Chapter 2 (Engr Mgt)_092354

Chapter 2: Historical Background of Management

Importance of Historical Context

  • Learning from the past aids in understanding the present and envisioning the future.

Learning Objectives

  • Understand the development of management theories.

  • Recognize the influence of the environment on management thinking.

  • Gain insights into new management approaches.

Historical Framework of Management Approaches

  • Classical Approaches

  • Human Resource/Behavioral Approaches

  • Quantitative Approaches

  • Contingency Approaches

  • System Approach

  • Learning Organization Approach

  • Quality Management Approach

Early Ideas on Management

Management Strategy

  • Sun Tzu (770-476 B.C.), "The Art of War"

Leadership Ideas

  • Nicolò Machiavelli (1469-1527), "The Prince"

Work Design and Organization

  • Adam Smith, "The Wealth of Nations" (division of labor)

Evolution of Management Theory (1890-2000)

  • Scientific Management Theory

  • Bureaucratic Management Theory

  • Administrative Management Theory

  • Behavioral Management Theory

  • Systems Theory

  • Management Science Theory

External Influences on Management

  • General Environment: Social, Economic, Political, Legal, Technological

  • Operating Environment: Competition, New Entrants, Suppliers, Customers

  • Internal Environment: Structure, Production Technology, Inputs

Classical Management Approach (circa 1890)

  • Emphasized organizational efficiency amidst the Industrial Revolution.

  • Encouraged the notion of interchangeable parts.

Scientific Management

  • Developed by Frederick W. Taylor and others to find the best work techniques.

Taylor's Principles

  1. Study tasks scientifically.

  2. Select and train workers properly.

  3. Cooperate with workers.

  4. Divide responsibilities between management and workers.

Bureaucratic Management

  • Max Weber's ideal bureaucracy: rational organization, clear authority hierarchy, and defined rules.

Key Characteristics

  • Division of labor

  • Formal rules and procedures

  • Impersonality

  • Merit-based advancement

Administrative Management

  • Henri Fayol's emphasis on documenting managerial experience.

Fayol's 14 Principles

  • Division of work, authority, discipline, unity of command, etc.

Human Resource (Behavioral) Approach (circa 1910)

  • Focused on human needs and social factors in the workplace.

Early Advocates

  • Robert Owen, Chester Barnard, Mary Parker Follett, Hugo Munsterberg.

Key Concepts in Behavioral Theory

  • Hawthorne Effect: Attention to employees boosts motivation.

  • Maslow’s Hierarchy of Needs: Managers should address employees' needs.

  • McGregor’s Theory X and Theory Y: Different assumptions about employee motivation.

Quantitative (Management Science) Approach

  • Emphasizes scientific methods and quantitative techniques to solve problems.

Contingency Approach (1970s)

  • Management practices depend on specific circumstances.

System Approach (1950s-60s)

  • Views organization as a system with interdependent parts.

Learning Organization Approach

  • Based on adapting to change quickly to gain competitive advantage.

Building a Learning Organization

  • System thinking, shared vision, challenging mental models, team learning, personal mastery.

Quality Management Approach

  • Focused on meeting customer requirements and enhancing satisfaction, aligned with an organization's strategic direction.