INTRODUCTION TO EVOLUTION I. History of Evolutionary Thought.
THE EVOLUTION OF MANAGEMENT THOUGHT, 6 TH EDITION
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Transcript of THE EVOLUTION OF MANAGEMENT THOUGHT, 6 TH EDITION
THE EVOLUTION OF MANAGEMENT THOUGHT, 6TH EDITION
Electronic Resource by:Regina Greenwood and Julia Teahen
Scientific Management in Theory & Practice
CHAPTER ELEVEN
Scientific Management in Theory & Practice
Impact of scientific management on management education
Impact of scientific management on international management and other disciplines
The spread of management ideas moved beyond the factory leading to the emergency of general management
Education for Industrial Management Early in the 20th Century,
the teaching of management in colleges focused on production management based on Taylor’s writings.
Daniel Nelson’s observedthat scientific management gave credibility to the study of business.
Business schools at thetime were consideredtoo vocational.
Adams/Price Hall - Business School, University of Oklahoma
Early Management Educators M. Clarence Bertrand
Thompson(1882-1969): Taught management
at Harvard from 1908-1917.
Compiled the most extensive management bibliography of the period.
Furthered the scientific management movement in academia, industry, and abroad as a consultant.
Early Management Educators Harlow S. Person (1875-1955) created
management course at Dartmouth, expanded the Taylor Society, and recognized the importance of social scientists.
Leon Pratt Alford (1877-1942) pioneered the concept of management handbooks, influenced journals through his work and books, and emulated Gantt’s call for service to the community.
The International Scientific Management Movement The “management revolution” spread abroad
as a product of the United States. In France, industrialists tended to implement
scientific management to increase productivity without following Taylor’s advice. Taylorisme became a dirty word for French workers.
Charles de Freminville with Le Chatelier formed the Conference de l’Organisation Francaise in 1920 to advance management in France.
Hans Renold instituted scientific management in his British firm but the movement was largely rejected in Great Britain.
The International Scientific Management Movement
Henri Fayol formed the Center for Administrative Studies in France in 1917.
He declared his work complemented Taylor’s.
First CIOS meeting held in Prague in 1924.
The Twentieth Century Fund and the IMI worked to promote management in Europe.
In Poland, Adamiecki’s “harmonogram” was similar to PERT.
The International Scientific Management Movement
In the USSR (the Soviet Union at the time): Lenin advocated Taylorism after 1917, but little
came of this in practice. Lenin thought scientific management would
assist the socialist revolution; others distrusted capitalistic ideas.
Higher productivity through competition was accepted, not better job analysis and work methods.
Walter Polakov was successful in getting the USSR to use Gantt Charts for their five year plans.
Scientific Management Internationally In Japan, Taylor’s ideas
gained widespread acceptance after their translation appeared in 1912.
The Japanese liked the idea of harmony, cooperation, and mutual interest.
What modern scholars call Japanese style management had its roots in the work of Taylor.
Yoichi Ueno was a leading teacher, author, and consultant. The above picture was taken with
Harrington Emerson in Japan in 1925.
Scientific Management in Industrial Practice
Model scientific management installations: Plimpton Press – Henry P. Kendall; 186%
reduction in labor turnover Link-Belt – James Mapes Dodge Clothcraft – Richard Feiss and Mary B. Gilson;
combined Taylor’s ideas with personnel work Tabor Manufacturing – Horace King
Hathaway; 250% output increase Scientific Management was recognized for
reducing costly labor turnover.
Scientific Management in Industrial Practice The Hoxie Study highlighted the difference
between the notions of scientific management and how well they were implemented.
The Hoxie Study was viewed as biased toward labor and conducted in a superficial manner.
Other studies by C.B. Thompson and Daniel Nelson reinforce this uneven application of scientific management.
Nelson concluded that scientific management had a “strong positive correlation” with industrial efficiency. In addition, scientific management was “associated with growth not stagnation” in most industries.
Industrial Practice
Data refutes the belief that scientific management led to a de-skilling of workers.
Skilled and semi-skilled workers increased from 1900 to 1920.
Scientific management was associated with batch shop production and labor intensive operations.
In capital intensive industries, or automobile assembly lines, it was less useful.
Assembly line at Ford 1924, courtesy of Library of Congress, Prints and Photographs Division, Detroit Publishing Company Collection
Emerging General Management Scientific Management dominated the late 19th
and early 20th centuries. But, in the early 20th century, indications of a
broader concept of management developed. Other disciplines began to search for efficiency
through science: Public administration Marketing Accounting AMA founded in 1923
Early Organizational Theory
Russell Robb (1864-1927): 1909 lectures at HBS Attempted a compromise between the old
military style of management and the new conditions of industry.
He felt that organizations differed as to goals sought as well as means to those goals.
Because of organizational differences, there was no one best way to organize.
He looked beyond scientific management to see the organization as a whole system.
Scientific Management at DuPont and General Motors DuPont Powder Co. and
General Motors led innovative organizational development.
DuPont Psychological tests for
personnel selection Donaldson Brown and
Return on Investment (ROI) as R = T X P
Separated line and staff
Pierre DuPont
William C. Durant
William C. Durant
From Pierre S. DuPont and the Making of the Modern Corporation by Alfred D. Chandler. Harper & Row 1971.
Alfred P. Sloan, Jr. (1875-966)
Sloan led General Motors from 1923 to 1956.
Created centralized policy, control, and review.
Decentralized administration and operations.
Enabled decentralized parts to work for a common goal.
Established the Sloan Foundation
Source: http://www.amazon.com
DuPont and General Motors
Both used multidivisional structures organized around product divisions.
These divisions could were decentralized for operations and performance could be measured by ROI.
Origins of the “M-Form” Organization – allowed growth without the encumbrance of a functional organization structure.
Business Policy and Philosophy The idea of collegiate schools of business
spread. By 1925, 38 schools belonged to the ACSB
(today’s AACSB). Arch W. Shaw taught a policy course at
Harvard in 1912 based on cases. It integrated business subjects.
Alexander H. Church (1866-1936) broadened Taylor’s concepts to include policy and implementation.
Oliver Sheldon (1894-1951) sought to combine the efficiency with the ethics of service.
Summary
Scientific Management was a force in: the formal study of management the practice of management in the US,
Great Britain, Europe, Japan, and the USSR.
broadening the scope of management the study of organizations the development of business policy and
the philosophy of management.