Chapter # 3

History of
Management

References:
Management (W. Griffin)
Internet

Resource person: Furqan-ul-haq Siddiqui

 The Science and the Art of Management
 The Science of Management- Many
management problems and issues can be
approached in ways that are rational,
logical, objective, and systematic.
Managers can gather data, facts, and
objective information. Management is
organized body of knowledge containing
certain universal truths.
 The Arts of Management- Managers
must frequently make decisions and
solve problems on the basis of intuition,
experience, instinct, and personal
insights.
 History of Management
Why Theory?
 A theory is a formal idea or set of ideas that is intended to explain
something. A Theory is believed to be true, but may also be wrong.
 Management theories, used to build organizations, are grounded in
reality. Most managers develop their own theories about how they
should run their organizations.
 Why History?
 History is the study of the past, with special attention to the
written record of the activities of human beings over time An
awareness and understanding of important historical developments
in management are important to contemporary managers in
furthering the development of management practices and in
avoiding the mistakes of others in the past.
 The Practice of Management Can
Be Traced Back Thousands of
Years
 Stonehenge (3000 BC) is located in
the UK. Its construction heavily
relied on management functions.
Their stones are cutover 300 miles a
way.
 The Egyptians used management
functions of planning, organizing,
and controlling when they
constructed the pyramids. (1400
AD)
 The Great Wall of China (6,400
km /4,000 miles) was built, rebuilt,
and maintained between the 5th
century BC and the 16th century to
protect the northern borders of the
Chinese Empire from Xiongnu.
 The Industrial Revolution
 The Industrial Revolution was a period in the late 18th and
early 19th centuries (The First Industrial Revolution, which
began in the 18th century, merged into the Second Industrial
Revolution around 1850) when major changes in agriculture,
manufacturing, mining, and transportation had a profound effect
on the socioeconomic and cultural conditions in Britain. The
changes subsequently spread throughout Europe, North
America, and eventually the world. Starting in the latter part of
the 18th century there began a transition in parts of Great
Britain's previously manual labor and draft animal–based
economy towards machine-based manufacturing. It started with
the mechanization of the textile industries, the development of
iron-making techniques and the increased use of refined coal.
Trade expansion was enabled by the introduction of canals,
improved roads and railways.
 1. The Classical Management Perspective:
 This perspective includes two different viewpoints: scientific
management and administrative management.
a. Scientific Management (Taylorism/Taylor system)
 During 1st few years of 19th century, businesses were
expending, and capital was available, but labor was in
short supply. Hence, managers began to search ways to
use existing labor efficiently. Their work led to the
development of SM which is Concerned with improving the
performance of individual workers (i.e., efficiency). SM is a
theory of management that analyzes and synthesizes
workflows, with the objective of improving labor productivity
to increase efficiency.
 Frederick Taylor (1856–1915)- Considered the “Father of
Scientific Management.”
• One of Taylor’s first jobs was as a foreman at the
Midvale Steel Company in Philadelphia. There he
observed a phenomenon he called “Soldiering”.
• Taylor studied and timed each element of the
steelworkers’ jobs. He determined what each worker
should be producing, and then he designed the most
efficient way of doing each part of the overall task.
• Next, Taylor implemented a piecework pay system.
Rather than paying all employees the same wage, he
began increasing the pay of each worker who met
and exceeded the target level of output set for his or
her job.
• After Taylor left Midvale, he worked as a consultant
for several companies where he studied and redesigned
jobs, introduced rest periods to reduce fatigue, and
implemented a piecework pay system.
• The results were higher quality and quantity of output
and improved morale. At Bethlehem Steel, Taylor
studied efficient ways of loading and unloading
railcars and applied his conclusions with equally
impressive results. During these experiences, he
formulated the basic ideas that he called scientific
management.
• He believed that managers who followed his guidelines
would improve the efficiency of their workers.
• Frank and Lillian Gilbreth, contemporaries
of Taylor, were a husband-and wife team
of industrial engineers.
• After studying bricklayers at work, Frank
developed several procedures for doing
the job more efficiently. The results of
these changes were a reduction from 18
separate physical movements to five and
an increase in the output of about 200
percent.
• Working individually and together, the
Gilbreths developed numerous techniques
and strategies for eliminating inefficiency.
 Other Scientific Management Pioneers

Frank Gilbreth & Lillian Gilbreth (1868-1924/1878-
1972)
 Reduced the number of movements in bricklaying,
resulting in increased output of 200%.

Henry Gantt (1861-1919)
 Was an early associate of Fredrick Taylor.
 Developed other techniques, including the Gantt chart, to
improve working efficiency through
planning/scheduling.

Harrington Emerson (1853-1931)
 Advocated job specialization in both managerial and
operating jobs.
 b. Administrative Management Theory
 Scientific management deals with the jobs of individual
employees, administrative management focuses on
managing the total organization.
 AM laid the foundation for later development in
management theory.
 It is more appropriate for stable and simple organizations
than for today’s dynamic and complex organizations.
 Henri Fayol
 Wrote “General and Industrial Management.”

 Helped to systematize the practice of management.

 Was first to identify the specific management functions of

planning, organizing, leading, and controlling.

 Lyndall Urwick (1891-1983)
 Integrated the work of previous management theorists.
 Max Weber (1864-1920)
 His theory of bureaucracy is based on a rational set of fixed
rules & regulations & guidelines for structuring organizations.
 Chester Barnard (1886-1961)
 Wrote “The Functions of the Executive.”
 Proposed a theory of the acceptance of authority (by
subordinates) as the source of power and influence for
managers.
 The theory suggests that sub ordinates weigh the legitimacy of
a supervisors directives & then decide whether to accept them
an order is accepted if the subordinate understands it, is able to
comply with it & views it as appropriate
 Classical Management Perspective…Today
 Contributions
 Laid the foundation for later developments.
 Identified important management processes, functions, and skills.
 Focused attention on management as a valid subject of scientific
inquiry.
 Job specialization techniques & scientific methods of job design
 Limitations
 More appropriate approach for use in traditional, stable, simple
organizations.
 Prescribed universal procedures that are not appropriate in some
settings.
 In some cases, employees are viewed as tools rather than as
resources.
 2. The Behavioral Management Perspective
 Unlike the classical management perspective, the behavioral
management perspective placed more emphasis on individual
attitudes and behaviors and on group processes and recognized the
importance of behavioral processes in the work place.
 Proposed that workers respond primarily to the social context of the
workplace, including social conditioning, group norms, and
interpersonal dynamics.
 Hugo Munsterberg (1863–1916)
 A German psychologist, considered the father of industrial
psychology, wrote “ Psychology and Industrial Efficiency,” a
pioneering work in the practice of applying psychological concepts
to industrial settings.
 He suggested that psychologists could make valuable contributions
to managers in the area of employee selection & motivation
 a. The Hawthorne Studies
 Hawthorne Works of the Western Electric Company;
1924-1935
i. Illumination study—changes in workplace lighting affected both
the control group and the experimental group of production
employees.
ii. Group study— the effects of a piecework incentive plan on
production workers.
 Workers established informal levels of acceptable individual
output.
 Over-producing workers were labeled “rate busters” and
under-producing workers were considered “chiselers.”
 Interview program
 Confirmed the importance of human behavior in the
workplace.
 b. The Human Relations Movement
 Grew out of the Hawthorne studies.
 Proposed that workers respond primarily to the social
context of work, including social conditioning, group
norms, and interpersonal dynamics.
 Assumed that the manager’s concern for workers would
lead to increased worker satisfaction and improved worker
performance.
 Abraham Maslow
 Advanced a theory that employees are motivated by a hierarchy of
needs that they seek to satisfy.
 Douglas McGregor
 Proposed Theory X and Theory Y concepts of managerial beliefs
about people and work.
Maslow’s Hierarchy of Needs
NEEDS
General Examples Organizational Examples

Self- Challenging
Achievement actualization job

Job
Status Esteem
title

Friends
Friendship Belongingness
at work

Pension
Stability Security
plan

Base
Food Physiology
salary
 c. Organizational Behavior
 A contemporary field focusing on behavioral
perspectives on management.
 Draws on psychology, sociology, anthropology,
economics, and medicine.
 Behavioral Management
Perspective…Today
 Contributions
 Provided important insights into motivation, group dynamics, and
other interpersonal processes.
 Focused managerial attention on these critical processes.
 Challenged the view that employees are tools and furthered the
belief that employees are valuable resources.
 Limitations
 Complexity of individuals makes behavior difficult to predict.
 Many concepts not put to use because managers are reluctant to
adopt them.
 Contemporary research findings are not often communicated to
practicing managers in an understandable form.
 3. Quantitative Management Perspective
• Applies quantitative techniques to management
• Emerged during World War II to help the Allied forces
manage logistical problems.
• Focuses on decision making, economic effectiveness,
mathematical models, and the use of computers to solve
quantitative problems.
a. Management Science
 Focuses on the development of representative
mathematical models to assist with decisions.
b. Operations Management
 Practical application of management science to
efficiently manage the production and distribution of
products and services.
 Quantitative Management Perspective…Today
 Contributions
 Developed sophisticated quantitative techniques to assist in
decision making.
 Application of models has increased our awareness and
understanding of complex processes and situations.
 Has been useful in the planning and controlling processes.
 Limitations
 Quantitative management cannot fully explain or predict the
behavior of people in organizations.
 Mathematical sophistication may come at the expense of other
managerial skills.
 Quantitative models may require unrealistic or unfounded
assumptions, limiting their general applicability.
 The Contingency Approach
 The idea that the organizational structures and
control systems manager choose depend on—are
contingent on—characteristics of the external
environment in which the organization operates.
 Assumes there is no one best way to manage.
 The environment impacts the firm and managers must be
flexible to react to environmental changes.
 Inrapidly changing organizational environments,
managers must find ways to coordinate different
departments to respond quickly and effectively.
 An Integrative Framework of
Management Perspectives
Contingency Approach
Recognition of the situational nature of management. Response to
particular characteristics of situation.

Classical Behavioral Quantitative

Management Management Management
Perspectives: Perspectives: Perspective:
Methods for enhancing Insights for motivating Techniques for
efficiency and performance and improving decision
facilitating planning, understanding individual making, resource
organizing, and behavior, groups and allocation, and
controlling teams, and leadership operations

 Effective and efficient management