• Describe some early management examples

• Explain the various theories in the classical and

behavioral approach

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 Historical Background of
Management
• Ancient Management
– Egypt (pyramids)
– China (Great Wall)
• Adam Smith The Wealth of Nations in 1776
• Industrial Revolution in 1800s
– Substituted machine power for human labor
– Created large organizations in need of
management

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Major Approaches
• Scientific Management
– focuses on the productivity of the individual worker
• General Administrative
– focuses on the functions of the management
• Bureaucratic Management
– focuses on the overall organizational system within which
the workers and management interact
• Contemporary approach
– subject to the influence of the external environment.
Scientific Management
• Fredrick Winslow Taylor (1911)
– The “father” of scientific management
• The theory of scientific management
– Using 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
• Concerned with first-line managers

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 Scientific Management (cont…)
Taylor's four principles are as follows:
[Link] work by "rule of thumb," instead use the scientific
method to study work and determine the most efficient way
to perform specific tasks.
[Link] than simply assign workers to just any job, match
workers to their jobs based on capability and motivation, and
train them to work.
[Link] worker performance, and provide instructions and
supervision to ensure that they are working efficiently.
[Link] the work between managers and workers equally,
allowing the workers to perform their tasks efficiently.

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General Administrative Theory
• Henri Fayol (1949)
– Believed that the practice of management is
distinct from accounting, finance, production,
distribution, and other typical organizational
functions
– Developed 14 principles of management that
applied to all organizational situations

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 Administrative Theory (Cont…)
Fayol's 14 principles are as follows:
1. Division of work: whole work should be divided into different parts and
each individual should be assigned only one part of the work according to
his specialization.
2. Authority: Managers must be able to give order. Authority gives them this
right, but they must also keep in mind that with authority comes
responsibility.
3. Discipline: Employees must obey and respect the rules that govern the
organization.
4. Unity of Command: An employee should receive orders from one supervisor
only.
5. Unity of direction: The organization should have a single plan of action to
guide managers and workers. Teams with the same objective should be
working under the direction of one manager, using one plan.
Administrative Theory (Cont…)
6. Subordination of individual interests to the general interest:
According to this principle, the general interest or the interest of
the organization is above everything.
7. Remuneration: Workers must be paid a fair wage for their
services.
8. Centralization: This term refers to the degree to which
subordinates are involved in decision making.
9. Scalar Chain: The line of authority from top management to the
lowest ranks is the scalar chain. Employees should be aware of
where they stand in the organization's hierarchy, or chain of
command.
10. Order: People and materials should be in the right place at the
right time.
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Administrative Theory (Cont…)
11. Equity: Managers should be kind and fair to their subordinates.
12. Stability of tenure of personnel: Managers should strive to
minimize employee turnover. Management should provide orderly
personnel planning and ensure that replacements are available to
fill vacancies.
13. Initiative: Employees should be given the necessary level of
freedom to create and carry out [Link] is the duty of the
manager to encourage the feeling of initiative among his
employees for doing some work or taking some decision but
within the limits of authority and discipline.
14. Esprit de corps: As per this principle, a manager should
continuously make efforts to develop a team spirit among the
subordinates.

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Bureaucratic Management
• Max Weber (1947)
– Developed a theory of authority based on an ideal type of
organization (bureaucracy)
– He gave the concept of:
1. Division of labor
2. Authority hierarchy
3. Formal selection
4. Formal rules and regulations
5. Impersonality
6. Career orientation

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 Bureaucratic Management (cont..)
A bureaucracy should have
1. Division of Labor: Jobs broken down into simple, routine, and well-
defined tasks.
2. Authority Hierarchy: Positions organized in a hierarchy with a clear
chain of command.
3. Formal Selection: People selected for jobs based on technical
qualifications.
4. Formal Rules and Regulations: System of written rules and standard
operating procedures.
5. Impersonality: Uniform application of rules and controls, not
according to personalities.
6. Career Orientation: Managers are career professionals, not owners of
units they manage.

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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
 Contemporary Approach
Two perspectives system and contingency are the part of this approach.
• System theory
• System Defined
– A set of interrelated and interdependent parts arranged in a manner that produces a unified
whole.
– For e.g. a functioning car is a system. Remove the engine of the car and you have no longer got
a working car. A system can be looked at as having inputs, processes, and outputs.
• Basic Types of Systems
– Closed systems
• Are not influenced by and do not interact with their environment (all
system input and output is internal).
• For example, the R&D department of a company may have much less
interaction wit people outside the department, Therefore, we may consider
the R&D department organization as a closed system,.
– Open systems
• Dynamically interact to their environments by taking in inputs
and transforming them into outputs that are distributed into
their environments.
• organization is a perfect example of an open system.
organization needs to gather resources and information from
its environment such as capital, employees, natural resources,
and information from the market, in order to function and
grow. Organization also send resources back out into the
environment in form of products.
The Organization as an Open System