Chapter 2 - Management History.docx

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Chapter 2 - Management History
February-21-12
12:21 PM
Industrial Revolution
Substitution of machine power for human power
Steam engine
Factory system
Charles Babbage (1792-1871)
Designed first computer
Storage device, arithmetic unit, punch card input system
Scientific management
FW. Taylor (1856 -1915)
One best way
Midvale steel company - workers purposely operated below their capacity
Soldiering
As they became more productive, fewer of them would be needed and jobs could be eliminated
Non-incentive wage systems encourage low productivity
Workers waste much of their effort by relying on rule of thumb method rather than on optical
work method that can be determined by scientific study of task
Classical Management Approach - people are rational
1. Scientific
2. Administrative
3. Bureaucratic
Scientific Management
Worker's productivity
First-class worker
Piece - rate system
People can't drive themselves; management needs to direct them
Find best way to do things
Tell workers entire process
Taylor's 4 Principles
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1. Develop for every job a "science" that includes rules of motion, standardized work implements,
and proper working conditions
Motion study: science of reducing a task to its basic physical motions
2. Carefully select workers with the right abilities for the job.
3. Carefully train workers to do the job and give them proper incentive to cooperate with the job
"science".
4. Support workers by carefully planning their work and by smoothing the way as they go about their
jobs.
Drawbacks
Slow to change
Change in capacities and processes expensive
Limited job enrichment
Money alone motivates workers
Fayol Rules of Management
Foresight
Organization
Command
Coordination
Control
Fayol scalar chain principle - there should be a clear and unbroken line of comm. from top to bottom of
organization
Utility of command principle - each person should receive orders from only one boss
Utility of direction principle - one person should be in charge of all activities that have same
performance objective
Max Weber Bureaucracy - rational and efficient form of organization founded on logic, order and
legitimate authority
Classic Bur.
1. Impersonal
2. Career Managers
3. Clear division of labour
4. Promotion based on merit
5. Formal hierarchy of authority
6. Written rules and standard procedures
Behaviour Management Approach - people are social and self-actualizing
Follett's Org. as Communities
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