{"id":9437,"date":"2017-01-17T19:05:27","date_gmt":"2017-01-17T19:05:27","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/masterybusiness2xngcxmasterspring2016\/?post_type=chapter&#038;p=9437"},"modified":"2017-07-18T21:39:23","modified_gmt":"2017-07-18T21:39:23","slug":"management-theory-2","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-wmopen-introbusiness\/chapter\/management-theory-2\/","title":{"raw":"Management Theory","rendered":"Management Theory"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li>Summarize the four principles of Frederick Taylor\u2019s scientific management theory<\/li>\r\n \t<li>Summarize the contributions of Frank and Lillian Gilbreth to scientific management<\/li>\r\n \t<li>Summarize Henri Fayol\u2019s contributions to the field of management theory<\/li>\r\n \t<li>Summarize the key functions of management today<\/li>\r\n<\/ul>\r\n<\/div>\r\n<h2>Taylor and the Gilbreths<\/h2>\r\nJust over one hundred\u00a0years ago Frederick Taylor published <em>Principles of Scientific Management, <\/em>a work that\u00a0forever changed the way organizations view their workers and their organization. At the time of Taylor's publication, managers believed that workers were lazy and worked slowly and inefficiently in order to protect their jobs. Taylor identified a revolutionary solution:\r\n<blockquote>\r\n<div>The remedy for this inefficiency lies in systematic management, rather than in searching for some unusual or extraordinary man.<\/div><\/blockquote>\r\nYou might think that a century-old theory wouldn't have any application in today's fast-paced, technology-driven world. You'd be wrong, though! In fact much of what you've already learned in this course is based on\u00a0Taylor's\u00a0work, and plenty of what you'll experience in the\u00a0workplace will be indebted to\u00a0him, too. If you recognize any of the following, you have already seen his principles of scientific management in action:\u00a0organizational charts, performance evaluations, quality measurements and metrics, and sales and\/or production goals.\r\n<h2>Scientific Management<\/h2>\r\nScientific management is a management theory that analyzes work flows to improve economic efficiency, especially labor productivity. This management theory, developed by Frederick Winslow Taylor, was popular in the 1880s and 1890s in U.S. manufacturing industries.\r\n\r\nWhile the terms \"scientific management\" and \"Taylorism\" are often treated as synonymous, a more accurate view is that\u00a0Taylorism is the first form of scientific management. Taylorism is sometimes called the \"classical perspective,\" meaning that it is still observed for its influence but no longer practiced exclusively. Scientific management was best known from 1910 to 1920, but in the 1920s, competing management theories and methods emerged, rendering scientific management largely obsolete by the 1930s. However, many of the themes of scientific management are still seen in industrial engineering and management today.\r\n<h3>Frederick Winslow Taylor<\/h3>\r\n[caption id=\"attachment_9568\" align=\"alignleft\" width=\"201\"]<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/143\/2017\/01\/20064105\/frederick-winslow-taylor.jpeg\"><img class=\"wp-image-9568 size-medium\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/143\/2017\/01\/20064105\/frederick-winslow-taylor-201x300.jpeg\" alt=\"Portrait of Frederick Winslow Taylor\" width=\"201\" height=\"300\" \/><\/a> Frederick Winslow Taylor is considered the creator of scientific management.[\/caption]\r\n\r\nFrederick Winslow Taylor\u00a0was an American mechanical engineer who sought to improve industrial efficiency by determining the amount of time it takes workers to complete a specific task and determining ways to decrease this amount of time by eliminating any potential waste in the workers' process.\r\n\r\nA significant part of Taylorism was time studies. Taylor was concerned with reducing process time and worked with factory managers on scientific time studies. At its most basic level, time studies involve breaking down each job into component parts, timing each element, and rearranging the parts into the most efficient method of working. By counting and calculating, Taylor sought to transform management into a set of calculated and written techniques..<span style=\"font-size: 13.3333px;\">\u00a0\u00a0<\/span>\r\n\r\nTaylor proposed a \"neat, understandable world in the factory, an organization of men whose acts would be planned, coordinated, and controlled under continuous expert direction. \" Factory production was to become a matter of efficient and scientific management\u2014the planning and administration of workers and machines alike as components of one big machine.\r\n\r\nOne of Taylor's\u00a0most famous studies was from his time at the Bethlehem Steel Corporation\u00a0in the early 1900's. He noticed that workers used the same shovel for all materials, even though the various materials differed in weight. By observing the movements of the workers and breaking the movements down into their component elements, Taylor determined that the most efficient shovel\u00a0load was 21\u00bd lb. \u00a0Accordingly, he set about finding or designing\u00a0different shovels\u00a0to be used for each material that would scoop up that amount.\r\n\r\nTaylor summed up his efficiency techniques in his 1911 book <i>The Principles of Scientific Management<\/i>. Important components of scientific management include analysis, synthesis, logic, rationality, empiricism, work ethic, efficiency, elimination of waste, and standardized best practices. All of these components focus on the efficiency of the worker and not on any specific behavioral qualities or variations among workers.\r\n\r\nTaylor's scientific management consisted of four principles:\r\n<ol>\r\n \t<li>Replace rule-of-thumb work methods with methods based on a scientific study of the tasks.<\/li>\r\n \t<li>Scientifically select, train, and develop each employee rather than passively leaving them to train themselves.<\/li>\r\n \t<li>Provide detailed instruction and supervision of each worker in the performance of that worker's discrete task.<\/li>\r\n \t<li>Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks.<\/li>\r\n<\/ol>\r\n<h3>Frank and Lillian Gilbreth<\/h3>\r\n[caption id=\"attachment_9570\" align=\"alignright\" width=\"203\"]<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/143\/2017\/01\/20065832\/CheaperByTheDozen.jpg\"><img class=\"size-medium wp-image-9570\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/143\/2017\/01\/20065832\/CheaperByTheDozen-203x300.jpg\" alt=\"Book cover showing an old car filled with children and a dog racing alongside.\" width=\"203\" height=\"300\" \/><\/a> Cheaper by the Dozen[\/caption]\r\n\r\nWhile Taylor was conducting his time studies, Frank and Lillian Gilbreth were completing their own work in motion studies to further scientific management. \u00a0The Gilbreth name may be familiar to anyone who has read the book <em>Cheaper By The Dozen<\/em>, a biographical novel about the Gilbreth family, their twelve children, and the often humorous attempts of the Gilbreths to apply their efficiency methods in their own household.\r\n\r\nThe Gilbreths made use of scientific insights to develop a study method based on the analysis of work motions, consisting in part of filming the details of a worker's activities while recording the time it took to complete those activities. The films helped to create a visual record of how work was completed, and emphasized areas for improvement. Secondly, the films also served the purpose of training workers about the best way to perform their work.\r\n\r\nThis method allowed the Gilbreths to build on the best elements of the work flows and create a standardized best practice. Time and motion studies are used together to achieve rational and reasonable results and find the best practice for implementing new work methods. While Taylor's work is often associated with that of the Gilbreths, there is a clear philosophical divide between the two scientific-management theories. Taylor was focused on reducing process time, while the Gilbreths tried to make the overall process more efficient by reducing the motions involved. They saw their approach as more concerned with workers' welfare than Taylorism, in which workers were less relevant than profit. This difference led to a personal rift between Taylor and the Gilbreths, which, after Taylor's death, turned into a feud between the Gilbreths and Taylor's followers.\r\n\r\nEven though scientific management was pioneered in the early 1900s, it continued to make significant contributions to management theory throughout the rest of the twentieth century. With the advancement of statistical methods used in scientific management, quality assurance and quality control began in the 1920s and 1930s. During the 1940s and 1950s, scientific management evolved into operations management, operations research, and management cybernetics. In the 1980s, total quality management became widely popular, and in the 1990s \"re-engineering\" became increasingly popular. One could validly argue that Taylorism laid\u00a0the groundwork for these large and influential fields that we still practice today.\r\n<h2>Fayol<\/h2>\r\n[caption id=\"attachment_9421\" align=\"alignright\" width=\"233\"]<img class=\"size-medium wp-image-9421\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/143\/2017\/01\/16191200\/Henri_Fayol_1900-233x300.jpg\" alt=\"Black-and-white photo of Henri Fayol, 1900.\" width=\"233\" height=\"300\" \/> Henri Fayol, 1900[\/caption]\r\n\r\nManagers in the early 1900s had very few resources at their disposal to study or systematize their management practices. Henri Fayol, who was a French mining engineer and author, saw the need\u00a0for this kind of study and, using the mines as the basis for his studies, developed what is\u00a0now regarded as the foundation of modern management theory. In 1914 he published <em>Administration industrielle et g\u00e9n\u00e9rale,<\/em> which included his now-famous \u201cfourteen principles of management.\u201d Fayol\u2019s practical list of principles guided early twentieth-century managers to efficiently organize and interact with employees.\r\n\r\nFayol recognized that management is fundamentally a process involving people. He saw that work\u00a0could be managed\u00a0more efficiently and smoothly by supporting\u00a0the workers\u00a0doing the tasks. He proposed that if managers could instill\u00a0a sense of team spirit (esprit de corps) and encourage employees to contribute their own ideas, the problem of high turnover and instability in the workforce might be solved. At the time, working conditions in much of the industrialized world were terrible, and many of Fayol's principles\u00a0ran counter to conventional ways of thinking about and treating workers. For instance, Fayol said that it\u2019s essential to pay a fair wage for a fair day\u2019s labor, and he claimed\u00a0that productivity would actually increase\u00a0if managers treated workers fairly and kindly. These were radical ideas at the time. Fayol argued that that discipline, while important to organizational success, ought to come from effective leadership\u2014not from dictatorial or harsh management practices.\u00a0Fayol recognized that a company's\u00a0people, not its structure, determine success or failure.\r\n\r\nFayol also addressed the role of structure in building an efficient organization. Several of his management principles deal with the framework in which managers operate, touching on aspects of what we would today call \"organizational structure.\" He encouraged companies\u00a0to arrange men, machines, and materials systematically in order to maximize efficiency. In short, he applied the adage \"a place for everything and everything in its place\" to the operations of a business. He believed that managers ought to communicate to employees about their roles and responsibilities in a clear and compelling manner, thereby reducing uncertainty and waste. He also brought to the business environment a concept that had been used in military strategy for centuries: the chain of command.\u00a0Fayol's \"scalar chain\" was, in effect, an organization chart of the type\u00a0seen today (and below), showing the lines of communication and chain of command from the top of a company to the bottom. He believed that by means of such hierarchies, firms\u00a0could achieve unity of direction and command.\r\n\r\n[caption id=\"attachment_9517\" align=\"aligncenter\" width=\"1024\"]<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/143\/2017\/01\/18015933\/Organization_Chart_of_a_large_Company_Manufacturing_Stoves_1914.jpg\"><img class=\"wp-image-9517 size-large\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/143\/2017\/01\/18015933\/Organization_Chart_of_a_large_Company_Manufacturing_Stoves_1914-1024x598.jpg\" alt=\"Chart shows stockholders at the top; board of directors under them; the president under them. On the same level as the president are the treasurer and second vice president and secretary. Below these are the general manager, head of accounting, etc.\" width=\"1024\" height=\"598\" \/><\/a> Organization Chart of a Large Stove-Manufacturing Company, 1914.[\/caption]\r\n\r\nThe notion of unity of direction and command meant that \"for any action whatsoever an employee should receive orders from one superior only,\" a concept Fayol adapted\u00a0from the biblical teaching that \"no man can serve two masters.\" He proposed that organizational activities having the same objective should be directed by a single manager using a unified plan to attain a single common goal. At the same time, that single manager oversees one group of workers all working together to reach the goal. By adhering to these principles of unity, organizations can avoid duplicating efforts and realize efficiencies instead.\r\n\r\nThese efficiencies were not possible without what Fayol established as his first and perhaps most profound principle\u2014the division of labor or division of work. Fayol recommended that jobs be broken down to the individual tasks that comprise the whole and workers be assigned to those individual tasks or series of tasks. He believed that when someone performs the same task over and over, he acquires speed and accuracy. Fayol observed: \"The worker always on the same post, the manager always concerned with the same matters, acquires an ability, sureness, and accuracy which increases their output.\"[footnote]Fayol, H. (1949).\u00a0<em>General and Industrial Management<\/em>\u00a0(C. Storrs, Trans.). London: Sir Isaac Pitman &amp; Sons.[\/footnote]\r\n\r\nFayol also made an enormous contribution to management theory through his scientific study of the work of management. He made a clear distinction between operational activities\u2014manufacturing, sales, etc.\u2014and managerial activities, which he viewed as being fundamentally concerned with human interaction. From there, he systematically examined the different aspects\u00a0of the management process and spelled out the functions that managers perform.\r\n\r\nIn the following excerpt from <em>General and Industrial Management<\/em>, Fayol identifies five functions of management:\r\n<blockquote>To manage is to forecast and <strong>plan<\/strong>, to <strong>organize<\/strong>, to <strong>command<\/strong>, to <strong>coordinate<\/strong>, and to <strong>control<\/strong>.\u00a0To foresee and provide means examining the future and drawing up the plan of action. To organize means building up the dual structure, material and human, of the undertaking. To command means maintaining activity among the personnel. To coordinate means binding together, unifying, and harmonizing all activity and effort. To control means seeing that everything occurs in conformity with established rule and expressed command. [Emphasis added.][footnote]Fayol, H. (1949).\u00a0<em>General and Industrial Management<\/em>\u00a0(C. Storrs, Trans.). London: Sir Isaac Pitman &amp; Sons.[\/footnote]<\/blockquote>\r\nOver the years, management theorists have built upon and refined Fayol's original work and, more recently, have combined the \u201ccommand\u201d and \u201ccoordinate\u201d functions into one function: leading. Today, the key functions of management are considered to be the following: <strong>planning<\/strong>,\u00a0<strong>organizing<\/strong>,\u00a0<strong>leading<\/strong>, and\u00a0<strong>controlling.\u00a0<\/strong>All levels of management perform these functions; however, as with the skills required for effective management, the amount of time a manager spends on each function depends on the level of management and the needs of the organization. In the next readings we will explore each of these functions in greater depth.\r\n<h2>Check Your Understanding<\/h2>\r\nAnswer the question(s) below to see how well you understand the topics covered above. This short quiz does <strong>not<\/strong> count toward your grade in the class, and you can retake it an unlimited number of times.\r\n\r\nUse this quiz to check your understanding and decide whether to (1) study the previous section further or (2) move on to the next section.\r\n\r\nhttps:\/\/assessments.lumenlearning.com\/assessments\/3020","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li>Summarize the four principles of Frederick Taylor\u2019s scientific management theory<\/li>\n<li>Summarize the contributions of Frank and Lillian Gilbreth to scientific management<\/li>\n<li>Summarize Henri Fayol\u2019s contributions to the field of management theory<\/li>\n<li>Summarize the key functions of management today<\/li>\n<\/ul>\n<\/div>\n<h2>Taylor and the Gilbreths<\/h2>\n<p>Just over one hundred\u00a0years ago Frederick Taylor published <em>Principles of Scientific Management, <\/em>a work that\u00a0forever changed the way organizations view their workers and their organization. At the time of Taylor&#8217;s publication, managers believed that workers were lazy and worked slowly and inefficiently in order to protect their jobs. Taylor identified a revolutionary solution:<\/p>\n<blockquote>\n<div>The remedy for this inefficiency lies in systematic management, rather than in searching for some unusual or extraordinary man.<\/div>\n<\/blockquote>\n<p>You might think that a century-old theory wouldn&#8217;t have any application in today&#8217;s fast-paced, technology-driven world. You&#8217;d be wrong, though! In fact much of what you&#8217;ve already learned in this course is based on\u00a0Taylor&#8217;s\u00a0work, and plenty of what you&#8217;ll experience in the\u00a0workplace will be indebted to\u00a0him, too. If you recognize any of the following, you have already seen his principles of scientific management in action:\u00a0organizational charts, performance evaluations, quality measurements and metrics, and sales and\/or production goals.<\/p>\n<h2>Scientific Management<\/h2>\n<p>Scientific management is a management theory that analyzes work flows to improve economic efficiency, especially labor productivity. This management theory, developed by Frederick Winslow Taylor, was popular in the 1880s and 1890s in U.S. manufacturing industries.<\/p>\n<p>While the terms &#8220;scientific management&#8221; and &#8220;Taylorism&#8221; are often treated as synonymous, a more accurate view is that\u00a0Taylorism is the first form of scientific management. Taylorism is sometimes called the &#8220;classical perspective,&#8221; meaning that it is still observed for its influence but no longer practiced exclusively. Scientific management was best known from 1910 to 1920, but in the 1920s, competing management theories and methods emerged, rendering scientific management largely obsolete by the 1930s. However, many of the themes of scientific management are still seen in industrial engineering and management today.<\/p>\n<h3>Frederick Winslow Taylor<\/h3>\n<div id=\"attachment_9568\" style=\"width: 211px\" class=\"wp-caption alignleft\"><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/143\/2017\/01\/20064105\/frederick-winslow-taylor.jpeg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-9568\" class=\"wp-image-9568 size-medium\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/143\/2017\/01\/20064105\/frederick-winslow-taylor-201x300.jpeg\" alt=\"Portrait of Frederick Winslow Taylor\" width=\"201\" height=\"300\" \/><\/a><\/p>\n<p id=\"caption-attachment-9568\" class=\"wp-caption-text\">Frederick Winslow Taylor is considered the creator of scientific management.<\/p>\n<\/div>\n<p>Frederick Winslow Taylor\u00a0was an American mechanical engineer who sought to improve industrial efficiency by determining the amount of time it takes workers to complete a specific task and determining ways to decrease this amount of time by eliminating any potential waste in the workers&#8217; process.<\/p>\n<p>A significant part of Taylorism was time studies. Taylor was concerned with reducing process time and worked with factory managers on scientific time studies. At its most basic level, time studies involve breaking down each job into component parts, timing each element, and rearranging the parts into the most efficient method of working. By counting and calculating, Taylor sought to transform management into a set of calculated and written techniques..<span style=\"font-size: 13.3333px;\">\u00a0\u00a0<\/span><\/p>\n<p>Taylor proposed a &#8220;neat, understandable world in the factory, an organization of men whose acts would be planned, coordinated, and controlled under continuous expert direction. &#8221; Factory production was to become a matter of efficient and scientific management\u2014the planning and administration of workers and machines alike as components of one big machine.<\/p>\n<p>One of Taylor&#8217;s\u00a0most famous studies was from his time at the Bethlehem Steel Corporation\u00a0in the early 1900&#8217;s. He noticed that workers used the same shovel for all materials, even though the various materials differed in weight. By observing the movements of the workers and breaking the movements down into their component elements, Taylor determined that the most efficient shovel\u00a0load was 21\u00bd lb. \u00a0Accordingly, he set about finding or designing\u00a0different shovels\u00a0to be used for each material that would scoop up that amount.<\/p>\n<p>Taylor summed up his efficiency techniques in his 1911 book <i>The Principles of Scientific Management<\/i>. Important components of scientific management include analysis, synthesis, logic, rationality, empiricism, work ethic, efficiency, elimination of waste, and standardized best practices. All of these components focus on the efficiency of the worker and not on any specific behavioral qualities or variations among workers.<\/p>\n<p>Taylor&#8217;s scientific management consisted of four principles:<\/p>\n<ol>\n<li>Replace rule-of-thumb work methods with methods based on a scientific study of the tasks.<\/li>\n<li>Scientifically select, train, and develop each employee rather than passively leaving them to train themselves.<\/li>\n<li>Provide detailed instruction and supervision of each worker in the performance of that worker&#8217;s discrete task.<\/li>\n<li>Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks.<\/li>\n<\/ol>\n<h3>Frank and Lillian Gilbreth<\/h3>\n<div id=\"attachment_9570\" style=\"width: 213px\" class=\"wp-caption alignright\"><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/143\/2017\/01\/20065832\/CheaperByTheDozen.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-9570\" class=\"size-medium wp-image-9570\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/143\/2017\/01\/20065832\/CheaperByTheDozen-203x300.jpg\" alt=\"Book cover showing an old car filled with children and a dog racing alongside.\" width=\"203\" height=\"300\" \/><\/a><\/p>\n<p id=\"caption-attachment-9570\" class=\"wp-caption-text\">Cheaper by the Dozen<\/p>\n<\/div>\n<p>While Taylor was conducting his time studies, Frank and Lillian Gilbreth were completing their own work in motion studies to further scientific management. \u00a0The Gilbreth name may be familiar to anyone who has read the book <em>Cheaper By The Dozen<\/em>, a biographical novel about the Gilbreth family, their twelve children, and the often humorous attempts of the Gilbreths to apply their efficiency methods in their own household.<\/p>\n<p>The Gilbreths made use of scientific insights to develop a study method based on the analysis of work motions, consisting in part of filming the details of a worker&#8217;s activities while recording the time it took to complete those activities. The films helped to create a visual record of how work was completed, and emphasized areas for improvement. Secondly, the films also served the purpose of training workers about the best way to perform their work.<\/p>\n<p>This method allowed the Gilbreths to build on the best elements of the work flows and create a standardized best practice. Time and motion studies are used together to achieve rational and reasonable results and find the best practice for implementing new work methods. While Taylor&#8217;s work is often associated with that of the Gilbreths, there is a clear philosophical divide between the two scientific-management theories. Taylor was focused on reducing process time, while the Gilbreths tried to make the overall process more efficient by reducing the motions involved. They saw their approach as more concerned with workers&#8217; welfare than Taylorism, in which workers were less relevant than profit. This difference led to a personal rift between Taylor and the Gilbreths, which, after Taylor&#8217;s death, turned into a feud between the Gilbreths and Taylor&#8217;s followers.<\/p>\n<p>Even though scientific management was pioneered in the early 1900s, it continued to make significant contributions to management theory throughout the rest of the twentieth century. With the advancement of statistical methods used in scientific management, quality assurance and quality control began in the 1920s and 1930s. During the 1940s and 1950s, scientific management evolved into operations management, operations research, and management cybernetics. In the 1980s, total quality management became widely popular, and in the 1990s &#8220;re-engineering&#8221; became increasingly popular. One could validly argue that Taylorism laid\u00a0the groundwork for these large and influential fields that we still practice today.<\/p>\n<h2>Fayol<\/h2>\n<div id=\"attachment_9421\" style=\"width: 243px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-9421\" class=\"size-medium wp-image-9421\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/143\/2017\/01\/16191200\/Henri_Fayol_1900-233x300.jpg\" alt=\"Black-and-white photo of Henri Fayol, 1900.\" width=\"233\" height=\"300\" \/><\/p>\n<p id=\"caption-attachment-9421\" class=\"wp-caption-text\">Henri Fayol, 1900<\/p>\n<\/div>\n<p>Managers in the early 1900s had very few resources at their disposal to study or systematize their management practices. Henri Fayol, who was a French mining engineer and author, saw the need\u00a0for this kind of study and, using the mines as the basis for his studies, developed what is\u00a0now regarded as the foundation of modern management theory. In 1914 he published <em>Administration industrielle et g\u00e9n\u00e9rale,<\/em> which included his now-famous \u201cfourteen principles of management.\u201d Fayol\u2019s practical list of principles guided early twentieth-century managers to efficiently organize and interact with employees.<\/p>\n<p>Fayol recognized that management is fundamentally a process involving people. He saw that work\u00a0could be managed\u00a0more efficiently and smoothly by supporting\u00a0the workers\u00a0doing the tasks. He proposed that if managers could instill\u00a0a sense of team spirit (esprit de corps) and encourage employees to contribute their own ideas, the problem of high turnover and instability in the workforce might be solved. At the time, working conditions in much of the industrialized world were terrible, and many of Fayol&#8217;s principles\u00a0ran counter to conventional ways of thinking about and treating workers. For instance, Fayol said that it\u2019s essential to pay a fair wage for a fair day\u2019s labor, and he claimed\u00a0that productivity would actually increase\u00a0if managers treated workers fairly and kindly. These were radical ideas at the time. Fayol argued that that discipline, while important to organizational success, ought to come from effective leadership\u2014not from dictatorial or harsh management practices.\u00a0Fayol recognized that a company&#8217;s\u00a0people, not its structure, determine success or failure.<\/p>\n<p>Fayol also addressed the role of structure in building an efficient organization. Several of his management principles deal with the framework in which managers operate, touching on aspects of what we would today call &#8220;organizational structure.&#8221; He encouraged companies\u00a0to arrange men, machines, and materials systematically in order to maximize efficiency. In short, he applied the adage &#8220;a place for everything and everything in its place&#8221; to the operations of a business. He believed that managers ought to communicate to employees about their roles and responsibilities in a clear and compelling manner, thereby reducing uncertainty and waste. He also brought to the business environment a concept that had been used in military strategy for centuries: the chain of command.\u00a0Fayol&#8217;s &#8220;scalar chain&#8221; was, in effect, an organization chart of the type\u00a0seen today (and below), showing the lines of communication and chain of command from the top of a company to the bottom. He believed that by means of such hierarchies, firms\u00a0could achieve unity of direction and command.<\/p>\n<div id=\"attachment_9517\" style=\"width: 1034px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/143\/2017\/01\/18015933\/Organization_Chart_of_a_large_Company_Manufacturing_Stoves_1914.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-9517\" class=\"wp-image-9517 size-large\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/143\/2017\/01\/18015933\/Organization_Chart_of_a_large_Company_Manufacturing_Stoves_1914-1024x598.jpg\" alt=\"Chart shows stockholders at the top; board of directors under them; the president under them. On the same level as the president are the treasurer and second vice president and secretary. Below these are the general manager, head of accounting, etc.\" width=\"1024\" height=\"598\" \/><\/a><\/p>\n<p id=\"caption-attachment-9517\" class=\"wp-caption-text\">Organization Chart of a Large Stove-Manufacturing Company, 1914.<\/p>\n<\/div>\n<p>The notion of unity of direction and command meant that &#8220;for any action whatsoever an employee should receive orders from one superior only,&#8221; a concept Fayol adapted\u00a0from the biblical teaching that &#8220;no man can serve two masters.&#8221; He proposed that organizational activities having the same objective should be directed by a single manager using a unified plan to attain a single common goal. At the same time, that single manager oversees one group of workers all working together to reach the goal. By adhering to these principles of unity, organizations can avoid duplicating efforts and realize efficiencies instead.<\/p>\n<p>These efficiencies were not possible without what Fayol established as his first and perhaps most profound principle\u2014the division of labor or division of work. Fayol recommended that jobs be broken down to the individual tasks that comprise the whole and workers be assigned to those individual tasks or series of tasks. He believed that when someone performs the same task over and over, he acquires speed and accuracy. Fayol observed: &#8220;The worker always on the same post, the manager always concerned with the same matters, acquires an ability, sureness, and accuracy which increases their output.&#8221;<a class=\"footnote\" title=\"Fayol, H. (1949).\u00a0General and Industrial Management\u00a0(C. Storrs, Trans.). London: Sir Isaac Pitman &amp; Sons.\" id=\"return-footnote-9437-1\" href=\"#footnote-9437-1\" aria-label=\"Footnote 1\"><sup class=\"footnote\">[1]<\/sup><\/a><\/p>\n<p>Fayol also made an enormous contribution to management theory through his scientific study of the work of management. He made a clear distinction between operational activities\u2014manufacturing, sales, etc.\u2014and managerial activities, which he viewed as being fundamentally concerned with human interaction. From there, he systematically examined the different aspects\u00a0of the management process and spelled out the functions that managers perform.<\/p>\n<p>In the following excerpt from <em>General and Industrial Management<\/em>, Fayol identifies five functions of management:<\/p>\n<blockquote><p>To manage is to forecast and <strong>plan<\/strong>, to <strong>organize<\/strong>, to <strong>command<\/strong>, to <strong>coordinate<\/strong>, and to <strong>control<\/strong>.\u00a0To foresee and provide means examining the future and drawing up the plan of action. To organize means building up the dual structure, material and human, of the undertaking. To command means maintaining activity among the personnel. To coordinate means binding together, unifying, and harmonizing all activity and effort. To control means seeing that everything occurs in conformity with established rule and expressed command. [Emphasis added.]<a class=\"footnote\" title=\"Fayol, H. (1949).\u00a0General and Industrial Management\u00a0(C. Storrs, Trans.). London: Sir Isaac Pitman &amp; Sons.\" id=\"return-footnote-9437-2\" href=\"#footnote-9437-2\" aria-label=\"Footnote 2\"><sup class=\"footnote\">[2]<\/sup><\/a><\/p><\/blockquote>\n<p>Over the years, management theorists have built upon and refined Fayol&#8217;s original work and, more recently, have combined the \u201ccommand\u201d and \u201ccoordinate\u201d functions into one function: leading. Today, the key functions of management are considered to be the following: <strong>planning<\/strong>,\u00a0<strong>organizing<\/strong>,\u00a0<strong>leading<\/strong>, and\u00a0<strong>controlling.\u00a0<\/strong>All levels of management perform these functions; however, as with the skills required for effective management, the amount of time a manager spends on each function depends on the level of management and the needs of the organization. In the next readings we will explore each of these functions in greater depth.<\/p>\n<h2>Check Your Understanding<\/h2>\n<p>Answer the question(s) below to see how well you understand the topics covered above. This short quiz does <strong>not<\/strong> count toward your grade in the class, and you can retake it an unlimited number of times.<\/p>\n<p>Use this quiz to check your understanding and decide whether to (1) study the previous section further or (2) move on to the next section.<\/p>\n<p>\t<iframe id=\"lumen_assessment_3020\" class=\"resizable\" src=\"https:\/\/assessments.lumenlearning.com\/assessments\/load?assessment_id=3020&#38;embed=1&#38;external_user_id=&#38;external_context_id=&#38;iframe_resize_id=lumen_assessment_3020\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:400px;\"><br \/>\n\t<\/iframe><\/p>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-9437\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Revision and adaptation. <strong>Authored by<\/strong>: Linda Williams and Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><li>Check Your Understanding. <strong>Authored by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Boundless Business. <strong>Provided by<\/strong>: Boundless. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.boundless.com\/business\/textbooks\/boundless-business-textbook\/motivation-theories-and-applications-11\/management-and-motivation-74\/frederick-taylor-353-1721\/\">https:\/\/www.boundless.com\/business\/textbooks\/boundless-business-textbook\/motivation-theories-and-applications-11\/management-and-motivation-74\/frederick-taylor-353-1721\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><li>Boundless Management. <strong>Provided by<\/strong>: Boundless. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.boundless.com\/management\/textbooks\/boundless-management-textbook\/organizational-theory-3\/classical-perspectives-29\/scientific-management-taylor-and-the-gilbreths-165-4019\/\">https:\/\/www.boundless.com\/management\/textbooks\/boundless-management-textbook\/organizational-theory-3\/classical-perspectives-29\/scientific-management-taylor-and-the-gilbreths-165-4019\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><li>Cheaper By The Dozen. <strong>Provided by<\/strong>: Wikipedia. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/en.wikipedia.org\/wiki\/Cheaper_by_the_Dozen\">https:\/\/en.wikipedia.org\/wiki\/Cheaper_by_the_Dozen<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><li>Frederick Winslow Taylor. <strong>Provided by<\/strong>: Wikipedia. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/en.wikipedia.org\/wiki\/Frederick_Winslow_Taylor\">https:\/\/en.wikipedia.org\/wiki\/Frederick_Winslow_Taylor<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><li>Henry Fayol and Frederick Winslow Taylor&#039;s Contribution to Management Thought: An Overview. <strong>Authored by<\/strong>: M. Rahman. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"http:\/\/journals.abc.us.org\/index.php\/abcjar\/article\/view\/433\/322\">http:\/\/journals.abc.us.org\/index.php\/abcjar\/article\/view\/433\/322<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc\/4.0\/\">CC BY-NC: Attribution-NonCommercial<\/a><\/em><\/li><li>The Role of Management in an Organization from Boundless Management. <strong>Provided by<\/strong>: Boundless. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.boundless.com\/management\/textbooks\/boundless-management-textbook\/organizational-structure-2\/defining-organization-23\/the-role-of-management-in-an-organization-141-4007\/\">https:\/\/www.boundless.com\/management\/textbooks\/boundless-management-textbook\/organizational-structure-2\/defining-organization-23\/the-role-of-management-in-an-organization-141-4007\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><li>Administrative Management: Fayol&#039;s Principles from Boundless Management. <strong>Provided by<\/strong>: Boundless. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.boundless.com\/management\/textbooks\/boundless-management-textbook\/organizational-theory-3\/classical-perspectives-29\/administrative-management-fayol-s-principles-167-4018\/\">https:\/\/www.boundless.com\/management\/textbooks\/boundless-management-textbook\/organizational-theory-3\/classical-perspectives-29\/administrative-management-fayol-s-principles-167-4018\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><li>Henry Fayol. <strong>Provided by<\/strong>: Wikipedia. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/en.wikipedia.org\/wiki\/Henri_Fayol#Functions_of_Management\">https:\/\/en.wikipedia.org\/wiki\/Henri_Fayol#Functions_of_Management<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><li>Org Chart of Large Stove Manufacturing Company. <strong>Provided by<\/strong>: Wikipedia. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/commons.wikimedia.org\/wiki\/File:Organization_Chart_of_a_large_Company_Manufacturing_Stoves,_1914.jpg\">https:\/\/commons.wikimedia.org\/wiki\/File:Organization_Chart_of_a_large_Company_Manufacturing_Stoves,_1914.jpg<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section><hr class=\"before-footnotes clear\" \/><div class=\"footnotes\"><ol><li id=\"footnote-9437-1\">Fayol, H. (1949).\u00a0<em>General and Industrial Management<\/em>\u00a0(C. Storrs, Trans.). London: Sir Isaac Pitman &amp; Sons. <a href=\"#return-footnote-9437-1\" class=\"return-footnote\" aria-label=\"Return to footnote 1\">&crarr;<\/a><\/li><li id=\"footnote-9437-2\">Fayol, H. (1949).\u00a0<em>General and Industrial Management<\/em>\u00a0(C. Storrs, Trans.). London: Sir Isaac Pitman &amp; Sons. <a href=\"#return-footnote-9437-2\" class=\"return-footnote\" aria-label=\"Return to footnote 2\">&crarr;<\/a><\/li><\/ol><\/div>","protected":false},"author":163,"menu_order":5,"template":"","meta":{"_candela_citation":"[{\"type\":\"cc\",\"description\":\"Boundless Business\",\"author\":\"\",\"organization\":\"Boundless\",\"url\":\"https:\/\/www.boundless.com\/business\/textbooks\/boundless-business-textbook\/motivation-theories-and-applications-11\/management-and-motivation-74\/frederick-taylor-353-1721\/\",\"project\":\"\",\"license\":\"cc-by-sa\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Boundless Management\",\"author\":\"\",\"organization\":\"Boundless\",\"url\":\"https:\/\/www.boundless.com\/management\/textbooks\/boundless-management-textbook\/organizational-theory-3\/classical-perspectives-29\/scientific-management-taylor-and-the-gilbreths-165-4019\/\",\"project\":\"\",\"license\":\"cc-by-sa\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Cheaper By The Dozen\",\"author\":\"\",\"organization\":\"Wikipedia\",\"url\":\"https:\/\/en.wikipedia.org\/wiki\/Cheaper_by_the_Dozen\",\"project\":\"\",\"license\":\"cc-by-sa\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Frederick Winslow Taylor\",\"author\":\"\",\"organization\":\"Wikipedia\",\"url\":\"https:\/\/en.wikipedia.org\/wiki\/Frederick_Winslow_Taylor\",\"project\":\"\",\"license\":\"cc-by-sa\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Henry Fayol and Frederick Winslow Taylor\\'s Contribution to Management Thought: An Overview\",\"author\":\"M. 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