Engineering Management

Historical Developments in Management

April 1, 1998

Today’s Topics

Rise of Salaried Management in U.S.

Management Classics

Current Trends Facing Management

Prior to 1850

using century old business methods, traditional, small, owner-managed enterprises had little difficulty in carrying out production and distribution

the daily output could be easily supervised by the owners assisted by one or two managers

Expansion of US economy in early 19th Century: created wide geographical area of

business activity no increase in size of firm specialization in single line of goods

cotton, grain, hardware, dry goods

What Changed?

In Production...

Technological changes enabled increase in output, mass production (faster and regular)

Did not create multi-unit business enterprises

What did?

The Search for Increasing Profits

New mass producers become modern enterprises when they integrated forward

and backward (prior to WWI)

sought business growth through diversification (after WWI)

Creating demand for more salaried mangers

Management as a Profession

business administration courses

professional associations

professional journals

Management Paradigms

1830 1930 1950 1990

Scientific Management Classics

1911 Principles of Scientific

Management

1912 Motion Study

1912 The Psychology of

Management

Human Relations Classics

1927 Hawthorne Works Experiments

1957 The Human Side of the

Enterprise

Sociotechnical Classics

1951 Social and Psychological Consequences of Longwall Coal Mining

1971 The Principles of Sociotechnical Desgin

Trends Facing Management

1010

Trends

10. Domestic vs. global economy

Trends

Managing the tension between personal and professional roles

Trends

8. Strategic Planning

Trends

7. Process improvement through TQ and reengineering

Trends

6. Performance Measurement

Benchmarking

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Trends

5. Designing and Managing Teams

Trends

4. Leveraging Diversity

Trends

3. Life Long Learning

Trends

2. Information Technology Explosion

Trends

1. Restructuring

The End