Since the birth of modern management theory in the early 1900s, management experts have developed theories to help organizations and their managers coordinate and oversee work activities as effectively and efficiently as possible. In presenting the history of modern management, Chapter Two explores the evolution of management thought and practice during the twentieth century. Students discover how knowledge of management history can help us better understand current management practices while avoiding some mistakes of the past. The practice of management has always re¬flected historical times and societal conditions. For instance, innovation, global competition, and general competitive pressures reflect a reality of today’s business world: “Innovate or lose.”
There are four important reasons to study management theory.
• Theories guide management decisions
• Theories shape our views of organizations
• Theories make us aware of the business environment
• Theories are a source of new ideas
HISTORICAL BACKGROUND OF MANAGEMENT
Many fascinating examples from history illustrate how management has been practiced for thousands of years.
A. Organizations and managers have existed for thousands of years. The Egyptian pyramids and the Great Wall of China were projects of tremendous scope and magnitude, requiring the efforts of tens of thousands of people. How was it possible for these projects to be completed successfully? The answer is management. Regardless of the titles given to managers throughout history, someone has always had to plan what needs to be accomplished, organize people and materials, lead and direct workers, and impose controls to ensure that goals were attained as planned.
B. Examples of early management practices can also be seen by studying the Arsenal of Venice. Assembly lines, accounting systems, and personnel functions are only a few of the processes and activities used in business in the