Management History
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1 Gestión Empresarial 2010 The History of Management
Transcript of Management History
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GestiónEmpresarial
2010
The History of Management
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Purpose of the study
The past serves as an accurate prologue and interpreter of the future
The past serves as an accurate prologue and interpreter of the future
Conceiving of a different future, change masters
have to be historians as well
Conceiving of a different future, change masters
have to be historians as well
Recognize and apply the fundamentals of human
behavior (acquire, bond, learn, and defend)
Recognize and apply the fundamentals of human
behavior (acquire, bond, learn, and defend)
Reflecting upon past experiences may be seen as a
prerequisite to taking future action
Reflecting upon past experiences may be seen as a
prerequisite to taking future action
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Management Ideas and Practice Throughout History
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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Why We Need Managers Today
Work in familiesWork in families
Unskilled laborersUnskilled 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
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Industrial Revolution
Took place between 1860 and early 1900s in US; earlier in Europe: Since 1700s and continues
Enormous gains in productivity with new inventions
Mass production and job specialization A move from agrarian society (urbanization) Power (steam engine), transportation (trains and
cars) and communication (electricity) Recently: computers and the Internet
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Industrial Revolution - Products
A labeled schematic diagram of a typical single cylinder, simple expansion, double-acting high pressure steam engine. Power takeoff from the engine is by way of a belt.
1 - Piston2 - Piston rod3 - Crosshead bearing4 - Connecting rod5 - Crank6 - Eccentric valve motion7 - Flywheel8 - Sliding valve9 - Centrifugal governor
Source: http://en.wikipedia.org/wiki/Steam_engine
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Industrial Revolution
Many social problems associated: child labor, compensation, workloads, abuse (60-80 hours working weeks) -> labor unions
Greater land use affecting habitat of animals Significant environmental consequences – global
warming Drastic population growth
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Industrial Revolution - Pollution
“Manchester, England ("Cottonopolis"), pictured in 1840, showing the mass of factory chimneys.”
“Over London by Rail Gustave Doré c 1870. Shows the densely populated and polluted environments created in the new industrial cities.”
Source: http://en.wikipedia.org/wiki/Industrial_Revolution
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Industrial Revolution - Population
Source: World Bank - http://www.worldbank.org/depweb/english/modules/social/pgr/map1.html
“Between 1980 and 2000 total world population grew from 4.4 billion to 6 billion. Based on population projections, by 2015 at least another billion people will be added for a total of more than 7 billion.”
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Industrial Revolution - Population
Source: UN - http://www.un.org/esa/population/publications/sixbillion/sixbilpart1.pdf
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Industrial Revolution - Population
Source: Census Bureau - http://www.census.gov/ipc/www/world.html
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Scientific Management
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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Scientific Management
The creation of factories brought the need for specialization
Productivity became an important issue Specialization requires:
Coordination of tasks Division of labor Workflow management Supervision Time management
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Scientific Management – Pig Iron
How to get a pig iron worker who normally loaded 12.5 tons per day to load 47.5 tons
From $1.15 to $1.85 per day The worker's every move
was monitored When to pickup the iron,
when to move, and when to rest
Pig iron workers at Coltness Ironworks, circa 1900. Source pictures: Google Images.
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Scientific Management – Shovel
The "science of shoveling“ Optimal weight that a
worker should lift in a shovel was 21 pounds
Different shovel for materials
Three to four fold increase in productivity
Workers were rewarded with pay increases
Source picture: http://www.melbran.com/ergoshovel.htm.
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Scientific Management – Modern Times
Picture Source: Google images
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Henri Fayol
First complete theory of management 14 principles of management Guidelines for effective management First to talk about the 5 functions of management
Help us understand how people make seemingly smooth, yet mayor, career transitions from an industry to an entirely different industry
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Administrative Management: Henri Fayol
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
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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
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Taylor’s Four Management Principles
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.
Working smarter rather than working harder
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Scientific Management – Problems
Efficiency increased at the workers’ expense
Extreme division of labor Motivational problems and
end products Easy replacement of labor People were treated as
machines Other incentives were
ignored
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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.
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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 separatemotions and then eliminating those that are unnecessary or repetitive.
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Charts: Henry Gantt
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Bureaucratic Management
Bureaucracy
The exercise of control on the basis ofknowledge, expertise, or experience.
Max Weber, 1864-1920
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The Aim of Bureaucracy
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
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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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Constructive Conflict and Coordination:Mary Parker Follett
Dealing withDealing withConflictConflict
Dealing withDealing withConflictConflict CompromiseCompromise
DominationDomination
IntegrationIntegration
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Constructive Conflict and Coordination:Mary Parker Follett
1. Coordination as reciprocal relating all the factors in a situation
2. Coordination by direct contact of theresponsible people concerned
3. Coordination in the early stages
4. Coordination as a continuing process
1. Coordination as reciprocal relating all the factors in a situation
2. Coordination by direct contact of theresponsible people concerned
3. Coordination in the early stages
4. Coordination as a continuing process
Fundamental Principals of Organizations
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Human Relations (Elton Mayo)
Hawthorn studies National Academy of Sciences in the US The relationship between working conditions and
productivity Testing with different levels of light, etc No matter what, productivity increased!!!!! No obvious relationship with environment!!!!!
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Human Relations (Elton Mayo)
Other factors affect productivity: Psychological and social conditions Informal group pressure Individual recognition Participation in decision-making
Attention shown to employees (Hawthorne effect) Effective supervision
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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
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Human Relations (Elton Mayo)
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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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Cooperation and Acceptance of Authority: Chester Barnard
People will be concordant to 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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Achievement (David McClelland)
Individuals are motivated by social needs
People obtain their sense of identity through interpersonal relationships
Because of routinization of work, work has become dissatisfying
Employees are more responsive to the social forces of peer groups than to incentives and controls of management
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The Servant Leader (Robert Greenleaf)
"The servant-leader is servant first… It begins with the natural feeling that one wants to serve, to serve first. Then conscious choice brings one to aspire to lead. That person is sharply different from one who is leader first, perhaps because of the need to assuage an unusual power drive or to acquire material possessions…
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Operations, Information, Systems, and Contingency Management
Information ManagementInformation Management
Operations ManagementOperations Management
Contingency ManagementContingency Management
Systems ManagementSystems Management
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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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Operations Management Tools
Origins ofOrigins ofOperationsOperations
ManagementManagement
Origins ofOrigins ofOperationsOperations
ManagementManagementGeometryGeometry
GunsGuns
FireFire
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Whitney, Monge, and Olds
Eli Whitney, 1765-1825
Gaspard Monge, 1746-1818
Ransom Olds, 1864-1950
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Information Management
Milestones in information management:
1500-1700 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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Systems Management
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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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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”
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Management History
Summarizing
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Classical Theory
Classical Theorists Focus on the job and management functions
to determine the best way to manage in all organizations.
Scientific Management Best way to maximize job performance Fredrick Winslow Taylor
• Father of Scientific Management Frank and Lillian Gilbreth
• Work efficiency Henry Gantt
• Work scheduling
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Classical Theory (cont’d)
Administrative Theory Henri Fayol
• Father of Modern Management• Principles and functions of management
Max Weber• Bureaucracy concept
Chester Barnard• Authority and power in organizations
Mary Parker Follett• Worker participation, conflict resolution, and
shared goals
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Behavioral Theory
Behavioral Theorists Focus on people to determine the best way
to manage in all organizations.
Human Relations Movement (later, the Behavioral Science Approach) Elton Mayo
• Hawthorne studies Abraham Maslow
• Hierarchy of needs theory Douglas McGregor
• Theory X and Theory Y
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Management Science
Management Science Theorists Focus on the use of mathematics to aid in
problem solving and decision making. Mathematical models are used in the areas
of finance, management information systems (MIS), and operations management.
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Integrative Theories
Systems Theory Focuses on viewing the organization as a
whole and as the interrelationship of its parts (subsystems).
Sociotechnical Theory Focuses on integrating people and
technology.
Contingency Theory Focuses on determining the best
management approach for a given situation.
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Comparing Theories
ClassicalClassical
BehavioralBehavioral
Management Management ScienceScience
Systems Systems TheoryTheory
Attempts to develop the best way to manage in all organizations Attempts to develop the best way to manage in all organizations by focusing on the jobs and structure of the firm.by focusing on the jobs and structure of the firm.
Attempts to develop a single best way to manage in all Attempts to develop a single best way to manage in all organizations by focusing on people and making them productive.organizations by focusing on people and making them productive.
Recommends using math (computers) to aid in problem solving Recommends using math (computers) to aid in problem solving and decision making.and decision making.
Manages by focusing on the organization as a whole and the Manages by focusing on the organization as a whole and the interrelationship of its departments, rather than on individual interrelationship of its departments, rather than on individual parts.parts.
Sociotechnical Sociotechnical TheoryTheory
Recommends focusing on the integration of people and Recommends focusing on the integration of people and technology. technology.
Contingency Contingency TheoryTheory
Recommends using the theory or the combination of theories thatRecommends using the theory or the combination of theories thatbest meets the given situation.best meets the given situation.
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Fuentes
Management History:an Umbrella Model, Nell Tabor Hartley, Robert Morris University, Allegheny, Pennsylvania, USA
Management Fundamentals Concepts Applications Skill Development, Robert N. Lussier
Management, Chuck Williams. Material prepared by Deborah Baker, Texas Christian University
Introduction to Management and Business, Dr. Gregory F. Maassen
