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Chapter 2

Chapter 2 - History of management

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Ryerson University
Global Management Studies
GMS 200
Shavin Malhotra

GMS200 Chapter 2  The world of work and business is being transformed as traditional ways of doing things are being replaced by new practices and viewpoints.  Knowledge gained through past experience can and should be used as a foundation of future success.  Mary Parker Follet wrote a book called Prophet of Management: A celebration of writings from the 1920s, reminds us of the wisdom of history  We pursue similar themes today such as empowerment, involvement, flexibility, and self- management.  It is better to recognize the historical roots of many modern ideas and admit that we are still trying to perfect them.  Daniel Wren traces management as far back as 5000 BC, it was important to the construction of the Egyptian pyramids, the rise of the Roman Empire, and commercial success of 14 century Venice.  Industrial production was developed by Adam Smith’s idea of efficient production through specialized tasks and division of labour.  Management Theory- five eras or phases of development  The Classical Management- begins with work of Frederick W. Taylor, search for efficiency, all of the management models are based on the rationale that people will work in a manner most economically beneficial to themselves.  Behavioural Management- looks for the most progressive workplace where employee morale and relationships are important. Quantitative approach, producing goods quickly and achieving the greatest output possible.  Modern Era of Management- examination of organizations within their environment and the things that could be learned from the interactions between the two. Strategy and structure discussions were in vogue as management fully explores contingency theories.  1980’s-present management- focuses on the issues of quality, excellence, globalization, learning, technology, and cross-cultural aspects of management.  Classical Management Approaches: 1. Scientific management 2. Administrative Principles 3. Bureaucratic organizations  Scientific Management-Frederick W. Taylor (the father of scientific management) noticed that workers did their jobs their own way and without clear and uniform specifications lost efficiency and perform below their capacities, he believed that this could be corrected if workers were taught and then helped by supervisors to perform their jobs the right way. Taylor’s goal was to improve the productivity of people at work.  Scientific Management emphasizes careful selection and training of workers and supervisory support with an emphasis on improving efficiency.  Scientific Management guiding action principles: 1. Develop for every job a science that includes rules of motion, standardized work implements, and proper working conditions. 2. Carefully select workers with the right abilities for the job. 3. Carefully train workers to do the job and give them the proper incentives to co-operate with the job science. 4. Support workers by carefully planning their work and by smoothing the way as they go about their jobs.  Motion study is the science of reducing a task to its basic physical motion.  Second branch in classical approach to management includes attempts to document and understand the experiences of successful managers.  Henri Fayol in 1916 published Administration Industrielle et Generale. His 14 principles that he felt aspiring managers should be taught: 1. Division of Labour- Specialization of work will result in continuous improvements in skills and methods. 2. Authority- Managers and workers need to understand that managers have the right to give orders. 3. Discipline- Behaviour needs to be grounded in obedience and derived from respect. There will be no slacking or bending of rules. 4. Unity of Command- Each employee should have one, and only one manager. 5. Unity of Direction- The leader generates a single plan, and all play their part in executing that plan. 6. Subordination of Individual Interests- While at work, only work issues should be undertaken or considered. 7. Remuneration- All should receive fair payment for their work employees are valuable and not simply an expense. 8. Centralization- Whole recognizing the difficulties in large organizations, decisions are primarily made from the top. 9. Scalar Chain- Organizations must have clear, formal chains of command running from the top to the bottom of the organization. 10. Order- There is a place for everything, and all things should be in their place. 11. Equity- Managers should be kind and fair. 12. Personnel Tenure- Unnecessary turnover is to be avoided and there should be lifetime employment for good workers. 13. Initiative- Undertake work with zeal and energy 14. Esprit de corps- Work to build harmony and cohesion among personnel.  Five rules or duties of management 1. Foresight- to complete a plan of action for the future. 2. Organization- to provide and mobilize resources to implement the plan. 3. Command- to lead, selects, and evaluates workers to get the best work toward the plan. 4. Coordination- to fit diverse efforts together, and ensure information is shared and problems solved. 5. Control- to make sure things happen according to plan, and to take necessary corrective actions.  Fayol believed that management could be taught, he was concerned about improving the quality of management. 1. Scalar chain principle- there should be a clear and unbroken line of communication from top to the bottom in the organization 2. Unity of command principle- each person should receive orders from only one boss. 3. Unity of direction principle- one person should be in charge of all activities that have the same performance objective.  Mary Parker Follett viewed organizations as communities, in which managers and workers should labour in harmony. She believed that the manager’s job is to help people in orga
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