Chapter 2
History of Management
© 2014 Cengage Learning
MGMT6
2-1 explain the origins of management
2-2 explain the history of scientific management
2-3 discuss the history of bureaucratic and
administrative management
2-4 explain the history of human relations management
2-5 discuss History
the history of operations,
information,
of
2systems, and contingency management
Management
© 2014 Cengage Learning
© 2014 Cengage Learning
2-1
Why We Need Managers Today
During the Industrial Revolution…
• Availability of power enabled low-paid,
unskilled labor to replace high-paid
skilled artisans
• Job carried out in large, formal
organizations rather than fields, homes,
or small shops
© 2014 Cengage Learning
2-1
Scientific Management
The thorough study and testing of
different work methods to identify the
best, most efficient ways to complete a
job.
© 2014 Cengage Learning
2-2
© 2014 Cengage Learning
2-2
Frank and Lillian Gilbreth
• Motion study
– breaking each task or job into separate
motions and then eliminating those
that are unnecessary or repetitive
• Motion study typically yielded
production increases of 25 to 300
percent.
2-2
© 2014 Cengage Learning
Henry Gantt
•
Gantt Chart
– visually indicates what tasks must be completed at which
times in order to complete a project
•
One of the first to recommend that companies train
and develop workers
2- “A scientific investigation in detail of each piece of work, and
the determination of the best method and the shortest time
in which the work can be done. “
2- “A teacher capable of teaching the best method and the
shortest time.”
3. “Reward for both teacher and pupil when the latter is
successful.”
© 2014 Cengage Learning
2-2
© 2014 Cengage Learning
2-2
Bureaucratic Management:
Max Weber
• Bureaucracy – “the exercise of control on
the basis of knowledge”
– people led by virtue of rational-legal
authority
© 2014 Cengage Learning
2-3
© 2014 Cengage Learning
2-3
Administrative Management:
Henri Fayol
“The success of an enterprise generally depends
much more on the administrative ability of its
leaders than on their technical ability.”
© 2014 Cengage Learning
2-3
Fayol’s Fourteen
Principles of Management
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Division of work
Authority and responsibility
Discipline
Unity of command
Unity of direction
Subordination of individual interests to the general interest
Remuneration
Centralization
Scalar chain
Order
Equity
Stability of tenure of personnel
Initiative
Esprit de corps
© 2014 Cengage Learning
2-3
Constructive Conflict:
Mary Parker Follett
• Conflict – “the appearance of difference,
difference of opinions, of interests”
• Integrative conflict resolution
– have both parties indicate their preferences
and then work together to find an
alternative that meets the needs of both
© 2014 Cengage Learning
2-4
Mary Parker Follett
On constructive conflict
“As conflict—difference—is here in this world, as we cannot avoid it, we
should, I think, use it to work for us. Instead of condemning it, we should
set it to work for us.”
On power
“It seems to me that whereas power usually means power-over, the power
of some person or group over some other person or group, it is possible to
develop the conception of power-with, a jointly developed power, a co-active,
not a coercive power.”
On the giving of orders
“An advantage of not exacting blind obedience, of discussing your
instructions with your subordinates, is that if there is any
resentment, any come-back, you get it out into the open, and when it
is in the open you can deal with it.”
On authority
“Authority should go with knowledge and experience, that is where
obedience is due, no matter whether it is up the line or down.”
© 2014 Cengage Learning
2-4
Mary Parker Follett
On leadership
“Of the greatest importance is the ability to grasp a total situation. . . . Out
of a welter of facts, experience, desires, aims, the leader must find the
unifying thread. He must see a whole, not a mere kaleidoscope of pieces. . .
The higher up you go, the more ability you have to have of this kind.”
On coordination
“The most important thing to remember about unity is—that there is no
such thing. There is only unifying. You cannot get unity and expect it
to last a day— or five minutes. Every man in a business should be taking
part in a certain process and that process is unifying.”
On control
“Central control is coming more and more to mean the co-relation of many
controls rather than a superimposed control.”
© 2014 Cengage Learning
2-4
Hawthorne Studies: Elton Mayo
• Human factors related to work were found to be
more important than physical conditions or
design of work.
• Workers not just extensions of machines, and
financial incentives weren’t necessarily the most
important for motivating workers.
• Managers better understood effect of group
social interactions, employee satisfaction, and
attitudes on individual and group performance.
2-4
© 2014 Cengage Learning
Cooperation and Acceptance of
Authority: Chester Barnard
• Organization – “system of consciously
coordinated activities or forces of two more
persons”
• The extent to which people willingly
cooperate in an organization depends on how
workers perceive executive authority and
whether they’re willing to accept it.
© 2014 Cengage Learning
2-4
Zone of Indifference
People will be indifferent to managerial
directives if they…
• are understood
• are consistent with organization’s
purpose
• are compatible with people’s personal
interests
• can actually be carried out by those
people
© 2014 Cengage Learning
2-4
Operations Management
• Eli Whitney
– standardized, interchangeable parts
• Garspard Monge
– techniques for drawing 3-D objects on
paper
• Oldsmobile Motor Works
– “hand-to-mouth inventory”
© 2014 Cengage Learning
2-5
Information Management
Throughout history, organizations have
pushed for and quickly adopted new
information technologies to reduce the
cost or increase the speed with which they
can acquire, retrieve, or communicate
information.
© 2014 Cengage Learning
2-5
Systems Management
• System
– a set of interrelated elements or parts that
function as a whole
• Subsystems
– smaller systems within a larger system
• Synergy
– occurs when two or more subsystems
working together can produce more than
they can working apart
© 2014 Cengage Learning
2-5
Systems
• Closed systems
– can function without interacting with their
environments
• Open Systems
– interact with their environments and
depend on them for survival
© 2014 Cengage Learning
2-5
© 2014 Cengage Learning
2-5
Contingency Management
There are no universal management theories;
the most effective management theory or idea
depends on the kinds of problems or situations
that managers or organizations are facing at a
particular time.
© 2014 Cengage Learning
2-5
Barcelona Restaurant
Group
<click screenshot for video>
1. What aspects of restaurant work are
especially challenging to wait staff,
and how does Barcelona’s approach
to management help employees
overcome the downsides of the job?
2. What steps do the leaders of
Barcelona Restaurant Group take to
insure cooperation and acceptance of
authority from their employees?
3. Would the management style of
Barcelona Restaurant Group best be
described as scientific management
or contingency management?
© 2014 Cengage Learning