MANAGEMENT

HISTORY MODULE

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 LEARNING OBJECTIVES
1. Describe some early management examples.
2. Explain the various theories in the classical
approach.
3. Discuss the development and uses of the
behavioral approach.
4. Describe the quantitative approach.
5. Explain the various theories in the
contemporary approach.

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 EARLY MANAGEMENT
• Ancient Management – Egypt (pyramids) and
China (Great Wall)
• Management is not a modern concept – it has
existed for thousands of years.
• Large-scale projects in ancient times required
organization, planning, coordination, and
leadership—core principles of management
today.
• Although ancient management was not based
on scientific theories, leaders intuitively applied
management principles to achieve their
objectives.
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 EARLY MANAGEMENT
 Egyptian Pyramids (around 2600 BC)Building the
pyramids required:
 Project planning – Deciding where to place each stone,
scheduling tasks.
 Labor management – Supervising thousands of workers
(some historians argue they were paid laborers, not
slaves).
 Logistics – Transporting heavy stones from distant
quarries.
 Hierarchical organization – Pharaohs, architects,
supervisors, and workers had defined roles.

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  The Great Wall of China (Started around 7th century BC,
mostly built during Ming Dynasty)
 Required coordination of:
 Massive labor forces – Soldiers, convicts, and peasants
worked under strict supervision.
 Material supply chains – Bricks, stones, and wood were
transported across long distances.
 Strategic planning – The wall was built in sections and
connected over centuries.
 Bureaucracy – Government officials and military leaders
managed the construction.

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 EARLY MANAGEMENT
• Adam Smith The Wealth of Nations in 1776
– Division of labor (job specialization) – the
breakdown of jobs into narrow and repetitive
tasks.
• Industrial Revolution
– Substituted machine power for human labor
– Created large organizations in need of
management

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 EARLY MANAGEMENT
 Adam Smith & Division of Labor (1776)In The Wealth of Nations,
Adam Smith introduced division of labor (job specialization).
 Definition: Breaking down work into smaller, specialized tasks
to improve efficiency.
 Example:A bakery where one worker makes dough, another
bakes, and another packages the bread.
 Modern application: Assembly lines in car manufacturing, fast
food restaurants.
 Industrial Revolution & Its Impact on ManagementMachines
replaced human labor, increasing production speed.
 Large organizations emerged, creating a need for structured
management.
 Business owners couldn’t oversee everything, leading to the
rise of managers.
 Example: Henry Ford’s assembly line: Each worker focused on a
specific car part, boosting efficiency and lowering costs.
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 EXHIBIT MH-1
MAJOR APPROACHES TO MANAGEMENT

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  1. Historical Background:
 Early Examples of Management Adam Smith – Introduced division of labor
(job specialization).
 Industrial Revolution – Shifted from small-scale businesses to large factories
requiring structured management.
 2. Classical Approaches: Scientific Management (Frederick Taylor, Frank &
Lillian Gilbreth) Focuses on improving efficiency through work studies and
standardization.
 Example: Assembly lines in car manufacturing.
 General Administrative Theory (Henri Fayol, Max Weber) Focuses on
organization-wide management rather than individual tasks.
 Fayol’s 14 Principles of Management and Weber’s Bureaucracy laid the
foundation for modern organizational structures.
 3. Behavioral Approach: Early Advocates (Mary Parker Follett, Chester
Barnard, Hugo Münsterberg) Focused on human behavior, teamwork, and
leadership in organizations.
 Hawthorne Studies (Elton Mayo)Discovered that worker productivity
increases when employees feel valued (human relations movement).
 Organizational BehaviorStudies motivation, leadership, and teamwork to
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  4. Quantitative Approach: Uses mathematical models and
statistics to improve decision-making.
 Example: Operations research, Six Sigma in quality control.
 5. Contemporary Approaches: Systems Approach Views an
organization as a system with interrelated parts.
 Example: A business functions like a machine—if one part
fails, it affects the whole.
 Contingency Approach: "No one-size-fits-all" management
style; decisions depend on the situation.
 Example: A startup vs. a multinational corporation require
different leadership styles.

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 CLASSICAL APPROACH

• Classical approach – first studies of

management, which emphasized
rationality and making organizations and
workers as efficient as possible.

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 CLASSICAL APPROACH
 Definition: The Classical Approach was one of the earliest formal studies of
management.
 It focused on rationality, efficiency, and structure to make organizations
and workers as productive as possible.
 Key Aspects of the Classical Approach: Scientific Management (Frederick
Taylor, Frank & Lillian Gilbreth) Emphasized standardized work methods to
improve efficiency.
 Taylor’s Time and Motion Studies: Studied how tasks were performed and
found ways to eliminate unnecessary movements to increase productivity.
 Example: Assembly lines in Ford’s automobile production.
 General Administrative Theory (Henri Fayol, Max Weber) Focused on
managing organizations as a whole, rather than individual tasks. Fayol’s
14 Principles of Management, such as authority, unity of command, and
division of work.
 Weber’s Bureaucracy: A structured, rule-based approach to organization.
 Strengths of the Classical Approach✅
 Improved productivity through specialization.✅ Introduced formal
organizational structures that are still used today.
 Criticism of the Classical Approach: ❌ Focused too much on efficiency,
ignoring human motivation and worker satisfaction.❌ Treated employees
more like machines than individuals.
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 SCIENTIFIC MANAGEMENT

• Fredrick Winslow Taylor

– The “father” of scientific management
• Scientific management – an approach
that involves using the scientific method to
find the “one best way” for a job to be
done.

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 EXHIBIT MH-2
TAYLOR’S SCIENTIFIC
MANAGEMENT PRINCIPLES

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 SCIENTIFIC MANAGEMENT
 Examples of Scientific Management in Action
 ✅ Ford’s Assembly Line (1913)Henry Ford applied Taylor’s
principles to car manufacturing.
 Workers specialized in small, repetitive tasks to improve
efficiency.
 ✅ Fast-Food Chains (McDonald's, KFC, etc.)Standardized
processes to ensure quick service and uniform product
quality.
 ✅ Amazon WarehousesUses time-motion studies and
algorithms to optimize worker productivity.
 Criticism of Scientific Management
 ❌ Treats workers like machines, ignoring motivation and
creativity.
 ❌ Focuses only on efficiency, sometimes leading to
worker dissatisfaction.

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 FRANK AND LILLIAN GILBRETH

• Therbligs – a
classification
scheme for
labeling basic
hand motions.

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 FRANK AND LILLIAN GILBRETH
 Frank and Lillian Gilbreth were pioneers in motion study, a key
part of scientific management.
 They focused on reducing unnecessary movements to increase
worker efficiency and prevent fatigue.
 What are Therbligs? Therbligs (an anagram of “Gilbreth” with
some letters rearranged) are a classification system for analyzing
basic hand motions in work tasks. There are 18 therbligs, each
representing a different movement, such as:
 Search (looking for an object)
 Grasp (picking up an object)
 Hold (keeping an object in place)
 Move (transporting an object)
 Release (letting go of an object)
 Example of Therbligs in Action✅
 Bricklaying Study: The Gilbreths analyzed bricklayers and
identified unnecessary movements in the process. By reducing
wasted motion, they doubled productivity and reduced worker
fatigue.✅ Modern Example: Surgery & Assembly hospitals,
surgeons and nurses arrange tools efficiently to minimize
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 GENERAL ADMINISTRATIVE
THEORY
• General administrative theory – an
approach to management that focuses on
describing what managers do and what
constitutes good management practice.

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 GENERAL ADMINISTRATIVE THEORY

 Key Contributors: Henri Fayol (1841–1925) – Developed

14 Principles of Management
 Proposed that management is a universal function that
applies across industries.
 Identified five primary management functions:
 Planning – Setting goals and determining how to achieve
them.
 Organizing – Arranging resources and tasks to accomplish
objectives.
 Commanding (Leading) – Directing employees to
complete their tasks.
 Coordinating – Ensuring different departments work
together effectively.
 Controlling – Monitoring progress and making
adjustments.
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 HENRI FAYOL

• Principles of
management –
Fundamental rules of
management that could be
applied in all organizational
situations and taught in
schools.

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 EXHIBIT MH-3
FAYOL’S 14 PRINCIPLES OF MANAGEMENT

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 EXHIBIT MH-3
FAYOL’S 14 PRINCIPLES OF MANAGEMENT
(CONT.)

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 GENERAL ADMINISTRATIVE THEORY
• Bureaucracy –
a form of organization characterized by division of
labor, a clearly defined hierarchy, detailed rules and
regulations, and impersonal relationships.
Bureaucracy is a structured organizational system
characterized by:
• Division of labor – Each person has a specific
role.
• Hierarchy – Clear chain of command.
• Rules & Regulations – Standardized procedures
ensure consistency.
• Impersonal Relationships – Decisions are made
based on rules, not personal preferences 1a - 23
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 GENERAL ADMINISTRATIVE
THEORY
 Examples of Bureaucracy in the Real World✅
Government Institutions: Public sector jobs follow
bureaucratic structures (e.g., ministries, police
departments).
 ✅ Large Corporations (Banks, Universities,
Hospitals)These organizations require clear
hierarchies, rules, and specialization to function
efficiently.
 ✅ Fast-Food Chains (McDonald's, KFC, Starbucks)Use
bureaucratic principles with standardized processes,
training, and reporting structures.
 Criticism of Bureaucracy:
 ❌ Too much red tape – Excessive rules slow down
decision-making. ❌ Lack of flexibility – Difficult for
organizations to adapt quickly. ❌ Impersonal treatment
– Employees may feel like just a number, reducing
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 EXHIBIT MH-4
CHARACTERISTICS OF WEBER’S BUREAUCRACY

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 BEHAVIORAL APPROACH

• Organizational behavior (OB) – the

study of the actions of people at work.
• Early OB Advocates
– Robert Owen
– Hugo Munsterberg
– Mary Parker Follett
– Chester Barnard

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 EXHIBIT MH-5
EARLY OB ADVOCATES

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 BEHAVIORAL APPROACH
 Early Advocates of Organizational Behavior
 ✅ 1. Robert Owen (1771–1858)One of the first industrialists to recognize
the importance of employee well-being. Advocated for better working
conditions, fair wages, and education for workers. Example: Introduced
workplace reforms in his textile mills, proving that treating employees well
improved productivity.
 ✅ 2. Hugo Munsterberg (1863–1916)Father of Industrial Psychology –
Applied psychology to the workplace. Studied how to match workers to
jobs based on their skills. Example: Developed selection tests for hiring
employees based on abilities (used today in recruitment).
 ✅ 3. Mary Parker Follett (1868–1933)Emphasized teamwork and
collaboration between managers and employees. Advocated for worker
empowerment and shared decision-making. Example: Introduced the
concept of "power with" rather than "power over" in leadership.
 ✅ 4. Chester Barnard (1886–1961)Defined organizations as social systems
that require communication and cooperation. Believed that workers
voluntarily cooperate when they see value in their work. Example:
Encouraged open communication between employees and managers for
better decision-making.
 Examples of OB in the Modern Workplace✅ Google & Microsoft – Use OB
principles to increase employee satisfaction and motivation through
flexible work policies.✅ Toyota’s Teamwork Model – Encourages employee
participation in decision-making to improve productivity.
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 THE HAWTHORNE STUDIES

• Hawthorne Studies – a series of studies

during the 1920s and 1930s that provided
new insights into individual and group
behavior.

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 THE HAWTHORNE STUDIES
 Key Findings of the Hawthorne Studies:
 ✅ 1. The Impact of Lighting on Worker Productivity.
Researchers tested how different levels of light affected
productivity. Surprising Result: Productivity increased
regardless of whether lighting was improved or dimmed.
 Conclusion: The attention given to workers (not the
lighting itself) boosted performance.
 ✅ 2. The Relay Assembly Test Room: Study Changed
factors like rest breaks, work hours, and wages to
measure their effects on productivity. Result: Productivity
increased, but not just due to physical changes—workers
felt valued because they were being studied.

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 THE HAWTHORNE STUDIES
 ✅ 3. The Interview Program: Interviewed thousands of workers to
understand their attitudes. Key finding: Social factors, like
employee relationships and teamwork, impact productivity.
 ✅ 4. The Bank Wiring Observation Study: Studied how social groups
influenced work behavior.
 Result: Workers set their own informal rules about how much work
to do, regardless of what management instructed.
 Major Conclusions from the Hawthorne Studies
 🔹 The “Hawthorne Effect” – Employees perform better when they
feel observed, valued, and involved.
 🔹 Work is Social – Productivity is influenced not just by pay or
conditions, but also by teamwork and relationships.
 🔹 Employee Attitudes Matter – Motivation and satisfaction impact
job performance.
 Examples of the Hawthorne Effect Today✅ Open-door management
policies – When employees know their opinions matter, they
perform better.✅ Google’s Workplace Culture – Encouraging
employee engagement leads to higher productivity.✅ Performance
Evaluations – Employees tend to work harder when they know they
are being monitored.
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 THE QUANTITATIVE APPROACH

• Quantitative approach – the use of

quantitative techniques to improve decision
making.
• Definition:The Quantitative Approach
applies mathematical, statistical, and
computational techniques to improve
decision-making in [Link] became
popular during World War II, when military
logistics needed precise planning
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 THE QUANTITATIVE APPROACH
 Today, businesses use these techniques for operations,
forecasting, and efficiency optimization.
 Key Components of the Quantitative Approach
 ✅ 1. Management ScienceUses mathematical models to
analyze complex [Link]: Airlines use
mathematical models to schedule flights and crew
rotations efficiently.
 ✅ 2. Operations ManagementFocuses on optimizing
production and logistics to improve efficiency. Example:
Amazon uses inventory management algorithms to
restock products at the right time.

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 THE QUANTITATIVE APPROACH
 ✅ 3. Decision Science & Statistical Models uses probability and risk
analysis to make better business decisions. Example: Banks use risk
assessment models to decide whether to approve loans.
 ✅ 4. Simulation & Forecasting uses historical data to predict future
trends and outcomes. Example: Retailers use sales forecasting models
to determine how much stock to order. Examples of the Quantitative
Approach in Action✅ Supply Chain Management – Companies like
Walmart use data analytics to optimize inventory.✅ Project Scheduling
– Construction companies use mathematical models like PERT & CPM
to schedule projects.✅ Healthcare – Hospitals use predictive models to
manage patient flow and resource allocation.
 Criticism of the Quantitative Approach❌ Over-reliance on numbers can
ignore human factors (motivation, leadership, emotions).❌ Assumes
that past data can predict the future, which is not always accurate.

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 TOTAL QUALITY MANAGEMENT (TQM)

• Total quality management (TQM) – a

philosophy of management that is driven by
continuous improvement and responsiveness to
customer needs and expectations.
• Definition:Total Quality Management (TQM) is a
management philosophy focused on continuous
improvement and customer [Link]
emphasizes quality in every aspect of a company’s
[Link] of just inspecting for defects,
TQM prevents defects by improving processes.

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 EXHIBIT MH-6
WHAT IS QUALITY MANAGEMENT?

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 TOTAL QUALITY MANAGEMENT
(TQM)
 Key Principles of TQM
 ✅ 1. Customer Focus Businesses: Toyota surveys customers to
improve car designs based on feedback.
 ✅ 2. Continuous Improvement (Kaizen): Amazon constantly
refines its logistics to speed up delivery times.
 ✅ 3. Employee Involvement: Companies like Google encourage
employees to suggest process improvements.
 ✅ 4. Process-Oriented Approach: McDonald's uses standardized
cooking processes to maintain quality across all locations.
 ✅ 5. Data-Driven Decision-Making: Six Sigma (a TQM-based
method) uses data analysis to eliminate errors in production.
 ✅ Toyota – Uses TQM principles in its Lean Manufacturing
System to reduce waste. ✅ Apple – Focuses on design and
production quality to ensure customer satisfaction. ✅ Ritz-
Carlton Hotels – Empowers employees to resolve customer
complaints immediately.
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 CONTEMPORARY APPROACHES

• System – a set of interrelated and

interdependent parts arranged in a manner that
produces a unified whole. Organizations function
as systems with multiple components working
together to achieve goals.
• Closed system – systems that are not
influenced by and do not interact with their
environment.
• Open system – systems that interact with their
environment.

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 CONTEMPORARY APPROACHES
 Types of Systems in Management✅
 1. Closed System characteristics: Self-contained, not
influenced by external factors. Rare in modern business, as
most organizations interact with their surroundings. Example:A
highly secretive military project with no external influence.
 ✅ 2. Open System characteristics: Receives input from external
factors like customers, suppliers, and competitors. Adjusts to
market trends, economic conditions, and technological
advancements.
 Examples: A tech company like Apple, which continuously
evolves based on customer feedback and market trends. A
university, which adapts to new educational policies and
student needs.
 Why the Systems Approach Matters in Management🔹 Helps
managers understand how different parts of an organization
work together.🔹 Encourages adaptability by focusing on how
businesses interact with their environment.
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 EXHIBIT MH-7
ORGANIZATION AS AN OPEN SYSTEM

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 THE CONTINGENCY APPROACH

• Contingency approach – a management

approach that recognizes organizations as
different, which means they face different
situations (contingencies) and require
different ways of managing. The
contingency approach rejects one-size-
fits-all solutions.

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 THE CONTINGENCY APPROACH

 Examples of the Contingency Approach in

Action:
 ✅ Tech Companies (Google, Apple) – Use a
flexible and adaptive management style to
foster creativity.
 ✅ Factories (Toyota, Ford) – Apply
structured management to ensure
efficiency in mass production.
 ✅ Crisis Management (Hospitals,
Emergency Services) – Require strict
command structures to handle urgent
situations.
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 EXHIBIT MH-8
POPULAR CONTINGENCY VARIABLES

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