Chapter Two: Management Learning Past to Present
1. Industrialization Revolution:
a. Novel: The Art of War by Sun Tzu talks about planning, delegation ranks and division back in the 600
b. Substitution of machine power for human power
c. Steam engine came around
d. Was also called the “Factory System”
e. Time when Charles Babbage (1791 – 1871) designed the first computer with storage card, arithmetic
unit, and a punch card input system.
2. Scientific Management:
a. F. W. Taylor (1856 – 1915): said there is “one best way” to do each and every activity and as a
manager it is your responsibility to do that way and teach your employees. He also found people
were working below their working capability, called soldiering.
b. Time when workers productivity increased
c. ‘first-class worker’ term came which means one person who did the work in least amount of time
d. ‘piece-rate’ system
e. People cannot drive themselves; managers have to direct them and they need to find the best way
to do things and tell the workers the entire process
3. Soldiering: the universally held belief among workers that if they become more productive, fewer of them
would be needed and jobs would be eliminated – non-incentive wage systems encourage low productivity –
workers waste much of their effort by relying on ‘rule-of-thumb’ methods rather than on optimal work
methods that can be determined by scientific study of the task (TIME MOTION STUDY).
4. Taylor’s 4 Principles:
a. Replace rule of thumb work methods with methods based on a scientific study of the tasks
b. Scientifically select and then train, teach, and develop the workmen, whereas in the past the
employees (or workmen) chose his own work and trained himself as best as he could.
c. Provide “Detailed instruction and supervision of each worker in the performance of that worker’s
d. Support workers by carefully planning their work and by smoothing the way as they go about their
5. Fordism: Henry Ford – Standardization and Mass Production
6. Drawbacks of Taylorism and Fordism”
a. Slow to change and changes in capacities and processes expensive
b. Limited job enrichment
c. Money alone motivates workers
7. Behavioural management: human resource approaches include: Hawthorne studies, Maslow’s Theory of
human needs, and McGregor’s Theory X and Theory Y.
8. Hawthorns Studies: as a part of the scientific management regime, companies routinely studied the effects
of the physical environment on their workers – this was carried out by the Western Electric Company (with
40,000 workers) at their Hawthorne plant in the 1920s, initially they only focused on lightening, however no
result was seen
9. Lessons from the Hawthorne Studies: social and human concerns are key to productivity – Hawthorne
Effect: people who are singled out for special attention perform better - Hawthorne workers found that a worker might feel rewarded if she has pleasant association with her co-workers and that this might mean