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Chapter 2 The History of Management

Designed & Prepared byB-books, Ltd.

MGMT

Chuck Williams

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In the Beginning

After reading the next section, you should be able to:

1. explain the origins of management.

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Management Ideas and Practice Throughout History

1.11.1

5000 BC5000 BC

4000-2000 BC4000-2000 BC

1800 BC1800 BC

600 BC600 BC

500 BC500 BC

400 BC400 BC

400 BC400 BC

175175

284284

900900

11001100

14181418

14361436

15001500

15251525

SumeriansSumerians

Egyptians Planning, organizing, controlling. Egyptians Planning, organizing, controlling.

HammurabiHammurabi

NebuchadnezzarNebuchadnezzar

Sun TzuSun Tzu

XenophonXenophon

CyrusCyrus

CatoCato

DiocletianDiocletian

AlfarabiAlfarabi

GhazaliGhazali

BarbarigoBarbarigo

VenetiansVenetians

Sir Thomas MoreSir Thomas More

MachiavelliMachiavelli

Record keepingRecord keeping

Plan, organize, control. Written requests.Plan, organize, control. Written requests.

Controls and written documentationControls and written documentation

Wage incentives, production controlWage incentives, production control

StrategyStrategy

Management as a separate artManagement as a separate art

Human relations and motion studyHuman relations and motion study

Job descriptionsJob descriptions

Delegation of authorityDelegation of authority

Listed leadership traitsListed leadership traits

Listed managerial traitsListed managerial traits

Different organizational forms/structuresDifferent organizational forms/structures

Numbering, standardization, interchangeabilityNumbering, standardization, interchangeability

Critical of poor management and leadershipCritical of poor management and leadership

Cohesiveness, power, and leadershipCohesiveness, power, and leadership

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Why We Need Managers Today

Work in familiesWork in families

Skilled laborersSkilled laborers

Small, self-organizedgroups

Small, self-organizedgroups

Unique, small batchesof production

Unique, small batchesof production

ThenThenThenThen

Work in factoriesWork in factories

Specialized,unskilled laborers

Specialized,unskilled laborers

Large factoriesLarge factories

Large standardizedmass production

Large standardizedmass production

NowNowNowNow

1.21.2

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The Evolution of Management

After reading the next four sections, you should be able to:

2. explain the history of scientific management.

3. discuss the history of bureaucratic and administrative management.

4. explain the history of human relations management.

5. discuss the history of operations, information systems, and contingency management.

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The History of Scientific Management

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Scientific Management

Studies and tests methods to identifythe best, most efficient ways

Scientific Management

Studies and tests methods to identifythe best, most efficient ways

“Seat-of-the Pants” Management

No standardization of procedures

No follow-up on improvements

“Seat-of-the Pants” Management

No standardization of procedures

No follow-up on improvements

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Frederick W. TaylorFrederick 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.

2.22.2

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Taylor’s Four Management Principles

2.12.1

Develop a science for each element of a man’s work,which replaces the old rule-of-thumb method.

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.

Scientifically select and then train, teach, and develop the workman.

Cooperate with the men to insure all work is done inaccordance with the principles of the science.

Cooperate with the men to insure all work is done inaccordance with the principles of the science.

There is almost equal division of the work and theresponsibility between management and workmen.

There is almost equal division of the work and theresponsibility between management and workmen.

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Frank & Lillian Gilbreth

2.22.2

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.

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Motion Studies: Frank & Lillian Gilbreth

2.22.2

Time Study

Timing how long it takes good workers to complete each part of their jobs.

Motion Study

Breaking each task into its separatemotions and then eliminating those that are unnecessary or repetitive.

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Charts: Henry Gantt

2.32.3

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The History of

Bureaucratic Management

3.13.1

Bureaucracy

The exercise of control on the basis ofknowledge, expertise, or experience.

Max Weber, 1864-1920

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The Aim of Bureaucracy

3.13.1

1. Qualification-based hiring1. Qualification-based hiring

2. Merit-based promotion2. Merit-based promotion

3. Chain of command3. Chain of command

4. Division of labor4. Division of labor

5. Impartial application of rules and procedures5. Impartial application of rules and procedures

6. Recorded in writing6. Recorded in writing

7. Managers separate from owners7. Managers separate from owners

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Administrative Management: Henri Fayol

3.23.2

1. Division of work1. Division of work

2. Authority and responsibility

2. Authority and responsibility

3. Discipline3. Discipline

4. Unity of command4. Unity of command

5. Unity of direction 5. Unity of direction

6. Subordination ofindividual interests

6. Subordination ofindividual interests

7. Remuneration7. Remuneration

8. Centralization8. Centralization

9. Scalar chain9. Scalar chain

10. Order10. Order

11. Equity11. Equity

12. Stability of tenure of personnel

12. Stability of tenure of personnel

13. Initiative13. Initiative

14. Esprit de corps14. Esprit de corps

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44

The History of

Human Relations Management

Efficiency alone is not enough to produce organizational success.

Success also depends on treating workers well.

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Mary Parker Follett

Mary Parker Follett is known today as the mother of scientific management. Her many contributions to modern management include the ideas of negotiation, conflict resolution, and power sharing.

4.14.1

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4.14.1

Constructive Conflict and Coordination: Mary Parker Follett

Dealing withDealing withConflictConflict

Dealing withDealing withConflictConflict CompromiseCompromise

DominationDomination

IntegrationIntegration

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4.14.1

Constructive Conflict and Coordination: Mary Parker Follett

1. Coordination as reciprocal relating all the factors in a situation

2. Coordination by direct contact of theresponsible people concerned

3. Coordination in the early stages

4. Coordination as a continuing process

1. Coordination as reciprocal relating all the factors in a situation

2. Coordination by direct contact of theresponsible people concerned

3. Coordination in the early stages

4. Coordination as a continuing process

Fundamental Principals of Organizations

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4.24.2

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

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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

4.34.3

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4.34.3

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

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Operations, Information, Systems, and Contingency Management

Information ManagementInformation Management

Operations ManagementOperations Management

Contingency ManagementContingency Management

Systems ManagementSystems Management

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5.15.1

Operations Management Tools

Quality controlQuality control

Forecasting techniquesForecasting techniques

Capacity planningCapacity planning

Productivity measurement and improvement Productivity measurement and improvement

Linear programmingLinear programming

Scheduling systemsScheduling systems

Inventory systemsInventory systems

Work measurement techniquesWork measurement techniques

Project managementProject management

Cost-benefit analysisCost-benefit analysis

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Operations Management Tools

Origins ofOrigins ofOperationsOperations

ManagementManagement

Origins ofOrigins ofOperationsOperations

ManagementManagementGeometryGeometry

GunsGuns

FireFire

5.15.1

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Whitney, Monge, and OldsEli Whitney, 1765-1825

Gaspard Monge, 1746-1818

Ransom Olds, 1864-1950

5.25.2

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5.35.3

Information ManagementMilestones in information management:

1400s Horses in Italy1500-1700 Creation of paper and the printing press1850 Manual typewriter1860s Vertical file cabinets and the telegraph1879 Cash registers 1880s Telephone1890s Time clocks1980s Personal computer1990s Internet

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Systems Management

5.35.3

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Biz Flix: In Good Company

Take Two Video

Click

Is Carter Duryea’s explanation of synergy the same as the text definition?

Dan identifies a potential downside with Carter’s plan. Do you agree with Dan or Carter?

Beyond the Book

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Contingency Management

Contingency Approach

Holds that the most effective managementtheory or idea depends on the kinds ofproblems or situations that managers arefacing at a particular time and place.

5.45.4

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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”

5.45.4