1. Chapter 2 History of Management Transcontinental railroad Taylorism
A question of Management 30 minutes
Taylorism 5 minutes
Transcontinental rail 10 minutes
Transcontinental railroad
Taylorism
LuluLemon
A Question of Management

2. Copyright © 2015 by Nelson Education Ltd.
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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3. Management Ideas and Practice Throughout History
5000 BC
4000–2000 BC
1800 BC
600 BC
500 BC
400 BC
175
284
900
1100
1418
1436
1500
1525
Sumerians
Egyptians
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
One hundred and twenty-five years ago, business ideas/practices were very different compared with today’s widely accepted management ideas. Management wasn’t a field of study, and management jobs/careers did not exist. Chapter 2 presents the origins of management ideas and practice throughout history and the historical changes that produced the need for management.
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.
1.1
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4. “How long have there been managers?”
Since the late 1800s.
“So if managers have only been around since the late 19th century, does that mean the origin of management dates also to that time? Yes or no?”
Transcontinental railroad
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5. Why We Need Managers Today
Then
Now
Work in families
Skilled labourers
Small, self-organized groups
Unique, small batches of production
Work in _________
Specialized, unskilled labourers
_________ factories
Large, standardized _________ production
1.2
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6. The History of Scientific Management
“Seat-of-the pants” management had no standardization of procedures and no follow-up on improvements.
_______________management now studies and tests methods to identify the best, most efficient ways.
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7. Frederick W. Taylor (1856–1915)
Known as the ‘__________ of scientific management”
Contribution to modern management was giving employees rest breaks throughout the day
Four principles of scientific management
Taylorism

8. Taylor’s Four Principles of Scientific Management
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9. Frank and Lillian Gilbreth (1886–1924)
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 necessary or repetitive.
A Question of Management
2.2
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10. Gantt Chart for Starting Construction on a New Headquarters
This Gantt chart shows which tasks must be completed at which times in order to complete a project. How? It shows time in various units on the x-axis and the tasks on the y-axis.
2.3
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11. Class Activity: Gantt Charts
Beyond the Book
In groups of four, create a Gantt chart for a formal 50th birthday party for one of your parents.
Share your results with the class.
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12. The History of Bureaucratic Management
When we hear the term bureaucracy, we think of inefficiency and “red tape,” incompetence, and ineffectiveness. Bureaucracy: the exercise of control on the basis of knowledge, expertise, or experience
When we hear the term bureaucracy, we think of inefficiency & “red tape,” incompetence, and ineffectiveness. When German sociologist Max Weber first proposed the idea of bureaucratic management, these problems were associated with monarchies.
Bureaucracy means “to rule from a desk or office.” In a bureaucracy, people lead by virtue of rational-legal authority—from knowledge, expertise, and experience. 3
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13. Elements of Bureaucratic Organizations
Qualification-based hiring
Merit-based promotion
Chain of command
Division of labour
Impartial application of rules and procedures
Recorded in writing
Managers separate from owners
From Exhibit 2.3 (p. 25 of textbook). Source: M. Weber, The Theory of Economic and Social Organization, trans. A. Henderson & T. Parsons (New York: The Free Press, 1947), 329–334.
Aim of a bureaucracy: to achieve an organization’s goals in the most efficient way
Qualification-based hiring: hired on the basis of technical training or educational background
Merit-based promotion: promotion based on experience/achievement
Chain of command: each position reports/is accountable to higher position
Division of labour: Tasks, responsibilities, and authority are clearly divided/defined
Impartial application of rules and procedures: Apply to all members of organization; will be applied in impartial manner, regardless of one’s position/status
Recorded in writing: All administrative decisions, acts, rules, procedures recorded in writing
Managers separate from owners: organization owner should not manage/supervise organization
3.1
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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
From Exhibit 2.4 (p. 27 of textbook). Sources: H. Fayol, General and Industrial Management (London: Pittman & Sons, 1949); M. Fells, “Fayol Stands the Test of Time,” Journal of Management History 6 (2000): 345–360; C. Rodrigues, “Fayol’s 14 Principles of Management Then and Now: A Framework for Managing Today’s Organizations Effectively,” Management Decision 39 (2001): 880–889.
Division of work: Increase production by dividing work so each worker completes smaller tasks/job elements.
Authority and responsibility: The manager’s authority equals the “right to give orders” and should be commensurate with the manager’s responsibility.
Discipline: Clearly defined rules/procedures are needed at all organizational levels to ensure order/proper behaviour.
Unity of command: To avoid confusion/conflict, each employee should report to/receive orders from one boss.
Unity of direction: One person and one plan should be used to accomplish each organizational objective.
Subordination of individual interests to the general interest: Employees must put organization’s interests/goals before their own.
Remuneration: Compensation should be fair/satisfactory to both employees and the organization.
Centralization: Avoid too much centralization/decentralization.
Scalar chain: Each position is part of a vertical chain of authority in which each worker reports to one boss.
Order: Responsibilities should not overlap.
Equity: Kind, fair, and just treatment for all will develop devotion/loyalty.
Stability of tenure of personnel: Low turnover equals time for employees, especially managers, to learn their jobs.
Initiative: Managers should encourage the development of initiative, or the ability to develop and implement a plan, in others.
Esprit de corps: Develop a strong sense of morale and unity among workers that encourages coordination of efforts.
3.2
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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 focus: improving efficiency of manufacturing facilities and their workers
Bureaucratic management focus: using knowledge, fairness, and logical rules to increase an organization’s efficiency
Administrative management focus: how/what managers should do in their jobs
Human relations approach to management focus: psychological and social aspects. People are valuable organizational resources whose needs are important. 4
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16. Mary Parker Follett (1868–1933)
Known as the “mother of scientific management”
Contributions to modern management include the ideas of negotiation, conflict resolution, and power sharing.
4.1
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17. Constructive Conflict and Coordination: Mary Parker Follett
Dealing with Conflict
Compromise
Domination
Integration
Follett is known for developing ideas regarding constructive conflict/coordination: “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 slide.
Domination: victory of one side versus 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 preferences and then working together to find and alternative that meets both needs
4.1
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18. Constructive Conflict and Coordination: Mary Parker Follett
Fundamental Principals of Organizations
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
4.1
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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 behaviour play a critical role in behaviour at work.
Elton Mayo’s ideas were popular in the twentieth century when labour unrest and protests were widespread in the United States, Europe, and Asia. Mayo's work proved relevant as managers looked for ways to increase productivity and to improve worker satisfaction/working conditions.
4.2
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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 promoted ideas about cooperation, executive functions that promote it, and acceptance of authority.
4.3
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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
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22. Operations, Information, Systems, and Contingency Management
Other significant historical approaches to management:
Operations management
Systems management
Information management
Contingency management
Operations management: managing the daily production of goods/services
Systems management: Rather than viewing one part of an organization as separate from the other parts, a systems approach encourages managers to complicate their thinking by looking for connections between the different parts of the organization.
Information management: Organizations pushed for and quickly adopted information management to reduce costs and/or increase speed with which they can acquire, retrieve, and communicate information.
Contingency management: The contingency approach to management states that there are no universal management theories and that the most effective management theory or idea depends on the kinds of problems or situations that managers or organizations are facing at a particular time. 5
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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
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24. History: Operations Management Tools
Guns
Standardized, interchangeable parts
Eli Whitney
Geometry
Based on a book by Gaspard Monge
Manufacture parts without examining a prototype
Fire
Oldsmobile Motor Works
First just-in-time inventory system
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25. Milestones in Information Management
Horses in Italy
1500–1700
Creation of paper and the printing press
1850
Manual typewriter
1860s
Vertical file cabinets and the telegraph
1879
Cash registers
1880s
Telephone
1890s
Time clocks
1980s
Personal computer
1990s
Internet
5.3
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26. The Organization as an Open System
System: set of interrelated elements/parts that function as whole
The systems management approach encourages managers to look for connections between different parts of an organization.
Organizational systems are composed of parts or subsystems, which are smaller systems within larger systems.
Subsystems and connections matter in systems theory because of the possibility for managers to create synergy. Synergy occurs when two or more subsystems working together can produce more than when working independently.
Synergy occurs when 1+1=3.
5.3
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27. Copyright © 2015 by Nelson Education Ltd.
Systems Thinking
Beyond the Book
Shift in thinking from seeing ourselves as separate to being connected
Rather than seeing problems as caused by someone/something else, see how our actions create the problems we experience
It is a framework for seeing interrelationships and patterns of change.
What does systems thinking from Peter Senge’s The Fifth Discipline (2006) have to do with what we are doing today?
Shift from seeing ourselves as being separate from the world to connected to the world.
From seeing problems caused by someone/something out there versus how our actions create problems we experience.
This is true leadership.
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28. Contingency Management
No universal management theories
“Usually”
“In these situations”
“For this to work”
“Under these circumstances”
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