The History of Management Thought Why Management History?



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The History of Management Thought


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)


Sun Tzu and The Art 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

    • Telegraph


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

  • Focus on rationality, no matter what the setting

  • Today: basis of most management texts

  • Key players:

    • Henri Fayol
    • Max Weber


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

    • Inherited - monarchs
  • Charismatic

    • Based on the individual
  • Rational – Legal

    • Based on the position


Max Weber and Bureaucracy

  • Bureaucracy = management by the office (Büro)

  • Weber well aware that bureaucracy could become an end in itself

  • 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

  • Mayo, Roethlisberger and Dickson

  • 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

  • Emphasis on managing production and operations



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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