The History of Management Thought

1
The History of Management Thought

• By
• Julia Teahen and Regina Greenwood

Based on The History of Management Thought, 5th
edition, 2005 by Daniel A. Wren
2
Part TwoThe Scientific Management Era
3
Chapter Nine

• The Human Factor Preparing the Way

4
The Human Factor Preparing the Way

• Personnel Management
• Psychology and the Individual
• The Social Problem
• Participative Decision Making

5
Personnel Management A Dual Heritage

• One part of personnel management can be found in
  the industrial betterment/welfare movement.
• The other side comes from scientific management
  and the needs for record.

6
Personnel Management As Welfare Work

• A number of companies hired a welfare secretary
  to advise management. Their duties were many, and
  in some cases appeared to be paternalistic.
• Many secretaries were female, perhaps because of
  their experience in vocational guidance or social
  work, or perhaps because some of their duties
  resembled a role stereotype of what a woman did
  i.e. administering dining facilities, handling
  illnesses, etc.

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Personnel Management As Welfare Work

• This approach grew out of the Social Gospel
  movement.
• The moral behavior of unmarried females factory
  workers was a concern.
• Early companies establishing welfare offices
• National Cash Register Company in 1897
• John Bancroft and Sons in 1899
• H.J. Heinz Company in 1902
• International Harvester Company in 1903.

8
Personnel Management Scientific Management Roots

• Scientific management emphasized
• Personnel selection
• Placement
• Wage plans
• Other issues involving employee welfare.
• Welfare work eventually was replace with
  Employment Management after 1910 as personnel
  practices were standardized and improved.

9
Psychology and the Individual

• Wilhelm Wundt pioneered scientific psychology.
• He opened the first laboratory in Leipzig in
  1879.
• He founded experimental psychology, leading to
  applied and industrial psychology.

William Wundt Courtesy of Dr. Charles I. Abramson
10
The Birth of Industrial Psychology

• Hugo Munsterberg (1863-1916) applied scientific
  psychology to industrial problems
• Best possible worker
• Best possible work
• Best possible effect
• Munsterberg advocated
• Tests for worker selection
• Research in the learning process in training
• Studied under Wundt

Hugo Munsterberg
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Foundations of the Social Person Industrial
Sociology

• Whiting Williams (1878-1975)
• Emile Durkheim (1858-1917)
• Charles H. Cooley (1864-1929)
• Gestalt Psychology

Whiting Williams from Weekly London Tabloid,
called 'ANSWERS',  dated 24th February 1934.
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Whiting Williams (1878-1975)

• Williams was a participant-observer. He put on
  the clothes and guise of a worker to study work
  first hand.
• He emphasized the centrality of work.
• He believed
• that the job defines social status as well as a
  persons place in the work situation
• that the workplace is a part of a larger social
  system.

13
Whiting Williams

• Williams saw earnings as a matter of social
  comparison influencing how a person viewed
  himself relative to others (similar to equity
  theory).
• The Eleventh Commandment Thou shalt not take
  thy neighbor for granted.
• Summary Industrial sociology began with
  Williams and the Social Gospel influenced his
  thoughts.

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Emile Durkheim Contributions to Sociological
Theory

• Anomie state of confusion, insecurity, and
  normlessness.
• Mechanical societies were dominated by a
  collective consciousness.
• Organic societies were characterized by
  interdependence and the division of labor leading
  to anomie.
• Durkheims thinking influenced the human
  relationists view of the need for social
  solidarity.

Emile Durkheim
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Social Behaviorism

• C. H. Cooley Looking Glass Self is a very
  interesting way of looking at the formation of
  self-efficacy, personality development, and other
  similar ideas.
• Gestalt psychology the whole system is greater
  than the sum of its parts.

Charles H. Cooley
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Employee Participation in Decision Making

• Three paths for giving employees a voice in the
  organization led to the democratization of the
  workplace
• Membership in a union that would represent the
  workers.
• Union-management cooperation
• Employee representation plans.

17
The Trade Union Movement and Industrial Relations

• John R. Commons (1862-1945) was the Father of
  Industrial Relations.
• He was probably the first to use the term Human
  Resources.
• He wrote of the need for workers to have a voice
  in the workplace.

John R. Commons, courtesy of the Wisconsin
Electronic Reader
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The Trade Union Movement and Industrial Relations

• John R. Commons admired Taylor.
• He was not anti-scientific management because it
  worked in some firms, but felt workers needed a
  say-so in the workplace.

John R. Commons, courtesy of the Wisconsin
Electronic Reader
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The Trade Union Movement and Industrial Relations

• American Federation of Labor formed under the
  leadership of Samuel Gompers in 1886.
• Goal was to achieve gains for organized labor
  through bargaining power, not productivity.
• Gompers said more, more, and then more was what
  labor wanted.

Samuel Gompers,
courtesy of Library of Congress
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The Era of Union-Management Cooperation

• Morris Cooke, Ordway Tead, and Robert Valentine
  were examples of those who were trying to
  reformulate what labor felt was the unyielding,
  no union, position of scientific management.
• The revised emphasis was to be on consent
• Union-management cooperation plans began when
  union membership was in decline in the early
  1920s. Unions agreed to accept scientific
  management if they were involved by electing
  representatives and could bargain about wages,
  hours working conditions, etc.

21
Employee Representation Plans

• Employee representation plans did not involve
  unions but the workers elected representatives
  and participated through shop councils and
  committees.
• Unions did not like these plans, but studies of
  these plans indicated they were progressive and
  improved labor-management relations.

22
Summary

• The 1920s was prosperous for employers and
  employees.
• Despite a surplus of labor, employers created
  industrial goodwill with a variety of employee
  benefit programs.
• Scientific Management inspired social scientists
  and psychologists to study the workplace.
• Industrial Sociology began in the 1920s.
• The Social Gospel spawned the industrial
  betterment/welfare movement.

23

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Summary of Part Two

• Taylor was the focus for a deeper philosophy of
  managing human and physical resources in a more
  technologically advanced world.
• Taylors disciples improved productivity and
  service to society.
• Fayol and Weber, Taylors contemporaries, also
  reflected a rational approach to enterprise.
• Taylor and his followers were affected by and did
  affect the times.

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Part Two Internet Resources

• Academy of Management Management History
  Division Websitehttp//www.aomhistory.baker.edu/d
  epartments/leadership/mgthistory/links.html
• List of Internet Resources compiled by Charles
  Booth http//www.jiscmail.ac.uk/files/MANAGEMENT-H
  ISTORY/links.htm
• Western Libraries Business Library Biographies
  of Gurus
• http//www.lib.uwo.ca/business/gurus.html
• Scientific Management Demonstration Video
• http//www.archive.org/movies/index.html
• Frederick Winslow Taylor http//www.accel-team.co
  m/scientific/scientific_02.html
• Fascinating Facts about Frederick Winslow Taylor
• http//www.ideafinder.com/history/inventors/taylo
  r.htm
• The Principles of Scientific Management, Taylor
  (1911)
• http//melbecon.unimelb.edu.au/het/taylor/sciman.
  htm
• Who Made America Frederick Winslow Taylor
• http//www.pbs.org/wgbh/theymadeamerica/whomade/t
  aylor_lo.html
• Films of Westinghouse Works 1904
• http//memory.loc.gov/ammem/papr/west/westhome.ht
  ml

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Part Two Internet Resources

• Franklin D. Roosevelt Presidential Library and
  Museum
• (contains papers of Morris L. Cooke)
• http//www.fdrlibrary.marist.edu/
• Henry Gantt http//www.accel-team.com/scientific/
  scientific_04.html
• Frank and Lillian Gilbreth http//www.accel-team.
  com/scientific/scientific_03.html
• The Gilbreth Network
• http//gilbrethnetwork.tripod.com/front.html
• Harrington Emerson Papers
• http//www.libraries.psu.edu/speccolls/FindingAid
  s/emerson.html
• Wilhelm Wundt
• http//www.indiana.edu/intell/wundt.shtml
• The Durkheim Pages
• http//www.relst.uiuc.edu/durkheim/

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Part Two Internet Resources

• The Samuel Gompers Papers
• http//www.history.umd.edu/Gompers/index.html
• Max Weber http//www.faculty.rsu.edu/felwell/The
  orists/Weber/Whome.htm
• William Durant http//www.flint.lib.mi.us/timelin
  e/autohistory_0798/durantW.html
• The Alfred P. Sloan Foundation
• http//www.sloan.org/
• The Alfred P. Sloan Museum
• http//www.sloanmuseum.com/
• The Henry Ford Museum
• http//www.hfmgv.org/
• The Henry Ford Estate
• http//www.henryfordestate.com/
• The Theodore Roosevelt Association
• http//www.theodoreroosevelt.org/