1. The History of Management 2 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

2. LEARNING OUTCOMES 2 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT8 | CH3 1Explain the origins of management 2Explain the history of scientific management 3Discuss the history of bureaucratic and administrative management 4Explain the history of human relations management 5Discuss the history of operations, information, systems, and contingency management

3. 3 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT8 | CH3 Exhibit 2.1 Management Ideas and Practices throughout History Source: C. S. George, Jr., The History of Management Thought (Englewood Cliffs, NJ: Prentice Hall, 1972).

4. 4 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT8 | CH3 Exhibit 2.1 Management Ideas and Practices throughout History Source: C. S. George, Jr., The History of Management Thought (Englewood Cliffs, NJ: Prentice Hall, 1972).

5. 5 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT8 | CH3 Why We Need Managers Today 5 Work in families Skilled laborers Small, self-organized groups Unique, small batches of production ThenThen Work in factories Specialized, unskilled laborers Large factories Large standardized mass production NowNow

6. 6 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT8 | CH3 The History of Scientific Management 6 Scientific Management  Studies and tests methods to identify the best, most efficient ways Scientific Management  Studies and tests methods to identify the best, most efficient ways “Seat-of-the Pants” Management  No standardization of procedures  No follow-up on improvements “Seat-of-the Pants” Management  No standardization of procedures  No follow-up on improvements

7. 7 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT8 | CH3 Frederick W. Taylor 7 Frederick Taylor is known today as the "father of scientific management." One of his many contributions to modern management is the common practice of giving employees rest breaks throughout the day. Frederick W. Taylor, 1856-1915 2.2

8. 8 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT8 | CH3 Scientific Management Thoroughly studying and testing different work methods Identifies the best, most efficient way to complete a job Frederick W. Taylor - Father of scientific management Developed four principles of scientific management Introduced the time study Time study: Time taken by good workers to complete each part of their jobs

9. 9 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT8 | CH3 Exhibit 2.2 Taylor’s Four Principles of Scientific Management

10. 10 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT8 | CH3 Scientific Management Frank and Lillian Gilbreth Employed motion study to simplify work and improve productivity Motion study: Breaking each task or job into its separate motions and then eliminating those that are unnecessary or repetitive Henry Gantt - Developed Gantt chart Gantt chart: Indicates what tasks must be completed at which times in order to complete a project

11. 11 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT8 | CH3 Frank & Lillian Gilbreth 11 Frank and Lillian Gilbreth were prolific researchers and often used their family as guinea pigs. Their work is the subject of Cheaper by the Dozen, written by their son and daughter. Developed the use of motion studies to simply work and improve productive.

12. 12 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT8 | CH3 Motion Studies: Frank & Lillian Gilbreth 12 Time Study Developed by Frederick Taylor. Timing how long it takes good workers to complete each part of their jobs. Motion Study Breaking each task into its separate motions and then eliminating those that are unnecessary or repetitive.

13. 13 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT8 | CH3 Bureaucratic and Administrative Management At the same time that Scientific Management was being developed in the U.S., important work was being done in Europe. The German sociologist Max Weber developed his ideas about bureaucratic management. Henry Fayol, an experienced French CEO, published his ideas about administrative management, including how and what managers should do in their jobs. 13

14. 14 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT8 | CH3 The History of Bureaucratic Management 14 Max Weber, 1864-1920 Proposed the idea of bureaucratic organizations to overcome the problems associated with monarchies and patriarchies.

15. 15 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT8 | CH3 Bureaucratic Management Max Weber - Proposed the idea of bureaucracy Bureaucracy: Exercise of control on the basis of knowledge, expertise, or experience Characterized elements of bureaucracies Qualification based hiring and merit-based promotion Chain of command and division of labor Impartial application of rules and procedures Records in writing Managers separate from owners

16. 16 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT8 | CH3 Henry Fayol Henry Fayol (1841-1925) was as important a contributor to the field of management as was Frederick Taylor. Fayol was noted for rescuing a failing steel company, not through technical superiority, but through the administrative ability of the managers. “The success of an enterprise generally depends much more on the administrative ability of its leaders than on their technical ability.” Fayol developed five functions of managers (planning, organizing, coordinating, commanding, and controlling) and 14 principles of management. 16

17. 17 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT8 | CH3 Principles of Management by Henry Fayol Division of work Authority and responsibility Discipline Unity of command Unity of direction Subordination of individual interests to the general interests Remuneration Subordination of individual interests to the general interests Centralization, scalar chain Order, equity Stability of tenure of personnel Initiative Esprit de corps

18. 18 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT8 | CH3 The History of Human Relations Management 18 Efficiency alone is not enough to produce organizational success. Success also depends on treating workers well.

19. 19 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT8 | CH3 Mary Parker Follett Mary Parker Follett is known today as the “mother of scientific management." Her many contributions to modern management include the ideas of negotiation, conflict resolution, and power sharing. 19 Mary Parker Follett, 1868-1933

20. 20 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT8 | CH3 Human Relations Management Mary Parker Follett Conflict – “the appearance of difference, difference of opinions, of interests” Developed the approach of integrative conflict resolution Integrative conflict resolution: Approach to deal with conflict in which both parties indicate their preferences Find an alternative that meets the needs of both parties

21. 21 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT8 | CH3 Hawthorne Studies: Elton Mayo Human factors related to work were found to be more important than physical conditions or design of work. Workers not just extensions of machines, and financial incentives weren’t necessarily the most important for motivating workers. Managers better understood effect of group social interactions, employee satisfaction, and attitudes on individual and group performance. © 2015 Cengage Learning 2-4

22. 22 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT8 | CH3 Human Relations Management Chester Barnard-President of New Jersey Bell, author of The Functions of the Executive. Proposed a comprehensive theory of cooperation in formal organizations Organization: System of consciously coordinated activities or forces created by two or more people The extent to which people willingly cooperate in an organization depends on how workers perceive executive authority and whether they’re willing to accept it.

23. 23 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT8 | CH3 Zone of Indifference People will be indifferent to managerial directives if they… are understood are consistent with organization’s purpose are compatible with people’s personal interests can actually be carried out by those people Managers can gain cooperation by: Securing essential services from individuals Unifying people by clearly formulating an organization’s purpose and objectives Providing a system of effective communication © 2015 Cengage Learning 2-4

24. 24 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT8 | CH3 Operations Management Eli Whitney - Private gun contractor Introduced the concept of manufacturing using standardized, interchangeable parts Gaspard Monge Explained techniques for drawing three- dimensional objects on paper Oldsmobile Motor Work Invented just-in-time inventory systems

25. 25 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT8 | CH3 Information Management Paper and printing press revolutionized the business use of information Typewriters and personal computers enabled easier and faster production of business correspondence Telegraph, telephone, and the Internet increased access to timely information

26. 26 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT8 | CH3 Systems Management System: Set of interrelated elements or parts that function as a whole Subsystems: Smaller systems that operate within the context of a larger system Synergy: Occurs when subsystems can produce more than they can working apart Types of systems Closed systems: Sustain themselves without interacting with their environments Open systems: Sustain themselves only by interacting with their environments

27. 27 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT8 | CH3 Contingency Management Contingency approach Holds that there are no universal management theories Effective management theory depends on the kinds of problems that managers are facing at a particular time and place