The History of Management Thought Why Management History?
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Why Management History? To add perspective to the present…nothing new under the sun To understand where ideas came from To see the role of social, legal, political, economic, technological factors
Management in the Past Management existed, but….. Often hereditary (usually male…) One-trial learning But, some thought about management
The Case of Egypt First large state Centralized government Provincial governors (nomarchs) Bureaucrats (taxation, irrigation) Based on writing (first Information Revolution) Large scale construction projects Pyramids, Sphinx, temples Workforce: thousands of peasants, possibly slaves (prisoners of war)
Dates uncertain – Some say he lived ca. 544 BC to 496 BC Others place it closer to 600 BC A renowned Chinese general The Art of War a work on military strategy, but seen in Asia as a guide to management Principles: Moral cause for battle Leadership – wise, courageous, benevolent yet strict Awareness of environmental conditions – events and the playing field Organization and discipline Espionage
Sun Tzu and The Art of War
Farming in Rome Cato the Elder (234 - 149 BC) De re rustica or Roman Farm Management Instructions for the management of a commercial farm Absentee landlord Based on slave labor Wine grapes or olives
Cato’s Advice “When the weather is bad and field work cannot go on , carry the manure out to the manure heap. Clean thoroughly the ox stable, the sheep pen, the yard…” How an olive orchard…should be equipped…a foreman, a foreman’s wife, five laborers, three ox drivers, one ass driver, one swineherd, one shepherd, thirteen persons in all….” “Have the work oxen cared for with the greatest diligence and to some degree flatter the ox drivers so that they will more cheerfully care for the oxen” When the head of the household comes to the farmhouse...he should make the round of the farm; if not on the same day at least on the next.
The Industrial Revolution A long-term process, not a single event Protestant Work ethic Political changes (American, French revolutions) Invention of steam power Some important figures: Adam Smith (1776) James Watt, Eli Whitney
The Industrial Revolution – New Technology Manufacturing Steam engines Cotton gin Mass production through standardization and specialization Transportation Communications
Large Organizations and New Approaches to Management Economic transformation Previously – family farms, small workshops After Industrial Revolution – large organizations, requiring management skills New demands on management Need for professional managers (as opposed to owners) Need to plan, structure, and schedule activities Push to efficiency Need for worker training and socialization to factory work
The Fortune 500: When Were They Founded?
Classical Management Time period: last half of 1800’s, first part of 1900’s Environment: Social / Political: little restraint (Robber Barons) Economic: manufacturing economy, focus on efficiency Technology: most jobs relatively simple Major schools
Scientific Management Bottom- up approach Focus on efficiency, primarily in industrial settings Today: industrial engineering, production management Key players: Frederick W. Taylor Frank and Lillian Gilbreth
General Principles Standard methods for performing jobs Push to efficiency Employee selection and training Management control over work processes Wage incentives for output
F. W. Taylor and Scientific Management Worked at Midvale Steel (beginning as a common laborer, rising to chief engineer, in 6 years) Identified “soldiering” Began with time study and incentive plans Pig iron study: the right shovel for each job
Frank and Lillian Gilbreth: The One Best Way Focus on work simplification and efficiency Reduce time and fatigue (Frank) Involve workers (Lillian) “The One Best Way” Therbligs
Scientific Management: Recap Contributions: Pay for performance Careful examination of job tasks Importance of training and selection But……..* Assumed workers were robots without social needs or higher order needs Assumed all individuals were the same Ignored worker’s potential to contribute ideas, not just labor
Administrative Management Theory Top-down approach Today: basis of most management texts Key players:
Henri Fayol French manager (coal mining) Published Industrial and General Administration in 1916 (not translated into English until 1930’s) Elements of management Planning Organizing Command, Coordination, Control Fourteen principles Universality of management Management as a skill can be taught
Fayol’s 14 Principles Specialization of labor Authority Discipline Unity of command Unity of direction Subordination of individual interests Remuneration
Max Weber and Authority Traditional Charismatic Rational – Legal
Max Weber and Bureaucracy Bureaucracy = management by the office (Büro) Bureaucracy Clearly defined division of labor, authority, responsibility Offices organized in a hierarchy Recordkeeping (organizational memory and continuity separate from individuals) Selection on the basis of qualifications Officials appointed, not elected Administrators work for fixed salaries, on a career basis Administrators are not owners Administrators subject to impersonal rules, discipline, control
Human Relations Movement and Subsequent Developments Hawthorne Studies Mary Parker Follett Chester Barnard
Hawthorne Studies Western Electric plant, Hawthorne Illinois, 1930’s Original idea: effect of lighting on productivity Three phases Relay Assembly Test Room (social nature of work, effect of supervision) Bank Wiring Room (group norms) Interview program The “Hawthorne Effect”
Theory and Practice Mary Parker Follett Primarily a political thinker, theoretical writer Emphasized the importance of the group Chester Barnard AT & T executive Importance of communications Authority -- exists only if accepted Functions of the executive
The Last Fifty Years Management science Systems theory Motivation and leadership Contingency models
Management Science Different from "scientific management” Formative years: 1940's to 1960's Operations research Uses a quantitative basis for decision making - mathematical models
Systems Approach Formative years: 1950's to 1970's Views an organization as a group of inter-dependent functions contributing to a single purpose Important contributor: U.S. Department of Defense
Motivation and Leadership (1950’s and 1960’s) Late 1950's: Douglas McGregor proposed his Theory X and Theory Y assumptions of the relations between Early and mid 1960's: contingency models of leadership proposed a need for different styles under different circumstances (Fred Fiedler) 1964: Vroom's VIE theory (valence, instrumentality, expectancy) of motivation proposed Mid 1960's: David McClelland proposed need for achievement theory Late 1960's: Frederick Herzberg proposed his two-factor theory of motivation (motivators and hygiene factors) Late 1960's: Edwin Locke outlined his goal setting approach to motivation
Situational (Contingency) Formative years: 1970's to 1990's Is there “One Best Way” ???? Appropriate practice depends on the situation Found in: Organization design Leadership
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