HISTORY OF MANAGEMENT

How management came into being? Philosophers who contributed in management? Who is the father of scientific management?

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1. CHINESE: 1100 B.C. – Management Functions

2. GREEKS: 350 B.C. to 400 B.C. – Recognized management as a separate art

3. VENETIANS: standardized production using the assembly line

4. MANAGERS OPERATED STRICTLY ON A TRIAL AND ERROR BASIS…

Early management Concepts…

Impressive performance

Production & quantity, division of labor

1700 - 1800STEAM ENGINE

Emergence of the Economies of Scale- Average cost of producing a particular

product decrease as production increase.- Opportunities for mass production.

1. Systematic Management2. Scientific Management3. Administrative Management4. Fayol’s Principles of Management5. Human Relations6. Weber’s Five Principles of Bureaucracy7. Quantitative Management8. Organizational Behavior 9. Open system view10. Contingency

19th century, U.S. Businesses were centered on manufacturing;

Tasks were subdivided and performed by specialize labor (- poor coordination).

Attempted to build specific processes and procedures.

Managers were concerned on the internal operations of their business.

The father of scientific management..

1. Time and motion studies: Banks Operation’s

2. Hiring and training3. Standardization of tools4. Instruction cards - 5. Breaks to eliminate fatigue6. Piece rate system

Each areas.

a. Equity - The provision of justice and the fair and

impartial treatment of all employees;b. Order- The arrangement of employees where they

will be of the most value to the organization and to provide career opportunities;

c. Initiative - The fostering of creativity and innovation by

encouraging employees to act to their own.

d. Discipline- obedient, applied respectful employees are

necessary for the organization to function;e. Remuneration of personnel- An equitable uniform payment system that

motivates contributes to organizational success;

f. Stability of Tenure of Personnel- Long term employment is important for the

development of skills that improve the organizations performance.

g. Subordination of individual interest to the common interest

- The interest of the organization takes precedence over that of the individual employee;

h. Esprit De Corps- unity, shared enthusiasm foster devotion to

the common cause.

i. Division of work;- Divide work into specialized tasks and assign

responsibilities to specific individuals.

j. Authority - Delegate authority along with responsibility

k. Unity of command- Each employee is assigned to only one

supervisor.

1. Equity 2. Order3. Initiative4. Discipline5. Remuneration of personnel6. Stability of tenure 7. Subordination of individual interest to the

common interest8. Esprit de corps9. Division of labor10. Authority11. Unity of command

1. Developed during the 1930’s aimed at understanding how psychological and social processes interact with the work situation to influence performance;

2. Emphasize informal work relationships and worker satisfaction.

3. Hierarchy of Needs.

- Sense of accomplishmentand achievement

1. Max Weber: are important, because they allow large organizations to perform the many routine activities necessary for survival.

2. Foster specialized skills.

3. Five principles of bureaucracy.

1. Authority is the power to hold people for their actions;

2. Positions in the firm should be held based on performance;

3. Positions duties are clearly identified so that people know what is expected of them;

4. Lines of authority should be clearly identified such that workers know who reports to whom.

5. Rules, standard operating procedures and norm’s guide the firms operations.

1. Emphasizes the application of quantitative analysis to management decisions and problems;

2. Helps manager make a decision by developing formal mathematical models.

1. 1950s: Studies and identifies management activities that promote employee effectiveness through an understanding of the complex nature of individual, group and organizational processes;

2. Douglas McGregor 1960’s.3. Explain the behavior of people in a job

(X,Y)

Workers are lazy and irresponsible which requires supervision and motivation…

Want to work, can direct and control;

There must be participation and allow opportunities…

Open system- Takes resources from its external

environment and converts them to goods and services;

- I-P-O system ;- Organization is one system in a series of

subsystem…

The idea that the organizational structure and control systems manager choose depend on are contingent on-characteristics of the external environment in which the organization operates;

Recommendations are set… (SWOT)

1. Systematic Management2. Scientific Management3. Administrative Management4. Fayol’s Principles of Management5. Human Relations6. Weber’s Five Principles of Bureaucracy7. Quantitative Management8. Organizational Behavior 9. Open system view10. Contingency