FLOWCHART OF THE DEVELOPMENT OF MANAGEMENT THROUGH THE CENTURIES 1100 BC • Practive of the four managerial functions by the Chinese. 400-350 BC • Development of a scientific approach to work by the Greeks. • Practive of management decentralization by the Romans. MEDIEVAL PERIOD • Venetians improved production by standardising assembly lines, using an inventory system, and building warehoused. 1780-1840 • emergence of economy of scale which reduced manufacturing costs during the Industrial Revolution Early 20th Century • Business school flourished. Some notable schools established at that time were Wharton School and Amos Tuck Schhol 20th Centruy to Present • US companies enageg in manufacturing as the core business SCIENTIFIC MANAGEMENT THEORY Studies the application of scientific methods and principles for the purpose of redesigning the work process to increase efficiency. Emphasizes the importance of labor in the production process and focuses on improving the efficiency of workers in production. Frederick W. Taylor Henry Gantt Frank and Lillian Gilbreth Frederick W. Taylor American Engineer, The Principles of Scientific Management He introduced the 4 principles of Scientific Management 1. Replace rule-of-thumb methods with those that are scientifically proven. 2. Select, train, and develop each worker based on scientific methods. 3. Cooperate with the workers to ensure that scientific methods are being observed and implemented in their work. 4. Divide work between managers and workers. ADMINISTRATIVE MANAGEMENT THEORY Focuses on the overall management of an organization, emphasizing the role of manager as administrators of the organization HENRI FAYOL Developed the five functions of management: 1. planning 2. organizing 3. communicating 4. coordinating 5. controlling the 14 principles of management 1. Division of work 2. Authority 3. Discipline 4. Unity of command 5. Unity if direction 6. Predominance of the general interest 7. Remuneration 8. Centralization 9. Scalar chain 10. Order 11. Equity 12. Stability and tenure of personnel 13. Initiative 14. Esprit de corps Max Weber German sociologist, contributed to the development of administrative management He believed that bureaucratic structures allow for specialization of skills and enable workers with different traits, skills, and goals to work together and contribute toward performing a common task. Other contrubutors to the development of administrative management theory: 1. Chester Barnard - The Functions of the Executive a. to formulate the organization’s mission b. to hire key employees, and c. to maintain organizational communication 2. Mary Parker Follet - Dynamic Organization emphasizes the ever-changing situations that managers have to deal with.