Management Pioneers
Transcript of Management Pioneers
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Management Pioneers
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Factory System
Robert Owen: The search for a newharmony (1771-1858): Englishman
Entrepreneur himself tried to halt the surgeof industrialism and the evils of it, calledfor a new moral order based on a socialreorganizationvisionary of a new
industrial society
Focus on human problems
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Andrew UreMid 18thCentury:Englishman
Pioneer in Management education with a
Ph.D. in Physical Sciences Wrote about principles and processes of
manufacturing
A defender of the factory system seeingmore benefits than disadvantages from it
Focus on mechanical problems
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Baron Charles Dupin (1784-1873): FrenchEngineer pioneered in industrial education
Dupin believed that mechanization createdjobs rather than destroying them.
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Daniel Craig McCallum (1815-1878): American
Associated with the early railroad managementin America
Believed that good management rested on gooddiscipline, specific and detailed job descriptions,accurate reporting of performance, pay andpromotion based on merit, hierarchy of authority
of superiors over subordinates First proponent of organizational chart which
took the form of a tree
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Henry V. Poor: (1812-1905): American
Editor ofAmerican Railroad Journal whocame to grips with the broader problems ofmanagement and its environment
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The Robber Barons
Daniel Drew
Commodore Cornelius Vanderbilt
John D. Rockefeller Andrew Carnegie
Philip D. Armour
J.P.Morgan
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The creative entrepreneurs
Thomas EdisonAutomatic printing equipment
Samuel F.B.MorseTelegraphbirth ofWestern Union
Henry Fordcredited with innovations in autoproduction techniques
Walter P. ChryslerAutomobiles
Wanamaker, the Filenes, Sears, MontgomeryWard, J.C. Pennyin retailing
DuPontsexpanded from gun powder
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Advent of scientific management
Frederick Winslow Taylor
1856-1915American
Steel worker to start with, became
the chief engineer in six years Father of Scientific Management
Time studyfoundation ofTaylor System
Task Management Taylors lectures in Harvard from 1909 to 1914
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Carl G. Barth (1860-1939) -American
Faithful executor of F.W.Taylors percepts
Henry Laurence Gantt (1861-1919)American
The task and bonus system
Frank Bunker and Lillian Moller Gilbreth (1868-1924)American couple
Contemporary of the founders of scientific managementmovement
Frank Gilbrethsearch for efficiency and economy
Lillian Gilbrethproponent of industrial psychology
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Harrington Emerson (1853-1931)AmericanBelonged to the new breed of efficiency engineers
Published Twelve Principles of Efficiency
Morris Llewellyn Cooke (18721960)American
Extended the gospel of efficiency to educational andmunicipal organizations
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The scientific management movementinitiated by Taylor was in a life cycleprocess of growth, rebellion, and heading
toward adulthood. Taylors notion ofscience in management gained currencythrough the work put in by Carl Barth,
Henry Gantt, Frank and Gillian Gilbreths,H. Emerson and Morris Cooke.
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Spread of Scientific Management
Industrial revolution had begun in Europeand spread to America
Scientific management revolution begun inAmerica spread to Europe
Taylors time study methods were adoptedin France (1907) and were put to useduring World War I for improvingproductivity.
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Scientific management soon found newproponents- Edward Albert Filene (1860-1937)applied scientific methods to retail administrationin his familys Boston store.
Scientific management found its way into texts,management hand books, journals, professionalassociations, and college curricula during early1900s
Despite Taylors belief that one had to livemanagement and learn through shop experiencethe study of industrial management was gettingmore formalized.
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Origins of Industrial Psychologyand Sociology
Prior to the advent of scientific management,psychology was largely introspectivei.e.,based on the premise that man could learn whathe needed to know about others by studyinghimself.
Use of astrology, physiognomy, phrenology, andgraphology were abundant while selectingpersonnel on the basis of movement andposition of stars, on their physicalcharacteristics, on the basis of bumps on theskull, and on handwriting analysis.
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Hugo Munsterberg (1863-1916)
Known as the father of industrialpsychologyborn inDanzig (city in Poland),
educated in Leipzig laboratory(in Germany), joined William James,Harvard psychologist, established his
psychological laboratory at Harvard in1892
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Foundations of Social Man
The social side of man and the humanrelations movement, were finding theirroots in earlier sociological theory.
Max Weber, Emile Durkheim, and VilfredoPareto formed an intellectual trio ofsociological theorists of the 19thcentury
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The Administrative Theory
Henry Fayol, the French manager,engineer fathered the first theory ofadministration
Max Weber, the German Economist,Sociologist, sired a theory of organizationsthrough his conception of bureaucracy as
the ideal of technical efficiency
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Henry Fayol(1825-1925)
Trained as a miningengineer, Fayol madesignificant Technical
contributions to
geology and metallurgy as
well as to the field of
management.
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Fayol published in 1916Administrationindustrielle et generale mentioning theelements of administration.
Fayol stressed on the importance ofmanagement in all undertakings, large orsmall, industrial, commercial, political,
religious, or any other.
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Fayol identified six groups of activities in any industrialunit:
1. Technicalproduction and manufacture
2. Commercialbuying, selling, exchange
3. Financialfinding and optimum use of capital4. Securityprotection of property and persons
5. Accountingstock taking, balance sheets, costs
6. Managerialplanning, organization, command,
coordination, and controlFayol concentrated mostly on the managerial as theother five areas were commonly understood.
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Bureaucracy: Max Weber
Max Weber (1864-1920) was an intellectual ofthe first degree with far-ranging interests insociology, religion, economics, and politicalscience.
Author of The Protestant Ethic and the Spirit ofCapitalism
Weber perceived the need for establishing a
rational basis for administering large scaleundertakingsled to the conception ofbureaucracy as an ideal (not necessarilydesirable) arrangement.
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Kinds of Authority
Max Weber felt that authority should be thecornerstone of any organization and postulated threepure types of legitimate authority:
1. Rational-legal authoritybased on the right of those
elevated to authority2. Traditional authoritybased on the sanctity of
immemorial traditions
3. Charismatic authoritybased on the exceptionalsanctity, heroism, exemplary character
Weber preferred rational-legal authority as the basisfor bureaucracy
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Webers ideal democracy
1. A division of laborauthority and responsibility clearlydefined
2. Positions organized in a hierarchy resulting in a chainof command
3. Organizational members selected on the basis ofqualifications, formal examinations, or through trainingand education
4. Officials appointed, not elected (with rare exceptions)5. Officials worked for fixed salaries and were career
officials6. The administrative was not the owner of the firm7. Administrator guided by rules and regulations and
controls regarding the conduct of his official duties
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Second Industrial Revolution
In America during 1800, 90 per cent of itswork force depended on agriculture; by1900 this proportion dwindled to 33 per
cent and to 20 percent in 1929. Now it isbarely 2 per cent (0.7% of total GDP of theUSA). (Currently Indias agricultural work force is 60
per cent and contribution to GDP 16.6%) The transformation from an agrarian to
industrial nation
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The period witnessed growth of newindustries in Petroleum, Chemical,
Airplane, Steel, Meat Packing, Electricity,
Rubber, Tobacco, Agricultural Implements,Retailing, and the Automobile.
The automobile brought about substantial
economic and social change in America.
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Henry Ford
The automobile gave man a new
mobility. It led to decentralization
of the cities into suburbs, posed
threat to older forms of transport.
The new economics of the
industry was based on a minute
division of labor and on the
interchangeability of parts.
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Henry Ford and his associatestransformed these ideas into a logic ofmass production on an assembly line
basis which could be called a secondindustrial revolution. Mass productionreduced costs and the savings were
passed on to consumer through lowerprices.
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In 1910, the Model T cost the consumer $950 whichwas lowered to $290 by 1924 and Ford was by thenselling over 1.25 million cars. (using lower price toexpand the market, greater market paving way to greater
cost savings in production). Ford announced $5.00 dailywage in 1914 when the average wage in auto industrywas only $2.40.
Model T in 1926