1.6 Evolution of management thought

Pre-industrial revolution influences:

		Chinese military leader of the time, sun Tzu, wrote about his views of principles of leadership (the need for the leader to promote unity within an organization), ideas that many consider are still relevant today's organizations.
		Other civilizations such as ancient Egypt and later Rome were able to organize large number of people to carry out coordinated activities that required a form of what today call management.
		The Egyptians built Pyramids as far back as 2700 B.C., and Romans were able to develop highly organized and well-led armies that exercised control over wide areas of territory.
		Machiavelli (in 1513):

He published his Famous treatise "the prince" on opportunistic and some would say, crafty techniques for leaders of state to rule their subjects.

The industrial revolution in England (1700s):

James Watt (1765):

			He was Famous inventor, produced the first functional steam engine in 1765 the steam engine increased the volume of production, however, increased production also required more materials and more capital.
			To put that resource to more efficient use in required more people working together in one location.

1.6 Evolution of management thought

Adam Smith (1776):

Adam Smith published his book "the wealth of nations" (consisting of several volumes contained a very clear descriptions of the advantage of the division of labor means the division of work so that each person performs a limited number of tasks (specialized tasks) first used early in the industrial revolution.

Robert Owen and Charles Babbage (1833):

			They published their ideas in books.
			Consequently they can be thought of as the first "management writers" of modern times, but their impact was relatively limited and how to run factories more efficiently much of this early writing focused on techniques applicable to specific firms rather than on general principles or theories about management.

The industrial revolution in America:

		The industrial resolution started in England but it was in the new world in America that it flourished.
		Three types of industrial enterprises in the first half of the 19th century accounted for most of the improvements in managing enterprises in United State: (textile manufacturing, arms manufacturing and railroads) the American industrial revolution began in textile manufacturing.
		David McCallum:

1.6 Evolution of management thought

			A general superintendent of the Erie Railroad in 1850’s McCallum instituted a number of procedures and policies that we now take for granted but for the time they were quite innovative.
			He developed organizational charts, regular reports from lower and middle managers, formal job descriptions, and promotions based on merit. The Issue of how best to run railroads efficiently and safely set the stage for more formal.

Pioneers: The scientific management approach. The rapid growth in the number and size of factories following the end of the American civil war in 1865 resulted increased attention to the issue of how to improve industrial efficiency.

Henry R. Towne 1886:

			He was a professional engineer beginning of modern management in U.S.A. He wrote paper titled "The Engineer as economist". Henry R. Towne was the co-founder of Yale lock company.
			The significance of Towne's paper is that it represented one of the first formal calls for serious attention to the business aspects of engineering activities.
			He urged engineers to consider that "the matter of shop management is of equal importance with that of engineering as affecting the successful conduct of most. If not all, of our great industrial establishment and the management of works.

1.6 Evolution of management thought

Frederick W. Taylor (1856 – 1915):

			An engineer working at the Midvale steel Company in Philadelphia. He was to become one of the most Famous in the Western world in the early years of the 20th Century.
			He put the principles of scientific management, the basic element of scientific management (Shown in Figure 1.4).

1.6 Evolution of management thought

Figure 1.4: The Basic Elements of Scientific Management.

1.6 Evolution of management thought

Other leaders of scientific management.

Henry L. Gantt (1861 – 1919):

			Gantt was a young engineering colleague of Taylor's at the Midvale steel company at the end of 1880's but by the early 1900's. He was well launched in his own career, he put versions of this graphic display now Called Gantt charts have been widely used.
			The importance of Gantt's graphic approach was that it reinforced the need for systematic planning in order to sequence tasks efficiently and for more direct control over the time allotted to them, which in turn directly lowered costs and increased performance.

Frank and Lillian Gilbreth (1868 – 1924 and 1878 – 1972):

			This husband and wife team was strong advocates of Taylor's general approach. They were able to add their contributions.
			Frank Gilbreth was a contractor who became intensely interested in studying how various construction tasks could be performed more efficiently and with reduced fatigue for the worker.
			Using the recently invented motion picture camera, he developed techniques to analyze each motion that went into performing a task, such as bricklaying. Eventually, Gilbreth was able to categorize any motion into one of 17 basic types (which he called "Therbligs,").

1.6 Evolution of management thought

			Lillian Gilbreth was one of the first doctoral-level industrial psychologists in the United States. In her early career, she worked closely with her husband on his analytical studies of motions.
			She concentrated on the "mental" tasks facing management and on how psychological principles could further the application of a scientific management approach that would benefit both worker and manager.
			The Gilbreths applied scientific management principles in the home as well as in their extensive investigations of industrial jobs.

Pioneers: Classical management theory. Classical management theory focuses on study of the principles and function of management and the authority structures of organization (1930s).

Henri Fayol (1841 – 1925):

			Henri Fayol was a French mining engineer who rose rapidly in his company to become president at age 37.
			He publication of his most famous work in 1916 "general and industrial management" and he put those activities, planning, "organizing, command, coordination and control these called function of management".
			Fayol presented a list of 14 management principles: (The principles of management).

1.6 Evolution of management thought

			1.	Division of work.
			2.	Authority.
			3.	Discipline.
			4.	Unity of command.
			5.	Unity of direction.
			6.	Subordination.
			7.	Remuneration.
			8.	Centralization.
			9.	Scalar chain.
			10.	Order.
			11.	Equity.
			12.	Stability of tenure of personnel.
			13.	Initiative.
			14.	Esprit de corps.

1.6 Evolution of management thought

Max Weber (1864 – 1920):

			Max Weber was a German academic and Scholar who never managed an organization. Weber was an organization theorist and not a management theorist. He said with respect to organizations those issues.
			Centered on the concept of authority, especially the questions of "why do individuals obey commands" and "why do people do as they are told" he theorized three basic types of authority relationships or structures could be used to classify organizations:

			1.	Traditional authority: Authority exercised on the basis of custom or past practice.
			2.	Charismatic authority: Authority based on "devotion to the specific and exceptional sanctity, heroism, or exemplary character of an individual person".
			3.	Rational-Legal authority: Authority exercised to achieve specifically designated goals and based on legal right of the person in a particular office to tissue commands.

Weber went on to describe the type of organization that would result if the use of rational-legal authority were maximized namely "bureaucracy" it based on principles of logic, order, and legitimate authority.

1.6 Evolution of management thought

Characteristics of bureaucratic organization

			1.	Clear division of labor.
			2.	Clear hierarchy of authority.
			3.	Formal rules and procedures.
			4.	Impersonality.
			5.	Careers based on merit.

Neoclassical management theory (1920s). Thinking about organized work activity and how to manage that drew from classical theory in its emphasis on study and analysis of the workplace but expanded to include situational and social considerations (communication and cooperation). Two individuals closely associated (Mary Parker Follett and Chester Barnard).

Mary Parker Follett 1868-1933:

Mary Parker was born in Boston, Massachusetts. She wrote and published "creative experience in 1924", and gave a series of lectures on principles of business organization and administration.

1.6 Evolution of management thought

Chester Barnard (1886 – 1961):

Along time executive at AT&T and president of the New Jersey Bell Telephone company. He wrote and published in 1938 "the functions of the executive", that has had considerable influence on the field of management ever since.

Behavioral approaches. This approaches focus:

	1.	Capacities of employees for further development after they are hired for particular jobs.
	2.	Other sources of employee motivation in addition to financial rewards.
	3.	The impact of relationship among employees and with their supervisors.

Howthorne studies:

A series of research studies at the Howthorne plant of the western electric company that focused a spotlight on the importance of the human factor in productivity: Elton mayo conducted studies at the Howthorne plant his studies revealed that in addition to the physical and technical aspect of work, worker motivational theories.

1.6 Evolution of management thought

These findings led to a whole new approach called the human relations approach.

			1.	The Human Relation Approach. Approach springing from the findings of the Hawthorne studies that focused on the importance of relationships among people in the workplace. It evolved as the findings from the Hawthorne studies began to achieve prominence toward the end of the 1930s with the publication of the famous book "management and the worker" by Roethlisberger and Dickson in 1939.
			2.	Human resources approach. Approach involving a basic belief that people possess and want to make greater use of their talents and capabilities and that if allowed to do so performance and satisfaction will increase. The human resources approach to management thinking led by such scholars as Douglas McGregor, Rensis Likert and Chris Argyris stresses a fundamental belief that most people possess and want to use more talent and capabilities in their work than may be readily apparent from their past or present job assignment.

1.6 Evolution of management thought

Douglas McGregor (1906-1964).

McGregor believed that the classical perspective was based on:-

Decision Making Approaches: The behavioral approaches just described Emphasize the motivation of individuals to excel at their jobs two lines of inquiry developed, one more behavioral and one more quantitative (mathematical).

1.6 Evolution of management thought

Behavioral Decision Making Approach:

			The emphasis on decision making as a critical element in the management process is generally credited to Herbert Simon, a Nobel Laureate in economics, who originally received his doctoral training in political science.
			Early in his academic career, Simon turned his attention to the concept of "economic man," the notion that individuals are totally rational and that in their decisions they can evaluate all alternative courses of action and their consequences and then select that one that has the best chance of maximizing goal attainment (e.g., Profit).
			Herebert Simon puts the concept bounded rationality that mean managers attempt to make rational decisions but their thinking is constrained by human limitations and put satisficing is a decisions that result in an acceptable course of action rather than the best alternative or goal maximization.

Quantitative Decision-Making Approaches:

			Quantitative, or mathematical, approaches to managerial problems, especially problems requiring specific decisions, did not emerge until after World War II (Ackhoff & Rivett).
			Utilizing techniques that had been developed during wartime, a new field of study was developed called management science, or operations research. Management science (operations research) quantitative or mathematical approaches to managerial problems, especially those requiring specific decisions.

1.6 Evolution of management thought

			Simulation a set of techniques in which various potential combinations of variables can be mathematically manipulated in advance of actual decisions to determine the possible effects of changes in one or more variables.
			Applied in inventory ordering and control models.

Integrative approaches: The final of approaches to management is integrative approaches. Those recent approaches to management that include systems theory and contingency approaches and emphasize a consideration of a wide range of factors.

		Systems theory: The processes involved in how "inputs" get transformed by the organization into "outputs".
		Contingency approach: A management theory that emphasizes matching a structured or flexible management style to the organization's environment its technology, the tasks to be performed and the types of employees. A contingency approach permeated Lawrence and Lorsch's (1969).