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Principles of Management12Working with Taylor, Henry Lawrence Gantt developed theGantt chart,which is still used to track expected productionagainst actual production per unit of time. Meanwhile, con-cepts of scientific management were refined and advancedthrough the time and motion studies of Frank and LillianGilbreth. While Gantt argued the need for social responsibilityon the part of business, the Gilbreths—especially LillianGilbreth—maintained that the purposes of scientific manage-ment should be to foster rather than stifle workers. Inparticular, she advocated the use of psychology to under-stand worker motivation and create job designs that fosteredthe interests of workers. Figure 2.1 on page 34 of your text-book, summarizes the reasons why Lillian Gilbreth is calledthe “First Lady of Management.”Henri Fayol, a Frenchman, developed a highly influential theory of management,which began to take hold in theUnited States during the 1940s. The theory included 14points, which are listed on page 34 of your textbook. Today, Fayol’s 14 points are still considered valid, but hisprimary contribution is his pioneering outline of the functions of management.Fayol and Taylor agreed on the need for a scientific approachto management. Indeed, their two models can be thought ofas complementary. As your textbook points out, however,“Taylor stressed the management of work, whereas Fayolemphasized the management of organization.” In other words,management is a crucial factor in the success or failure ofan organization.Note:While this course is focused on business management,it can be helpful to understand that the principles of effectivemanagement apply to government agencies, nonprofit organi-zations, and even citizen interest groups.The Human Relations MovementThe human relations movementarose with the radical changesin public awareness that attended the Great Depression ofthe 1930s. The effects of the Depression era evoked muchgreater concern for ordinary workers and workers’ rights.One major effect of these concerns was the rise of organized
Lesson 113labor as a force to be reckoned with. To be sure, this pro-union era was marred by civil unrest and outbreaks of bloodyviolence. But it bore legislative fruit. Figure 2.2 on page 37summarizes four important legislative acts that supportedorganized labor.The Hawthorne studies,major studies that informed thehuman relations movement, were actually conducted in1924—before the stock market crash of 1929. The NationalResearch Council of the National Academy of Scienceswanted to better understand the relationship between workerproductivity and workplace environments. The details aboutthe research that defined the so-called Hawthorne effectaregiven on page 37 of your textbook. However, two findings ofthe Hawthorne studies (still pondered and disputed to thisday) can be summarized simply:1.Worker productivity is more strongly related to gettingthe attention of management than it is to specific workplace conditions, like lighting. That phenomenon is the Hawthorne effect.2.Effective supervision has a major impact on both workerproductivity and worker morale.The remainder of Chapter 2 compares and contrastsapproaches to management that arose after the GreatDepression of the 1930s and World War II (1938–1945).The Systems ApproachThe systems approachgained prominence as managers andmanagerial theorists tried to work out schemes and modelsthat integrated different management approaches and con-cepts. A basic assumption in systems thinking is that thereare open systemsthat actively interact with their environ-ment and closed systems that don’t. For example a hospitalmust interact with patients, medical practices, and thecommunity. A widget manufacturer may interact only withcustomers and have no interest in relating to other kinds ofcommunity stakeholders. A systems approach is aimed atintegrating open and closed approaches, basically to the endof making an organization responsive to both its internal andexternal environments.