GLENCOE

BUSINESS MANAGEMENT
Real-World Applications & Connections
Section 2.1
The Evolution of Management
In this section:
Ever since one human tried to direct another ideas about management have
been developing. This section discusses how management has changed over
time by discussing:
• The Industrial Revolution
• New Challenges for Management

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 GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section 2.1
The Evolution of Management
What You’ll Learn
• How the Industrial Revolution created a new need for management.
• How the captains of industry of the last century created huge empires.
• The principles of scientific management.
• The results of the Hawthorne studies on worker productivity.
• Maslow’s hierarchy of needs.

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 GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section 2.1
The Evolution of Management
Why It’s Important

To understand why businesses operate the way they do, you will need to
understand how management systems evolved.

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 GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section 2.1
The Evolution of Management
Key Terms
• monopoly • trust
• scientific management • hierarchy of needs

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 GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section 2.1
The Evolution of Management
Elements of the Industrial Revolution
• The Industrial Revolution was caused by changes in technology,
communication, and transportation and advances in
manufacturing processes.
• Powerful businesspeople who created enormous business empires
were known as captains of industry.
• These powerful businesspeople created monopolies—businesses
that maintained total control of their industry.

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 GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section 2.1
The Evolution of Management
TheDuring
Break-Up of Trusts
the Industrial Revolution, legislators and the
public became concerned with monopolies and the
During the
government Industrial
decided Revolution,
to regulate legislators and the public became
business.
concerned with monopolies and the government decided to regulate
business.

• The Interstate Commerce Act

• The Sherman Act

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 GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section 2.1
The Evolution of Management
New Challenges for Management
During the late 1800’s, thousands of employees performed
specialized tasks,
During the lateand new ideas
1800’s, were of
thousands needed for managing the workers.
employees
performed specialized tasks, and new ideas were needed for
• Frederick
managing W. Taylor and Scientific Management
the workers.
• The Hawthorne Studies of Productivity
• Abraham H. Maslow and the Hierarchy of Needs

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 GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section 2.1
The Evolution of Management
Scientific Management
• Jobs should be designed according to scientific rules.
•• Employees
Jobs shouldshould be selected
be designed and trained
according according
to scientific rules.to scientific
methods.
• Employees should be selected and trained according to
• The principles
scientific of scientific management should be explained to
methods.
workers.
• The principles of scientific management should be
• Management and workers should be interdependent so that they
explained to workers.
cooperate.
• Management and workers should be interdependent so
Copyright that they cooperate.
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 GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section 2.1
The Evolution of Management
Maslow’s Hierarchy of Needs

Fig 2-1

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 GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section 2.1
The Evolution of Management
Fact and Idea Review
1. How did the changes in the U.S. economy during the late
nineteenth century increase the need for management?
2. 1.What
How laws
didwere passed in the nineteenth
the changes century
U.S. economy to control
during the latethe
power of large companies?
nineteenth century increase the need for management?
3. 2.How didlaws
What Frederick W. Taylor
were passed change
in the thinking
nineteenth aboutto
century
management?
control the power of large companies?
4. 3.What
How factors affect workers’
did Frederick productivity?
W. Taylor change thinking about
management?
4. What
Copyright factors affect
© Glencoe/McGraw-Hill workers’ productivity? Slide 10 of 10