approach
• organizational behavior (OB)organizational behavior (OB)
• Hawthorne StudiesHawthorne Studies
• systemsystem
• closed systemsclosed systems
• open systemsopen systems
• contingency approachcontingency approach
• workforce diversityworkforce diversity
• entrepreneurshipentrepreneurship
• e-business (electronice-business (electronic
business)business)
• e-commerce (electronice-commerce (electronic
commerce)commerce)
• intranetintranet
• learning organizationlearning organization
• knowledge managementknowledge management
• quality managementquality management