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The History of Management
Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Learning Outcomes Explain the origins of management
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
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2.1 Management Ideas and Practices throughout History
LO 1 2.1 Management Ideas and Practices throughout History
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2.1 Management Ideas and Practices throughout History (continued)
LO 1 2.1 Management Ideas and Practices throughout History (continued)
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Developed four principles of scientific management
Frederick W. Taylor LO 2 Developed four principles of scientific management Thoroughly studying and testing different work methods to identify the most efficient way to complete a job Introduced time study Timing how long it takes good workers to complete each part of their jobs
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2.2 Taylor’s Four Principles of Scientific Management
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Scientific Management
LO 2 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 the Gantt chart Indicates what tasks must be completed at which times in order to complete a project
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Devised seven elements that characterize bureaucracies
Max Weber LO 3 Bureaucracy: Exercise of control on the basis of knowledge, expertise, or experience Devised seven elements that characterize bureaucracies Helped improve organizational functioning Fairness replaced favoritism Goal of efficiency replaced goal of personal gain Logical rules replaced arbitrary decision making
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Elements That Characterize Bureaucracies
LO 3 Qualification-based hiring Merit-based promotion Chain of command Division of labor Impartial application of rules and procedures Recorded in writing Managers separate from owners
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Henri Fayol’s Principles of Management
LO 3 Division of work Authority and responsibility Discipline Unity of command Unity of direction Subordination of individual interests to the general interests Remuneration Centralization Scalar chain Order Equity Stability of tenure of personnel Initiative Esprit de corps
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Human Relations Management
LO 4 Mary Parker Follett’s constructive conflict and coordination Integrative conflict resolution: Approach to dealing with conflict in which both parties indicate their preferences Involves working together to find an alternative that meets the needs of both parties
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Human Relations Management (continued)
LO 4 Elton Mayo’s Hawthorne Studies Helped understand the effect of group interactions, employee satisfaction, and group dynamics on individual and group performance Chester Barnard Proposed a comprehensive theory of cooperation in formal organizations Stated that willingness to cooperate depends on perception and acceptance of executive authority
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Operations Management
LO 5 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
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Brief History of Operations Management
LO 5 Eli Whitney, private gun contractor Introduced the concept of manufacturing using standardized, interchangeable parts Gaspard Monge Explained techniques for drawing three-dimensional objects that aided in making standardized, interchangeable parts Oldsmobile Motor Work Invented hand-to-mouth inventories that are similar to just-in-time inventory systems
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Information Management
LO 5 Paper and the printing press revolutionized 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
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System: Set of interrelated elements or parts that function as a whole
Systems Management LO 5 System: Set of interrelated elements or parts that function as a whole Subsystems: Smaller systems that operate within the context of a larger system Help managers create synergy Types of systems Closed systems: Sustain themselves without interacting with their environments Open systems: Sustain themselves only by interacting with their environments
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Holds that there are no universal management theories
Contingency Approach LO 5 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
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Key Terms Scientific management Integrative conflict resolution
Soldiering Rate buster Motion study Time study Gantt chart Bureaucracy Domination Compromise Integrative conflict resolution Organization System Subsystems Synergy Closed systems Open systems Contingency approach
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Summary Scientific management focuses on improving efficiency Bureaucratic management focuses on using knowledge, fairness, and logical rules Administrative management focuses on how and what managers should do in their jobs Human relations management focuses on people and the psychological and social aspects of work
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Summary (continued) Operations management involves the management of daily production of services and goods Systems management helps deal with organizational and environmental complexity Contingency management holds that there are no universal management theories
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