02 history of management (chapter 2)

Chapter 2Copyright ©2009 by Cengage Learning Inc. All rights reserved

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Chapter 2The History

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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Scientific Management

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Studies and tests methods to identifythe best, most efficient ways


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. Taylor

Frederick 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.

Frederick W. Taylor, 1856-1915 (Part 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.

Adapted from Exhibit 2.2

Find the “one best way” to do every job.


Taylor’s Innovative Ideas

Using systematic analyses to identify best methods

Scientifically selecting and training the best workers

Promoting cooperation between workers and management

Developing standardized approaches and tools Setting specific tasks and goals and then

rewarding workers with financial incentives Giving workers shorter hours and frequent

breaks.10


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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

Also made significant contributions to management with pay-for-performance plans and the training and development of workers.


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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

Employees are hired on the basis of their technical training or educational background.Promotion is based on experience or achievement. Managers, not organizational owners, decide who is promoted.Each job occurs within a hierarchy, the chain of command, in which each position reports and is accountable to a higher position. A grievance procedure and a right to appeal protect people in lower positions.Tasks, responsibilities, and authority are clearly divided and defined.

Rules and procedures apply to all members of the organization and will be applied in an impartial manner, regardless of position or status.

The owners of an organization should not manage or supervise the organization.

All administrative decisions, acts, rules, or procedures will be recorded in writing.


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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

Adapted from Exhibit 2.5

Each worker – unique/smaller tasks

Manager has authority, but not to be abused.

Clearly defined rules and procedures.

One and only one boss for each worker.

One person/one plan for organizational objectives.

Organizational goals first, individual goals second.

“Fair” compensation, don’t underpay or overpay.

Appropriate balance between centralizaiton or not.

Vertical chain of authority; One worker/one boss

No overlapping responsibilities

Kind, fair and just treatment for all.

Low employee turnover, stable work force.

Encourage development of initiative in workers.

Strong sense of morale and unity among workers.

All about organizing the organization.


Functional Management

Scientific Management – focuses on improving the efficiency of manufacturing facilities and their workers.

Bureaucratic Management – focuses on using knowledge, fairness and logical rules to increase organizational efficiencies.

Administrative Management – focuses on how and what managers should do in their jobs.

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What about the workers???


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44

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, 1868-1933

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.


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4.14.1

Constructive Conflict and Coordination:Mary Parker Follett

Dealing withDealing withConflictConflict

Dealing withDealing withConflictConflict CompromiseCompromise

DominationDomination

IntegrationIntegration

Domination is a victory of one side over the other.

Compromise involves both parties giving up some of what they want in order to reach agreement.

Integrative conflict resolution involves both parties indicating their preferences and then working together to find an alternative that meets the needs of both.


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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

Experimenting with workersat Western Electric in Chicago between 1924 and 1932.

Finding #1


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4.34.3

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


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4.34.3

Cooperation and Acceptance of Authority: Chester Barnard

People will willingly carry out managerial directives if they…

1. are understood

2. are consistent with the purpose of the organization

3. are compatible with the people’s personal interests

4. 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

Managing the daily production of goods and servicesManaging parts of the organization for the good of The whole organization.

Managing the information needed by the organizationto make good decisions.

Managing depending upon the situation.


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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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5.15.1

Operations Management Tools

Origins ofOrigins ofOperationsOperations

ManagementManagement

Origins ofOrigins ofOperationsOperations

ManagementManagementGeometryGeometry

GunsGuns

FireFire


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Whitney, Monge, and OldsEli Whitney, 1765-1825

Gaspard Monge,1746-1818

Ransom Olds, 1864-1950


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5.35.3

Information Management

Milestones 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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5.35.3

Systems Management

Objective of Systems Management: to take advantage of the organization’s internal, specificand general environments to create synergyfor increased productivity.



Chapter 2Copyright ©2009 by Cengage Learning Inc. All rights reserved 31

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?


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5.45.4

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.


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5.45.4

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”

02 history of management (chapter 2)

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