The History of Management

Dr. Bagus Nurcahyo Program Studi Manajemen Pemasaran Direktorat Program D3 Bisnis & KewirausahaanBnR-Peng.Manajemen-Chap-02 1

Management Ideas and Practice Throughout History5000 BC 4000-2000 BC 1800 BC 600 BC 500 BC 400 BC 400 BC 175 284 900 1100 1418 1436 1500 1525 Sumerians Egyptians Hammurabi Record keeping Plan, organize, control. Written requests. Planning, organizing, controlling. Controls and written documentation

Nebuchadnezzar Wage incentives, production control Sun Tzu Xenophon Cyrus Cato Diocletian Alfarabi Ghazali Barbarigo Venetians Strategy Management as a separate art Human relations and motion study Job descriptions Delegation of authority Listed leadership traits Listed managerial traits Different organizational forms/structures Numbering, standardization, interchangeability2

Sir Thomas More Critical of poor management and leadershipBnR-Peng.Manajemen-Chap-02

Machiavelli

Cohesiveness, power, and leadership

Why We Need Managers TodayThen Now

Work in families

Work in factories Specialized, unskilled laborers Large factories Large standardized mass production3

Skilled laborers Small, self-organized groups Unique, small batches of production

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The Evolution of ManagementAfter reading the next four sections, you should be able to:

1. explain the history of scientific management. 2. discuss the history of bureaucratic and administrative management. 3. explain the history of human relations management. 4. discuss the history of operations, information systems, and contingency BnR-Peng.Manajemen-Chap-02 management.

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The History of

Scientific ManagementScientific Management Studies and tests methods to identify the best, most efficient ways

Seat-of-the Pants Management No standardization of procedures No follow-up on improvementsBnR-Peng.Manajemen-Chap-02 5

Frederick W. TaylorFrederick Taylor is known today as the "father of scientific management." One of his many contributions to modern management is the common practice of giving employees rest breaks throughout the day.Frederick W. Taylor, 1856-1915BnR-Peng.Manajemen-Chap-02 6

Taylors Four Management PrinciplesDevelop a science for each element of a mans work, which replaces the old rule-of-thumb method. Scientifically select and then train, teach, and develop the workman. Cooperate with the men to insure all work is done in accordance with the principles of the science. There is almost equal division of the work and the responsibility between management and workmen.BnR-Peng.Manajemen-Chap-02 7

Frank & Lillian GilbrethFrank and Lillian Gilbreth were prolific researchers and often used their family as guinea pigs. Their work is the subject of Cheaper by the Dozen, written by their son and daughter.

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Motion Studies: Frank & Lillian GilbrethTime Study Timing how long it takes good workers to complete each part of their jobs.

Motion Study Breaking each task into its separate motions and then eliminating those that are unnecessary or repetitive.BnR-Peng.Manajemen-Chap-02 9

Charts: Henry Gantt

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The History of

Bureaucratic ManagementMax Weber, 1864-1920

Bureaucracy The exercise of control on the basis of knowledge, expertise, or experience.

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The Aim of Bureaucracy1. Qualification-based hiring 2. Merit-based promotion 3. Chain of command 4. Division of labor 5. Impartial application of rules and procedures 6. Recorded in writing 7. Managers separate from ownersBnR-Peng.Manajemen-Chap-02 12

Administrative Management: Henri Fayol1. Division of work 2. Authority and responsibility 3. Discipline 4. Unity of command 5. Unity of direction 6. Subordination of individual interests 7. Remuneration 8. Centralization 9. Scalar chain 10. Order 11. Equity 12. Stability of tenure of personnel 13. Initiative 14. Esprit de corpsBnR-Peng.Manajemen-Chap-02 13

The History of

Human Relations ManagementEfficiency alone is not enough to produce organizational success.

Success also depends on treating workers well.

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Mary Parker FollettMary Parker Follett is known today as the mother of scientific management." Her many contributions to modern management include the ideas of negotiation, conflict resolution, and power sharing.Mary Parker Follett, 1868-1933BnR-Peng.Manajemen-Chap-02 15

Constructive Conflict and Coordination: Mary Parker FollettDomination

Dealing with Conflict

Compromise

Integration

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Constructive Conflict and Coordination: Mary Parker FollettFundamental Principals of Organizations 1. Coordination as reciprocal relating all the factors in a situation 2. Coordination by direct contact of the responsible people concerned 3. Coordination in the early stages 4. Coordination as a continuing process

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Hawthorne Studies: Elton Mayo Workers feelings and attitudes affected their work Financial incentives werent the most important motivator for workers Group norms and behavior play a critical role in behavior at workBnR-Peng.Manajemen-Chap-02 18

Cooperation and Acceptance of Authority: Chester BarnardManagers can gain cooperation by: Securing essential services from individuals Unifying people by clearly formulating an organizations purpose and objectives Providing a system of effective communicationBnR-Peng.Manajemen-Chap-02 19

Cooperation and Acceptance of Authority: Chester BarnardPeople will be indifferent to managerial directives if they are understood are consistent with the purpose of the organization are compatible with the peoples personal interests can actually be carried out by those peopleBnR-Peng.Manajemen-Chap-02 20

Operations, Information, Systems, and Contingency Management

Operations Management

Systems Management

Information Management

Contingency Management

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Operations Management ToolsQuality control Forecasting techniques Capacity planning Productivity measurement and improvement Linear programming Scheduling systems Inventory systems Work measurement techniques Project management Cost-benefit analysisBnR-Peng.Manajemen-Chap-02 22

Operations Management ToolsGuns

Origins of Operations Management

Geometry

Fire

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Whitney, Monge, and OldsEli Whitney, 1765-1825

Gaspard Monge, 1746-1818

Ransom Olds, 1864-1950

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Information ManagementMilestones in information management:1400s 1500-1700 1850 1860s 1879 1880s 1890s 1980s 1990s Horses in Italy Creation of paper and the printing press Manual typewriter Vertical file cabinets and the telegraph Cash registers Telephone Time clocks Personal computer Internet

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Systems Management

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Contingency ManagementContingency Approach Holds that the most effective management theory or idea depends on the kinds of problems or situations that managers are facing at a particular time and place.

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Contingency Management Management is harder than it looks Managers need to look for key contingencies that differentiate todays situation from yesterdays situation Managers need to spend more time analyzing problems before taking action Pay attention to qualifying phrases, such as usually

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