History of Management Dr. Gargouri For Management 101 Where did the word Management Come from? manus mesnagement (later ménagement) maneggiare (to handle, especially tools) Management in the 17th and 18th centuries. How was it defined? organization coordination activities To achieve clearly defined objectives In accordance to What’s the problem with the definition? Management was often included as a factor of production along with machines, materials, and money. Then what? …. in the early twentieth century Not a factor of production anymore? Mary Parker Follett (1868–1933) defined management as "the art of getting things done through people". She also described management as philosophy. Administrative Theorist (s) jobs + people is what makes an efficient organization Frenchman Henri Fayol considers management to consist of seven functions: • 1. planning • 2. organizing • 3. leading • 4. coordinating • 5. controlling • 6. staffing • 7. motivating CLASSICAL MANAGEMENT THEORY the best way is to combine jobs and people Administrative View one of the first economists to develop the ideas of rational choice theory Rational Economic view people are motivated by economic gains Eliminating managerial inconsistencie s one best way of production division of labor and specialization NEO CLASSICAL THEORY The HUMAN RELATIONS APPROACH 1920s to 1950s Focused on HUMAN RELATIONS Employees are also guided by social needs, drives, and attitude. Early phases of the industrial revolution Late stages of the Industrial Revolution MODERN MANAGEMENT The 20th Century sees modern organizations as complex systems and underlies contingency approach and use of modern techniques to solve organizational and human problems. there is no best way to organize a corporation Comprehensive theories of management appeared around 1920 Some of the more recent developments include the Theory of Constraints, management by objectives, reengineering, Six Sigma and various informationtechnology-driven theories such as agile software development, as well as group management theories such as Cog's Ladder. In the 1940s, Patrick Blackett combined these statistical theories with microeconomic theory and gave birth to the science of operations research. Ronald Fisher (1890 - 1962), and Thornton C. Fry introduced statistical techniques into management-studies.