In this chapter, how management thought has evolved in modern times and the central concerns that have guided ongoing advances in management theory are explored. First, the classical management theories that emerged around the turn of the twentieth century are examined. Next, behavioral management theories developed before and after World War II are examined, and then management science theory, which developed during the second World War. Finally, the theories developed to help explain how the external environment affects the way organizations and managers operate are examined.
1.Describe how the need to increase organizational efficiency and effectiveness has guided the evolution of management theory. 2.Explain the principle of job specialization and division of labor, and tell why the study of person-task relationships is central to the pursuit of increased efficiency. 3.Identify the principles of administration and organization that underlie effective organizations. 4.Trace the changes in theories about how managers should behave to motivate and control employees. 5.Explain the contributions of management science to the efficient use of organizational resources. 6.Explain why the study of the external environment and its impact on an organization has become a central issue in management thought.
A MANAGER’S CHALLENGE: FINDING BETTER WAYS TO MAKE CARS
Car production has changed dramatically over the years as managers have applied different principles of management to organize and control work activities. Prior to 1900, small batch production was used, which was very expensive. In 1913, Henry Ford revolutionized the car industry by pioneering the development of mass-production manufacturing. The next change in management thinking occurred in Japan when a Toyota production engineer pioneered the development of lean manufacturing in the 1960s. By 1970, Japanese managers had applied the new lean production system so efficiently that they were producing higher quality cars at lower prices than their U.S. counterparts. In the 1990s, global car companies increased the number of robots used on the production line and began using advanced IT to build and track the quality of cars being produced. In the 2000s, Toyota has continued to pioneer new ways to increase its assembly line efficiency, and other manufacturers are attempting to catch up.
I.SCIENTIFIC MANAGEMENT THEORY
•As the industrial revolution swept through Europe and America, owners and managers of new factories found themselves unprepared for the challenges accompanying the change from small scale crafts production to large factories in which goods were made by sophisticated machines.
•Bosses began to search for new techniques to manage their organization’s resources, with emphasis placed on ways to increase the efficiency of the worker-task mix.
Job Specialization and the Division of Labor
•Adam Smith was one of the first writers to investigate the advantages of producing goods and services in factories. Smith identified two different types of manufacturing methods.
•One method was similar to crafts-style production, with each worker responsible for all of the 18 tasks involved in producing a pin. The other method had each worker perform only one or a few of the tasks required to complete a pin.
•Smith found that and if there were ten workers specializing in a specific task, they could produce 48,000 pins per day. If those same workers were to perform all 18 tasks, they could produce only a few thousand pins at most.
•He concluded that increasing the level of job specialization—the process by which a division of labor occurs as different workers specialize in different tasks over time—increases efficiency. Using Smith’s observations, other managers began to investigate how to improve job specialization to increase performance.
F. W. Taylor and...