Chapter 2: History of Management
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find an alternative that meets the needs of both. In the case of the Mott’s factory, the company
wants to establish some costs control, while the employees reasonable salaries, benefits, and
2. Is the company justified in trying to cut costs even when it has made a huge profit? Are the
employees justified in not working to protest what they perceive as unfair cuts?
Students’ responses will vary. Likely, some will side with the company, reasoning that a
Practice Being a Manager
OBSERVING HISTORY TODAY
The topic of management history may sound like old news, but many of the issues and problems
addressed by Max Weber, Chester Barnard, and other management theorists still challenge managers
today. How can we structure an organization for maximum efficiency and just treatment of individuals?
What is the basis for, and limits to, authority in organizations? It is rather amazing that these thinkers of
Preparing in Advance for Class Discussion
Step 1: Find an observation point. Identify a place where you can unobtrusively observe a group of
people as they go about their work. You might select a coffee shop, bookstore, or restaurant.
Step 2: Settle in and observe. Go to your selected workplace and observe the people working there for at
least 20 minutes. You should take along something like a notebook or PDA so that you can jot down a
Step 3: Observe employees at work. Observe the process of work and the interaction among the
employees. Consider some of the following issues:
• Identify the steps that employees follow in completing a work cycle (for example, from taking an
order to delivering a product). Can you see improvements that might be made, particularly steps
Step 4: Consider what you saw. Immediately after your observation session, look through this chapter
on management history for connections to your observations. For example, do you see any signs of the
“Hawthorne effect”? Would Fredrick Taylor approve of the work process you observed, or might he have
Chapter 2: History of Management
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Chapter 2: History of Management
39
Class Discussion
Step 5: Share your findings as a class. Discuss the various points of connection you found between
pioneering management thinkers and your own observations of people at work. Are some of the issues of
management timeless? If so, what do you see as timeless issues of management? What are some ways in
which work and management have changed since the days of the management pioneers?
TEACHING NOTES – PRACTICE BEING A MANAGER
Exercise Overview and Objective
In this exercise, students will spend some time (20 minutes minimum) observing people at work. The
objective of this exercise is for students to see—in a live context—the problems and challenges that
interested management thinkers of the past. One of the most basic starting points for understanding the
continue to challenge management thinkers today.
Assign Step 1 at least one class session prior to the session in which you would like to complete this
exercise. You may want to allow more time, as the observation requires students to identify an
appropriate site and unobtrusively observe work there for at least 20 minutes. You may want to explain
“unobtrusive.” Students should be able to naturally observe the work at this site for at least 20 minutes
without drawing attention to themselves or otherwise changing the natural flow of work. Some good
examples are given in the instructions to Step 1:
These worksites are places where patrons commonly hang out and enjoy a latte or browse the
bookshelves. You may want to caution students not to attempt to spy on anyone and/or to misrepresent
themselves to a security guard, manager, etc. It is ethical to observe work/workers in public spaces but a
serious ethical violation to spy on workers in private spaces and/or to misrepresent one’s intentions.
In-Class Use
Class discussion should follow the submission of the papers. Some instructors prefer to read the papers
and discuss them in a subsequent session. Other instructors prefer to discuss the findings on the day the
papers are submitted. Either approach is fine here, so long as the time lag between student observations
and class discussion is kept to a minimum.
The class discussion may proceed in a linear fashion through the major sections of the chapter, with
discussion of connections to the student observations by section. Alternatively, you may want to lead a
non-linear discussion of students’ observations/connections. In either case, discussion should aim to:
Chapter 2: History of Management
40
Develop Your Career Potential
KNOW WHERE MANAGEMENT IS GOING
Purpose
This assignment is designed to encourage students to begin tracking management trends and theories on a
Organizing the Discussion
Students are given four tasks: finding a press article that discusses some of the topics covered in the book
(all chapters); writing a brief summary of that article; researching unfamiliar terms; situating the material
in the context of the history presented in Chapter 2 (if possible).
One way to use this activity in class starts by having each student give a single-sentence description
of his or her article and identify the periodical in which it was published and the date. Doing this, students
will be able to listen for recurring themes and think about them in a temporal fashion. Then, write or
project the table of contents on the board. Ask students to raise their hand when you call out a chapter to
which they think their article relates. Students may raise their hand more than once, depending on the
article they read. Alternatively, after students give their brief summaries, you can simply indicate which
chapters seem to be more frequently represented. Divide the students into groups based on the chapters to
which their articles most closely relate. In small groups, have each student share his or her brief summary
and how they think the subject of the article relates to the management theories presented in the chapter.
Ask each group to think about implications of the articles or conclusions they can draw about how their
topic is evolving in the real world. For example, if a group of students chose articles on teams and
teamwork, can it draw any conclusions about challenges (or lack thereof) companies seem to be facing
when implementing teams?
Another way to organize the discussion is to ask students about the connections they made between
Activities
1. Find a current article of substance in the business press (for example, the Wall Street Journal, the
Financial Times, Fortune, BusinessWeek, Inc.) that discusses topics covered in this course. Although
this is only Chapter 2, you will be surprised by the amount of terminology you have already learned.
Chapter 2: History of Management
41
2. Write a one-paragraph summary of the key points in your article. List the terms or concepts critical to
understanding the article, and provide definitions of those terms. If you are unfamiliar with a term or
Reel to Real – Biz Flix
Because they are so short, the Biz Flix videos are best used to supplement your lesson plans. They are
designed to illustrate the content rather than convey all of the chapter concepts.
Video: Casino
Segment Summary:
Martin Scorcese’s film Casino is a complex and beautifully photographed study of Las Vegas gambling
Discussion Questions from Text:
1. Do you think the casino owners make discipline (clearly defined rules and procedures) a high priority
in the way they run their business? Why?
Most students will agree that discipline is important for casino owners. The casino industry follows
2. Mary Parker Follett believed that managers could deal with conflict in three ways: domination,
compromise, and integration. Which of these is most likely employed by the casino management in
this film?
Due to the nature of the business, casino managers are most likely to use domination to deal with
3. How important is employee order (having a place for everyone and having everyone in their place) in
this clip?
Employee order is very important in the casino business based on this clip. Casino workers must
know who to watch, where to be, and how to handle conflict at all times. Without order, a casino
Chapter 2: History of Management
42
Additional Discussion Questions:
1. Which of Max Weber’s Elements of Bureaucratic Organizations are most prevalent in the casino
industry based on this video clip?
The four management elements that are most prevalent in this video are chain of command, division
of labor, recording in writing, and separating owners from managers. The film narrator gives a
2. Mary Parker Follett has identified control to mean “fact control rather than man–control”. How does
this statement apply in the casino industry?
Fact control rather than man control means that we can control information but not individual actions.
Reel to Real – Management Workplace
Management Workplace videos can support several in-class uses. In most cases you can build an entire
50-minute class around them. Alternatively, they can provide a springboard into a group lesson plan.
The Management Workplace video for Chapter 2 would be a nice companion to your introduction to the
course on the first day teaching this chapter.
Video: Barcelona Restaurant Group
The Evolution of Management Thinking
Summary:
Andy Pforzheimer is himself a renowned chef and the co-owner of Barcelona Restaurant Group, a
collection of seven wine and tapas bars in Connecticut and Atlanta, Georgia. When customers dine at any
Discussion Questions from Text:
1. What aspects of restaurant work are especially challenging to wait staff, and how does Barcelona’s
approach to management help employees overcome the downsides of the job?
In the video, Andy Pforzheimer identifies the challenging aspects of restaurant life: “It is work
sometimes to smile. It is work to have somebody yelling at you because they weren’t seated fast
Chapter 2: History of Management
43
2. What steps do the leaders of Barcelona Restaurant Group take to insure cooperation and acceptance
of authority from their employees?
Andy Pforzheimer says that he accepts other’s opinions, wants managers to communicate with him at
all times, and wants to hire people who are self-starting. He allows people in his company to use their
3. Would the management style of Barcelona Restaurant Group best be described as scientific
management or contingency management?
The leadership at Barcelona is looking for people who are comfortable taking ownership. The leaders
want people who can make their own decisions instead of having to be told how to do everything. In
Workplace Video Quiz
Video Segment 1
*Video segment title
Evolution of Management Thought
*Start time (in sec)
0:00
*Stop time (in sec)
4:44
*Quiz Question 1
The leaders of Barcelona Restaurant group believe that success
depends on employees who are self-starting, confident, willing, and
empowered. This ideas is most associated with:
*Option a
Scientific Management
*Option b
Gantt Charts
Option c
Constructive Conflict and Coordination
Option d
*Correct option
c: constructive conflict and coordination
of constructive conflict and coordination, a leader’s power should be
thought of as “with” rather than “over.” In her view, leadership
involves setting the tone for the team rather than being aggressive or
dominating.
*Feedback for option b
Incorrect. According to Mary Parker Follett, who pioneered the idea
Chapter 2: History of Management
44
of constructive conflict and coordination, a leader’s power should be
thought of as “with” rather than “over.” In her view, leadership
involves setting the tone for the team rather than being aggressive or
dominating.
Feedback for option d
Incorrect. According to Mary Parker Follett, who pioneered the idea
of constructive conflict and coordination, a leader’s power should be
thought of as “with” rather than “over.” In her view, leadership
involves setting the tone for the team rather than being aggressive or
dominating.
*Option a
Scientific management
*Option b
Systems perspective on management
Option c
Contingency perspective on management
Option d
Behavioral perspective on management
*Correct option
a: Scientific management
of different work methods to identify the most efficient way to do a
job.
*Feedback for option b
Incorrect. Scientific management involves thorough study and
testing of different work methods to identify the most efficient way
to do a job.
Feedback for option c
Incorrect. Scientific management involves thorough study and
testing of different work methods to identify the most efficient way
to do a job.
Feedback for option d
Incorrect. Scientific management involves thorough study and
testing of different work methods to identify the most efficient way
to do a job.
Option a
Classical and universalist perspectives on management
Option b
Systems perspective on management
Option c
Contingency perspective on management
Option d
Behavioral perspective on management
Correct option
c: Contingency perspective on management
Feedback for option c
Correct. According to Mary Parker Follett, who pioneered the idea
thought of as “with” rather than “over.” In her view, leadership
involves setting the tone for the team rather than being aggressive or
dominating.
Chapter 2: History of Management
45
Feedback for option c
Correct. The contingency approach to management holds that there
Video Segment 2
*Video segment title
Evolution of Management Thought
*Start time (in sec)
4:45
*Stop time (in sec)
6:50
*Quiz Question 1
When Barcelona owner Andy Pforzheimer rejects management
philosophies that stress employee social relations and employee
happiness, he is refuting ideas championed by:
*Option a
The human relations movement
*Option b
Scientific management
Option c
Option d
Total quality management
*Correct option
a: The human relations movement
*Feedback for option a
Correct. Human relations management focuses on people and the
psychological and social aspects of work.
*Feedback for option b
Incorrect. Human relations management focuses on people and the
psychological and social aspects of work.
Feedback for option c
Incorrect. Human relations management focuses on people and the
psychological and social aspects of work.
Feedback for option d
Incorrect. Human relations management focuses on people and the
psychological and social aspects of work.
*Option a
Performing satisfying tasks
*Option b
Serving customers well
Option c
Being empowered by leaders
Option d
Earning financial rewards
*Correct option
d: Earning financial rewards
*Feedback for option a
Incorrect. As Lawton states, there are better ways to make money
than to be in the restaurant business.
*Feedback for option b
Incorrect. As Lawton states, there are better ways to make money
than to be in the restaurant business.
Feedback for option c
Incorrect. As Lawton states, there are better ways to make money
than to be in the restaurant business.
Feedback for option d
Correct. As Lawton states, there are better ways to make money than
to be in the restaurant business.
Option a
Option b
Chapter 2: History of Management
46
Option c
Theory X
Option d
Fayol’s principles of management
Correct option
b: contingency management
Review Questions
1. Why do modern companies need managers?
Different from cottage industries and craftsmen, modern companies employ thousands of workers
2. How are historical management ideas and practices related to the topics you will study in this
textbook?
Each management theorist presented in Chapter 2 has left his or her imprint on modern management
study. Therefore, throughout this book, you will experience the extensions of many of their theories.
3. Explain the contributions of Taylor, the Gilbreths, and Gantt to the theory of scientific management.
In contrast to “seat-of-the-pants” management, scientific management recommended studying and
testing different work methods to identify the best, most efficient ways to complete a job. According
to Frederick W. Taylor, the father of scientific management, managers should follow four scientific
management principles. First, study each element of work to determine the “one best way” to do it.
Chapter 2: History of Management
47
4. Compare bureaucratic and administrative management.
German sociologist Max Weber is credited with the development of bureaucracy and bureaucratic
management theories. That is, running organizations on the basis of knowledge, fairness, and logical
rules and procedures rather than on the basis of nepotism, the prospects for personal gain, and
5. Explain the principles of Mary Parker Follett’s human resource management.
Unlike most people who view conflict as bad, Mary Parker Follett, the mother of modern
management, believed that conflict could be a good thing, that it should be embraced and not avoided,
6. What lessons did we learn from the Hawthorne studies? Summaries Barnard’s contributions on
cooperation and acceptance of authority.
The Hawthorne Studies conducted at the Western Electric Company occurred in two stages. In the
first stage of the Hawthorne Studies, production went up because the amount and quality of attention
Chapter 2: History of Management
48
7. Discuss the contributions of Whitney and Monge to operations management.
Operations management uses a quantitative or mathematical approach to find ways to increase
8. How do companies use systems management to make sense of organizational and environmental
complexity?
Organizational systems obtain inputs from the general and specific environments. Rather than
viewing one part of an organization as separate from the other parts, a systems approach encourages
9. Identify the major milestones in the history of managing information.
Historically, some of the most important technologies that have revolutionized information
10. Explain contingency management.
The contingency approach to management precisely states that there are no universal management
theories. The most effective management theory or idea depends on the kinds of problems or
Additional Assignments and Activities
“Management Who’s Who.” Many business college students are no doubt aware that business colleges
are named after historical figures. Chapter 2 situated Joseph Wharton (University of Pennsylvania) and
Alfred Sloan (Massachusetts Institute of Technology), but who was Amos Tuck (Dartmouth), M. J.
Neeley (Texas Christian), Max M. Fisher (Ohio State) or McDonough (Georgetown) or Cox (Southern
“Explore Project Management Software.” Go to the Web site for Microsoft Project at
“Bureaucratic Management.” The word “bureaucracy” conjures up a host of word associations, and
some have interesting histories. Use the Internet to find the origins of the following terms: red tape, Peter
principle, Parkinson’s Law. Do any of them relate to management, or are they all sociological in nature?
“Cheaper by the Dozen.” Go to the library and check out Cheaper by the Dozen, written by Frank
Gilbreth, Jr. and his sister Ernestine Gilbreth Carey about their parents, specifically their father Frank