ABM 1 Topic 2: THE EVOLUTION OF MANAGEMENT THEORIES

The manufacturing process where product parts undergo consecutive workstations as they are assembled into a final product.

A general rule based on practice or experience rather than facts or scientific evidence.

A general rule based on practice or experience rather than facts or scientific evidence.

Practice of the four managerial functions by the Chinese

1100 BC

Development of a scientific approach to work by the Greeks.

400-350 BC

Venetians improved production by standardizing assembly lines, using any inventory system, and building warehouses.

Medieval Period

Emergence of economies of scale which reduced manufacturing costs during the industrial revolution.

1780-1840

Business schools flourished. Some notable schools established at that time were Wharton School and Amos Tuck School.

Early 20th Century

The Chinese used the four basic management functions of..

planning, organizing, leading, and controlling.

The Greek philosophers Socrates and Plato discussed management concepts such as…

leadership and job specialization.

Romans practiced…to effectively manage their vast empire.

decentralized management

Venetians improved production by…using an inventory system, and building warehouses.

standardizing the assembly line

Studies the application of scientific methods and principles for the purpose of redesigning the work process to increase efficiency.

Scientific Management Theory

3 Important Figures in Scientific Management Theory

Frederick W. Taylor, Henry Gantt, Frank & William Gilbreth

An American Engineer who was the first to advocate scientific management. He pioneered several innovations during his tenure as foreman at Midvale Steel Company in Philadelphia.

Frederick W. Taylor

• Replace the rule-of-thumb methods with those that are scientifically proven.

• Select, train, and develop each worker based on scientific book.

• Cooperate with workers to ensure that scientific methods are being observed and implemented in their work.

• Divide work between managers and workers to ensure that specific management principles are applied by the managers in planning tasks and by the workers in preforming their tasks.

The Four Principles of Scientific Management

1. Operations became routinary which led them to boredom.

2. Money became the sole incentives for workers, ignoring other aspects of welfare.

3. Workers felt that the piece-rate technique, where they were paid only for the unit they produced regardless of time, might lead managers to abuse power and exploit them.

Scientific Management Theory according to Henry Ford

Focus on the overall management of an organization, emphasizing the role of managers as administrators.

Administrative Management Theory

This was introduced in the early 20th century by Henri Fayol, a French industrialist. He identified five (5) functions and fourteen (14) principles of management. ● The five (5) functions are planning, organizing, communicating, coordinating and controlling.

Administrative Management Theory