History of mgt compiled

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“Understanding the historical context of
management provides a sense of heritage and
can help managers avoid the mistakes of
others.”
Ricky W. Griffin
Author of Management
Texas A & M University

Influences Having an Impact on
Organizations & Management
• Social Forces … values, needs, and standards
of behavior
• Political Forces … influence of political and
legal institutions on people & organizations
• Economic Forces … forces that affect the
availability, production, & distribution of a
society’s resources

Management in Antiquity
3000 B.C. 2500 B.C.
A Sumerians F Chinese
B Egyptians
C Babylonians
D Greeks
G Venetians
E Romans
2000 B.C. 1500 B.C. 1000 B.C. 500 B.C. A.D.1500A.D.500 A.D.1000
A Used written rules and regulations for governance
B Used management practices to construct pyramids
C Used extensive set of laws and policies for governance
D Used different governing systems for cities and state
E Used organized structure for communication and control
F Used extensive organization structure for government
agencies and the arts
G Used organization design and planning concepts to
control the seas
Figure 2.1

Management Perspectives
Over Time
1930
Humanistic Perspective
1990
1890
Classical
1940
1950
2000
Systems Theory
2000
2010
The Technology-Driven Workplace
1990
2010
The Learning Organization
1970
Contingency Views
2000
1980
Total Quality Management
2000
1940
Management Science Perspective
1990

Classical Perspective
Three Sub-Fields
Scientific
Bureaucratic Organizations
Administrative Principles

Scientific Management
• Frederick Taylor
– System for placing order into production process
– Study people like machines
– Find the simplest & best way
– Train the people

Example – Bethlehem Steel
• Studies the layout of the plant
• Studies activities of workers
• Specifically looks at loading & unloading of steel

Findings
• Productivity increased
• Incentive pay was a factor
• Jobs simplified
• People were trained

Steps in Scientific Management
Develop a science
for each element of
the job to replace old
rule-of-thumb methods
Scientifically select
employees and then
train them to do the job
as described in step 1
Supervise employees
to make sure they
follow the prescribed
methods for performing
their jobs
Continue to plan
the work, but use
workers to get the
work done
21 43
Figure 2.2

Characteristics of Scientific Management
General Approach
• Developed standard method for performing each job.
• Selected workers with appropriate abilities for each job.
• Trained workers in standard method.
• Supported workers by planning work and eliminating interruptions.
• Provided wage incentives to workers for increased output.
Contributions
• Demonstrated the importance of compensation for performance.
• Initiated the careful study of tasks and jobs.
• Demonstrated the importance of personnel and their training.
Criticisms
• Did not appreciate social context of work and higher needs of
workers.
• Did not acknowledge variance among individuals.
• Tended to regard workers as uninformed and ignored their ideas.

Bureaucracy Organizations
• Labor is divided with clear definitions of authority
and responsibility.
• Positions are in hierarchy of authority.
• Personnel are selected and promoted based on
qualifications.
• Management is separate from the ownership.
• Rules and procedures ensure reliable, & predictable
behavior.
• Rules are impersonal and uniformly applied.
SOURCE: Adapted from Max Weber, The Theory of Social and Economic Organizations, ed. and trans. A.M. Henderson and Talcott Parsons (New York: Free Press, 1947), 328-337.

Bureaucratic Theory
• Max Weber – modeled after German government
• 6 principles
– Jurisdictional areas
– Hierarchy & levels of authority
– Official documents
– Thorough & expert training
– Requires full time work
– Management follows the rules

Implications of a bureaucracy
• Rules insure fairness
• Bad image
• Speed & motivation problems

Weber was misunderstood
• He really believed that a rational organization would
(and should) reward competence.

Administrative principles - Mary Parker
Follett
• Employee ownership leads to collective responsibility
• Business problems must be viewed in relationship to
other problems
• Profits should be considered in the context of the
public good

Henri Fayol
• Administrative management
• Identified mgt. Functions
– Planning
– Organizing
– Leading
– Controlling

Henri Fayol’s 14 Points
 Division of labor
 Authority
 Discipline
 Unity of command
 Unity of direction
 Subordination of
individual interest
 Remuneration
 Division of labor
 Authority
 Discipline
 Unity of command
 Unity of direction
 Subordination of
individual interest
 Remuneration
 Centralization
 Scalar chain
 Order
 Equity
 Stability and tenure of
staff
 Initiative
 Esprit de corps
 Centralization
 Scalar chain
 Order
 Equity
 Stability and tenure of
staff
 Initiative
 Esprit de corps

Hawthorne Studies
• Elton Mayo
• 1927 – 1932
• Hawthorne plant of West. Elec.
• Productivity Experiment

Illumination Studies
• Vary light in the room
• Control vs. experiment group
• What happened to productivity?
• What does that mean?

Hawthorne
Studies
• Ten year study
• Four experimental &
three control groups
• Five different tests
• Test pointed to factors other than illumination for
productivity
• 1st Relay Assembly Test Room experiment, was
controversial, test lasted 6 years
• Interpretation, money not cause of increased output
• Factor that increased output, Human Relations

Hawthorne is now considered to be the
beginning of the “humanistic
approach” or human relations.

Maslow’s Hierarchy of Needs
• Physiological
• Safety
• Social
• Esteem
• Self-actualization

Physiological
Safety
Belonging
Esteem
Self-actualization
Abraham Maslow’s Hierarchy
Based on needs satisfaction
Organizational Examples
Challenging Job
Job Title
Friends
Retirement Plan
Wages
General Examples
Self-fulfillment
Status
Friendship
Stability
Shelter

2 Others You Should Know
• McGregor’s Theory X & Theory Y
• Argyris’s Theory of Adult Personality

• People are lazy
• People lack ambition
• Dislike responsibility
• People are self-centered
• People don’t like change
• People are energetic
• People want to make
contributions
• People do have ambition
• People will seek
responsibility
Douglas McGregor
Theory X & Y
Theory X Theory Y

Now There is Theory Z
• Based on the Japanese model of management
• Long-term employment
• Career planning & development
• Teamwork
• Two-way loyalty
• Consensus decision making

Behavioral Sciences Approach
• Develops theories about human behavior based on
scientific methods & study
• Sub-field of the Humanistic Perspective
• Applies social science in an organizational context
• In understanding employees draws from
economics, psychology, sociology

Management Science Perspective
• Emerged after WW II
• Distinguished for its application of mathematics,
statistics to problem solving
Operations Research emerged
Operations Management emerged
Information Technology

Three Contemporary Trends
 Systems Theory
 Contingency View
 Total Quality
Management (TQM) Managers need certain core skills and
basic understanding of management and
leadership if they plan to operate within
a TQM System. This site has several
core modules.

Systems Theory Principles
• Define company as a system
• Establish objectives
• Identify wider systems
• Create formal subsystems
• Integrate subsystems with the whole

The Systems Perspective of Organizations
Inputs from the
environment:
material inputs,
human inputs,
financial inputs, and
information inputs
Transformation
process: technology,
operating systems,
administrative
systems, and
control systems
Outputs into
the environment:
products/services,
profits/losses,
employee behaviors,
and information
outputs
Feedback
Figure 2.3

Systems View

Contingency Theory
• Fred Fielder
• Believed in Situational Leadership
• No single approach is best
• The best is contingent upon the situation

Contingency View

Quantitative Approaches
• Management science or operations management
• If a problem exists or a decision is to be made use:
– Linear Programming
– Modeling
– Simulation
– Forecasting

Learning Organization
“An organization skilled at creating, acquiring, and
transferring knowledge, and at modifying its behavior
to reflect new knowledge and insights.”

Elements of a Learning Organization
Learning
Organization
Open
Information
Empowered
Employees
Team-Based
Structure

Features:
Examine & challenge scared cows
Structures designed for testing
Potentially negative messages – don’t shoot the messenger
Exhibit new capabilities
Is your knowledge qualitatively different – “value added”
Is knowledge accessible – knowledge is power

An Integrative Framework of
Management Perspectives
Systems Approach
• Recognition of internal
interdependencies
• Recognition of
environmental influences
Contingency Perspective
• Recognition of the situational
nature of management
• Response to particular
characteristics of situation
Classical
Management
Perspectives
Methods for
enhancing
efficiency and
facilitating planning,
organizing, and
controlling
Behavioral
Management
Perspectives
Insights for moti-
vating performance
and understanding
individual behavior,
groups and teams,
and leadership
Quantitative
Management
Perspectives
Techniques for
improving decision
making, resource
allocation, and
operations
Effective and efficient management
Figure 2.4

Types of E-Commerce
Business-to-Consumer
B2C
Selling Products and
Services Online
Business-to-Business
B2B
Transactions
Between
Organizations
Consumer-to-Consumer
C2C
Electronic Markets
Created by Web-Based
Intermediaries

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