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Chapters Take Away
OVERVIEW OF CHAPTER

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.

LEARNING OBJECTIVES

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

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