Historical Foundations of Management
Understand how historical forces influence the practice of management.
Identify and explain major developments in the history of management thought.
Why is history important?
It gives executives a way of thinking, a way of searching for patterns and understanding trends. It provides a context or environment in which to interpret current problems.

Forces: Social, political, economic
Management Approaches
Classical
Humanistic
Management Science
Recent Trends
Systems Theory
Contingency View
Total Quality Management
First Perspective: Classical
Classical Perspective
Emerged during the 19th and 20th centuries
Factory systems appearing in 1800’s
Problems:
Tooling the plants
Organizing managerial structure
Training employees (many immigrants)
Scheduling complex manufacturing operations
Increased labor dissatisfaction; strikes

Classical Approaches
Scientific Management
Frederick Winslow Taylor (1856-1915)
Henry Gantt
Frank B. and Lillian M. Gilbreth
Bureaucratic Organizations
Max Weber (1864-1920)
Administrative Principles
Henri Fayol (1841-1925)
Mary Parker Follett (1868 – 1933)
Chester I. Barnard (1886-1961)
Scientific Management
Classical Perspective
Frederick Taylor, Engineer Father of Scientific Management
Problem in labor productivity lies with poor management practices, not labor.
Manner of change can be determined only by scientific study.
Replace rules of thumb and tradition with precise procedures developed after careful study.
Work with Bethlehem Steel plant in 1898
Henry Gantt
Gantt Chart – a bar graph that measures planned and completed work along each stage of production by time elapsed.
Frank B. Gilbreth(1868 – 1924)
Pioneered time and motion study
Stressed efficiency; “one best way” to do work.
Early work with bricklayers
Greatest impact on medical surgery by drastically reducing the time patients spent on the operating table.
Lillian M. Gilbreth1878-1972
Widowed in 1924 with 12 children, ages 2 – 19.
“First Lady of Management”
Pioneered in the field of industrial psychology and made substantial contributions to human resource management.
Bureaucratic Organizations
Classical Perspective
Max Weber, German Theorist
Envisioned organizations managed on an impersonal, rational basis.
An organization based on rational authority would be more efficient and adaptable to change.
Employee selection and advancement based on competence.
Rely on rules and written records for continuity.
Manager relies on legal power of his/her position instead of personality.
Elements of a Bureaucracy
Labor is divided with clear definitions of authority and responsibility.
Positions are organized in a hierarchy of authority.
All personnel are selected and promoted based on technical qualifications, which are assessed by examination.
Administrative acts and decisions are recorded in writing.
Management is separate from the ownership of the organization.
Managers are subject to rules and procedures. Rules are impersonal and uniformly applied.
Administrative Principles
Classical Perspective
Henri Fayol, French Engineer
General and Industrial Management
Proposed 14 general principles of management
Unity of command (one supervisor)
Division of work (specialization)
Unity of direction (group similar activities)
Scalar chain (chain of authority)
Mary Parker Follett
Trained in philosophy and political science
Stressed the importance of people rather than engineering techniques
“Don’t Hug Your Blueprints”
Analyzed dynamics of management-organization interactions
Addressed ethics, power and leadership
Proposed concept of empowerment
Chester I. Barnard
Studied Economics at Harvard; no degree
President of New Jersey Bell in 1927
Proposed the concept of the informal organization
Includes cliques and naturally occurring social groupings
Acceptance theory of authority – people have free will and can choose whether to follow management orders.
Second Perspective: Humanistic
Humanistic Perspective
Human Relations Movement
Hawthorne Studies, Western Electric Company CIL, Thomas Edison, Honorary Chair
Human Resources Perspective
Abraham Maslow (1908-1970)
Douglas McGregor (1906-1964)
Behavioral Sciences Approach
The Human Relations Movement
Humanistic Perspective
The human relations school of thought considers that truly effective control comes from within the individual workers rather than from strict, authoritarian control.

Hawthorne Studies
1895 – struggle develops between manufacturers of gas and electric lighting fixtures for control of the residential and industrial market.
More light results in more productivity, they say
RATR 6 year Study Result: Money was not the cause of the increased output. Employees’ output increased sharply when managers treated them in a positive manner.
Started a revolution in worker treatment for improving organizational productivity.
The Human Resources Perspective
Humanistic Perspective
Abraham Maslow, Psychologist
Observed that patients’ problems stemmed from inability to satisfy their needs.
Proposed a hierarchy of needs
Physiological needs
Safety
Belongingness
Esteem
Self-actualization
Basis for motivational techniques
Douglas McGregor, College President
Challenged assumptions about human behavior based on his experiences as a manager, consultant, his training as a psychologist, and Maslow’s work.
Theory X and Theory Y
Workers are best described by Theory Y
Take advantage of the imagination and intellect of all employees.
Behavioral Sciences Approach
Humanistic Perspective

Behavioral Sciences Approach
Develops theories about human behavior based on scientific methods and study. Draws from sociology, psychology, anthropology, economics and other disciplines to understand employee behavior and interaction in an organizational setting.
Impacts motivation, communication, leadership and human resource management.
Third Perspective: Mgt Science
Management Science Perspective
World War II created sophisticated tools for modern global warfare.
Applies mathematics, statistics and other quantitative technicques to managemetn decision-making and problem-solving.
Operations Research
Operations Management
Management Information Systems
Queuing Theory
Fourth Perspective: Emerging Trends
Systems Theory
Contingency View
Total Quality Management (Deming)
Systems Theory
A set of interrelated parts that function as a whole to achieve a common purpose.
Inputs
Transformation process
Outputs
Feedback
Environment
Contingency View
Universalist View (classical perspective) – management concepts are universal
Case View – Each situation is unique.
Contingency View – A manager’s response depends on identifying key variables in an organizational situation. What works in one setting may not work in another. Contingencies include the environment, industry, technology and international cultures.
Total Quality Management
Shift from inspection approach to quality control to an approach emphasizing employee involvement in the prevention of quality problems.
Managing the total organization to deliver quality to customers.
Significant Elements of TQM
Employee involvement
Focus on the customer
Benchmarking
Continuous improvement
W. Edwards Deming, Father of Quality Movement”
Romanesque
Historical Foundations of Management
Understand how historical forces influence the practice of management.
Identify and explain major developments in the history of management thought.
Why is history important?
It gives executives a way of thinking, a way of searching for patterns and understanding trends. It provides a context or environment in which to interpret current problems.

Forces: Social, political, economic
Management Approaches
Classical
Humanistic
Management Science
Recent Trends
Systems Theory
Contingency View
Total Quality Management
First Perspective: Classical
Classical Perspective
Emerged during the 19th and 20th centuries
Factory systems appearing in 1800’s
Problems:
Tooling the plants
Organizing managerial structure
Training employees (many immigrants)
Scheduling complex manufacturing operations
Increased labor dissatisfaction; strikes

Classical Approaches
Scientific Management
Frederick Winslow Taylor (1856-1915)
Henry

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