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Chapter 3
History of
Management
AFTER READING THIS CHAPTER, YOU
SHOULD BE ABLE TO ANSWER THESE
QUESTIONS:
1. Describe management in the ancient world.
2. How did the Industrial Revolution affect the progression of
management theory?
3. How did Frederick Winslow Taylor influence management
theory, and how did efficiency in management affect current
management theory?
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AFTER READING THIS CHAPTER, YOU
SHOULD BE ABLE TO ANSWER THESE
QUESTIONS:
5. How do bureaucratic and administrative management
complement scientific management?
6. How did Elton Mayo influence management theory, and how
did the human relations movement affect current
management theory?
7. How did contingency and systems management transform
management thought?
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3.1. THE EARLY ORIGINS OF MANAGEMENT
Management practices date back thousands of years, evolving
through the needs of agriculture, construction, and trade.
Early management was focused on coordinating labor,
resources, and logistics to achieve complex goals.
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3.2. INDUSTRIAL REVOLUTION
• Steam Engine
• improve the transportation of goods and raw materials
• lowered production and transportation costs lowering prices and allowing products
to reach more distant markets
• The Industrial Revolution
• saw the emergence of the modern corporation, in which work, was specialized and
coordinated by managers
• work shift from family-led home production to factory production
• small factories transformed into larger ones
• shifted from England across the globe and eventually found its way into the U.S.
3.4. TAYLOR-MADE MANAGEMENT
• Frederick Winslow Taylor (1856–1915)
• the father of scientific management
• coined the term soldiering
• contributed to the use and synthesis of management by pioneering the use of time
studies, division of labor based on function, cost-control systems, written instruction
for workers, planning, and standardized equipment
• Taylorism is still the basis of modern management, including the use of incentive
• stressed the idea of differential piecework
• if workers produced more than a certain amount, they would be paid more
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3.3. TAYLOR-MADE MANAGEMENT
• the concept of first-class work
• physically and mentally capable of doing
• based not on physical strain or bursts of activity, but on what a worker could
realistically be expected to do.
• developed a task management system
• function within a discrete area of activities
• also developed a cost-accounting method (an integral part of daily planning
and control)
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3.3. TAYLOR-MADE MANAGEMENT
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3.3. TAYLOR-MADE MANAGEMENT
• Taylor’s Acolytes
• Carl G. Barth (1860–1939)
• two notable contributions:
(1) employee fatigue
(2) the slide rule for calculating how much steel to cut
• Henry Gantt (1861–1919),
• The Gantt chart
• Exhibit 3.4 (next slide)
• Taylor’s Shortcomings
• Taylor’s ideas were poorly understood, and attracted more enemies than followers
• made several mistakes (e.g. ignore the human aspects of handling workers )
• Taylor was certainly a flawed individual, but these criticisms do not diminish his great
contributions
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3.3. TAYLOR-MADE MANAGEMENT
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3.4. ADMINISTRATIVE AND
BUREAUCRATIC MANAGEMENT
• Henri Fayol (1841–1925)
Three principal ideas about management:
(1) stressed the need for unity of command - company’s management should speak with
only voice
(2) recognize: workers focused on the social aspects of their jobs as well as on the
monetary compensation they received for doing the job
(3) emphasis on the notion of justice within an organization
- organization must decide issues fairly and equitably
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3.4. ADMINISTRATIVE AND
BUREAUCRATIC MANAGEMENT
• Fayol’s 14 Principles of Management :
(1) Division of Work ; (2) Authority; (3) Discipline; (4) Unity of Command;
(5) Unity of Direction; (6) Subordination of Individual Interest; (7) Remuneration;
(8) Centralization; (9) Scalar Chain; (10) Order; (11) Equity; (12) Stability of Tenure of
Personnel; (13) Initiative - Employees should be given the necessary level of freedom to
create and carry out plans; (14) Esprit de Corps
• Fayol’s five functions of management:
(1) Planning; (2) Organizing;
(3) Staffing; (4) Controlling; (5) Directing
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3.4. ADMINISTRATIVE AND
BUREAUCRATIC MANAGEMENT
• Max Weber (1864–1920)
• Principles of the Ideal Bureaucracy:
• Specialized roles
• Recruitment based on merit
• Uniform principles of placement, promotion, and transfer
• Careerism with systematic salary structure
• Hierarchy, responsibility, and accountability
• Subjection of official conduct to strict rules of discipline and control
• Supremacy of abstract rules
• Impersonal authority (i.e., office bearer does not bring the office with him)
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3.5. HUMAN RELATIONS MOVEMENT
• The human relations movement
• natural response to some of the issues related to scientific management and the
under-socialized view of the worker that ignored social aspects of work
• enhanced scientific management
• peoples’ attitudes, perceptions, and desires play a role in their workplace
performance
• Human relations theory
• social factors were a source of power in the workplace
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3.5. HUMAN RELATIONS MOVEMENT
• Elton Mayo and the Hawthorne Studies
• Who: Elton Mayo, Australian psychologist
• Keys Contribution: Pioneer of the Human Relations Movement
• Hawthorne studies:
• Objective: Investigated the impact of working conditions on productivity.
• Findings: Productivity increased due to the attention given to workers (Hawthorne Effect).
• Insight: Social interactions and relationships significantly influence employee performance.
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3.5. HUMAN RELATIONS MOVEMENT
Human Relations Theory
•Core Idea: Employee motivation stems from social factors, not just financial
rewards.
•Key Components:
•Focus on employee attitudes, perceptions, and well-being.
•Importance of supportive work environments and teamwork.
•Impact: Shifted management focus from purely mechanical efficiency to a
human-centered approach, influencing modern HR practices.
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3.5. HUMAN RELATIONS MOVEMENT
• Barnard and the “Zone of Indifference”
Chester Barnard (1886–1961)
• book called The Functions of the Executive
• executive’s purpose: to gain resources from members within the organization; to hire
and retain talented employees
• executives best exerted authority through communication and the use of incentives
• zone of indifference
• workers will comply with orders if they are indifferent to them
• Require: (1) the workers must have the ability to comply with the order; (2) workers
must understand the order; (3) the order must be consistent with organizational
goals
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3.5. HUMAN RELATIONS MOVEMENT
• Follett and Conflict Resolution
Mary Parker Follett (1868–1933)
• Use the tenets of the human relations movement to solve some of the problems with
the scientific management framework
• Several ways to resolve conflicts:
(1) dominance
(2) compromise
( 3)integration
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3.6. CONTINGENCY AND
SYSTEM MANAGEMENT
• The 1950s and 1960s
• 1st school: systems school
Major purpose: to understand the external conditions that organizations face and
how to handle these conditions
open system: a system that interacts with its environment
• 2nd school: contingency school
Propose: there are no universal rules in management
External and internal factors create unique situations, and each situation requires
a different response. What is the most appropriate response in one situation may
not work in another
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EVOLUTION OF MANAGEMENT
THEORIES (1970S TO PRESENT)
•Integration of Management Schools: From the 1970s, various management
theories have interwoven, enriching the discipline.
•Theory in Management: Contrary to common perceptions, theories provide
predictions and explanations, guiding practical applications.
•Influential Models: The Hackman and Oldham model of job design (1975)
exemplifies the foundational concepts developed during this period.
•Interdisciplinary Contributions: Management has benefited from insights in
economics, psychology, and sociology over the past 40 years.
•Evidence-Based Management: Scholars like Jeffrey Pfeffer advocate for
practices backed by rigorous research, reminiscent of Taylor’s science-based
management approach, aiming to improve management effectiveness by
eliminating ineffective techniques.
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3.6. CONTINGENCY AND
SYSTEM MANAGEMENT
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CHAPTER REVIEW QUESTIONS
1. What contributions did ancient civilizations make to management
thought?
2. Describe the role of the Renaissance in shaping management thought.
3. How did the Industrial Revolution change business and the economy?
4. Describe scientific management. How was scientific management
different from management techniques that came before it?
5. Who were the key contributors to scientific management?
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CHAPTER REVIEW QUESTIONS
6. Describe the Hawthorne studies. Was Elton Mayo a humanist?
7. What is the zone of indifference?
8. Describe Follett’s concept of conflict resolution.
9. What does open systems say about management?
10. What is contingency management?
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MANAGEMENT SKILLS APPLICATION EXERCISES
1. Which management scholar do you find to be the most influential and
important, and how would you incorporate their approach into your
managerial approach?
2. Based on the reading in this chapter, defend or attack this statement that
would be stated by a direct report:
Management is unethical because it is about manipulating workers.
3. Which management scholar matches your viewpoints on the role of
management?
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Thank you!
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