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Two
Management Yesterday and Today
1. HISTORICAL BACKGROUND OF MANAGEMENT.
There are many examples from past history that illustrate how management has been
practiced for thousands of years.
The Egyptian pyramids and the Great Wall of China are good examples of
projects of tremendous scope and magnitude that employed tens of thousands of
people. How was it possible for these projects to be completed? The answer is
management. Regardless of what managers were called at the time, someone
had to plan what was to be done, organize people and material, lead and direct
the workers, and impose controls to ensure that things were done as planned.
Other examples of early management practices can be seen at the Arsenal of
Venice. For instance, assembly lines, accounting systems, and personnel
functions are just a few of the processes and activities in organizations at that
time that are also common to today’s organizations. Organizations and managers
have been around for thousands of years.
Adam Smith, author of the classical economics doctrine, The Wealth of
Nations, argued brilliantly about the economic advantages that division of labor
(the breakdown of jobs into narrow, repetitive tasks) would bring to
organizations and society.
The Industrial Revolution can be thought of as 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.
Exhibit 2.1 presents six major approaches to management.
2. SCIENTIFIC MANAGEMENT.
Scientific management is defined as the use of the scientific method to define the
“one best way” for a job to be done.
A. Important Contributions
Frederick W. Taylor is known as the “father” of scientific management.
Taylor’s work at the Midvale and Bethlehem Steel companies motivated
his interest in improving efficiency.
a. Taylor sought to create a mental revolution among both
workers and managers by defining clear guidelines for
improving production efficiency. He defined four
principles of management (Exhibit 2.2).
b. His “pig iron” experiment is probably the most widely
cited example of scientific management.
c. Using his principles of scientific management, Taylor
was able to define the one best way for doing each job.
d. Overall, Taylor achieved consistent improvements in
productivity in the range of 200 percent. He affirmed the
role of managers to plan and control and of workers to
perform as they were instructed.
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2. Frank and Lillian Gilbreth were inspired by Taylor’s work and
went on to study and develop their own methods of scientific
management.
a. Frank Gilbreth is probably best known for his
experiments in reducing the number of motions in
bricklaying.
b. The Gilbreths were among the first to use motion picture
films to study hand and body motions in order to
eliminate the wasteful ones.
c. They also devised a classification scheme to label 17
basic hand motions called therbligs.
B.
How Do Today’s Managers Use Scientific Management?
The guidelines that Taylor and others devised from improving
production efficiency are still used in organizations today. Current
management practice isn’t restricted to scientific management, however.
Some elements still used include:
1. The use of time and motion studies.
2. Best qualified workers.
3. Design incentive systems based on output.
3.
GENERAL ADMINISTRATIVE THEORISTS.
This group of writers focused on the entire organization. They’re important for
developing more general theories of what managers do and what constitutes
good management practice.
A. The two most prominent theorists behind the general administrative approach
were Henri Fayol and Max Weber.
1. Henri Fayol wrote during the same time period as Frederick Taylor.
Fayol was the managing director of a large French coal-mining
firm.
a. His attention was aimed at the activities of all managers.
b. He described the practice of management as distinct
from other typical business functions.
c. He stated 14 principles of management (fundamental or universal truths of
management that can be taught in schools). (See Exhibit 2.3.)
2. Max Weber (pronounced VAY-ber) was a German sociologist
who wrote in the early part of the 20th century.
a. He developed a theory of authority structures and
described organizational activity based on authority
relations.
b. He described the ideal form of organization—the
bureaucracy, defined as a form of organization marked
by division of labor, a clearly defined hierarchy, detailed
rules and regulations, and impersonal relationships. (See
Exhibit 2.4.)
B. How Do Today’s Managers Use General Administrative Theories?
Some of our current management concepts and theories can be traced to
the work of the general administrative theorists.
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