1. Management History Module
BUS 206
Erlan Bakiev, Ph. D.
Zirve University
Spring 2012

2. Early Management Management has been practiced a long time.
Organized endeavors directed by people responsible for planning, organizing, leading, and controlling activities have existed for thousands of years.
Ex: The Egyptian pyramids; Great Wall of China
Four major approaches to management theory: classical, behavioral, quantitative, and contemporary.

3. Classical Approach
Scientific management (Frederick Winslow Taylor, 1911; Frank and Lillian Gilbreth).
Taylor’s Scientific Management Principles:
Develop a science for each element of an individual’s work.
Scientifically select and then train, teach, and develop the worker.
Heartily cooperate with the workers.
Divide work and responsibility almost equally between management and workers.

4. Classical Approach Cont.
General administrative theory (Henri Fayol).
Management was an activity common to all business endeavors, government, and even the home
Fayol’s 14 Principles of Management:
Division of Work, Authority, Discipline, Unity of command, Unity of direction, Subordination of individual interests to the general interest, Remuneration, Centralization, Scalar chain, Order, Equity, Stability of tenure of personnel, Initiative, and Esprit de corps.

5. Classical Approach Cont.
Weber’s Bureaucracy.
Weber's ideal bureaucracy is characterized by hierarchical organization, delineated lines of authority in a fixed area of activity, action taken on the basis of and recorded in written rules, bureaucratic officials need expert training, rules are implemented by neutral officials, career advancement depends on technical qualifications judged by organization, not individuals

6. Behavioral Approach Mary Follett (1918)
Advanced the idea of "reciprocal relationships”
Advocated the principle of "integration," or non-coercive power- sharing based on the use of her concept of "power with" rather than "power over." Her ideas on
İnfluenced the field of organizational studies with terms like negotiation, power, employee participation, alternative dispute solution and human relations movement

7. Behavioral Approach Cont.
Chester Barnard (1938)
Actual manager who thought organizations were social systems that required cooperation
Believed manager’s job was to communicate and stimulate employees’ high levels of effort
First to argue that organizations were open systems

8. Behavioral Approach Cont.
Hawthorne Studies (Known as Hawthorne Effect)
Term was coined in 1950 by Henry A. Landsberger (Western Electric)
İnfluenced a lot of scholars and experts in behavioral studies
People’s behavior and attitudes are closely related, that group factors significantly affect individual behavior, that group standards establish individual worker output, and that money is less a factor in determining output than are group standards, group attitudes, and security (Mayo, 1927).

9. Quantitative Approach
Quantitative approach is the use of quantitative techniques to improve decision making, evolved from mathematical and statistical solutions.
Quality Management is:
Intense focus on the customer, Concern for continual improvement, Process focused, Improvement in the quality of everything the organization does, Accurate measurement, and Empowerment of employees.
Total quality management (TQM) is:
A philosophy of management that is driven by continuous improvement and responsiveness to customer needs and expectations

10. Contemporary Approaches
Two contemporary management perspectives—systems and contingency:
System: A set of interrelated and interdependent parts arranged in a manner that produces a unified whole
Process closed system: Systems that are not influenced by and do not interact with their environment.
Open system: Systems that interact with their environment
Contingency approach: A management approach that recognizes organizations as different, which means they face different situations (contingencies) and require different ways of managing.