Evolution of Management Theory

Industrial Revolution & Mass Production

Industrial Revolution

The Industrial Revolution was a period of rapid scientific and technological development that transformed rural, agricultural societies into industrialized, urban ones.
Machines replaced handcrafting, allowing goods to be mass-produced in factories.
It began in Britain in the 1830s and 1840s and quickly spread to Europe, North America, and the rest of the world.
This period is known as the First Industrial Revolution and was followed by a Second Industrial Revolution in the late 19th and early 20th centuries, marked by advances in steel, electricity, and automobiles.

Effects of Industrial Revolution:

The Industrial Revolution had major economic, social, and cultural effects.
It brought unsafe working conditions and increased pollution, but it also improved clothing production, communication, transportation, and urban growth.
Despite its drawbacks, it transformed society and laid the foundation for the modern world.

Mass Production

Mass production is the large-scale manufacturing of standardized products, making production faster, cheaper, and allowing broken parts to be easily replaced.
Began in the United States around 1800 when inventor Eli Whitney developed interchangeable musket parts for the U.S. government, demonstrating that identical parts could be assembled into any gun.
Later, standards for quality and interchangeable parts were established by the American National Standards Institute.
In the early 1900s, Henry Ford introduced the moving assembly line for automobile production, where each worker performed one specialized task as cars moved along a conveyor belt.
This system greatly increased efficiency and became the foundation of modern mass production.

Taylorism or Scientific Management

It is an early 20th-century theory developed by engineer Frederick Winslow Taylor after the Industrial Revolution, and the rapid capitalism led to confrontation between labor and management, and research was attempted to find ways to maximize production efficiency while meeting the needs of work.
It involves the improvement and standardization of work processes, and it enables companies to improve efficiency and quality of their products or services.
Core Principles: Break down complex work processes into simple, repeatable individual tasks. Employees are trained specifically for these individual tasks, which is intended to achieve specialization and increased efficiency.
Through observation, data collection, and careful measurement, managers can determine the best way to perform each task.
Workers should be scientifically selected, trained, and taught to improve their skills. In the past, workers chose and trained themselves.
Managers and workers need to cooperate to ensure that all tasks are completed according to scientific principles.
Taylorism created a more equal division of work and responsibility between managers and workers: managers focused on planning, organizing, and decision-making, while workers carried out specific tasks.

Classical Management Theory and its Limitations

Classical Management Theory is a management approach developed during the Industrial Revolution that focuses on efficiency, productivity, and profitability.
It includes Taylor's scientific management, which improves productivity through measurement and standardization, and Weber's bureaucracy theory, which emphasizes clear roles and a hierarchical structure.
The theory supports division of labor, specialization, and financial incentives as ways to increase efficiency.

Limitations

It ignores human factors, treating workers mainly as economic beings motivated by money rather than considering emotions, creativity, and job satisfaction.
It can lead to low employee motivation and dissatisfaction because workers perform repetitive, specialized tasks with limited decision-making power.
It emphasizes strict hierarchy and control, which may reduce flexibility and innovation.
It assumes there is a single best way to perform tasks, but modern workplaces often require adaptability and teamwork.

Hawthorne Studies

The Hawthorne Studies were experiments conducted from 1924 to 1932 at the Hawthorne Works plant in Illinois to study factors affecting worker productivity.
Researchers found that changes in lighting had little effect, but workers improved performance when they received attention and felt valued, creating the idea of the Hawthorne effect.
The studies showed that social relationships, group dynamics, and employee morale influence productivity, leading to the development of the Human Relations Movement and shifting management focus from efficiency alone to human factors in the workplace.

Hawthorne Effects

The Hawthorne Effect is the idea that people may change their behavior or performance because they know they are being observed.
The concept of Hawthorne Studies has influenced fields such as management and healthcare, although its accuracy and significance remain debated.

Human Relations Movement

It focuses on the importance of social and psychological factors in the workplace.
Developed from Elton Mayo's Hawthorne studies in the 1920s, it showed that employee satisfaction, recognition, and relationships can improve productivity.
Unlike earlier management theories that emphasized efficiency alone, the movement highlights the importance of workplace culture, communication, and meeting employees' social needs.
It became the foundation for modern human resource management practice.

Modern Applications and Responsibility

Modern Application: Used in Amazon warehouses, fast-food chains (ex. McDonald's), manufacturing, and logistics, where work is standardized and performance is measured.
Responsibility: Managers are responsible for planning, setting standards, and supervising. Workers are responsible for carrying out specific tasks efficiently.

Modern Application: Used in government agencies, hospitals, banks, military organizations, and large corporations with clear hierarchies.
Responsibility: Managers make decisions and coordinate the organization, while employees carry out assigned duties within their defined roles.

Modern Application: Used by companies such as Google, Microsoft, and Salesforce, which emphasize teamwork, employee well-being, recognition, and communication.
Responsibility: Managers are responsible for supporting employees, encouraging communication, and maintaining a positive work environment. Employees are responsible for collaborating, communicating effectively, and contributing to team goals.

https://libguides.aisr.org/industrialrevolution/corporations

https://www.history.com/articles/industrial-revolution

https://www.ebsco.com/research-starters/business-and-management/taylorism

https://www.ebsco.com/research-starters/business-and-management/classical-management-theory

https://www.ebsco.com/research-starters/economics/hawthorne-studies-examine-human-productivity

https://www.ebsco.com/research-starters/psychology/human-relations-movement

Hyeonjin Lee- Business Marketing