1
part 1
Chapter 2
Chapter
A Brief History of
Management
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2
Learning Objectives
1. Explain the role of the Industrial Revolution in
the development of managerial thought and
identify the captains of Industry and their role in
management’s evolution
2. Define scientific management and outline the
role Frederick W. Taylor played in its
development
3. Identify and explain the human relations
movement
4. Explain the systems approach
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3
Learning Objectives
5. Explain the differences between Theory X,
Theory Y, and Theory Z
6. Define the contingency approach to
management
7. Explain the concepts of the search for
excellence and the emphasis on quality
8. Understand what is required for an organization
to move from good to great
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4
The History of Management
• Many of today’s managerial problems began
during the early management movement.
• The challenge to present and future
managers:
• To develop a feel for why and how things happened
and to apply this knowledge to the practice of
management
• Some forms of management have existed
since the beginning of time.
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5
U.S. Industrial Revolution
• Shift from farming-based society to an
industrialized society
• Daniel Wren’s three components:
– Power
– Transportation
– Communication
• Steam Engine
• Transportation improved
• Speed and efficiency dramatically increased
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Captains of Industry
• The four captains of industry were:
–
–
–
–
John D. Rockefeller (Oil)
James B. Duke (Tobacco)
Andrew Carnegie (Steel)
Cornelius Vanderbilt (Steamships and Railroads)
• Government regulation for business
– 1890 – the Sherman Antitrust Act
• Low wages, crude production methods,
nonexistent worker training
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Scientific Management and Taylor
• Henry Towne and Frederick Taylor
• The tendency to restrict output is referred to as
soldiering
• Scientific Management’s four main principles are
–
–
–
–
New scientific method to replace old methods
Selection and progressive teaching of employees
Joining of employees and methods for specific jobs
Division of work resulting in interdependence
• Scientific management is a philosophy, not a
technique of efficiency device
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Other Scientific Management
Pioneers
• Henry Lawrence Gantt – production
control
• The Gantt Chart
• Frank Gilbreth – study of motions
• Lillian Gilbreth – psychology
• Lillian Gilbreth became the First Lady of
Management
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Fayol’s Theory of Management
• Henri Fayol issued statement on general
management
• Theory of management principles and elements
– 14 principles of management
• Principles as general guidelines
• First to outline the functions of management
– Planning , organizing, commanding, coordinating, and
controlling
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10
The Human Relations Movement
• The Great Depression (1929-1932)
created excessive unemployment
• Afterward came the Golden Age of
Unionism
• Climate became employee-focused
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The Hawthorne Studies
• The 1924 Hawthorne studies
• Production increased with no obvious
relationship to environment
• Employees reacted to conditions and
attention
• This became known as the Hawthorne effect
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12
The Systems Approach
• Era of attempted integration
• Theorists sought systems approach
• An organization can be viewed as one of
the following systems:
– Open system – interact with environment
– Closed system – no interaction with
environment
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13
Theory X and Theory Y
•
•
•
•
McGraw-Hill
The Human Side of Enterprise, 1960
Douglas McGregor
Theory X
Theory Y
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14
The Contingency Approach
• 1970s Contingency Approach
• No one Best Way
• Dependent on circumstances
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Theory Z
• Japanese Managers
– Encouraged more participation
– Deeper concern for employee’s well-being
– Great emphasis on quality
– Top management acted as facilitator
• William Ouchi
• Theory Z
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The Search for Excellence
•
•
•
•
•
1982, In Search of Excellence
Mix of standards and success
Re-emphasized value
Luster lost
Two lessons:
– Companies of today may not be companies of
tomorrow
– Management requires more than one set of rules
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The Emphasis on Quality
• American Products had reached a low by
1970
• Managers forced to look at quality issue
• A shift from finding to preventing
• TQM
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Moving from Good to Great
• Built to Last: Successful Habits of
Visionary Companies, 1994
• Current successes do not guarantee future
successes
• The Hedgehog Concept
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Theory Z - Novella