The History of Management Thought By Julia Teahen and Regina Greenwood Based on  The History of Management Thought, 5th ed...
Part Two: The Scientific Management Era
Chapter Twelve Scientific Management in Retrospect
Scientific Management in Retrospect <ul><li>The Economic Environment </li></ul><ul><li>Technology </li></ul><ul><li>The So...
The Economic Environment <ul><li>The United States was in transition from an agrarian to an industrial nation. In this per...
The Economic Environment <ul><li>Alfred Chandler’s rationalization of resource utilization describes the needs of industry...
The Economic Environment <ul><li>America was uniquely diverse 1890-1920: </li></ul><ul><ul><li>Immigrants were 80% of New ...
Technology:  Opening New Horizons <ul><li>Enterprises developed and grew – 247 of the Fortune 500 were founded from 1880-1...
Technology:  Opening New Horizons <ul><li>The automobile changed people’s lives and created a new industry. </li></ul><ul>...
The Social Environment
The Social Environment <ul><li>Horatio Alger, Jr. characterized the “success” ethic of U.S. enterprise. </li></ul><ul><li>...
The Social Environment <ul><li>The Social Gospel shaped personnel management acting as a counterpoint to social Darwinism ...
The Political Environment <ul><li>The political articulation of the Social Gospel was the Populist-Progressive Movement. <...
The Political Environment <ul><li>An increasing regulation of business under Theodore Roosevelt after 1901  overcame the i...
 
Summary of Part Two <ul><li>Taylor was the focus for a deeper philosophy of managing human and physical resources in a mor...
Part Two Internet Resources <ul><li>Academy of Management – Management History Division Website http://www.aomhistory.bake...
Part Two Internet Resources <ul><li>Franklin D. Roosevelt Presidential Library and Museum   </li></ul><ul><li>(contains pa...
Part Two Internet Resources <ul><li>The Samuel Gompers Papers </li></ul><ul><li>http://www.history.umd.edu/Gompers/index.h...
End of Part Two
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Ch12-Wren-2005-5e-HoM.ppt

  1. 1. The History of Management Thought By Julia Teahen and Regina Greenwood Based on The History of Management Thought, 5th edition, 2005 by Daniel A. Wren
  2. 2. Part Two: The Scientific Management Era
  3. 3. Chapter Twelve Scientific Management in Retrospect
  4. 4. Scientific Management in Retrospect <ul><li>The Economic Environment </li></ul><ul><li>Technology </li></ul><ul><li>The Social Environment </li></ul><ul><li>The Political Environment </li></ul>
  5. 5. The Economic Environment <ul><li>The United States was in transition from an agrarian to an industrial nation. In this period of growth, scientific management provided a means whereby a better utilization of resources could occur. </li></ul><ul><li>The U.S. worker prospered, both in real wages and reduced hours of work. </li></ul><ul><li>More employees were in management with the addition of staff specialists. This growth in managerial hierarchy made it more critical to plan, organize, etc. </li></ul>
  6. 6. The Economic Environment <ul><li>Alfred Chandler’s rationalization of resource utilization describes the needs of industry during this era. The ideas of the scientific management pioneers fit these needs. </li></ul><ul><li>Industrial efficiency was increasing, partially due to scientific management. </li></ul>Alfred D. Chandler Courtesy of Harvard Business School
  7. 7. The Economic Environment <ul><li>America was uniquely diverse 1890-1920: </li></ul><ul><ul><li>Immigrants were 80% of New York’s population. </li></ul></ul><ul><ul><li>More Irish lived in the US than in Ireland. </li></ul></ul><ul><ul><li>71% of Ford’s labor force was foreign born. </li></ul></ul><ul><ul><li>Developing systems and procedures and standardization was more important with the heterogeneous workforce. </li></ul></ul><ul><li>Productivity increased due to: </li></ul><ul><ul><li>Methods of mass production. </li></ul></ul><ul><ul><li>Taylorism (Scientific Management) </li></ul></ul><ul><ul><li>Cheaper sources of power </li></ul></ul>
  8. 8. Technology: Opening New Horizons <ul><li>Enterprises developed and grew – 247 of the Fortune 500 were founded from 1880-1929. </li></ul><ul><li>New technologies developed: </li></ul><ul><ul><li>Bessemer process in steel </li></ul></ul><ul><ul><li>Oil refining </li></ul></ul><ul><ul><li>Internal combustion engine </li></ul></ul><ul><ul><li>Synthetic material </li></ul></ul><ul><ul><li>Telephony </li></ul></ul><ul><ul><li>Electric energy </li></ul></ul>
  9. 9. Technology: Opening New Horizons <ul><li>The automobile changed people’s lives and created a new industry. </li></ul><ul><li>Henry Ford, Charles Sorenson and their associates at Ford created the moving assembly line for mass production. </li></ul><ul><ul><li>1910 – 2,773 workers produced 18,664 cars </li></ul></ul><ul><ul><li>1914 – 12,880 workers produced 248,307 cars </li></ul></ul>Henry Ford
  10. 10. The Social Environment
  11. 11. The Social Environment <ul><li>Horatio Alger, Jr. characterized the “success” ethic of U.S. enterprise. </li></ul><ul><li>Scientific management ideas were consonant with the social values of self-directing, high need for achievement, individuals </li></ul><ul><li>Change came as the Western frontier closed; William G. Scott called this the Collision Effect , which would lead to a transition period of individualism being replaced by a social ethic. </li></ul><ul><li>Taylor’s “cooperation, not individualism” bridged the gap between the social and individualistic ethics. </li></ul>
  12. 12. The Social Environment <ul><li>The Social Gospel shaped personnel management acting as a counterpoint to social Darwinism and precursor to progressivism. </li></ul><ul><li>Followers of the Social Gospel, like Robert G. Valentine, thought unions were instruments of social and economic reform. </li></ul><ul><li>A reciprocal work-welfare equation linked the progressives and scientific management. </li></ul><ul><li>Efficiency was also advocated by conservationists, feminists, and religious leaders. </li></ul>
  13. 13. The Political Environment <ul><li>The political articulation of the Social Gospel was the Populist-Progressive Movement. </li></ul><ul><li>Scientific management appealed to the Progressives, especially Morris Cooke. </li></ul><ul><li>Scientific management offered leadership by expertise and knowledge, not class, so it appealed to moderate Progressives like Louis Brandeis, Herbert Croly, and Walter Lippman. </li></ul>
  14. 14. The Political Environment <ul><li>An increasing regulation of business under Theodore Roosevelt after 1901 overcame the inadequacies of the earlier Sherman Act. </li></ul><ul><li>Tax rate comparison – Underwood-Simmons Tariff Act of 1913. </li></ul><ul><ul><li>1% on personal incomes over $3,000 </li></ul></ul><ul><ul><li>Surtax added progressively on incomes up to $20,000 </li></ul></ul><ul><ul><li>Maximum tax rate of 7% on incomes in excess of $500,000 (compared to 35% today) </li></ul></ul>Theodore Roosevelt, courtesy of the Constitution Society
  15. 16. Summary of Part Two <ul><li>Taylor was the focus for a deeper philosophy of managing human and physical resources in a more technologically advanced world. </li></ul><ul><li>Taylor’s disciples improved productivity and service to society. </li></ul><ul><li>Fayol and Weber, Taylor’s contemporaries, also reflected a rational approach to enterprise. </li></ul><ul><li>Taylor and his followers were affected by and did affect the times. </li></ul>
  16. 17. Part Two Internet Resources <ul><li>Academy of Management – Management History Division Website http://www.aomhistory.baker.edu/departments/leadership/mgthistory/links.html </li></ul><ul><li>List of Internet Resources compiled by Charles Booth http://www.jiscmail.ac.uk/files/MANAGEMENT-HISTORY/links.htm </li></ul><ul><li>Western Libraries Business Library – Biographies of Gurus </li></ul><ul><li>http://www.lib.uwo.ca/business/gurus.html </li></ul><ul><li>Scientific Management Demonstration Video </li></ul><ul><li>http://www.archive.org/movies/index.html </li></ul><ul><li>Frederick Winslow Taylor http://www.accel-team.com/scientific/scientific_02.html </li></ul><ul><li>Fascinating Facts about Frederick Winslow Taylor </li></ul><ul><li>http://www.ideafinder.com/history/inventors/taylor.htm </li></ul><ul><li>The Principles of Scientific Management, Taylor (1911) </li></ul><ul><li>http://melbecon.unimelb.edu.au/het/taylor/sciman.htm </li></ul><ul><li>Who Made America – Frederick Winslow Taylor </li></ul><ul><li>http://www.pbs.org/wgbh/theymadeamerica/whomade/taylor_lo.html </li></ul><ul><li>Films of Westinghouse Works – 1904 </li></ul><ul><li>http://memory.loc.gov/ammem/papr/west/westhome.html </li></ul>
  17. 18. Part Two Internet Resources <ul><li>Franklin D. Roosevelt Presidential Library and Museum </li></ul><ul><li>(contains papers of Morris L. Cooke) </li></ul><ul><li>http://www.fdrlibrary.marist.edu/ </li></ul><ul><li>Henry Gantt http://www.accel-team.com/scientific/scientific_04.html </li></ul><ul><li>Frank and Lillian Gilbreth http://www.accel-team.com/scientific/scientific_03.html </li></ul><ul><li>The Gilbreth Network </li></ul><ul><li>http://gilbrethnetwork.tripod.com/front.html </li></ul><ul><li>Harrington Emerson Papers </li></ul><ul><li>http://www.libraries.psu.edu/speccolls/FindingAids/emerson.html </li></ul><ul><li>Wilhelm Wundt </li></ul><ul><li>http://www.indiana.edu/~intell/wundt.shtml </li></ul><ul><li>The Durkheim Pages </li></ul><ul><li>http://www.relst.uiuc.edu/durkheim/ </li></ul>
  18. 19. Part Two Internet Resources <ul><li>The Samuel Gompers Papers </li></ul><ul><li>http://www.history.umd.edu/Gompers/index.html </li></ul><ul><li>Max Weber http://www.faculty.rsu.edu/~felwell/Theorists/Weber/Whome.htm </li></ul><ul><li>William Durant http://www.flint.lib.mi.us/timeline/autohistory_0798/durantW.html </li></ul><ul><li>The Alfred P. Sloan Foundation </li></ul><ul><li>http://www.sloan.org/ </li></ul><ul><li>The Alfred P. Sloan Museum </li></ul><ul><li>http://www.sloanmuseum.com/ </li></ul><ul><li>The Henry Ford Museum </li></ul><ul><li>http://www.hfmgv.org/ </li></ul><ul><li>The Henry Ford Estate </li></ul><ul><li>http://www.henryfordestate.com/ </li></ul><ul><li>The Theodore Roosevelt Association </li></ul><ul><li>http://www.theodoreroosevelt.org/ </li></ul>
  19. 20. End of Part Two

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