Chapter 2

History of Management

Management Principles

Craig W. Fontaine, Ph.D.

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

Scientific Management

The thorough study and testing of different work methods to identify the best, most efficient ways to

complete a job.

Principles of Scientific Management

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.

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 workers2- “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.”

Bureaucratic Management: Max Weber

• Bureaucracy – “the exercise of control on the basis of knowledge”– people led by virtue of rational-legal authority

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.”

Fayol’s Fourteen Principles of Management

1. Division of work2. Authority and responsibility3. Discipline4. Unity of command5. Unity of direction6. Subordination of individual interests to the general interest7. Remuneration8. Centralization9. Scalar chain10. Order11. Equity12. Stability of tenure of personnel13. Initiative14. Esprit de corps

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

Mary Parker FollettOn constructive conflict

“As conflict—difference—is 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.”

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 is—that 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.”

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 weren’t necessarily the most important for motivating workers.

• Managers better understood effect of group social interactions, employee satisfaction, and attitudes on individual and group performance.

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 they’re willing to accept it.

Zone of Indifference

People will be indifferent to managerial directives if they…• are understood • are consistent with organization’s purpose• are compatible with people’s personal interests• can actually be carried out by those people

Operations Management

• Eli Whitney– standardized, interchangeable parts

• Garspard Monge– techniques for drawing 3-D objects on

paper

• Oldsmobile Motor Works– “hand-to-mouth inventory”

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.

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

Systems

• Closed systems– can function without interacting with

their environments

• Open Systems– interact with their environments and

depend on them for survival

Systems View of Organizations

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.