Evolution of management


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  • 1849- Chicago harvester had 123 workers ran the largest company in US 1870- Pullman company manufacturer of railroad sleeping cars was the largest with 200 employees 1913- Henry Ford employed 12,000 employees in his Michigan factory. Despite these early examples of management ideas there was no compelling need for managers untill systematic changes in the nature of work and organizations occurred during the last two centuries. Work shifted from families to factories, from skilled labour to specialized, unskilled labor, from small, self organized groups to larger factories employing thousand under one roof. Managers were needed to impose order and structure, to motivate and direct such a large group of workers and to plan and make decisions that optimized overall company performance.
  • Unlike Taylor where substandard work produced substandard pay, Gantt did not punish workers for substandard work. Workers who produced more got a daily bonus and those that did not got the same standard pay. Productivity doubled under this system
  • Control has been replaced with leadership function today.
  • New management ideas can be traced back to her
  • System of consciously coordinated activities or forces of two or more persons
  • Now if you were to compare our initial table which dates in BC to out 125 year old history of management we see that we have been reinventing the wheel to some extent. There are no universal management theories and that the most effective management theory or ides depends on the kinds of problems or organizations are facing at a particular time and place.
  • Evolution of management

    1. 1. Time Individual or group Pla n Orga nize Lea d Contr ol Contribution to Management 5000 B.C. Sumerians √ Record Keeping 4000- 2000B.C. Egyptians √ √ √ Recognized the need for.. Submitted request in writing. Decisions after consultation 1800 B.C. Hammurabi √ Control using witnesses. Writing transactions 600 B.C. Nebuchadne zzar √ √ Wage incentives and production control 500 B.C. Sun Tzu √ √ Strategy; identifying and attacking opponents weaknesses 400 B.C. Xenophon √ √ √ √ Recognized Management as a separate art 400 B.C. Cyrus √ √ √ Human Relations and motion study 175 Cato √ Job descriptions 284 Diocletian √ Delegation of Authority 900 Alfarabi √ Listed leadership traits 1100 Ghazali √ Listed managerial traits 1418 Barbarigo √ Different organizational forms 1436 Venetians √ Numbering, standardization, interchangeability of parts 1500 Sir Thomas √ Critical of poor management and leadership 1525 Maciavelli √ √ Cohesiveness, power, leadership in orgs.
    2. 2. • Frederck Taylor • The Gilbreths • Henry Gantt • Max Weber • Henri Foyal Industrial Revolution 1750-1900
    3. 3. Father of Scientific Management Worker at Midvale Steel Company Chief Engineer Soldering (deliberately slow output) Rate Buster (Work pace is faster than normal) Fair Day’s work Frederick W Taylor (1856 - 1915)
    4. 4. Taylorism Develop a science of each work element. Give rest breaks Scientifically select, train, teach, and develop workers Cooperate with employees to implement scientific method Divide the work and responsibility equally between management and workers
    5. 5. Motion Studies Apprentice brick layer Employment of handicapped workers and industrial psychology Motion studies Frank and Lillian Gilbreth (1868-1924) (1878-1972)
    6. 6. The Gilbreths Motion Studies Brick laying motions Eliminated unnecessary motions Raised productivity form 120- 350 bricks/h Breakdown Work  Easy  Safe “The greatest waste in the world comes from needless ill directed and ineffective motions” Used motion picture films Productivity increased from 25 – 300% Surgical procedures for finding instruments still in use today
    7. 7. The Gilbreths World war I, 13 million wounded/handicapped 1918 Vocational Rehabilitation Act passed Designed machines for handicapped workers Lillian was concerned with human side of work  Industrial psychology  Office communication  Incentive programs  Job satisfaction  Management training  Laws  Work place safety  Ergonomics  Child Labor
    8. 8. Henry Gantt Protégé and associate of Taylor Gantt Charts Pay for performance plans (productivity doubled) Supervisors and workers rewarded for trainingHenry Gantt (1861-1919)
    9. 9. Gantt Charts “They show at a glance where the delays occur and indicate what must have out attention in order to keep up the proper output”
    10. 10. Assembly Line Chief engineer CEO of Ford Assembly line Mass Production Henri Ford (1863-1947)
    11. 11. Assembly Line Conveyer belt Workers remained in place Precision manufacturing Standardized and interchangeable parts Car assembly time form 12.5 man hours to 93 mins.
    12. 12. Bureaucratic Management German Sociologist Against monarchal and patriarchic rule Bureaucracy- desk rule  Knowledge  Expertise  Experience Max Weber (1864-1920)
    13. 13. Bureaucratic Management Promotion based on merit Clarified chain of command (who reports to whom) Grievance procedure Division of Labor Impartial application of rules Recorded in writing Managers separate from owners
    14. 14. Administrative Management French mining Engineer CEO of a steel company Kept log of increased/decreased productivity Hired to shut the company down Henri Fayol (1841-1925) “The success of an enterprise generally depends much more on the administrative ability of its leaders than on their technical ability”
    15. 15. Administrative Management Determining organizational goals and means of achieving them Deciding where decisions will be made Who will do what jobs and who will work for whom Leading inspiring and motivation Controlling, monitoring progress toward goal achievement
    16. 16. Integration of 5P’s with Foyal Management should be taught to others, as managers are not born but can be made.
    17. 17. • Mary Parker Folletts • Elton Mayo • Hawthorne Studies • Chester Bernard
    18. 18. Constructive Conflict and Coordination Social worker with a degree in political science Domination Compromise Integrative conflict Resolution Role of Coordination in organizations  Interrelated  Direct  Early stages  Continuing process Mary Parker Follett’s (1868 - 1933) “The appearance of difference, difference of opinions ,of interests. Conflict means-difference and difference is everywhere thus we cannot avoid it and should use it to work for us”
    19. 19. Hawthorne Studies Australian born famous for Hawthorne studies at Western Electric Company 1919 more than 4 million Americans went on strike 1935 National Labor Act Hawthorne Effect:  More attention paid  Group consulted  Social units formedElton Mayo (1880-1948)
    20. 20. Cooperation and Acceptance of Authority Engineer at AT&T General manger at Pennsylvania Bell Telephone Defines Organization Executive functions  Securing essential services  Organizational purpose  System of CommunicationChester Bernard (1886-1961)
    21. 21. End Word Taylor shop floor up Henri Fayol Board of directors down Compare our first table which dates in BC to out 125 year old management evolution Need is the mother of invention Contingency approach If your name is Henri it increase your probability of coming up with some thing new in management science. 
    22. 22. Vocabulary KPI’s Models Integrative conflict Resolution Assignment Understanding of the evolution of management starting from as far as possible (ancient times) is must for developing new thoughts, processes, models etc to make the business of today