The Origins of Management

Summary

This script traces the evolution of management from its non-existence 125 years ago to its critical role in today's business world. It highlights the historical shift from self-sufficient artisans to mass production during the industrial revolution, necessitating managerial coordination. The transition from home and farm-based work to large organizations with specialized tasks led to the birth of management as a field of study, with modern challenges like emails and meetings, and the development of academic resources to address management inquiries.

Takeaways

• 📚 Management as a field of study is relatively new, not existing 125 years ago.
• 🏭 The industrial revolution (1750-1900) was a turning point for the nature of work and the need for management.
• 👷‍♂️ Unskilled laborers operating machines replaced skilled artisans, facilitated by the availability of power from steam engines and electricity.
• 🔧 The division of labor led to the specialization of tasks in mass production, which required managers for coordination.
• 🚗 The shift from artisanal production to assembly lines marked a significant change in the organization of work.
• 🌾 Historically, most people worked in homes or on farms, with no need for commuting or management.
• 🏡 In 1720, 80% of the population in England lived and worked in the countryside.
• 🌾 By 1870, two-thirds of Americans earned their living from agriculture, indicating a predominantly agrarian society.
• 👥 Small, self-organized work groups did not require management, as there were no commutes, bosses, or common buildings.
• 📈 Productivity increased dramatically in companies that understood and implemented the new production systems.
• 🏢 Jobs moved from fields and homes to large formal organizations, necessitating the rise of management roles.
• 📚 Before 1800, business education was limited to basic bookkeeping and secretarial skills, with no focus on management.

Q & A

When did management jobs and careers start to become significant in the business world?

Management jobs and careers started to become significant in the business world around the past few centuries, with systematic changes in the nature of work and organizations creating a compelling need for managers.

What were the seeds of today's management ideas found in?

The seeds of today's management ideas can be found throughout history, but it wasn't until the past few centuries that these ideas became more prominent and systematic.

How has the design of jobs and organizations evolved over the past 500 years?

The design of jobs and organizations has changed dramatically over the past 500 years, with a shift from people working in homes or on farms to large formal organizations and the advent of mass production.

What percentage of the population in England lived and worked in the country in 1720?

In 1720, almost 80% of the 5.5 million people in England lived and worked in the country.

What was the primary source of income for Americans around 1870?

As recently as 1870, two-thirds of Americans earned their living from agriculture.

What significant changes occurred during the Industrial Revolution between 1750 and 1900?

During the Industrial Revolution, unskilled laborers running machines began to replace highly paid skilled artisans, made possible by the availability of power from steam engines and later electricity, as well as numerous related inventions.

How did the new production system during the Industrial Revolution differ from the work of artisans?

The new production system was characterized by the division of labor, where each worker performed separate, highly specialized tasks as part of a mass production process, as opposed to artisans who made entire goods by themselves by hand.

What role did managers play in the new production system?

Managers were needed to coordinate the different parts of the production system and optimize its overall performance, leading to a significant increase in productivity.

What was the state of business education before 1800 regarding management?

Before 1800, business educators taught only basic bookkeeping and secretarial skills, and no one published books or articles on management.

How can one find information on management today compared to the past?

Today, if you have a question about management, you can turn to dozens of academic journals for information, unlike in the past when such resources were not available.

What are some of the characteristics of today's working world mentioned in the script?

Today's working world is characterized by working from 8:00 a.m. to 5:00 p.m., coffee breaks, lunch hours, crushing rush hour traffic, endless emails, and non-stop meetings.