ADM 1300 Management History

Management History
Management scholars--observe and conduct research--develop management theories—help--

management (business) practice--to become--effective and efficient
Early management—classical approach—behavioral approach—quantitative approach—present

contemporary approaches
Early management
Someone has always had to
 Plan what needs to be accomplished
 Organize people and materials
 Lead and direct workers
 Impose controls to ensure that goals were attained as planned
Adam Smith
Author: The wealth of nations (1776)
Trade and division of labor have economic advantages to organizations and society
Industrial Revolution (1780-1850)
 Discovery of steam engine, electricity
 Transformed cottage industry to the machine powered industry
 Combined with the division of labor it made large, efficient factories possible
 Planning, organizing, leading, and controlling became necessary activities
Classical Approach
Birth of management theory (1911-1947)
Emphasized rationality and making organizations and workers as efficient as possible
Two major theories comprise the classical approach:
Scientific management
Frederick Taylor
 Author: Principles of Scientific Management
 Worked as engineer and consultant at Midvale Steel Company and Bethlehem Steel plant
 Father of Scientific Management
 Scientific management—the use a scientific method to find the ‘one best way’ for a job to
be done
 Taylor was concerned with the first-line managers and the scientific method
Frank and Lillian Gilbreth
 Disciples of scientific management
 First to use motion picture films to study hand-and-body motions in order to eliminate
wasteful motions
 Bricklaying motions reduced from 18 to 2
 Therbligs classification scheme 17 basic hand motions
Contemporary Application of Scientific Management
 Elements of scientific management still used include:
1. Using time-and-motion study to eliminate wasted motions
2. Analyzing jobs
3. Designing incentive systems based on output
4. Selecting best-qualified employees
General Administrative Theory
Henri Fayol
 Author: Industrial and General Administration
 Focused on activities common to all managers: Planning, organizing, coordinating,
commanding and controlling
 He described the practice of management as something distinct from accounting, finance,
production, distribution, and other typical business functions.
 He developed 14 principles of management
 General administrative theory focuses on the entire organization
Max Weber
 Author: the theory of social and economic organization
 A theory of organizational structure based on authority relations
 He described the ideal form or organization a bureaucracy marked by:
1. Division of labor
2. A clearly defined hierarchy
3. Detailed rules and regulations
4. impersonal relationships
Classical administrative theories in contemporary management
 The functional view of a manager’s job relates to Henri Fayol’s concept of management
 The 14 principles serve as a frame of reference from which many current management
concepts—such as managerial authority, centralized decision making, reporting to only one
boss, and so forth—have evolved
 Weber’s bureaucratic characteristics are evident in many of today’s large organizations—
even highly flexible organizations
 Some bureaucratic mechanisms are necessary to ensure that resources are used
efficiently and effectively
Behavioral Approach
 It focused on the human needs at work
 The field of study concerned with the actions (behaviors) of people at work is organizational
behavior
 Organizational behavior research has contributed to
a) Human resources management
b) Motivation
c) Leadership
d) Trust
e) Teamwork
f) Conflict management
The Hawthorne Studies
 It is the most important contribution to the development of organizational behavior.
 This series of experiments conducted from 1924 to the early 1930s at the Western Electric
Company Works in Cicero, Illinois, were initially devised as a scientific management
experiment to assess the impact of changes in various physical environment variables on
employee productivity.
Do today’s managers use the behavioral approach?
 Assists managers in designing jobs that motivate workers as individuals or working in teams
 Provides the foundation for current theories of motivation, leadership, group behavior and
development, and numerous other behavior approaches
Quantitative approach (management science)

 Known as Operations Research or Management Science, uses quantitative techniques to
improve decision making
 The quantitative approach evolved from mathematical and statistical solutions developed
for military problems during World War II
 This approach includes applications of:
a) Statistics
b) Optimization models
c) Information models
d) Computer simulations
 For example, linear programming, work scheduling, economic order quantity model, and
total quality management
Total quality management (TQM)
A management philosophy devoted to continual improvement and responding to customer
needs and expectations
Do today’s managers use the quantitative approach?
 It has contributed most directly to managerial decision making, particularly in planning and
controlling
 Sophisticated computer software programs have made the use of quantitative technique
more feasible for managers
Contemporary Approaches
 Systems approach
 Contingency approach
Systems approach
 A system is a set of interrelated and interdependent parts arranged in a manner that
produces a unified whole
a) Closed system: not influenced by and does not interact with its environment
b) Open system: interacts with its environment
 Envisions an organization as a body with many interdependent parts (Researchers
envisioned an organization as made up of ‘interdependent factors, including individuals,
groups, attitudes, motives, formal structure, interactions, goals, status, and authority)
 Each part is important to the well-being of the organization as a whole
 Managers coordinate the work activities of the various parts of the organization, realizing
that decisions and actions taken in one organizational area will affect other area
 The systems approach recognizes that organizations are not self-contained; they rely on and
are affected by factors in their external environment
 According to the systems approach, effective management must ensure that its organization
succeeds in ignoring governmental regulations???
Contingency approach (situational approach)
 The contingency approach to management is a view that the organization recognizes and
responds to situational variables as they arise
 Apply management theories depending on your situation
 Popular contingency variables
 Organization size
 Routineness of technology
 Environmental uncertainty
 Individual differences
 Organizations are different, face different situation (contingencies), and require different
ways of managing.
 E-business enabled organization???

 E-business enhanced organization???
 According to management expert Peter Drucker, management is about people???
 The fastest growth in the U.S. workforce is expected to be among Asian workers
 Knowledge management involves cultivating a learning culture where organizational
members systematically gather knowledge and share it with others in the organization so as
to achieve better performance
 Universality of management means that all managers in all organizations perform the four
management functions
 Workforce diversity will be significantly affected in the next decade by the aging of the U.S.
population
 Contemporary management practices that emphasize work groups as a means to increasing
productivity can be traced to which of the following authors? Mary Parker Follett???
 Henry Mintzberg developed a categorization scheme for defining what managers do,
consisting of ten different but highly interrelated roles
 Karl Weick being tricked by their success?
 Highly reliable organizations??

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ADM 1300 Management History

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Management History

Management scholars--observe and conduct research--develop management theories—help--

Early management—classical approach—behavioral approach—quantitative approach—present

Quantitative approach (management science)

 E-business enabled organization???

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