2 Management History

1
 Historical Background of Management

• Ancient Management
– Egypt (pyramids) and China (Great Wall)
– Venetians (floating warship assembly lines)
• Adam Smith
– Published “The Wealth of Nations” in 1776
– Advocated the division of labour (job specialization) to increase
the productivity of workers
• Industrial Revolution
– Substituted machine power for human labour
– Created large organizations in need of management

2
Source: Robbins, S.P., Coulter, M. (2009) Management 10th ed., Pearson Education, Inc., Upper Saddle
River, New Jersey
 Development of Major Management Theories

Source: Robbins, S.P., Coulter, M. (2009) Management 10th ed., Pearson

3 Education, Inc., Upper Saddle
River, New Jersey
 Scientific Management

Fredrick Winslow Taylor

– The father of scientific management
– Published Principles of Scientific Management (1911)
– Using scientific methods to define the “one best way”
for a job to be done:
» Putting the right person on the job with the correct
tools and equipment.
» Having a standardized method of doing the job.
» Providing an economic incentive to the worker.

4
Source: Robbins, S.P., Coulter, M. (2009) Management 10th ed., Pearson Education, Inc., Upper Saddle
River, New Jersey
 Scientific Management

Frank and Lillian Gilbreth

• Focused on increasing worker productivity through
the reduction of wasted motion
• Bricklaying experiments
• Developed the microchronometer to time worker
motions and optimize work performance
• Used motion pictures
• Management psychology

Source: Robbins, S.P., Coulter, M. (2009) Management 10th ed., Pearson

5 Education, Inc., Upper Saddle
River, New Jersey
 Charts: Henry Gantt

Gantt Chart for Starting Construction on a New Headquarters

Source: Williams, C. (2011) MGMT, South Western, Cengage Learning

 Henry Fayol
• First introduced 5 management functions:
– Planning
– Organizing
– Commanding
– Coordinating
– Controlling
• Technical and administrative knowledge
• Top management – more administrative, less technical

• Developed fourteen principles of management

that applied to all organizational situations

7
Source: Robbins, S.P., Coulter, M. (2009) Management 10th ed., Pearson Education, Inc., Upper Saddle
River, New Jersey
 General Administrative Theory
Max Weber
• Developed a theory of authority based on an ideal
type of organization (bureaucracy)
• Emphasized rationality, predictability, impersonality,
technical competence, and authority
• Division of labour: pros and cons

8
Source: Robbins, S.P., Coulter, M. (2009) Management 10th ed., Pearson Education, Inc., Upper Saddle
River, New Jersey
 Human Relations
• People are the most important asset of an
organization
• People’s needs and relationships

– Mary Parker Follett

– Chester Barnard
– Elton Mayo

9
Source: Robbins, S.P., Coulter, M. (2009) Management 10th ed., Pearson Education, Inc., Upper Saddle River, New Jersey
 Mary Parker Follet

• Management is the art of getting things through

others
• Constructive conflict
• Integrative conflict resolution
• Authority flows from job knowledge and
experience rather than position
 The Hawthorne Studies
•A series of productivity experiments conducted at
Western Electric from 1924 to 1932 (lighting levels)

Productivity unexpectedly increased under imposed

adverse working conditions.
The effect of incentive plans was less than expected.
Social norms, group standards and attitudes influence
individual output and work behaviour more strongly than
do monetary incentives.

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Source: Robbins, S.P., Coulter, M. (2009) Management 10th ed., Pearson Education, Inc., Upper Saddle River, New Jersey
 Chester Barnard
• “The Functions of the Executive”
• The president of Bell Telephone
• Organization occurs whenever two people work together
for some purpose
• Cooperation depends on workers’ accepting manager’s
authority
• Zone of indifference
People will be indifferent to orders if they
– (1) are understood,
– (2) are consistent with the purpose of the organization,
– (3) are compatible with the people’s personal interests, and
– (4) can actually be carried out
 Operations Management
Operations management involves managing the daily
production of goods and services
• Quantitative or mathematical approach to find ways to
increase productivity, improve quality, and manage or reduce
costly inventories.
• Quality control, forecasting techniques, capacity planning, productivity
measurement and improvement, linear programming, scheduling systems,
inventory systems, work measurement techniques, project management,
and cost-benefit analysis.

Source: Williams, C. (2011) MGMT, South Western, Cengage Learning

13
 Information Management
• Proper and timely information – crucial for
business
• Gutenberg – printing press
• Manual typewriter
• Personal computers
• Management information systems
 Systems Management
• System: a set of interrelated and interdependent parts
arranged in a manner that produces a unified whole.
• Synergy 1+1═ 3
• Basic Types of Systems
o Closed systems - not influenced by and do not interact with their
environment (all system input and output is internal).
o Open systems - Dynamically interact to their environments by
taking in inputs and transforming them into outputs that are
distributed into their environments.

15
Source: Robbins, S.P., Coulter, M. (2009) Management 10th ed., Pearson Education, Inc., Upper Saddle
River, New Jersey
 Contemporary Approach
The Contingency Approach
• Also called the situational approach.
• There is no one universally applicable set of
management principles (rules) by which to manage
organizations. It all depends (if…then…)
• Organizations are individually different, face different
situations (contingency variables), and require
different ways of managing.

Source: Robbins, S.P., Coulter, M. (2009) Management 10th ed., Pearson

16 Education, Inc., Upper Saddle
River, New Jersey
 Literature
• Williams, C., (2012) MGMT 4, South Western
• Robbins, S.P., Coulter, M. (2009) Management 10th ed.,
Pearson Education, Inc., Upper Saddle River, New
Jersey