Chapter 2
History of Management
Taylorism
A Question of Management
Transcontinental railroad
LuluLemon
Learning Outcomes
After reading this chapter, you should be
able to:
1. Explain the origins of management.
2. Explain the history of scientific management.
3. Discuss the history of bureaucratic and
administrative management.
4. Explain the history of human relations
management.
5. Discuss the history of operations, information
systems, and contingency management.
Copyright © 2015 by Nelson Education Ltd.
2-2
Management Ideas and Practice
Throughout History
1.1
5000 BC
Sumerians
Record keeping
4000–2000 BC
Egyptians
Plan, organize, control; written requests
1800 BC
Hammurabi
Controls and written documentation
600 BC
Nebuchadnezzar
Wage incentives, production control
500 BC
Sun Tzu
Strategy
400 BC
Xenophon
Management as a separate art
400 BC
Cyrus
Human relations and motion study
175
Cato
Job descriptions
284
Diocletian
Delegation of authority
900
Alfarabi
Listed leadership traits
1100
Ghazali
Listed managerial traits
1418
Barbarigo
Different organizational forms/structures
1436
Venetians
Numbering, standardization, interchangeability
1500
Sir Thomas More
Critical of poor management and leadership
1525
Machiavelli
Cohesiveness, power, and leadership
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2-3
“How long have there been
managers?”
• Since the late 1800s.
• “So if managers have only been around
since the late 19th century, does that
mean the origin of management dates
also to that time? Yes or no?”
Copyright © 2015 by Nelson Education
Ltd.
Transcontinental
railroad
2-4
Why We Need Managers Today
Then
1.2
Now
Work in families
Work in _________
Skilled labourers
Specialized,
unskilled labourers
Small, self-organized
groups
_________ factories
Unique, small batches
of production
Large, standardized
_________ production
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2-5
The History of
Scientific Management
• “Seat-of-the pants” management had no
standardization of procedures and no
follow-up on improvements.
• _______________management now
studies and tests methods to identify the
best, most efficient ways.
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2-6
Frederick W. Taylor (1856–1915)
• Known as the ‘__________
of scientific management”
• Contribution to modern
management was giving
employees rest breaks
throughout the day
• Four principles of scientific
management
Taylorism
2-7
Taylor’s Four Principles of
Scientific Management
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2-8
Frank and Lillian Gilbreth
(1886–1924)
Time Study
• Timing how long it takes good
workers to complete each part of
their jobs.
Motion Study
• Breaking each task into its
separate motions and then
eliminating those that are
necessary or repetitive.
A Question of Management
2.2
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2-9
Gantt Chart for
Starting Construction on a
New Headquarters
2.3
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2-10
Class Activity: Gantt Charts
Beyond the Book
• In groups of four, create a Gantt chart for
a formal 50th birthday party for one of
your parents.
• Share your results with the class.
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2-11
The History of
Bureaucratic Management
When we hear the term
bureaucracy, we think of
inefficiency and “red
tape,” incompetence, and
ineffectiveness.
Bureaucracy: the exercise
of control on the basis of
knowledge, expertise, or
experience
3
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2-12
Elements of Bureaucratic Organizations
1.
2.
3.
4.
5.
Qualification-based hiring
Merit-based promotion
Chain of command
Division of labour
Impartial application of rules and
procedures
6. Recorded in writing
7. Managers separate from owners
3.1
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2-13
Administrative Management:
Henri Fayol
3.2
1. Division of work
8. Centralization
2. Authority and
responsibility
9. Scalar chain
3. Discipline
10. Order
4. Unity of command
11. Equity
5. Unity of direction
12. Stability of tenure
of personnel
6. Subordination of
individual interests
13. Initiative
7. Remuneration
14. Esprit de corps
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2-14
The History of Human
Relations Management
• Efficiency alone is not enough to produce
organizational success.
• Success also depends on treating workers
well.
4
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2-15
Mary Parker Follett (1868–1933)
• Known as the “mother of
scientific management”
• Contributions to modern
management include the
ideas of negotiation,
conflict resolution, and
power sharing.
4.1
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2-16
Constructive Conflict and Coordination:
Mary Parker Follett
Domination
Dealing with
Conflict
Compromise
Integration
4.1
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2-17
Constructive Conflict and Coordination:
Mary Parker Follett
Fundamental Principals of Organizations
1. Coordination as reciprocal, relating all the
factors in a situation
2. Coordination by direct contact of the
responsible people concerned
3. Coordination in the early stages
4. Coordination as a continuing process
4.1
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2-18
Hawthorne Studies: Elton Mayo
• Workers’ feelings and attitudes affected their work.
• Financial incentives weren’t the most important
motivator for workers.
• Group norms and
behaviour play a
critical role in
behaviour at work.
4.2
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2-19
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
4.3
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2-20
Cooperation and Acceptance of Authority:
Chester Barnard
People will be indifferent to managerial
directives if they …
• are understood
• are consistent with the purpose
of the organization
• are compatible with the people’s
personal interests
• can actually be carried out by
those people
4.3
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2-21
Operations, Information, Systems, and
Contingency Management
Other significant historical approaches to
management:
1. Operations management
2. Systems management
3. Information management
4. Contingency management
5
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2-22
Operations Management Tools
•
•
•
•
Quality control
Forecasting techniques
Capacity planning
Productivity
measurement and
improvement
• Linear programming
5.1
• Scheduling systems
• Inventory systems
• Work measurement
techniques
• Project management
• Cost-benefit analysis
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2-23
History:
Operations Management Tools
• Guns
o Standardized, interchangeable parts
o Eli Whitney
• Geometry
o Based on a book by Gaspard Monge
o Manufacture parts without examining a
prototype
• Fire
o Oldsmobile Motor Works
o First just-in-time inventory system
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2-24
Milestones in Information
Management
1400s Horses in Italy
1500– Creation of paper and the printing press
1700
1850 Manual typewriter
1860s Vertical file cabinets and the telegraph
1879 Cash registers
1880s Telephone
1890s Time clocks
1980s Personal computer
1990s Internet
5.3
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2-25
The Organization as an
Open System
5.3
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2-26
Systems Thinking
Beyond the Book
• Shift in thinking from seeing ourselves
as separate to being connected
• Rather than seeing problems as caused by
someone/something else, see how our
actions create the problems we experience
• It is a framework for seeing
interrelationships and patterns of change.
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2-27
Contingency Management
• No universal management theories
o “Usually”
o “In these situations”
o “For this to work”
o “Under these circumstances”
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