An overview to the History of
Management in 20th Cnetury
From Machines to Minds
.
1900s–1920s
1930s–1950s
1960s–1980s
1980s–2000s
The Bridge to
Today
The Efficiency
Revolution
The Human Side
Flexibility Wins
Systems Thinking
21st Century =
Scientific
Management
The Hawthorne
Effect
Contingency
Theory
Toyota’s Secret:
“Work Like a
Machine”
"People Matter”
“No One-SizeFits-All"
“The Whole is
Greater"
20th-Century
Theories on
Steroids
The theory was introduced by
Fredrick Taylor
Key Idea
There is only one best way to complete a task which in turn no only optimizes the
tasks but also reduces waste.
The Idea is also known as Taylorism.
• Ford’s Assembly Line Cut Model T production time by 90% in 1913 which was
the result of using the tools and equipment more efficiently.
• Global Impact: Mass production made Car prices dropped 68% (1910-1925).
2
Human Relations Movement led
by Elton Mayo
Key Idea
While primarily thought that lighting changes would
change workers productivity. After running the
experiment under different lighting conditions, it was
revealed that their productivity is tightly closed to the
fact that they are being observed rather than being the
result of other external factors.
Global Impact: HR departments born; workplace
conditions improved.
Contingent Theory theorized by
Joan Woodward
Key Idea
There is no one best way to act but a suitable way contingent on the
conditions. A 'best way' for the given context.
The example to this is McDonald’s rigid hierarchy which is the opposite
of Google’s flat, flexible hierarchy. Following this relationshiporiented and participative leadership which allowed workers to spend
20% of their time working on their personal affairs, workers’
productivity improved significantly.
Global Impact: Multinationals customize (McDonald’s India menu)
System Theory, an idea proposed by
Ludwig von Bertalanffy.
Key Idea
Implementing Just In Time (JIT) production process, Toyota managed
to reduce its inventory waste and reduce its costs by 30 in supply chain.
Unlike traditional methods practiced in companies like Ford with
warehouses full of parts, Toyota’s lean production proved to work
effectively in fairly predictable circumstances.
Global Impact: Copied by Tesla and Hospitals.
The Bridge to Today
Key Idea
Moving from Taylor’s Top-Down hierarchy and Weber’s
bureaucracy towards Contingency and facilitated Human Relations
as well as Organizational Interconnectedness, the building blocks for
21st century management systems were established.