Management: Historical Perspectives

• Author: Roger Luft
• Pages: 473-475

Page 473

Since the beginning of time, humans have been managing—managing other people, managing organizations, and managing themselves. Management has been dealt with in this publication as a process that is used to accomplish organizational goals. To some, management is thought of as an art; to others, as a science. Each of those perspectives is grounded in the early writings and teaching of a group of managerial pioneers.

INDUSTRIAL REVOLUTION

While it can be argued that management began well before the Industrial Revolution, it is often felt that what emerged as contemporary management thought began with the beginning of industrial development. The Industrial Revolution began in the mid-eighteenth century when factories were first built and laborers were employed to work in them. Prior to this period, most workers were active in an agrarian system of maintaining the land.

Adam Smith (1723–1790), the economist who wrote The Wealth of Nations, was an early contributor to management thought during the Industrial Revolution. He was considered a liberal thinker, and his philosophy was the foundation for the laissez-faire management doctrine. His thoughts about division of labor were fundamental to current notions of work simplification and time studies. His emphasis on the relationship between specialization of labor and technology was somewhat similar to the later thinking of Charles Babbage.

Another early pioneer of management thought regarding the factory system was Robert Owen (1771–1858), an entrepreneur who tried to halt the Industrial Revolution because he saw disorder and evil in what was happening. Owen founded his first factory at the age of 18 in Manchester, England. His approach to managing was to observe everything and to maintain order and regularity throughout the industrial facility.

Owen moved on to a venture in Scotland, where he encountered a shortage of qualified laborers for his factory. His approach to handling disciplinary problems with his workers was to appeal to their moral sense, not to use corporal punishment. He used silent monitors, a system whereby he awarded four types of marks to superintendents, who in turn awarded workers. The marks were colorcoded in order of merit. Blocks of wood were painted with the different colors and placed at each workstation. Workers were rated at...