1. Chapter 2 The History of Management

2. In the Beginning explain the origins of management.
After reading the next section, you should be able to:
explain the origins of management.

3. Management Ideas and Practice Throughout History
5000 BC BC
1800 BC
600 BC
500 BC
400 BC
175
284
900
1100
1418
1436
1500
1525
Sumerians
Egyptians Planning, organizing, controlling.
Hammurabi
Nebuchadnezzar
Sun Tzu
Xenophon
Cyrus
Cato
Diocletian
Alfarabi
Ghazali
Barbarigo
Venetians
Sir Thomas More
Machiavelli
Record keeping
Plan, organize, control. Written requests.
Controls and written documentation
Wage incentives, production control
Strategy
Management as a separate art
Human relations and motion study
Job descriptions
Delegation of authority
Listed leadership traits
Listed managerial traits
Different organizational forms/structures
Numbering, standardization, interchangeability
Critical of poor management and leadership
Cohesiveness, power, and leadership
Only 125 years ago, business ideas and practices were very different from today’s widely accepted management ideas. Management wasn’t even a field of study, and there were no management jobs or management careers. This chapter presents origins of management ideas and practice throughout history and the historical changes that produced the need for managers.
On this slide are some of the management examples that can be found throughout history, and how they are related to the management functions in the textbook.

4. Why We Need Managers Today
Work in families
Skilled laborers
Small, self-organized groups
Unique, small batches of production
Then
Work in factories
Specialized, unskilled laborers
Large factories
Large standardized mass production
Now
1.2

5. The Evolution of Management
After reading the next four sections, you should be able to:
explain the history of scientific management.
discuss the history of bureaucratic and administrative management.
explain the history of human relations management.
discuss the history of operations, information systems, and contingency management.

6. The History of 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
Before scientific management, organizational decision making could best be described as ‘seat-of-the-pants.” Decisions were made haphazardly with no standardization of procedures, systematic study, or collection of information. In contrast, scientific management thoroughly studied and tested different work methods to identify the best, most efficient ways to complete a job. 2

7. Frederick W. Taylor
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,
2.2

8. Taylor’s Four Management Principles
Develop a science for each element of a man’s work, which replaces the old rule-of-thumb method.
Scientifically select and then train, teach, and develop the workman.
Cooperate with the men to insure all work is done in accordance with the principles of the science.
Frederick W. Taylor, the “father of scientific management,” spent three years to improve output of workers who were deliberately restricting output. His principles are described on this slide.
Taylor’s key ideas have stood the test of time. These include:
using systematic analysis to identify the best methods
scientifically selecting, training, and developing workers
promoting cooperation between management and labor
developing standardized approaches and tools
setting specific tasks or goals and then rewarding workers with financial incentives
giving workers shorter work hours and frequent breaks
There is almost equal division of the work and the responsibility between management and workmen.
2.1

9. Frank & Lillian Gilbreth
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.
In addition to their use of motion studies to simplify work, Frank and Lillian Gilbreth also made significant contributions to the employment of handicapped workers and industrial psychology.
Lillian Gilbreth, the first woman to receive a Ph.D. in Management, also convinced the government to enact laws regarding workplace safety, ergonomics, and child labor.
2.2

10. Motion Studies: Frank & Lillian Gilbreth
Time Study
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.
In addition to their use of motion studies to simplify work, Frank and Lillian Gilbreth also made significant contributions to the employment of handicapped workers and industrial psychology.
Lillian Gilbreth, the first woman to receive a Ph.D. in Management, also convinced the government to enact laws regarding workplace safety, ergonomics, and child labor.
2.2

11. Charts: Henry Gantt
Henry Gant, in addition to creating the Gantt chart, made significant contributions to management with pay-for-performance plans and the training and development of workers.
A Gantt chart shows time in various units on the x-axis and tasks on the y-axis, visually indicating what tasks must be completed at which times in order to complete a project.
2.3

12. The History of Bureaucratic Management
Max Weber,
Bureaucracy
The exercise of control on the basis of knowledge, expertise, or experience.
When we hear the term bureaucracy, we think of inefficiency and “red tape”, incompetence and ineffectiveness. However, when German sociologist Max Weber proposed the idea of bureaucratic organizations, monarchies were associated with these problems. Bureaucracy literally means to rule from a desk or office. In a bureaucracy, people would lead by virtue of rational-legal authority—from knowledge, expertise, and experience.
3.1

13. The Aim of Bureaucracy 3.1 1. Qualification-based hiring
2. Merit-based promotion
3. Chain of command
4. Division of labor
5. Impartial application of rules and procedures
6. Recorded in writing
7. Managers separate from owners
The aim of bureaucracy is to achieve an organization’s goals in the most efficient way possible.
3.1

14. Administrative Management: Henri Fayol
1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interests
7. Remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure of personnel
13. Initiative
14. Esprit de corps
Henri Fayol is best known for developing five functions of managers and 14 principles of management, as well as his belief that management could and should be taught to others.
The five functions of successful management are: planning, organizing, coordinating, commanding, and controlling.
His principles of effective management are shown on this slide.
3.2

15. The History of Human Relations Management
Efficiency alone is not enough to produce organizational success.
Success also depends on treating workers well.
Scientific management focuses on improving the efficiency of manufacturing facilities and their workers. Bureaucratic management focuses on using knowledge, fairness, and logical rules to increate the organization’s efficiency. Administrative management focuses on how and what managers should do in their jobs.
In contrast, the human relations approach to management focuses on the psychological and social aspects of work. People are valuable organizational resources whose needs are important. 4

16. Mary Parker Follett Mary Parker Follett.
Her many contributions to modern management include the ideas of negotiation, conflict resolution, and power sharing.
Mary Parker Follett,
4.1

17. Constructive Conflict and Coordination: Mary Parker Follett
Dealing with Conflict
Compromise
Domination
Integration
Follett is known for developing ideas regarding constructive conflict and coordination. She said that conflict is the appearance of difference, difference of opinions, of interests. Follett believed that managers could deal with conflict in three ways, as shown on this slide.
Domination is a victory of one side over the other.
Compromise involves both parties giving up some of what they want in order to reach agreement.
Integrative conflict resolution involves both parties indicating their preferences and then working together to find an alternative that meets the needs of both.
4.1

18. Constructive Conflict and Coordination: Mary Parker Follett
Coordination as reciprocal relating all the factors in a situation
Coordination by direct contact of the responsible people concerned
Coordination in the early stages
Coordination as a continuing process
Fundamental Principals of Organizations
4.1

19. Hawthorne Studies: Elton Mayo
Workers’ feelings and attitudes affected their work
Financial incentives weren’t the most important motivator for workers
Group norms and behavior play a critical role in behavior at work
Elton May’s ideas became popular during the twentieth century when labor unrest and protests were widespread in the U.S., Europe and Asia. Mayo's work proved relevant as managers looked for ways to increase productivity and to improve worker satisfaction and working conditions.
Western Electric. Women in the Relay Assembly Test Room, ca. 1930
4.2

20. Cooperation and Acceptance of Authority: Chester Barnard
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
Chester Barnard is best known for his ideas about cooperation, the executive functions that promote it, and the acceptance of authority.
4.3

21. Cooperation and Acceptance of Authority: Chester Barnard
People will be indifferent to managerial directives if they…
are understood
are consistent with the purpose of the organization
are compatible with the people’s personal interests
can actually be carried out by those people
4.3

22. Operations, Information, Systems, and Contingency Management
Information Management
Operations Management
Contingency Management
Systems Management 5

23. Operations Management Tools
Quality control
Forecasting techniques
Capacity planning
Productivity measurement and improvement
Linear programming
Scheduling systems
Inventory systems
Work measurement techniques
Project management
Cost-benefit analysis
5.1

24. Systems Management
A system is a set of interrelated elements or parts that function as a whole. A systems approach encourages managers to look for connections between the different parts of the organization.
5.3

25. Contingency Management
Contingency Approach
Holds that the most effective management theory or idea depends on the kinds of problems or situations that managers are facing at a particular time and place.
5.4

26. Contingency Management
Management is harder than it looks
Managers need to look for key contingencies that differentiate today’s situation from yesterday’s situation
Managers need to spend more time analyzing problems before taking action
Pay attention to qualifying phrases, such as “usually”
5.4