This document summarizes the evolution of management theory and practice from 1880 to the present. It outlines three eras: 1) 1880-1940 focused on establishing management as a science; 2) 1940-1980 was a period of managerial confidence and public support; 3) 1980-present has seen a retreat to specialization and market forces. Key contributors and their theories are mentioned, including Taylor's scientific management, Ford's assembly line techniques, Fayol's administrative principles, Follett's participatory management, and Porter's competitive forces model.
2. Management
Three Eras
• The 1st Era is the Aspiration to
Scientific exactitude, gave wings to
the ambitions of new, self proclaimed
managerial elite.
• The 2nd is Managerialism era of good
feelings, self-confidence, and wide
spread public support.
• The 3rd and present era is retreat in
specialization, servitude to market
forces, steady improving of
productivity, innovation and
Globalization.
1. 1880 to 1940
2. 1940 to 1980
3. 1980 to present
3. The
Management
Century • The US Business Shifting…
• Rising Middle class was
professionalizing…
• Progressive push against corrupt
political and finance capitalist…
• Wisdom rooted in science…
1880
to
1900
4. The
Management
Century
• “The Best management is a true
science, resting upon clearly defined
laws, rules, and principles”
• Principles of Scientific Management
• “Maximum prosperity for the
employer coupled with the maximum
prosperity for each employee”
• “Equal responsibility between the
management and the workmen”
1911
Frederick
Winslow Taylor’s
5. The Management
Century
• Develop rules of motion, standardized
work implements, and proper working
conditions for every job.
• Carefully select workers with the right
abilities for the job.
• Carefully train workers and provide proper
incentives.
• Support workers by carefully planning
their work and removing obstacles
1911
Frederick Winslow
Taylor’s
6. The Management
Century • Doubles factory wages
• shortens the workday to eight
hours
• Allowing employes to become
customers.
1914
Henry Ford
7. The Management
Century
• Chain of Command
• Separation of Functions
• Importance of planning
• Foresight — to complete a plan of action for
the future.
• Organization — to provide and mobilize
resources to implement the plan.
• Command — to lead, select, and evaluate
workers to get the best work toward the plan.
• Coordination — to fit diverse efforts together
and ensure information is shared and
problems solved.
• Control — to make sure things happen
according to plan and to take necessary
corrective action.
1916
Henri Fayol
8. The Management
Century
• Scalar chain — there should be a clear and
unbroken line of communication from the
top to the bottom of the organization.
• Unity of command — each person should
receive orders from only one boss.
• Unity of direction — one person should be
in charge of all activities with the same
performance objective.
1916
Henri Fayol
9. The Management
Century
• Groups and human cooperation:
• Groups are mechanisms through which
individuals can combine their talents for a
greater good.
• Organizations are cooperating
“communities” of managers and workers.
• Manager’s job is to help people in the
organization cooperate and achieve an
integration of interests.
• Forward-looking management insights:
• Making every employee an owner creates
a sense of collective responsibility
(precursor of employee ownership, profit
sharing, and gain-sharing)
1924
Participatory
Management
Calls for “Power with,”
not “Power over” worker
Mary Parker Follett
10. The Management
Century
• Initial study examined how
economic incentives and physical
conditions affected worker output.
• “Psychological factors” influenced
results.
• Employee attitudes, interpersonal
relations, and group processes.
• Lessons from the Hawthorne
Studies:
• Social and human concerns are keys to
productivity.
• Hawthorne effect — people who are
singled out for special attention
perform as expected.
1924
Hawthorne Studies
Western Electric
Company
Alton mayo
White Head
Roethlisberger
11. The Management
Century
• Group Dynamics and respect from
management affect worker
Performance
1930
Human Relation
Movement
Elton Mayo
12. The Management
Century
• “In the time of crisis the state
must intervene to create demand
and jobs”
1936
The General Theory of
Employment, interest
and Money
Johan Maynard
Keynes
13. The Management
Century
• A need is a physiological or
psychological deficiency a person
feels compelled to satisfy.
• Need levels:
• Physiological
• Safety
• Social
• Esteem
• Self-actualization
1943
“Human Motivation
Theory”
Abraham Maslow
14. The Management
Century
McGregor’s Theory X assumes that
workers:
• Dislike work
• Lack ambition
• Are irresponsible
• Resist change
• Prefer to be led
McGregor’s Theory Y assumes that
workers are:
• Willing to work
• Capable of self control
• Willing to accept responsibility
• Imaginative and creative
• Capable of self-direction
1960
Theory X and theory Y
Douglas McGroger
15. The Management
Century
• Focus on a small number of key economic
decisions made by the firm;
• Develop process-oriented models of the
firm;
• Link models of the firm as closely as
possible to empirical observations; and
• Develop theory with generality beyond
the specific firms studies.
1963
Behavioral Theory of Firm
Richard cyert, James
March
16. The Management
Century
• Managing a Business
• Purpose,(create customer)
Function(Marketing and innovation),
Profit
• Managing Managers
• Managing Workers and Work
Personnel Management
Organizing for Peak Performance
Motivating for Peak
Performance
1964
Managing for Results
Peter Drucker
17. The Management
Century
• Corporate strategy establishes the
overall direction that the
organization hopes to go.
• Competitive & functional
strategies provide the means or
mechanisms for making sure the
organization gets there.
1971
The concept of corporate
Strategy
Kenneth Andrews
18. The Management
Century
• How Managers use institution and
relationships in their works
• Interpersonal Roles
• Figurehead
• Leader
• Liaison
• Informational Roles
• Monitor
• Disseminator
• Spokesperson
• Decisional Roles
• Entrepreneur
• Disturbance Handler
• Resource Allocator
• Negotiator
1975
“The Manager’s Job: Folkore and Fact”
Henry Mintzberg
19. The Management
Century
• The theory explains the
relationship between principal and
agent (share holder and
Managers)
• The theory attempts to deal with
two problems:
• How to align the goal of principal…
• Principal and agent reconcile
different tolerance for risk
1970s
Agency Theory
Michael Jensen
William Meckling
21. The Management
Century
• Core competencies are the
wellspring of new business
development.
• Win manufacturing leadership in
core products and capture global
share through brand-building
programs.
• Acquisition (Strategic alliances)
• Accumulation
• Sharing
1990
The core competence of
the corporation
Prahalad & Gary Hamel