Management History

Management History

Modern managers use many of the practices, principles, and techniques developed from earlier concepts and experiences. The Industrial Revolution brought about the emergence of large-scale business and its need for professional managers. Early military and church organizations provided the leadership models.

In 1975, Raymond E. Miles wrote Theories of Management: Implications for Organizational Behavior and Development published by McGraw Hill Text. In it, he popularized a useful model of the evolution of management theory in the United States. His model includes classical, human relations, and human resources management.

Classical School

The Classical school of thought began around 1900 and continued into the 1920s. Traditional or classical management focuses on efficiency and includes bureaucratic, scientific and administrative management. Bureaucratic management relies on a rational set of structuring guidelines, such as rules and procedures, hierarchy, and a clear division of labor. Scientific management focuses on the "one best way" to do a job. Administrative management emphasizes the flow of information in the operation of the organization.

Bureaucracy

Max Weber (1864-1920), known as the Father of Modern Sociology, analyzed bureaucracy as the most logical and rational structure for large organziations. Bureaucracies are founded on legal or rational authority which is based on law, procedures, rules, and so on. Positional authority of a superior over a subordinate stems from legal authority. Charismatic authority stems from the personal qualities of an individual. Efficiency in bureaucracies comes from: (1.) clearly defined and specialized functions; (2.) use of legal authority; (3.) hierarchical form; (4.) written rules and procedures; (5.) technically trained bureaucrats; (6.) appointment to positions based on technical expertise; (7.) promotions based on competence; (8.) clearly defined career paths.

Scientific Management

Scientific management focuses on worker and machine relationships. Organizational productivity can be increased by increasing the efficiency of production processes. The efficiency perspective is concerned with creating jobs that economize on time, human energy, and other productive resources. Jobs are designed so that each worker has a specified, well controlled task that can be performed as instructed. Specific procedures and methods for each job must be followed with no exceptions.

Frederick Taylor (1856-1915)

Many of Frederick Taylor's definitive studies were performed at Bethlehem Steel Company in Pittsburgh. To improve productivity, Taylor examined the time and motion details of a job, developed a better method for performing that job, and trained the worker. Furthermore, Taylor offered a piece rate that increased as workers produced more.

In 1911, Frederick Taylor, known as the Father of Scientific Management, published Principles of Scientific Management in which he proposed work methods designed to increase worker productivity. One of his famous experiments had to do with increasing the output of a worker loading pig iron to a rail car. Taylor broke the job down into its smallest constituent movements, timing each one with a stopwatch. The job was redesigned with a reduced number of motions as well as effort and the risk of error. Rest periods of specific interval and duration and a differential pay scale were used to improve the output. With scientific management, Taylor increased the worker's output from 12 to 47 tons per day! The Taylor model gave rise to dramatic productivity increases.

Frank (1868-1924) and Lillian (1878-1972) Gilbreth

Frank and Lillian Gilbreth emphasized method by focusing on identifying the elemental motions in work, the way these motions were combined to form methods of operation, and the basic time each motion took. They believed it was possible to design work methods whose times could be estimated in advance, rather than relying upon observation-based time studies. Frank Gilbreth, known as the Father of Time and Motion Studies, filmed individual physical labor movements. This enabled the manager to break down a job into its component parts and streamline the process. His wife, Lillian Gilbreth, was a psychologist and author of The Psychology of Work. In 1911 Frank Gilbreth wrote Motion Study and in 1919 the couple wrote Applied Motion Study. Frank and Lillian had 12 children. Two of their children, Frank B. Gilbreth, Jr. and Ernestine Gilbreth Careyone, wrote their story, Cheaper by the Dozen.

One of Frank Gilbreth's first studies concerned bricklaying. (He had worked as an apprentice bricklayer.) He designed and patented special scaffolding to reduce the bending and reaching which increased output over 100 per cent. However, unions resisted his improvements, and most workers persisted in using the old, fatiguing methods.

The Gilbreths believed that there was one best way to perform an operation. However, this "one best way" could be replaced when a better way was discovered. The Gilbreths defined motion study as dividing work into the most fundamental elements possible, studying those elements separately and in relation to one another; and from these studied elements, when timed, building methods of least waste. They defined time study as a searching scientific analysis of methods and equipment used or planned in doing a piece of work, development in practical detail of the best way of doing it, and determination of the time required. The Gilbreths drew symbols on operator charts to represent various elements of a task such as search, select, grasp, transport, hold, delay, and others. They called these graphical symbols "therbligs" (Gilbreths spelled backwards).

Henry Gantt (1861-1919)

Henry Gantt developed the Gantt chart, which is used for scheduling multiple overlapping tasks over a time period. He focused on motivational schemes, emphasizing the greater effectiveness of rewards for good work (rather than penalties for poor work). He developed a pay incentive system with a guaranteed minimum wage and bonus systems for people on fixed wages. Also, Gantt focused on the importance of the qualities of leadership and management skills in building effective industrial organizations.

Administrative Management

Administrative management emphasizes the manager and the functions of management. Henri Fayol (1841--1925), known as the Father of Modern Management, was a French industrialist who developed a framework