Management Pioneers

8/13/2019 Management Pioneers

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Management Pioneers


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Factory System

Robert Owen: The search for a newharmony (1771-1858): Englishman

Entrepreneur himself tried to halt the surgeof industrialism and the evils of it, calledfor a new moral order based on a socialreorganizationvisionary of a new

industrial society

Focus on human problems


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Andrew UreMid 18thCentury:Englishman

Pioneer in Management education with a

Ph.D. in Physical Sciences Wrote about principles and processes of

manufacturing

A defender of the factory system seeingmore benefits than disadvantages from it

Focus on mechanical problems


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Baron Charles Dupin (1784-1873): FrenchEngineer pioneered in industrial education

Dupin believed that mechanization createdjobs rather than destroying them.


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Daniel Craig McCallum (1815-1878): American

Associated with the early railroad managementin America

Believed that good management rested on gooddiscipline, specific and detailed job descriptions,accurate reporting of performance, pay andpromotion based on merit, hierarchy of authority

of superiors over subordinates First proponent of organizational chart which

took the form of a tree


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Henry V. Poor: (1812-1905): American

Editor ofAmerican Railroad Journal whocame to grips with the broader problems ofmanagement and its environment


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The Robber Barons

Daniel Drew

Commodore Cornelius Vanderbilt

John D. Rockefeller Andrew Carnegie

Philip D. Armour

J.P.Morgan


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The creative entrepreneurs

Thomas EdisonAutomatic printing equipment

Samuel F.B.MorseTelegraphbirth ofWestern Union

Henry Fordcredited with innovations in autoproduction techniques

Walter P. ChryslerAutomobiles

Wanamaker, the Filenes, Sears, MontgomeryWard, J.C. Pennyin retailing

DuPontsexpanded from gun powder


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Advent of scientific management

Frederick Winslow Taylor

1856-1915American

Steel worker to start with, became

the chief engineer in six years Father of Scientific Management

Time studyfoundation ofTaylor System

Task Management Taylors lectures in Harvard from 1909 to 1914


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Carl G. Barth (1860-1939) -American

Faithful executor of F.W.Taylors percepts

Henry Laurence Gantt (1861-1919)American

The task and bonus system

Frank Bunker and Lillian Moller Gilbreth (1868-1924)American couple

Contemporary of the founders of scientific managementmovement

Frank Gilbrethsearch for efficiency and economy

Lillian Gilbrethproponent of industrial psychology


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Harrington Emerson (1853-1931)AmericanBelonged to the new breed of efficiency engineers

Published Twelve Principles of Efficiency

Morris Llewellyn Cooke (18721960)American

Extended the gospel of efficiency to educational andmunicipal organizations


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The scientific management movementinitiated by Taylor was in a life cycleprocess of growth, rebellion, and heading

toward adulthood. Taylors notion ofscience in management gained currencythrough the work put in by Carl Barth,

Henry Gantt, Frank and Gillian Gilbreths,H. Emerson and Morris Cooke.


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Spread of Scientific Management

Industrial revolution had begun in Europeand spread to America

Scientific management revolution begun inAmerica spread to Europe

Taylors time study methods were adoptedin France (1907) and were put to useduring World War I for improvingproductivity.


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Scientific management soon found newproponents- Edward Albert Filene (1860-1937)applied scientific methods to retail administrationin his familys Boston store.

Scientific management found its way into texts,management hand books, journals, professionalassociations, and college curricula during early1900s

Despite Taylors belief that one had to livemanagement and learn through shop experiencethe study of industrial management was gettingmore formalized.


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Origins of Industrial Psychologyand Sociology

Prior to the advent of scientific management,psychology was largely introspectivei.e.,based on the premise that man could learn whathe needed to know about others by studyinghimself.

Use of astrology, physiognomy, phrenology, andgraphology were abundant while selectingpersonnel on the basis of movement andposition of stars, on their physicalcharacteristics, on the basis of bumps on theskull, and on handwriting analysis.


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Hugo Munsterberg (1863-1916)

Known as the father of industrialpsychologyborn inDanzig (city in Poland),

educated in Leipzig laboratory(in Germany), joined William James,Harvard psychologist, established his

psychological laboratory at Harvard in1892


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Foundations of Social Man

The social side of man and the humanrelations movement, were finding theirroots in earlier sociological theory.

Max Weber, Emile Durkheim, and VilfredoPareto formed an intellectual trio ofsociological theorists of the 19thcentury


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The Administrative Theory

Henry Fayol, the French manager,engineer fathered the first theory ofadministration

Max Weber, the German Economist,Sociologist, sired a theory of organizationsthrough his conception of bureaucracy as

the ideal of technical efficiency


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Henry Fayol(1825-1925)

Trained as a miningengineer, Fayol madesignificant Technical

contributions to

geology and metallurgy as

well as to the field of

management.


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Fayol published in 1916Administrationindustrielle et generale mentioning theelements of administration.

Fayol stressed on the importance ofmanagement in all undertakings, large orsmall, industrial, commercial, political,

religious, or any other.


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Fayol identified six groups of activities in any industrialunit:

1. Technicalproduction and manufacture

2. Commercialbuying, selling, exchange

3. Financialfinding and optimum use of capital4. Securityprotection of property and persons

5. Accountingstock taking, balance sheets, costs

6. Managerialplanning, organization, command,

coordination, and controlFayol concentrated mostly on the managerial as theother five areas were commonly understood.


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Bureaucracy: Max Weber

Max Weber (1864-1920) was an intellectual ofthe first degree with far-ranging interests insociology, religion, economics, and politicalscience.

Author of The Protestant Ethic and the Spirit ofCapitalism

Weber perceived the need for establishing a

rational basis for administering large scaleundertakingsled to the conception ofbureaucracy as an ideal (not necessarilydesirable) arrangement.


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Kinds of Authority

Max Weber felt that authority should be thecornerstone of any organization and postulated threepure types of legitimate authority:

1. Rational-legal authoritybased on the right of those

elevated to authority2. Traditional authoritybased on the sanctity of

immemorial traditions

3. Charismatic authoritybased on the exceptionalsanctity, heroism, exemplary character

Weber preferred rational-legal authority as the basisfor bureaucracy


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Webers ideal democracy

1. A division of laborauthority and responsibility clearlydefined

2. Positions organized in a hierarchy resulting in a chainof command

3. Organizational members selected on the basis ofqualifications, formal examinations, or through trainingand education

4. Officials appointed, not elected (with rare exceptions)5. Officials worked for fixed salaries and were career

officials6. The administrative was not the owner of the firm7. Administrator guided by rules and regulations and

controls regarding the conduct of his official duties


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Second Industrial Revolution

In America during 1800, 90 per cent of itswork force depended on agriculture; by1900 this proportion dwindled to 33 per

cent and to 20 percent in 1929. Now it isbarely 2 per cent (0.7% of total GDP of theUSA). (Currently Indias agricultural work force is 60

per cent and contribution to GDP 16.6%) The transformation from an agrarian to

industrial nation


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The period witnessed growth of newindustries in Petroleum, Chemical,

Airplane, Steel, Meat Packing, Electricity,

Rubber, Tobacco, Agricultural Implements,Retailing, and the Automobile.

The automobile brought about substantial

economic and social change in America.


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Henry Ford

The automobile gave man a new

mobility. It led to decentralization

of the cities into suburbs, posed

threat to older forms of transport.

The new economics of the

industry was based on a minute

division of labor and on the

interchangeability of parts.


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Henry Ford and his associatestransformed these ideas into a logic ofmass production on an assembly line

basis which could be called a secondindustrial revolution. Mass productionreduced costs and the savings were

passed on to consumer through lowerprices.


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In 1910, the Model T cost the consumer $950 whichwas lowered to $290 by 1924 and Ford was by thenselling over 1.25 million cars. (using lower price toexpand the market, greater market paving way to greater

cost savings in production). Ford announced $5.00 dailywage in 1914 when the average wage in auto industrywas only $2.40.

Model T in 1926

Documents

Management Pioneers