The Evolution of Management Thought

The eighth edition of The Evolution of Management Thought provides readers witha deep understanding of the origin and development of management ideas. Spanning an expansive time period, from the pre-industrial era to the modern age of globalization, this landmark volume examines the backgrounds, original work, and influences of major figures and their contributions to advances in management theory and practice. This fully-revised edition has been painstakingly reviewed and thoroughly updated to reflect areas of contemporary management such as job design, motivation, leadership, organization theory, technological change, and increased worker diversity.

In this classic text, authors Daniel Wren and Arthur Bedeian examine the management challenges and perspectives of the Industrial Revolution, discuss the emergence of the management process and systematic management, trace the rise of scientific management, and much more. Organized around a chronological framework, the text places a comprehensive range of management theories in their historical context to clearly illustrate their evolution over time. The book’s four parts, each designed to be a self-contained unit of study, contain extensive cross-references to allow readers to connect earlier to later developments to the volume’s central unifying theme.

About the Authors xvii

Preface xix

Part 1 Early Management Thought

1 A Prologue to the Past 3

A Cultural Framework 4

The Economic Facet 4

The Social Facet 5

The Political Facet 5

The Technological Facet 5

People, Management, and Organizations 6

Human Activity 7

Organizations and Management 7

Summary 8

2 Management Before Industrialization 9

Management in Early Civilizations 9

The Near East 9

The Far East and South Asia 10

Egypt 11

The Hebrews 12

Greece 13

Rome 14

The Roman Catholic Church 15

Feudalism and the Middle Ages 15

The Revival of Commerce 16

Cultural Rebirth 18

The Protestant Ethic 19

A Criticism of the Weberian Thesis 21

Modern Support for Weber 22

The Liberty Ethic 23

The Market Ethic 25

Summary 28

3 The Industrial Revolution: Challenges and Perspective 30

The Industrial Revolution in Great Britain 30

The Steam Engine 31

Management: The Fourth Factor of Production 33

Management Challenges in Early Factories 34

The Labor Challenge 34

The Search for Managerial Talent 39

Planning, Organizing, and Controlling 41

Cultural Consequences of the Industrial Revolution 42

Working Conditions 43

Child and Female Labor 44

Summary 46

4 Management Pioneers in Early Factories 48

Robert Owen: The Search for a New Harmony 48

Early Managerial Experiences 48

The Call for Reform 50

Charles Babbage: The Irascible Genius 52

The First Computer 53

Analyzing Industrial Operations 54

Andrew Ure: Pioneering in Management Education 56

Principles of Manufacturing 56

Charles Dupin: Industrial Education in France 58

The Pioneers: A Final Note 59

Summary 60

5 The Industrial Revolution in the United States 61

Antebellum Industry and Management 61

Early Industrial Development 62

The American System of Manufacturing 64

The Railroads: A Revolution in Transportation 66

The Communication Revolution 66

The Age of Rails 67

Daniel C. McCallum: System and Organization 68

Henry V. Poor: A Broader View of Management 70

Emerging Governance Issues 71

Summary 73

6 Industrial Growth and Systematic Management 74

The Growth of “Big Business” 74

Carnegie and the Rise of Big Business 75

The Emergence of Systematic Management 77

Engineers and Economists 77

The Labor Question 80

Big Business and Its Changing Environment 83

Business and Society: Barons or Benefactors? 83

Business and Labor: Uneasy Relations 87

Inventive and Innovative Impulses 88

Business and Government: Seeds of Reform 89

Summary of Part 1 90

Part 2 The Scientific-Management Era

7 The Advent of Scientific Management 95

Frederick W. Taylor: The Early Years 95

Taylor at Midvale 96

The Search for Science in Management 98

The Quest for Improved Performance Incentives 99

Task Management 102

Taylor: The Manager and the Consultant 104

Taylor: The Peripatetic Philosopher 108

The Eastern Rate Case 109

Watertown and the Congressional Investigation 112

The Mental Revolution 116

Taylor and the Human Factor 119

A Final Note 121

Summary 123

8 Spreading the Gospel of Efficiency 124

The Most Orthodox: Carl G. Barth 124

Charting Other Paths: Henry L. Gantt 126

The Task and Bonus System 126

The Habits of Industry 127

Graphic Aids to Management 128

The Later Years 130

Partners for Life: The Gilbreths 132

Nothing Succeeds Like . . .  133

And So, into Scientific Management 135

Support for The Scientific-Management Movement 136

The First Lady of Management 138

Efficiency Through Organization: Harrington Emerson 142

Line and Staff Organization 143

Twelve Principles of Efficiency 144

The “High Priest of Efficiency” 145

The Gospel in Public-Sector Organizations: Morris L. Cooke 146

The Boxly Talks 148

Public Administration 149

Summary 151

9 The Human Factor: Preparing the Way 152

Personnel Management: A Dual Heritage 152

Personnel Administration as Welfare Work 153

Scientific Management and Personnel Administration 155

Psychology and the Individual 159

Toward Scientific Psychology 160

The Birth of Industrial Psychology 160

The Social-Person Era: Theory, Research, and Practice 162

Antecedents of Industrial Sociology 163

Sociological Foundations 165

Early Empirical Investigations 165

“Democratization of the Workplace” 166

The Trade-Union Movement 166

The Changing Nature of Union–Management Cooperation 168

Employee Representation Plans 170

Summary 171

10 The Emergence of the Management Process and Organization Theory 172

Henri Fayol: The Man and His Career 172

The Need for Management Theory 175

The Principles of Management 176

The Elements of Management 179

A Final Note 184

Max Weber: Bureaucracy 184

Bureaucracy as the Ideal 185

Advantages of Bureaucracy 186

Disadvantages of Bureaucracy 187

Summary 189

11 Scientific Management in Theory and Practice 190

The Study and Practice of Scientific Management 190

Education for Industrial Management 191

The International Scientific-Management Movement 194

Scientific Management in Industrial Practice 204

The Hoxie Report 205

The Thompson and Nelson Studies 208

Emerging General Management 210

The Impact of Scientific Management on Other Disciplines 210

Early Organization Theory 211

Scientific Management at DuPont and General Motors 212

Business Policy 214

Summary 216

12 Scientific Management in Retrospect 217

The Economic Environment: From the Farm to the Factory 218

The Technological Environment: Opening New Horizons 219

The Social Environment: From Achievement to Affiliation 222

The Collision Effect 222

The Social Gospel 223

The Political Environment: The Advent of Progressivism 225

Scientific Management and the Progressives 225

Business and the Progressives 226

Summary of Part II 227

Part 3 The Social-Person Era

13 The Hawthorne Studies 231

The Hawthorne Studies Begin 232

Illumination Study (1924–1927) 232

Relay-Assembly Test-Room Study (1927–1932) 233

Interviewing Program (1925–1932) 238

Bank-Wiring Observation Room Study (1931–1932) 241

Organizations as Social Systems 243

Human Relations, Leadership, and Motivation 244

Human Relations and Human Collaboration 245

Anomie and Social Disorganization 247

Developing the Human-Relations-Oriented Manager 247

Human Relations and Motivation 248

Summary 249

14 The Search for Organizational Integration 251

Mary P. Follett: The Political Philosopher 251

The Group Principle 252

Conflict Resolution 253

A Business Philosopher 255

Authority, Responsibility, and Power 256

The Task of Leadership 257

A Final Note 259

Chester I. Barnard: The Erudite Executive 260

The Nature of Cooperative Systems 260

Formal Organizations: Theory and Structure 262

The Acceptance Theory of Authority 263

The Functions of the Executive 264

Moral Leadership 265

A Final Note 266

Summary 266

15 People and Organizations 267

People at Work: The Micro View 267

Developing Constructs for Group Analysis 267

The Growth of Human-Relations Research and Training 271

Changing Assumptions About People at Work 272

People and Motivation 272

Job Enlargement and Job Enrichment 274

Participation in Decision-Making 275

Leadership: Combining People and Production 276

People at Work: The Macro View 278

Organizations as Sociotechnical Systems 278

New Tools for Macro Analysis 279

Summary 281

16 Organizations and People 282

Organizations: Structure and Design 282

James D. Mooney: Organization Theory and Practice 283

Texts, Teachers, and Trends 285

Building Blocks for Administrative Theory 288

Span of Control 290

Toward a Top-Management Viewpoint 291

Ralph C. Davis: Pater Familiae et Magister 291

Harry A. Hopf: Toward the Optimum 293

Analyzing Top Management 294

Ownership and Control 296

Invisible and Visible Hands 296

Summary 298

17 Human Relations in Theory and Practice 299

The Impact of Human Relations on Theory and Practice 299

Applying and Extending Human Relations 299

Hawthorne Revisited 300

Premises About an Industrial Society 300

Research Methods and Data Interpretation 302

Summary 306

18 The Social-Person Era in Retrospect 307

The Economic Environment: From Depression to Prosperity 307

Attempts at Economic Recovery 308

Big Business as Culprit 309

Seeds of Change: New Technologies 310

The Social Environment: Reshaping the Nation’s Values 312

Shifting Social Values 312

“Organization Men” 314

The Political Environment: FDR’s Pledge 316

The New Deal 316

Augmenting the Position of Labor 317

Summary of Part III 319

Part 4 Moving Onward: The Near Present

19 Management Theory and Practice 323

The Renaissance of General Management 323

Principles of Management and the Functions of Management 324

Peter F. Drucker and the Practice of Management 325

Management Education: Challenges and Consequences 326

The “Management Theory Jungle” 327

Management Education: The Porter–McKibbin Report 328

The Management Theory–Practice Divide 329

Post-Fayol: Studies of Managerial Work 331

Global Studies of Managerial Work 332

Managing Across Borders 333

The Changing Scene 334

Markets and Hierarchies 334

The Resource- and Knowledge-Based Theories of the Firm 335

Governance and Agency Issues 336

From Business Policy to Strategic Management to Global Strategy 337

Multinational Enterprise and Global Strategy 338

Strategic Leadership and “Dynamic Capabilities” 339

Summary 341

20 Organizational Behavior and Organization Theory 342

The Human Side of Management 342

The Transition from Human Relations to Organizational Behavior 343

Theories X and Y 344

Human-Resource Management and Industrial Relations: The Changing Scene 345

Job Design 347

Work Motivation 349

Effective Leadership 351

The Trait Approach 352

The Behavioral Approach 353

The Situational Approach 353

Further Theoretical Developments 353

Project GLOBE 356

Organization Theory: A Continuing Venture 357

Aston Studies: Workflow Integration and Production Continuity 357

Technological Interdependence 357

Contingency Theory and Its Corollaries 358

Organizations and Their Environments 358

Strategic Choice 359

Resource-Dependence Theory 359

Population Ecology 360

Institutional Theory 360

When Ends Become Means 361

U.S. Theories Abroad 361

Summary 362

21 Science and Systems in an Information Age 363

The Quest for Science in Management 363

Operations Research (OR) 364

Production Management in Transition 365

“If Japan Can . . . Why Can’t We?” 366

Quality and Quality Circles 366

The Toyota Production System and Lean Manufacturing 369

Globalization and the International Organization for Standardization 369

Systems and Information 370

General Systems Theory and Cybernetics 370

From the “Invisible Hand” to the “Digital Hand” 372

It is a Small, Smaller World 372

Enabling Global Trade through Information and Communication 374

Summary 375

22 Obligations and Opportunities 376

Managing in a Global Arena 376

The Globalization of Business 376

Individuals and Organizations: Evolving Expectations 378

Business Ethics 378

Acting Ethically and Globally 381

Business and Society 381

The Stewardship of Wealth 382

Corporate Social Responsibility and Performance 383

Stakeholders: Economic and Noneconomic Responsibilities 384

Can You Have Your Cake and Eat It Too? 385

Social Entrepreneurship 385

Business and Its Environment 386

Summary of Part IV 386

Epilogue 387

Name index I-1

Subject index I-12

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