THE HISTORY OF

MANAGEMENT MGMT

CHAPTER 2
MANAGEMENT IDEAS AND PRACTICES
THROUGHOUT HISTORY

Source: C. S. George, Jr., The History of Management Thought (Englewood Cliffs, NJ: Prentice Hall, 1972).
MANAGEMENT IDEAS AND PRACTICES
THROUGHOUT HISTORY

Source: C. S. George, Jr., The History of Management Thought (Englewood Cliffs, NJ: Prentice Hall, 1972).
WHY WE NEED MANAGERS TODAY

During the Industrial Revolution…

Availability of power enabled low-paid, unskilled labor to replace high-

paid skilled artisans

Job carried out in large, formal organizations rather than fields, homes,
or small shops

4
 SCIENTIFIC MANAGEMENT

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

5
TAYLOR’S FOUR PRINCIPLES OF
SCIENTIFIC MANAGEMENT
 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
 Typically yielded production increases of 25 to 300 percent.
 Additionally: impact regarding employment of disabled workers and Lillian
impact on work place safety, ergonomics, and child labor

Henry Gantt - Developed Gantt chart

Gantt chart: Indicates what tasks must be completed at which times in
order to complete a project

7
 BUREAUCRATIC MANAGEMENT

Max Weber - Proposed the idea of bureaucracy

Bureaucracy: Exercise of control on the basis of knowledge, expertise, or experience, rather

than favoritism/birthright

Characterized elements of bureaucracies

 Qualification based hiring
 Merit-based promotion
 Chain of command
 Division of labor
 Impartial application of rules and procedures
 Records in writing
 Managers separate from owners

Helped improve organizational functioning

 Fairness replaced favoritism
 Goal of efficiency replaced goal of personal gain
 Logical rules replaced arbitrary decision making
8
ELEMENTS OF BUREAUCRATIC
ORGANIZATIONS
 PRINCIPLES OF MANAGEMENT BY
HENRY FAYOL
Division of work Remuneration
Authority and responsibility Centralization
Discipline Scalar chain
Unity of command Order
Unity of direction Equity
Subordination of individual Stability of tenure of
interests to the general personnel
interests Initiative
Esprit de corps
 C.C. SPAULDING

Link to eBook

11
HUMAN RELATIONS MANAGEMENT

Mary Parker Follett

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

Elton Mayo
Played a significant role in Hawthorne Studies
Helped understand the effect of group interactions, employee
satisfaction, and group dynamics on individual and group performance

12
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.

13
HUMAN RELATIONS MANAGEMENT

Chester Barnard
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.

14
 OPERATIONS MANAGEMENT

Uses quantitative methods to find ways to:

Increase productivity
Improve quality
Manage or reduce costly inventories

Methods
Quality control, forecasting, capacity planning, linear programming,
scheduling and inventory systems, project management, and cost-benefit
analysis

15
 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

16
 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 Internet increased access to timely

information

17
 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
18
 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

Practical implications
 Management is harder than it looks
 Managers must lookout for key contingencies that differentiate today’s
situation from yesterday’s

19
 SUMMARY

Scientific management
Frederick W. Taylor - Time study
Frank and Lillian Gilbreth - Motion study
Henry Gantt - Gantt chart

Bureaucratic management
Max Weber - Proposed the idea of bureaucracy

Human relations management

Mary Parker Follett - Integrative conflict resolution
Elton Mayo - Hawthorne Studies
Chester Barnard - Comprehensive theory of cooperation
20
 SUMMARY

Operations management
Eli Whitney - Manufacturing using standardized, interchangeable parts

Gaspard Monge - Techniques for drawing three-dimensional objects on

paper

Oldsmobile Motor Work - Invented just-in-time inventory systems

21
 SUMMARY

Information management
Paper and printing press revolutionized the business use of information

Systems management
System is a set of interrelated elements or parts that function as a whole
Synergy occurs when subsystems produce more than they can working
apart

Contingency management
Holds that there are no universal management theories

22
 KEY TERMS

Scientific management System

Soldiering Subsystems
Rate buster Synergy
Motion study Closed systems
Time study Open systems
Gantt chart Contingency approach
Bureaucracy
Integrative conflict
resolution
Organization
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. MGMT9 | CH2 24