Taylor

1. C H A P T E R 2
THE HISTORY OF
MANAGEMENT MGMT

2. MANAGEMENT IDEAS AND PRACTICES
THROUGHOUT HISTORY
Source: C. S. George, Jr., The History of Management Thought (Englewood Cliffs, NJ: Prentice Hall, 1972).

3. MANAGEMENT IDEAS AND PRACTICES
THROUGHOUT HISTORY
Source: C. S. George, Jr., The History of Management Thought (Englewood Cliffs, NJ: Prentice Hall, 1972).

4. 4
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

5. 5
SCIENTIFIC MANAGEMENT
Scientific Management - thoroughly studying and
testing different work methods
Identifies the best, most efficient way to complete a job
Frederick W. Taylor - Father of scientific
management
Developed four principles of scientific management
Introduced the time study
Time study: Time taken by good workers to complete each part of
their jobs

6. TAYLOR’S FOUR PRINCIPLES OF
SCIENTIFIC MANAGEMENT

7. 7
SCIENTIFIC MANAGEMENT
Frank and Lillian Gilbreth
Employed motion study to simplify work and improve productivity
Motion study: Breaking each task or job into its separate motions and
then eliminating those that are unnecessary or repetitive
Typically yielded production increases of 25 to 300 percent.
Additionally: impact regarding employment of disabled workers and
Lillian impact on work place safety, ergonomics, and child labor
Henry Gantt - Developed Gantt chart
Gantt chart: Indicates what tasks must be completed at which
times in order to complete a project

8. 8
BUREAUCRATIC MANAGEMENT
Max Weber - Proposed the idea of bureaucracy
Bureaucracy: Exercise of control on the basis of knowledge,
expertise, or experience, rather than favoritism/birthright
Characterized elements of bureaucracies
 Qualification based hiring
 Merit-based promotion
 Chain of command
 Division of labor
 Impartial application of rules and procedures
 Records in writing
 Managers separate from owners
Helped improve organizational functioning
 Fairness replaced favoritism
 Goal of efficiency replaced goal of personal gain
 Logical rules replaced arbitrary decision making

9. ELEMENTS OF BUREAUCRATIC
ORGANIZATIONS

10. PRINCIPLES OF MANAGEMENT BY
HENRY FAYOL
Division of work
Authority and
responsibility
Discipline
Unity of command
Unity of direction
Subordination of
individual interests to the
general interests
Remuneration
Centralization
Scalar chain
Order
Equity
Stability of tenure of
personnel
Initiative
Esprit de corps

11. 11
C.C. SPAULDING
Link to eBook

12. 12
HUMAN RELATIONS MANAGEMENT
Mary Parker Follett
Developed the approach of integrative conflict resolution
Integrative conflict resolution: Approach to deal with conflict in
which both parties indicate their preferences
 Find an alternative that meets the needs of both parties
Elton Mayo
Played a significant role in Hawthorne Studies
Helped understand the effect of group interactions, employee
satisfaction, and group dynamics on individual and group
performance

13. 13
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.

14. 14
HUMAN RELATIONS MANAGEMENT
Chester Barnard
Proposed a comprehensive theory of cooperation in formal
organizations
Organization: System of consciously coordinated activities or forces
created by two or more people
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.

15. 15
OPERATIONS MANAGEMENT
Uses quantitative methods to find ways to:
Increase productivity
Improve quality
Manage or reduce costly inventories
Methods
Quality control, forecasting, capacity planning, linear
programming, scheduling and inventory systems, project
management, and cost-benefit analysis

16. 16
OPERATIONS MANAGEMENT
Eli Whitney - Private gun contractor
Introduced the concept of manufacturing using standardized,
interchangeable parts
Gaspard Monge
Explained techniques for drawing three-dimensional objects on
paper
Oldsmobile Motor Work
Invented just-in-time inventory systems

17. 17
INFORMATION MANAGEMENT
Paper and printing press revolutionized the business
use of information
Typewriters and personal computers enabled easier and
faster production of business correspondence
Telegraph, telephone, and Internet increased access to
timely information

18. 18
SYSTEMS MANAGEMENT
System: Set of interrelated elements or parts that
function as a whole
Subsystems: Smaller systems that operate within the context of a
larger system
Synergy: Occurs when subsystems can produce more
than they can working apart
Types of systems
Closed systems: Sustain themselves without interacting with
their environments
Open systems: Sustain themselves only by interacting with their
environments

19. 19
CONTINGENCY MANAGEMENT
Contingency approach
Holds that there are no universal management theories
Effective management theory depends on the kinds of problems that
managers are facing at a particular time and place
Practical implications
Management is harder than it looks
Managers must lookout for key contingencies that differentiate today’s
situation from yesterday’s

20. 20
SUMMARY
Scientific management
Frederick W. Taylor - Time study
Frank and Lillian Gilbreth - Motion study
Henry Gantt - Gantt chart
Bureaucratic management
Max Weber - Proposed the idea of bureaucracy
Human relations management
Mary Parker Follett - Integrative conflict resolution
Elton Mayo - Hawthorne Studies
Chester Barnard - Comprehensive theory of cooperation

21. 21
SUMMARY
Operations management
Eli Whitney - Manufacturing using standardized, interchangeable
parts
Gaspard Monge - Techniques for drawing three-dimensional
objects on paper
Oldsmobile Motor Work - Invented just-in-time inventory systems

22. 22
SUMMARY
Information management
Paper and printing press revolutionized the business use of
information
Systems management
System is a set of interrelated elements or parts that function as a
whole
Synergy occurs when subsystems produce more than they can
working apart
Contingency management
Holds that there are no universal management theories

23. KEY TERMS
Scientific management
Soldiering
Rate buster
Motion study
Time study
Gantt chart
Bureaucracy
Integrative conflict
resolution
Organization
System
Subsystems
Synergy
Closed systems
Open systems
Contingency approach

24. 24
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. MGMT9 | CH2