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Chapter 2Copyright ©2009 by Cengage Learning Inc. All rights reserved
1
Chapter 2The History
of Management
Chapter 2Copyright ©2009 by Cengage Learning Inc. All rights reserved
4
Management Ideas and Practice Throughout History
1.11.1
5000 BC5000 BC
4000-2000 BC4000-2000 BC
1800 BC1800 BC
600 BC600 BC
500 BC500 BC
400 BC400 BC
400 BC400 BC
175175
284284
900900
11001100
14181418
14361436
15001500
15251525
SumeriansSumerians
Egyptians Planning, organizing, controlling. Egyptians Planning, organizing, controlling.
HammurabiHammurabi
NebuchadnezzarNebuchadnezzar
Sun TzuSun Tzu
XenophonXenophon
CyrusCyrus
CatoCato
DiocletianDiocletian
AlfarabiAlfarabi
GhazaliGhazali
BarbarigoBarbarigo
VenetiansVenetians
Sir Thomas MoreSir Thomas More
MachiavelliMachiavelli
Record keepingRecord keeping
Plan, organize, control. Written requests.Plan, organize, control. Written requests.
Controls and written documentationControls and written documentation
Wage incentives, production controlWage incentives, production control
StrategyStrategy
Management as a separate artManagement as a separate art
Human relations and motion studyHuman relations and motion study
Job descriptionsJob descriptions
Delegation of authorityDelegation of authority
Listed leadership traitsListed leadership traits
Listed managerial traitsListed managerial traits
Different organizational forms/structuresDifferent organizational forms/structures
Numbering, standardization, interchangeabilityNumbering, standardization, interchangeability
Critical of poor management and leadershipCritical of poor management and leadership
Cohesiveness, power, and leadershipCohesiveness, power, and leadership
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5
Why We Need Managers Today
Work in familiesWork in families
Skilled laborersSkilled laborers
Small, self-organizedgroups
Small, self-organizedgroups
Unique, small batchesof production
Unique, small batchesof production
ThenThenThenThen
Work in factoriesWork in factories
Specialized,unskilled laborers
Specialized,unskilled laborers
Large factoriesLarge factories
Large standardizedmass production
Large standardizedmass production
NowNowNowNow
1.21.2
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7
Scientific Management
22
Scientific Management
Studies and tests methods to identifythe best, most efficient ways
Scientific Management
Studies and tests methods to identifythe best, most efficient ways
“Seat-of-the Pants” Management
No standardization of procedures
No follow-up on improvements
“Seat-of-the Pants” Management
No standardization of procedures
No follow-up on improvements
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8
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 (Part 2)
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Taylor’s Four Management Principles
2.12.1
Develop a science for each element of a man’s work,which replaces the old rule-of-thumb method.
Develop a science for each element of a man’s work,which replaces the old rule-of-thumb method.
Scientifically select and then train, teach, and develop the workman.
Scientifically select and then train, teach, and develop the workman.
Cooperate with the men to insure all work is done inaccordance with the principles of the science.
Cooperate with the men to insure all work is done inaccordance with the principles of the science.
There is almost equal division of the work and theresponsibility between management and workmen.
There is almost equal division of the work and theresponsibility between management and workmen.
Adapted from Exhibit 2.2
Find the “one best way” to do every job.
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Taylor’s Innovative Ideas
Using systematic analyses to identify best methods
Scientifically selecting and training the best workers
Promoting cooperation between workers and management
Developing standardized approaches and tools Setting specific tasks and goals and then
rewarding workers with financial incentives Giving workers shorter hours and frequent
breaks.10
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11
Frank & Lillian Gilbreth
2.22.2
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.
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12
Motion Studies: Frank & Lillian Gilbreth
2.22.2
Time Study
Timing how long it takes good workers to complete each part of their jobs.
Motion Study
Breaking each task into its separatemotions and then eliminating those that are unnecessary or repetitive.
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13
Charts: Henry Gantt
2.32.3
Also made significant contributions to management with pay-for-performance plans and the training and development of workers.
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14
Bureaucratic Management
3.13.1
Bureaucracy
The exercise of control on the basis ofknowledge, expertise, or experience.
Max Weber, 1864-1920
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The Aim of Bureaucracy
3.13.1
1. Qualification-based hiring1. Qualification-based hiring
2. Merit-based promotion2. Merit-based promotion
3. Chain of command3. Chain of command
4. Division of labor4. Division of labor
5. Impartial application of rules and procedures5. Impartial application of rules and procedures
6. Recorded in writing6. Recorded in writing
7. Managers separate from owners7. Managers separate from owners
Employees are hired on the basis of their technical training or educational background.Promotion is based on experience or achievement. Managers, not organizational owners, decide who is promoted.Each job occurs within a hierarchy, the chain of command, in which each position reports and is accountable to a higher position. A grievance procedure and a right to appeal protect people in lower positions.Tasks, responsibilities, and authority are clearly divided and defined.
Rules and procedures apply to all members of the organization and will be applied in an impartial manner, regardless of position or status.
The owners of an organization should not manage or supervise the organization.
All administrative decisions, acts, rules, or procedures will be recorded in writing.
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Administrative Management:
Henri Fayol
3.23.2
1. Division of work1. Division of work
2. Authority and responsibility
2. Authority and responsibility
3. Discipline3. Discipline
4. Unity of command4. Unity of command
5. Unity of direction 5. Unity of direction
6. Subordination ofindividual interests
6. Subordination ofindividual interests
7. Remuneration7. Remuneration
8. Centralization8. Centralization
9. Scalar chain9. Scalar chain
10. Order10. Order
11. Equity11. Equity
12. Stability of tenure of personnel
12. Stability of tenure of personnel
13. Initiative13. Initiative
14. Esprit de corps14. Esprit de corps
Adapted from Exhibit 2.5
Each worker – unique/smaller tasks
Manager has authority, but not to be abused.
Clearly defined rules and procedures.
One and only one boss for each worker.
One person/one plan for organizational objectives.
Organizational goals first, individual goals second.
“Fair” compensation, don’t underpay or overpay.
Appropriate balance between centralizaiton or not.
Vertical chain of authority; One worker/one boss
No overlapping responsibilities
Kind, fair and just treatment for all.
Low employee turnover, stable work force.
Encourage development of initiative in workers.
Strong sense of morale and unity among workers.
All about organizing the organization.
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Functional Management
Scientific Management – focuses on improving the efficiency of manufacturing facilities and their workers.
Bureaucratic Management – focuses on using knowledge, fairness and logical rules to increase organizational efficiencies.
Administrative Management – focuses on how and what managers should do in their jobs.
17
What about the workers???
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44
Human Relations Management
Efficiency alone is not enough to produce organizational success.
Success also depends on treating workers well.
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Mary Parker Follett
Mary Parker Follett, 1868-1933
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.
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4.14.1
Constructive Conflict and Coordination:Mary Parker Follett
Dealing withDealing withConflictConflict
Dealing withDealing withConflictConflict CompromiseCompromise
DominationDomination
IntegrationIntegration
Domination is a victory of one side over the other.
Compromise involves both parties giving up some of what they want in order to reach agreement.
Integrative conflict resolution involves both parties indicating their preferences and then working together to find an alternative that meets the needs of both.
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4.24.2
Hawthorne Studies: Elton Mayo
Workers’ feelings and attitudes affected their work
Financial incentives weren’t the most important motivator for workers
Group norms and behavior play a critical role in behavior at work
Experimenting with workersat Western Electric in Chicago between 1924 and 1932.
Finding #1
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4.34.3
Cooperation and Acceptance of Authority: Chester Barnard
Managers can gain cooperation by:
Securing essential services from individuals
Unifying people by clearly formulating an organization’s purpose and objectives
Providing a system of effective communication
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4.34.3
Cooperation and Acceptance of Authority: Chester Barnard
People will willingly carry out managerial directives if they…
1. are understood
2. are consistent with the purpose of the organization
3. are compatible with the people’s personal interests
4. can actually be carried out by those people
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55
Operations, Information, Systems, and Contingency Management
Information ManagementInformation Management
Operations ManagementOperations Management
Contingency ManagementContingency Management
Systems ManagementSystems Management
Managing the daily production of goods and servicesManaging parts of the organization for the good of The whole organization.
Managing the information needed by the organizationto make good decisions.
Managing depending upon the situation.
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5.15.1
Operations Management Tools
Quality controlQuality control
Forecasting techniquesForecasting techniques
Capacity planningCapacity planning
Productivity measurement and improvement Productivity measurement and improvement
Linear programmingLinear programming
Scheduling systemsScheduling systems
Inventory systemsInventory systems
Work measurement techniquesWork measurement techniques
Project managementProject management
Cost-benefit analysisCost-benefit analysis
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5.15.1
Operations Management Tools
Origins ofOrigins ofOperationsOperations
ManagementManagement
Origins ofOrigins ofOperationsOperations
ManagementManagementGeometryGeometry
GunsGuns
FireFire
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Whitney, Monge, and OldsEli Whitney, 1765-1825
Gaspard Monge,1746-1818
Ransom Olds, 1864-1950
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5.35.3
Information Management
Milestones in information management:
1400s Horses in Italy1500-1700 Creation of paper and the printing press1850 Manual typewriter1860s Vertical file cabinets and the telegraph1879 Cash registers 1880s Telephone1890s Time clocks1980s Personal computer1990s Internet
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5.35.3
Systems Management
Objective of Systems Management: to take advantage of the organization’s internal, specificand general environments to create synergyfor increased productivity.
Objective of Systems Management: to take advantage of the organization’s internal, specificand general environments to create synergyfor increased productivity.
Objective of Systems Management: to take advantage of the organization’s internal, specificand general environments to create synergyfor increased productivity.
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Biz Flix: In Good Company
Take Two Video
Click
Is Carter Duryea’s explanation of synergy the same as the text definition?
Dan identifies a potential downside with Carter’s plan. Do you agree with Dan or Carter?
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32
5.45.4
Contingency Management
Contingency Approach
Holds that the most effective managementtheory or idea depends on the kinds ofproblems or situations that managers arefacing at a particular time and place.
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5.45.4
Contingency Management
Management is harder than it looks
Managers need to look for key contingencies that differentiate today’s situation from yesterday’s situation
Managers need to spend more time analyzing problems before taking action
Pay attention to qualifying phrases, such as “usually”