Historical Development and Evolution of Management.
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EARLY MANAGEMENT AND THE STUDY OF MANAGEMENT. Although great feats of human achievement such as the Egyptian pyramids, the Great Wall of China, the Colosseum in Rome and the Taj Mahal in India all bear testimony to skilled management in ancient times, the formal study of management only began late in the 19th century. The main driving force behind this development of management as a science was the transition from 19th century “entrepreneurial capitalism” to early 20th century “managerial capitalism”. Whereas the first capitalists were business owners who used their own finances to fund organizations that they managed themselves, rapid industrial growth saw the formation of large organizations with capital often provided by outsiders. This not only “widened the gap” between owners or shareholders and management, it also brought new management challenges (Smit & Cronjé, 2002, p34-35; George, 1968).
Scientific Management One of the early pioneers of management theory was Frederick W. Taylor (1856-1915), a mechanical engineer who believed that it was management’s task to design jobs properly and to provide incentives to motivate workers to achieve higher productivity. While working at the Midvale Steel Company in Philadelphia, Taylor developed a new, and at the time radical approach to managing, known as scientific management. He conducted studies into how workers or machines performed tasks, measuring and analyzing each measurable aspect of the work. He then determined standard times and sequences for the completion of each task. With this information, Taylor provided managers with realistic production standards per man- and machine-hour. Taylor’s scientific management changed the role of managers from being run-of-the-mill whip men to specialized foremen who were adequately equipped to supervise each phase of the production process. On a larger scale, he revolutionized managerial thought and laid the foundation for the formation of many other
EARLY MANAGEMENT AND THE STUDY OF MANAGEMENT. Although great feats of human achievement such as the Egyptian pyramids, the Great Wall of China, the Colosseum in Rome and the Taj Mahal in India all bear testimony to skilled management in ancient times, the formal study of management only began late in the 19th century. The main driving force behind this development of management as a science was the transition from 19th century “entrepreneurial capitalism” to early 20th century “managerial capitalism”. Whereas the first capitalists were business owners who used their own finances to fund organizations that they managed themselves, rapid industrial growth saw the formation of large organizations with capital often provided by outsiders. This not only “widened the gap” between owners or shareholders and management, it also brought new management challenges (Smit & Cronjé, 2002, p34-35; George, 1968).
Scientific Management One of the early pioneers of management theory was Frederick W. Taylor (1856-1915), a mechanical engineer who believed that it was management’s task to design jobs properly and to provide incentives to motivate workers to achieve higher productivity. While working at the Midvale Steel Company in Philadelphia, Taylor developed a new, and at the time radical approach to managing, known as scientific management. He conducted studies into how workers or machines performed tasks, measuring and analyzing each measurable aspect of the work. He then determined standard times and sequences for the completion of each task. With this information, Taylor provided managers with realistic production standards per man- and machine-hour. Taylor’s scientific management changed the role of managers from being run-of-the-mill whip men to specialized foremen who were adequately equipped to supervise each phase of the production process. On a larger scale, he revolutionized managerial thought and laid the foundation for the formation of many other