Chapter 2

History of Management

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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 historyof
of human relations
History
management
2
Management
2-5 discuss
the history of operations,
information, systems, and contingency
management

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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
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Scientific Management
The thorough study and testing of
different work methods to identify
the best, most efficient ways to
complete a job.

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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.
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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
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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.

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Bureaucratic Management:
Max Weber
Bureaucracy the exercise of
control on the basis of knowledge
people led by virtue of rational-legal
authority

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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.

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Fayols Fourteen
Principles of Management
1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interests to the general interest
7. Remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure of personnel
13. Initiative
14. Esprit de corps

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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
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Mary Parker Follett

On constructive conflict
As conflictdifferenceis 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.
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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 isthat 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.

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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 werent necessarily
the most important for motivating workers.
Managers better understood effect of group
social interactions, employee satisfaction,
and attitudes on individual and group
performance.

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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 theyre willing
to accept it.
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Zone of Indifference
People will be indifferent to managerial
directives if they
are understood
are consistent with organizations
purpose
are compatible with peoples personal
interests
can actually be carried out by those
people
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Operations Management
Eli Whitney
standardized, interchangeable parts

Garspard Monge
techniques for drawing 3-D objects on
paper

Oldsmobile Motor Works

hand-to-mouth inventory
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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.

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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
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Systems
Closed systems
can function without interacting with
their environments

Open Systems
interact with their environments and
depend on them for survival

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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.

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Casino

<click screenshot for video>

1. Do you think the casino

owners make discipline
(clearly defined rules and
procedures) a high priority in
the way they run their
business? Why?
2. Mary Parker Follett believed
that managers could deal with
conflict in three ways:
domination, compromise, and
integration. Which of these is
most likely employed by the
casino management in this
film?
3. How important is employee
order (having a place for
everyone and having
everyone in their place) in this
clip?

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Barcelona Restaurant Group

<click screenshot for video>

1. What aspects of restaurant

work are especially
challenging to wait staff, and
how does Barcelonas
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?
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