Historical backgrounds

1. Adam smith argued the economic advantages that organizations and

society would gain from the division of labor, which is breakdown of jobs
into narrow and repetititve tasks.

2. Starting in late eighteenth century when machine power was substituted
for human power, it became more economical to manufactor goods in
factories than at homes. The factories needed managers to forecast
demand, ensure that enough material was on hand to make products,
assign tasks to people, and direct daily activities.


Classical Approach
These classical approaches emphasized rationality and making organizations
and workers as efficient as possible.

1. Scientific Management theory: There are two theories for scientific
management.
a. Frederick W. Taylor theory: He uses scientific methods to define one
best way for a job to done:
Scientifically study each part of a task and develop the best
method of performing the task.
Scientifically select and then train, teach, and develop the
worker.
Heartily cooperate with the workers.
Divide the work and responsibilities equally between the
management and workers.
b. Frank and Lillian gilbreth: Focused on increasing worker productivity
through the reduction of wasted motion, this is why they developed
the microchronometer to time workers motions and optimize work
performance. It is still used today where they use time and motion
study to eliminate wasted motion and hire the best-qualified workers
for a job or design an incentive system based on output.

2. General Administrative theory: looking at management from the
perspective of the entire organization. This approach focuses more on
what managers do and what constituted good management practice. Most
notable behind it are henri fayol and max weber.
a. Henri Fayol: focuses more on all managers, developed 14 principles of
management which are rules of management that could be applied at
all situations.
1) Divison of work: specialization increases output by making
employees more efficient
2) Authority: managers must be able to give orders and authority
give them this right
3) Discipline: employees must obey and respect the rules
4) Unity of command: receiving orders from only one supervisor
5) Unity of direction: organization must have a single plan of action to
guide manager and workers.
6) Subordination of individual interests to the general interest: the
interests of any one employee or group of employees should not
have priority over the interests of the organization as a whole
7) Remuneration: workers must be paid a fair wage for their services
8) Centeralization: the degree to which subordinates are involved in
decision making
9) Scalar chain: the line of authority from top management to the
lowest ranks
10) Order: people and material should be in the right place at the right
time
11) Equity: managers should be kind and fair to their subordinates
12) Stability of tenure of personnel: management should provide
orderly personnel planning and ensure that replacements are
available to fill vacancies
13) Initiative: employees who are allowed to originate and carry out
plans will exert high levels of effort.
14) Esprit de corps: Promoting team spirit will build harmony and
unity within the organization.

b. Max Weber: he developed a theory of authority structures and
relations based on an ideal type of organization he called a
bureaucracy, a form of organization characterized by division of labor,
a clearly defined hierarchy, detailed rules and regulations, and
impersonal relationships. It is not used as it was before, many
managers feel that a bureaucratic structure hinders individual
employees creativity and limits the organizations ability to respond to
increasingly dynamic environments.

A bureaucracy should have:
Division of labor: jobs broken down into simple routine and well defined
tasks where everyone is specialized.
Authority hierarchy: positions organized in a hierarchy with a clear chain
of command
Formal selection: people are selected for jobs based on technical
qualification
Formal rules and regulations: system of written rules and standard
operating procedures
Impersonality: uniform application of rules and controls. Not according to
personalities
Career orientation: managers are career professionals not owners of units
they manage.


Quantitative approach

It evolved from mathematical and statistical solutions developed for military
problems during WWII. It involves applying statistics, optimization models,
information models, computer simulations, and other quantitative
techniques to management activities to improve decision making.

Total Quality management: A philosophy that devotes to continual
improvement and responding to customer needs and expectation.

1) Intense focus on the customer: includes the outsider people who buy the
products or services and internal people who interact and serve others in
the organization.
2) Concern for continual improvement: it means that no matter how good it
is, quality should ALWAYS be imporved.
3) Process focused: it focuses on work processes as the quality of goods are
being improved.
4) Improvement on the quality of everything the organization does: relates
to final product, how they handle delivery, how they respond to
customers, how they answers phones politely.
5) Accurate measurements: the use of statistical techniques to measure
every critical variable in the organizations operations. Identify problems,
trace their roots, and eliminate the causes.
6) Empowerment of the employees: involves the people on the line in te
improvement process.

The quantitative approach contributes directly to management decision-making
in the areas of planning and control.


Behavioral Approach
A field that researches the actions of people at work. Where it is believed that
people were the most important assets of the organization and should be
managed accordingly. Social norms or group standard, or security s are the key
determinants of individual work behavior and his output. Employees should feel
the sense of belonging and not always motivated by incentives.
It has provided the foundation for our current theories of motivation,
leadership, group behavior and development, and other behavioral approaches.


Contemporary Approaches
Concerns on what was happening in the external environement outside the
boundaries of the organization. There are two perspectives that take part of this
approach:

1) System theory: a set of interrelated and interdependent parts arranged in
a manner that produces a unified whole. There are two types of systems,
opened and closed.
Closed systems: not influenced by and do not interact with their
environment.
Open systems: are influenced by and do interact with their
environment.
An example of open system is when an organization takes inputs from the
environment such as raw materials, human resources, capital, technology,
information, etc. and transform it in its system by enforcing it in its employees
work activities, management activities, technology and operations methods.
After the transforming process these organizations make these inputs into
outputs such as products and services, financial results, information, human
results. In our days, this is called a system.

Collabration between two departments are necessary to know what the
customer wants and to be able on creating the products customers want.

In systems approach decision and actions in one are will affect the other are. And
they are not self-contained; they rely on the environment for essential inputs.


2) Contingency approach: organizations are different, face different
situations, and require different ways of managing. It says that there is no
one universally applicable set of management principles by which to
manage organizations.
The contingency variables are:
Organization size
Routineness of task technology
Environmental uncertainty
Individual differences