History of Management Chapter 2

Study Notes

Management has existed for thousands of years, with evidence of large-scale projects like the Egyptian pyramids, the Great Wall of China, and the city of Venice.
These projects required coordination and management of numerous people, resources, and tasks.

Adam Smith's "The Wealth of Nations" (1776) introduced the concept of job specialization, also known as division of labor.
Job specialization increases productivity by breaking down jobs into narrow, repetitive tasks, increasing worker skill and dexterity, and saving time lost in changing tasks.

The Industrial Revolution started in the late 18th century, substituting machine power for human power.
Factories became more economical, requiring "managers" to forecast demand, ensure supplies, assign tasks, and direct daily activities.

Frederick Winslow Taylor, "Father of Scientific Management," aimed to develop the "one best way" for a job to be done.
Taylor used microchronometers to detect and eliminate wasted motion, increasing productivity by putting the right person on the job with the correct tools and equipment.

Henry Fayol focused on the activities of all managers, developing 14 principles of management applicable to all organizational situations.
Fayol's principles include division of work, authority, discipline, unity of command, and unity of direction, among others.

Max Weber, a German sociologist, studied and developed a theory of authority structures, calling the ideal type of organization a "bureaucracy."
Weber's bureaucracy is characterized by division of labor, clearly defined hierarchy, detailed rules and regulations, and impersonal relationships.

This approach focuses on the actions (behavior) of people at work, also known as organizational behavior (OB).
The Hawthorne Studies showed that group pressure, acceptance, and security have a greater impact on individual work behavior than incentive plans.

This approach uses quantitative techniques to improve decision making, applying statistics, optimization models, computer simulations, and other quantitative techniques to management activities.
The airline industry's "reverse pyramid" boarding process is an example of a quantitative approach, saving at least 2 minutes in boarding time.
Total quality management (TQM) is a management philosophy devoted to continual improvement and responding to customer needs and expectations.

This approach shifts focus from internal concerns to the external environment outside the organization.
Two contemporary management perspectives are part of this approach: systems and contingency.
A system is a set of interrelated and interdependent parts arranged to produce a unified whole, with closed and open systems being distinct.
The contingency approach, also known as situational approach, recognizes that organizations face different situations and require different ways of managing, using an "if, then" approach.