GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section
2.1
The Evolution of Management
In this section:
Ever since one human tried to direct another ideas about management have
been developing. This section discusses how management has changed over
time by discussing:
• The Industrial Revolution
• New Challenges for Management
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GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section
2.1
The Evolution of Management
What You’ll Learn
• How the Industrial Revolution created a new need for management.
• How the captains of industry of the last century created huge empires.
• The principles of scientific management.
• The results of the Hawthorne studies on worker productivity.
• Maslow’s hierarchy of needs.
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GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section
2.1
The Evolution of Management
Why It’s Important
To understand why businesses operate the way they do, you will need to
understand how management systems evolved.
Copyright © Glencoe/McGraw-Hill
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GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section
2.1
The Evolution of Management
Key Terms
• monopoly
• trust
• scientific management • hierarchy of needs
Copyright © Glencoe/McGraw-Hill
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GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section
2.1
The Evolution of Management
Elements of the Industrial Revolution
•
The Industrial Revolution was caused by changes in technology,
communication, and transportation and advances in
manufacturing processes.
•
Powerful businesspeople who created enormous business empires
were known as captains of industry.
•
These powerful businesspeople created monopolies—businesses
that maintained total control of their industry.
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GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section
2.1
The Evolution of Management
The Break-Up of Trusts
During the Industrial Revolution, legislators and the public
became concerned with monopolies and the government decided to
regulate business.
• The Interstate Commerce Act
• The Sherman Act
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GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section
2.1
The Evolution of Management
New Challenges for Management
During the late 1800’s, thousands of employees performed
specialized tasks, and new ideas were needed for managing the workers.
• Frederick W. Taylor and Scientific Management
• The Hawthorne Studies of Productivity
• Abraham H. Maslow and the Hierarchy of Needs
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GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section
2.1
The Evolution of Management
Scientific Management
• Jobs should be designed according to scientific rules.
• Employees should be selected and trained according to scientific
methods.
• The principles of scientific management should be explained to
workers.
• Management and workers should be interdependent so that they
cooperate.
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GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section
2.1
The Evolution of Management
Maslow’s Hierarchy of Needs
Fig 2-1
Copyright © Glencoe/McGraw-Hill
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GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section
2.1
The Evolution of Management
Fact Idea and Review
1.
How did the changes in the U.S. economy during the late
nineteenth century increase the need for management?
2.
What laws were passed in the nineteenth century to control the
power of large companies?
3.
How did Frederick W. Taylor change thinking about
management?
4.
What factors affect workers’ productivity?
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