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
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Part OneEarly Management Thought
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Chapter Two

• Management before Industrialization

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Management in Early Civilizations

• Hammurabi Code of Law
• Sun Tzu Planning and Strategy
• Confucius Personnel selection by merit, early
  bureaucracy, and division of labor
• Kautilya Public administration, trait approach
  for selecting leaders, use of staff for advising,
  and job descriptions
• Joseph best known vizier - from which the word
  supervisor is derived

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Management in Early Civilizations

• Moses organization, span of control,
  delegation, and the exception principle
• Socrates transferability of managerial skills
• Aristotle specialization of labor,
  departmentation, delegation, synergy, leadership
  and scientific method
• Xenophon advantages of specializing labor
• Rome span of control as well as a model for
  later civilizations

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The Catholic Church

• Oldest living organization
• Conflict between centralized and decentralized
  authority still exists today characterized as
  the need for unanimity of purpose yet discretion
  for local problems and conditions.

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Feudalism and the Middle Ages

• Caused by the development of free people as
  tenant farmers, growth of large estates,
  political disorder, economic, social, and
  political chaos.
• Tied people to the land, fixed rigid class
  systems, established landed aristocracy, stopped
  education, caused poverty and ignorance, and
  stifled human progress until the Age of
  reformation.

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Commerce

• Marco Polo travels to the Far East sees the
  Rule of Ten in the Tatar tribes.
• Craft Guilds makers of goods regulated job
  access.
• Merchant Guilds buyer sellers of goods.
• Pay based on performance did not get paid until
  work was returned to the merchant.

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Growing Trade

• Luca Paciolis system of double-entry accounting
  the first management information system (cash
  inventory position and a check on cash flow)
  developed in 15th century.
• Summa de Arithmetica, geometrica, proportioni, et
  proportionalita

Fra Luca Pacioli
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Early Ethical Considerations

• Just Price market price advocated by Saint
  Thomas Aquinas in 13th century.
• Trade rules (Code of Ethical Conduct) proposed by
  Friar Johannes Nider in 1468
• Goods should be lawful, honorable, and useful.
• Price should be just.
• Seller should beware.
• Speculation was a sin.

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Protestant Ethic

• Max Weber advocated the belief that Protestants
  held different attitudes toward work. This spirit
  of capitalism led to the Industrial Revolution
• Individual responsibility and self-control
• Work as a means of salvation
• Do not waste time or money
• Do your best in your calling
• Do not consume beyond your basic need

Max Weber
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Criticism of Weber

• R.H. Tawneys opinions
• Capitalism existed before the Protestant Ethic.
• Capitalism was the cause and justification of the
  Protestant Ethic, not the effect.
• Economic motivation pressured to change Church
  dogma to sanction economic efforts.

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Modern Support for Weber

• David C. McClelland
• Support for Weber in his observations of the
  influence of religion on human attitudes toward
  work and self-reliance.
• He found that children of Protestants had higher
• n achievement than children of Catholics, and
  children of Jews had still higher n achievement.
• McClelland said the need for achievement is not
  restricted to Protestants and there are wide
  variations among individuals which are influenced
  by the lessons they learn early in life about
  work, risk-taking, and self-reliance.

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The Liberty Ethic

• Differing ideas of the assumptions made about the
  nature of people guiding the choice of leadership
  style
• Nicolo Machiavelli The Prince
• all men are bad and ever ready to display their
  vicious nature (1513)
• Thomas Hobbess Leviathan
• Some great power must exist to bring order from
  chaos. (1651)

Nicolo Machiavelli
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The Liberty Ethic

• John Lockes Concerning Civil Government (1690)
• People have natural rights to property,
  contracts, a redress of grievances, and to freely
  choose those who are to govern
• Natural rights are to be protected through civil
  law in order to preserve more perfectly their
  life, liberty, and property
• His work set the stage for the Declaration of
  Independence

John Locke
Wren, History of Management Thought
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The Market Ethic

• Adam Smith Wealth of Nations (1776)
• Market forces were far more efficient in
  allocating resources and more just in rewarding
  individuals who produced the wealth than
  Mercantilism (government regulated the economy).

Adam Smith
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The Market Ethic

• Specialization of labor
• Increase performance
• Loss of mental exertion dexterity at his own
  particular trade seemsto be acquired at the
  expense of his intellectual, social, and martial
  virtues

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Summary

• Early management thought was dominated by
  cultural values that were antibusiness
• Three forces, or ethics, interacted to provide
  for a new age of industrialization
• Protestant Ethic
• Liberty Ethic
• Market Ethic

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Additional 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
• Developments from Ancient History
  http//www.accel-team.com/scientific/index.html
• Max Weber http//www.faculty.rsu.edu/felwell/The
  orists/Weber/Whome.htm
• Nicolo Machiavelli Medieval Source Book The
  Prince 1513
• http//www.fordham.edu/halsall/basis/machiavelli-
  prince.html
• John Locke Biography
• http//www.blupete.com/Literature/Biographies/Phi
  losophy/Locke.htm
• Adam Smith http//socserv2.socsci.mcmaster.ca/ec
  on/ugcm/3ll3/smith/
• James Watt by Carnegie http//www.history.rochest
  er.edu/steam/carnegie/
• Developments during the Industrial Revolution
  http//www.accel-team.com/scientific/scientific_0
  1.html

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Additional Internet Resources

• The Robert Owen Museum http//robert-owen.midwale
  s.com/
• Charles Babbage Institute
• http//www.cbi.umn.edu/exhibits/cb.html
• Andrew Ure - The Philosophy of the Manufacturers
  1835 http//www.fordham.edu/halsall/mod/1835ure.h
  tml
• Charles Dupin Biographyhttp//www-groups.dcs.st-a
  nd.ac.uk/history/Mathematicians/Dupin.html
• Cyrus McCormick - Biography
• http//www.vaes.vt.edu/steeles/mccormick/bio.html
  
• Samuel F.B. Morse
• http//memory.loc.gov/ammem/atthtml/mrshome.html
• Henry R. Towne Address delivered at Purdue
  University (1905)
• http//www.cslib.org/stamford/towne1905.htm
• Andrew Carnegie http//www.americaslibrary.gov/cg
  i-bin/page.cgi/aa/carnegie
• The Rockefellers PBS Documentary
• http//www.pbs.org/wgbh/amex/rockefellers/
• The Samuel Gompers Papers
• http//www.history.umd.edu/Gompers/index.html