The Evolution of Management Thought, 6th ed

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Management before Industrialization
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First, there has to be a goal.
Second, people must be attracted to the
purpose in order to participate.
Third, organizational members need
resources.
Fourth, activities must be structured.
Fifth, results were better achieved through
the activity of management.
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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
Joseph as Vizier
from which the word supervisor is
derived
Span of Control
“Rule of ten”
Origins of Charisma
Moses and his ideas:
organization, span of control,
delegation, and the exception
principle
 Other quotes suggest the
Hebrews provided advice on
planning, listening to advisers,
and controlling
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Socrates – transferability of managerial skills
Aristotle – specialization of labor, departmentation,
delegation, synergy, leadership and scientific method
 Xenophon – advantages of specializing labor
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The span of control in their
military as well as “Roman Law”
became a model for later
civilizations
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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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Papal authority may
reside in a passage found
in Matthew 16:18
Jesus says to Peter; “You
are Peter, a stone; and
upon this rock I will build
my church.”
Since Peter was crucified
and buried in Rome, some
believe that the church in
Rome (St. Peter’s Basilica)
fulfilled this prophecy.
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.
 Air and water pollution existed long before the
Industrial Revolution.
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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.
Domestic (Putting Out) System - Pay based
on performance where one did not get paid
until work was returned to the merchant.
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Fra Luca Pacioli
Luca Pacioli’s 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
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“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.
Could Niger’s code of
ethics be used today?
Why or why not?
Traces social, political, and economic changes that preceded the Industrial
Revolution in Great Britain.
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Max Weber (1864-1920) 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
Read Weber’s distinction between the “impulse to
acquisition…the greed for gain” and capitalism as the “rational
tempering” of this greed on p. 26 of the text. Do you agree or
disagree with Weber?
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R.H. Tawney’s 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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David C. McClelland
 Support for Weber in his observations of the influence
of religion on human attitudes toward work and selfreliance.
 He found that children of Protestants had higher
achievement than children of Catholics, and children of
Jews had still higher 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 selfreliance.
Differing ideas of the
assumptions made about the
nature of people guiding the
choice of leadership style
 Machiavelli and Hobbes insist
that humans are basically
nasty so they must be
governed closely.
 Nicolo Machiavelli – The
Prince
 “…all men are bad and ever
ready to display their
vicious nature…” (1513)
 Thomas Hobbes’s – Leviathan
 Some great power must
exist to bring order from
chaos. (1651)
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Nicolo Machiavelli
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John Locke’s Concerning Civil
Government (1690)
 People have natural rights to
John Locke
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
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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).
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Specialization of labor
 Increase performance
 Loss of mental exertion
– “…dexterity at his
own particular trade
seems…to be acquired
at the expense of his
intellectual, social, and
martial virtues”
“managed other
people’s money”
How does this apply to
corporate governance and the
separation of ownership and
management?
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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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