Chapter 2

The History of
Management

Principles of Management 6th Edition Chuck Williams

Chapter 2
2011 South-Western/ Cengage Learning. All Rights Reserved.
Copyright 2009 by Cengage Learning Inc. All rights reserved
 What Would You Do?
ISG SteeltonInternational Steel Group,
Steelton, Pennsylvania
ISG needs its six
summer college-student
hires to load railcars
with several tons of
scrap metala six-week
job that needs to be
completed in two weeks.
As shift supervisor, what would you to do to
motivate the students?
What can you do to deal with the physical
fatigue from the job?
 In the Beginning

After reading the next section,

you should be able to:
1. explain the origins of
management.

Chapter 2
Copyright 2009 by Cengage Learning Inc. All rights reserved
2011 South-Western/ Cengage Learning. All Rights Reserved.
1.1
Management Ideas and
Practice Throughout History
5000
5000BC
BC Sumerians
Sumerians Record
Recordkeeping
keeping
4000-2000
4000-2000BC
BC Egyptians
Egyptians Plan,
Planning,
Plan, organize,
Planning,organizing,
organize,control.
control.controlling.
organizing, Written
Writtenrequests.
controlling.
requests.
1800
1800BC
BC Hammurabi
Hammurabi Controls
Controlsand
andwritten
writtendocumentation
documentation
600
600BC
BC Nebuchadnezzar
Nebuchadnezzar Wage
Wageincentives,
incentives,production
productioncontrol
control
500
500BC
BC Sun
SunTzu
Tzu Strategy
Strategy
400
400BC
BC Xenophon
Xenophon Management
Managementas
asaaseparate
separateart
art
400
400BC
BC Cyrus
Cyrus Human
Humanrelations
relationsand
andmotion
motionstudy
study
175
175 Cato
Cato Job
Jobdescriptions
descriptions
284
284 Diocletian
Diocletian Delegation
Delegationof
ofauthority
authority
900
900 Alfarabi
Alfarabi Listed
Listedleadership
leadershiptraits
traits
1100
1100 Ghazali
Ghazali Listed
Listedmanagerial
managerialtraits
traits
1418
1418 Barbarigo
Barbarigo Different
Differentorganizational
organizationalforms/structures
forms/structures
1436
1436 Venetians
Venetians Numbering,
Numbering,standardization,
standardization,interchangeability
interchangeability
1500
1500 Sir
SirThomas
ThomasMore
MoreCritical
Criticalof
ofpoor
poormanagement
managementand andleadership
leadership
1525
1525 Machiavelli
Machiavelli Cohesiveness,
Cohesiveness,power,
power,and
andleadership
leadership
 Why We Need Managers Today
Then
Then Now
Now

Work
Workin
infamilies
families Work
Workin
infactories
factories

Specialized,
Specialized,
Skilled
Skilledlaborers
laborers unskilled
unskilledlaborers
laborers

Small,
Small,self-organized
self-organized Large
Largefactories
factories
groups
groups

Unique,
Unique,small
smallbatches
batches Large
Largestandardized
standardized
of
ofproduction
production mass
massproduction
production
1.2
 The Evolution of
Management

After reading the next four sections,

you should be able to:
2. explain the history of scientific management.
3. discuss the history of bureaucratic and
administrative management.
4. explain the history of human relations
management.
5. discuss the history of operations, information
systems, and contingency management.
Chapter 2
Copyright 2009 by Cengage Learning Inc. All rights reserved
2011 South-Western/ Cengage Learning. All Rights Reserved.
 Scientific Management
Scientific
Scientific Management
Management

Studies
Studies and
and tests
tests methods
methods to
to identify
identify
the
the best,
best, most
most efficient
efficient ways
ways

Seat-of-the
Seat-of-the Pants
Pants Management
Management

No
No standardization
standardization of
of procedures
procedures
No
No follow-up
follow-up on
on improvements
improvements

2
 Frederick W. Taylor
Frederick Taylor is known
today as the "father of
scientific management."
One of his many
contributions to modern
management is the
common practice of giving
employees rest breaks
throughout the day.
Frederick W. Taylor
1856-1915
 Taylors Four
Management Principles
Develop
Develop aa science
science for
for each
each element
element of
of aa mans
manswork,
work,
which
which replaces
replaces the
the old
old rule-of-thumb
rule-of-thumb method.
method.

Scientifically
Scientifically select
select and
and then
then train,
train, teach,
teach, and
and
develop
develop the
the workman.
workman.

Cooperate
Cooperate with
with the
the men
men to
to insure
insure all
all work
work is
is done
done in
in
accordance
accordance with
with the
the principles
principles of
of the
the science.
science.

There
There is
is almost
almost equal
equal division
division of
of the
the work
work and
and the
the
responsibility
responsibility between
between management
management and and workmen.
workmen.

2.1 Adapted from Exhibit 2.2

 Frank & Lillian Gilbreth
Frank and Lillian Gilbreth were prolific
researchers and often used their family as
guinea pigs. Their work is the subject of
Cheaper by the Dozen, written by their son
and daughter.

2.2
 Motion Studies:
Frank & Lillian Gilbreth
Time Study

Timing how long it takes good workers

to complete each part of their jobs.

Motion Study

Breaking each task into its separate

motions and then eliminating those that
are unnecessary or repetitive.
2.2
 Charts: Henry Gantt

2.3
 Bureaucratic Management

Bureaucracy

The exercise of control on the

basis of knowledge, expertise, or
experience.

Max Weber
1864-1920
3.1
 The Aim of Bureaucracy
1.
1. Qualification-based
Qualification-based hiring
hiring

2.
2. Merit-based
Merit-basedpromotion
promotion

3.
3. Chain
Chainof
ofcommand
command

4.
4. Division
Divisionof
oflabor
labor

5.
5. Impartial
Impartialapplication
applicationof
of rules
rulesand
andprocedures
procedures

6.
6. Recorded
Recordedin
inwriting
writing

7.
7. Managers
Managersseparate
separatefrom
fromowners
owners

3.1
 Administrative Management:
Henri Fayol
1.
1. Division
Division of
of work
work 8.
8. Centralization
Centralization
2.
2. Authority
Authorityand
and 9.
9. Scalar
Scalarchain
chain
responsibility
responsibility
3.
3. Discipline
Discipline 10.
10.Order
Order

4.
4. Unity
Unityof
ofcommand
command 11.
11.Equity
Equity
12.
12.Stability
Stabilityof
oftenure
tenure
5.
5. Unity
Unityof
ofdirection
direction of
of personnel
personnel
6.
6. Subordination
Subordination ofof 13.
13. Initiative
Initiative
individual
individualinterests
interests
7.
7. Remuneration
Remuneration 14.
14. Esprit
Espritde
decorps
corps

3.2 Adapted from Exhibit 2.5

 Human Relations Management

Efficiency alone is not

enough to produce
organizational success.

Success also depends

on treating workers well.

4
 Mary Parker Follett
Mary Parker Follett is
known today as the
mother of scientific
management." Her many
contributions to modern
management include the
ideas of negotiation,
conflict resolution, and
power sharing.
Mary Parker Follett
1868-1933
 Constructive Conflict and
Coordination: Mary Parker Follett

Domination
Domination

Dealing
Dealing with
with Compromise
Compromise
Conflict
Conflict

Integration
Integration

4.1
 Constructive Conflict and
Coordination: Mary Parker Follett
Fundamental Principals of Organizations

1.
1. Coordination
Coordinationas asreciprocal
reciprocalrelating
relatingall
all
the
thefactors
factorsin
inaasituation
situation

2.
2. Coordination
Coordinationby
bydirect
directcontact
contactof
ofthe
the
responsible
responsiblepeople
peopleconcerned
concerned

3.
3. Coordination
Coordinationin
inthe
theearly
earlystages
stages

4.
4. Coordination
Coordinationas
asaacontinuing
continuingprocess
process

4.1
 Hawthorne Studies:
Elton Mayo
Workers feelings and
attitudes affected their
work

Financial incentives
werent the most
important motivator for
workers

Group norms and

behavior play a critical
role in behavior at work

4.2
 Cooperation and Acceptance
of Authority: Chester Barnard
Managers can gain cooperation by:

Securing essential services from

individuals

Unifying people by clearly formulating an

organizations purpose and objectives

Providing a system of effective

communication

4.3
 Cooperation and Acceptance
of Authority: Chester Barnard
People will be indifferent to managerial
directives if they

1. are understood

2. are consistent with the purpose of the

organization

3. are compatible with the peoples personal

interests

4. can actually be carried out by those people

4.3
Operations, Information, Systems,
and Contingency Management

Operations
Operations Management
Management Systems
Systems Management
Management

Information
Information Management
Management Contingency
Contingency Management
Management

5
Operations Management Tools
Quality
Qualitycontrol
control
Forecasting
Forecastingtechniques
techniques
Capacity
Capacityplanning
planning
Productivity
Productivitymeasurement
measurementand
andimprovement
improvement
Linear
Linearprogramming
programming
Scheduling
Schedulingsystems
systems
Inventory
Inventorysystems
systems
Work
Workmeasurement
measurementtechniques
techniques
Project
Projectmanagement
management
Cost-benefit
Cost-benefitanalysis
analysis

5.1
Operations Management Tools

Guns
Guns

Origins
Origins of
of
Operations
Operations Geometry
Geometry
Management
Management

Fire
Fire

5.1
 Whitney, Monge, and Olds

Eli Whitney Gaspard Monge

1746-1818
1765-1825
Ransom Olds
1864-1950
 Information Management
Milestones in information management:
1400s Horses in Italy
1500-1700 Creation of paper and the printing press
1850 Manual typewriter
1860s Vertical file cabinets and the telegraph
1879 Cash registers
1880s Telephone
1890s Time clocks
1980s Personal computer
1990s Internet

5.3
 Systems Management

5.3
 Biz Flix: Casino Watch this clip!

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?
 Contingency Management

Contingency Approach

Holds that the most effective management

theory or idea depends on the kinds of
problems or situations that managers are
facing at a particular time and place.

5.4
 Contingency Management
Management is harder than it looks

Managers need to look for key contingencies

that differentiate todays situation from
yesterdays situation

Managers need to spend more time analyzing

problems before taking action

Pay attention to qualifying phrases,

such as usually
5.4