The History of Management

Dr. Bagus Nurcahyo

Program Studi Manajemen Pemasaran

Direktorat Program D3 Bisnis & Kewirausahaan
BnR-Peng.Manajemen-Chap-02 1
Management Ideas and Practice
Throughout History
5000
5000BC
BC Sumerians
Sumerians Record
Recordkeeping
keeping
4000-2000
4000-2000BC
BC Egyptians
Egyptians Plan,
Planning,
Plan, organize,
Planning,organizing,
organize,control.
organizing,controlling.
control.Written
Writtenrequests.
controlling.
requests.
1800
1800BC
BC Hammurabi
Hammurabi Controls
Controlsand
andwritten
writtendocumentation
documentation
600
600BC
BC Nebuchadnezzar
Nebuchadnezzar Wage
Wageincentives,
incentives,production
productioncontrol
control
500
500BC
BC Sun
SunTzu
Tzu Strategy
Strategy
400
400BC
BC Xenophon
Xenophon Management
Managementas
asaaseparate
separateart
art
400
400BC
BC Cyrus
Cyrus Human
Humanrelations
relationsand
andmotion
motionstudy
study
175
175 Cato
Cato Job
Jobdescriptions
descriptions
284
284 Diocletian
Diocletian Delegation
Delegationof
ofauthority
authority
900
900 Alfarabi
Alfarabi Listed
Listedleadership
leadershiptraits
traits
1100
1100 Ghazali
Ghazali Listed
Listedmanagerial
managerialtraits
traits
1418
1418 Barbarigo
Barbarigo Different
Differentorganizational
organizationalforms/structures
forms/structures
1436
1436 Venetians
Venetians Numbering,
Numbering,standardization,
standardization,interchangeability
interchangeability
1500
1500 Sir
SirThomas
ThomasMore
More Critical
Criticalof
ofpoor
poormanagement
managementand
andleadership
leadership
BnR-Peng.Manajemen-Chap-02 2
1525
1525 Machiavelli
Machiavelli Cohesiveness,
Cohesiveness,power,
power,and
andleadership
leadership
 Why We Need Managers Today
Then
Then Now
Now

Work
Workin
infamilies
families Work
Workin
infactories
factories

Specialized,
Specialized,
Skilled
Skilledlaborers
laborers unskilled
unskilledlaborers
laborers

Small,
Small,self-organized
self-organized Large
Largefactories
factories
groups
groups

Unique,
Unique,small
smallbatches
batches Large
Largestandardized
standardized
of
ofproduction
production mass
massproduction
production

BnR-Peng.Manajemen-Chap-02 3
The Evolution of Management
After 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 management.

BnR-Peng.Manajemen-Chap-02 4
 The History of
Scientific Management

Scientific
Scientific Management
Management

 Studies
Studies and
and tests
tests methods
methods to
to identify
identify
the
the best,
best, most
most efficient
efficient ways
ways

“Seat-of-the
“Seat-of-the Pants”
Pants” Management
Management

 No
No standardization
standardization of
of procedures
procedures
 No
No follow-up
follow-up on
on improvements
improvements

BnR-Peng.Manajemen-Chap-02 5
 Frederick W. Taylor
Frederick 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, 1856-1915

BnR-Peng.Manajemen-Chap-02 6
 Taylor’s Four Management
Principles

Develop
Develop aa science
science for
for each
each element
element of
of aa man’s
man’s work,
work,
which
which replaces
replaces the
the old
old rule-of-thumb
rule-of-thumb method.
method.

Scientifically
Scientifically select
select and
and then
then train,
train, teach,
teach, and
and
develop
develop the
the workman.
workman.

Cooperate
Cooperate with
with the
the men
men to
to insure
insure all
all work
work is
is done
done in
in
accordance
accordance with
with the
the principles
principles of
of the
the science.
science.

There
There is
is almost
almost equal
equal division
division of
of the
the work
work and
and the
the
responsibility
responsibility between
between management
management and and workmen.
workmen.
BnR-Peng.Manajemen-Chap-02 7
 Frank & Lillian Gilbreth
Frank 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.

BnR-Peng.Manajemen-Chap-02 8
 Motion Studies:
Frank & Lillian Gilbreth
Time 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

BnR-Peng.Manajemen-Chap-02 10
 The History of
Bureaucratic Management
Max Weber, 1864-1920

Bureaucracy

The exercise of control on the basis of

knowledge, expertise, or experience.

BnR-Peng.Manajemen-Chap-02 11
 The Aim of Bureaucracy
1.
1. Qualification-based
Qualification-basedhiring
hiring

2.
2. Merit-based
Merit-basedpromotion
promotion

3.
3. Chain
Chainof
of command
command

4.
4. Division
Divisionof
oflabor
labor

5.
5. Impartial
Impartialapplication
applicationof
ofrules
rulesand
and procedures
procedures

6.
6. Recorded
Recordedin
inwriting
writing

7.
7. Managers
Managersseparate
separatefrom
fromowners
owners

BnR-Peng.Manajemen-Chap-02 12
 Administrative Management:
Henri Fayol
1.
1. Division
Division of
ofwork
work 8.
8. Centralization
Centralization
2.
2. Authority
Authorityand
and 9.
9. Scalar
Scalarchain
chain
responsibility
responsibility
3.
3. Discipline
Discipline 10.
10.Order
Order

4.
4. Unity
Unity of
ofcommand
command 11.
11.Equity
Equity
12.
12.Stability
Stabilityof
of tenure
tenure
5.
5. Unity
Unity of
ofdirection
direction of
of personnel
personnel
6.
6. Subordination
Subordinationof of 13.
13. Initiative
Initiative
individual
individualinterests
interests
7.
7. Remuneration
Remuneration 14.
14. Esprit
Espritde
decorps
corps

BnR-Peng.Manajemen-Chap-02 13
 The History of
Human Relations Management

Efficiency alone is not

enough to produce
organizational success.

Success also depends on

treating workers well.

BnR-Peng.Manajemen-Chap-02 14
 Mary Parker Follett
Mary 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, 1868-1933

BnR-Peng.Manajemen-Chap-02 15
Constructive Conflict and Coordination:
Mary Parker Follett

Domination
Domination

Dealing
Dealing with
with Compromise
Compromise
Conflict
Conflict

Integration
Integration

BnR-Peng.Manajemen-Chap-02 16
 Constructive Conflict and
Coordination: Mary Parker Follett
Fundamental Principals of Organizations

1.
1. Coordination
Coordinationas asreciprocal
reciprocalrelating
relatingall
all
the
thefactors
factorsin
inaasituation
situation

2.
2. Coordination
Coordinationby
bydirect
directcontact
contactof
ofthe
the
responsible
responsiblepeople
peopleconcerned
concerned

3.
3. Coordination
Coordinationin
inthe
theearly
earlystages
stages

4.
4. Coordination
Coordinationas
asaacontinuing
continuingprocess
process

BnR-Peng.Manajemen-Chap-02 17
Hawthorne Studies: Elton Mayo
• Workers’ feelings and
attitudes affected their
work
• Financial incentives
weren’t the most
important motivator for
workers
• Group norms and
behavior play a critical
role in behavior at work
BnR-Peng.Manajemen-Chap-02 18
 Cooperation and Acceptance
of Authority: Chester Barnard

Managers can gain cooperation by:

• Securing essential services from

individuals
• Unifying people by clearly formulating an
organization’s purpose and objectives
• Providing a system of effective
communication

BnR-Peng.Manajemen-Chap-02 19
 Cooperation and Acceptance
of Authority: Chester Barnard
People will be indifferent to managerial
directives if they…

• are understood
• are consistent with the purpose of the
organization
• are compatible with the people’s personal
interests
• can actually be carried out by those people

BnR-Peng.Manajemen-Chap-02 20
 Operations, Information, Systems,
and Contingency Management

Operations
Operations Management
Management Systems
Systems Management
Management

Information
Information Management
Management Contingency
Contingency Management
Management

BnR-Peng.Manajemen-Chap-02 21
Operations Management Tools

Quality
Qualitycontrol
control
Forecasting
Forecastingtechniques
techniques
Capacity
Capacityplanning
planning
Productivity
Productivity measurement
measurement and
and improvement
improvement
Linear
Linearprogramming
programming
Scheduling
Schedulingsystems
systems
Inventory
Inventorysystems
systems
Work
Workmeasurement
measurementtechniques
techniques
Project
Project management
management
Cost-benefit
Cost-benefit analysis
analysis
BnR-Peng.Manajemen-Chap-02 22
Operations Management Tools

Guns
Guns

Origins
Origins of
of
Operations
Operations Geometry
Geometry
Management
Management

Fire
Fire

BnR-Peng.Manajemen-Chap-02 23
Whitney, Monge, and Olds
Eli Whitney, 1765-1825

Gaspard Monge, 1746-1818

Ransom Olds, 1864-1950

BnR-Peng.Manajemen-Chap-02 24
 Information Management
Milestones in information management:

1400s Horses in Italy

1500-1700 Creation of paper and the printing press
1850 Manual typewriter
1860s Vertical file cabinets and the telegraph
1879 Cash registers
1880s Telephone
1890s Time clocks
1980s Personal computer
1990s Internet

BnR-Peng.Manajemen-Chap-02 25
Systems Management

BnR-Peng.Manajemen-Chap-02 26
Contingency Management

Contingency 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.

BnR-Peng.Manajemen-Chap-02 27
 Contingency Management
• Management is harder than it looks
• Managers need to look for key contingencies
that differentiate today’s situation from
yesterday’s situation
• Managers need to spend more time analyzing
problems before taking action
• Pay attention to qualifying phrases,
such as “usually”

BnR-Peng.Manajemen-Chap-02 28