978-0134237473 Module HISTORY MODULE

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History Module – A Brief History of Management’s Roots

HISTORY

MODULE

A BRIEF HISTORY

MANAGEMENT’S

ROOTS

Since the birth of modern management theory in the early 1900s, management experts

have developed theories to help organizations and their managers coordinate and oversee

work activities as effectively and efficiently as possible. In presenting the history of

modern management, this module explores the evolution of management thought and

practice during the twentieth century.

EARLY MANAGEMENT

3000-2500 B.C.E. The Egyptian pyramids were projects of tremendous scope and

magnitude, requiring the efforts of tens of thousands of people. How was

it possible for these projects to be completed successfully? The answer is

management. Regardless of the titles given to managers throughout

history, someone has always had to plan what needs to be accomplished,

organize people and materials, lead and direct workers, and impose

controls to ensure that goals were attained as planned.

1400s Examples of early management practices can also be seen by studying the

arsenal of Venice. Assembly lines, accounting systems, and personnel

functions are only a few of the processes and activities used in business

in the fifteenth century that are common to today’s organizations as well.

1776 Adam Smith, author of the classical economics doctrine The Wealth of Nations, argued

brilliantly for the economic advantages that he believed division of labor

(the breakdown of jobs into narrow, repetitive tasks) would bring to

organizations and society.

1780s-mid-1800s The Industrial Revolution is possibly the most important

pre-twentieth-century influence on management. The introduction of

machine powers combined with the division of labor made large, efficient

factories possible. Planning, organizing, leading, and controlling became

necessary activities.

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History Module – A Brief History of Management’s Roots

CLASSICAL APPROACHES

1911 Scientific management is defined as the use of the scientific method to determine the

“one best way” for a job to be done. Frederick W. Taylor is known as the

“father” of scientific management. Frank and Lillian Gilbreth were

inspired by Taylor’s work and proceeded to study and develop their own

methods of scientific management and Henry Gantt’s ideas on scheduling

charts became the foundation of modern project management.

1916-1947 Henri Fayol looked at organizational practices by focusing on what

constituted good management, an approach known as general

administrative theory. Fayol also focused on activities common to all

managers. He stated 14 principles of management (fundamental or

universal truths of management that can be taught in schools; see Exhibit

HM-1). Max Weber is known for his description and analysis of

bureaucracy.

BEHAVIORAL APPROACH

Early 1700s-1900s Robert Owen, Hugo Munsterberg, and Mary Parker Follett were early

advocates of the OB approach. Their ideas served as the foundation for

employee selection procedures, motivation programs, work teams, and

organization environment management techniques.

1924-Mid-1930s The Hawthorne Studies were 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. After Harvard

professor Elton Mayo and his associates joined the study as consultants,

other experiments were included to look at redesigning jobs, make

changes in workday and workweek length, introduce rest periods, and

introduce individual versus group wage plans. The researchers concluded

that social norms or group standards were key determinants of individual

work behavior. Although not without criticism (concerning procedures,

analyses of findings, and the conclusions), the Hawthorne Studies

stimulated interest in human behavior in organizational settings.

1930s-1950s The human relations movement assisted managers in designing jobs that

motivate workers, in working with employee teams, and in facilitating

the flow of communication within organizations. Included in this

movement were Abraham Maslow, best known for his hierarchy of needs

and Douglas McGregory and his conceptualization of Theory X and

Theory Y managers.

1960s-Today An organization’s people continue to be an important factor of

management research. The field of study that researches the actions of

people at work is called organizational behavior (OB). Much of what

managers do today when managing people—motivating, leading, building

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History Module – A Brief History of Management’s Roots

trust, working with a team, managing conflict, and so forth—has come

out of OB research.

QUANTITATIVE APPROACH

1940s The quantitative approach to management uses quantitative techniques

to improve decision making. This approach includes applications of

statistics, optimization models, information models, and computer

simulations. The quantitative approach originated during World War II as

mathematical and statistical solutions to military problems were

developed for wartime use. As often happens after wartime, methods that

were developed during World War II to conduct military affairs were

applied to private industry following the war. For instance, a group of

military officers—the Whiz Kids—used quantitative methods to improve

decision making at Ford Motor Company in the mid-1940s.

1950s Total Quality management is a philosophy of management that is driven

by continual improvement and response to customer needs and

expectations. TQM was inspired by a small group of quality experts,

including W. Edwards Deming, who was one of its chief proponents.

TQM represents a counterpoint to earlier management theorists who

believed that low costs were the only road to increased productivity.

CONTEMPOARY APPROACHES

1960s Systems Theory. During the 1960s, researchers began to analyze

organizations from a systems perspective based on the physical sciences.

A system is a set of interrelated and interdependent parts arranged in a

manner that produces a unified whole. The two basic types of systems are

closed and open. An open system interacts with its environment (see

Exhibit MH-2).

1960s The Contingency Approach. The contingency approach recognizes

that different organizations require different ways of managing. The

contingency approach to management is a view that the organization

recognizes and responds to situational variables as they arise.

1980s – Present The next approach to management does not have a name (yet), but

technology and information are the obvious drivers for management

change today. From wired to wireless, the impact of computing resources

have changed how managers and employees relate to each other and to

the organization.

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