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Sunday, August 18, 2013

Evolution of Management Theory

Evolution of Management Theory

Early management theory attempted to understand the new industrial life at the end of 19th century and beginning of the 20th century.It includes Scientific management, Classical organization theory, Behavioural school and management science
 
Early Theories of Organization  merged mainly from military and Catholic Church. The symbol of the machine was dominant, where Organization are viewed as machines. Therefore, the organizational application was, since workers behave predictably, management knows what to expect, and workers operating outside expectations are replaced.
 
Modern mgt is the collaboration of people and machines to create value. In the early days of industrialization the innovators of machines and the innovators of organization and management were engineers. Engineers, after all, were the ones closest to the machines, and this fact placed them at the interaction of workers and machines. This certainly helps explain Frederick Taylor and his invention of "Scientific Management".

SCIENTIFIC MANAGEMENT (Frederick W. Taylor) This was proposed in 1911. He also called the father of scientific management. According to Taylor, “scientific management means knowing exactly what you want men to do and seeing that they do it in the best and cheapest way.”

Fedrick w Taylor (1986-1915) rested his philosophy on four basic principles.

  1. The development of science of management so that the best method for performing each task could be determined
  2. The Scientific selection of workers so that each worker can be given task based on what suits him/her best.
  3. Education and development of the workers
  4. Maintaining harmony between the management and worker union
BUREAUCRACY MANAGEMENT (Max Weber-1900)
Bureaucracy management is a stream of classical theory of management. Max Weber was the first of management theorists who were concerned the management structure with the sets of rule and regulations. There are four major characteristics of organizational structure -

  1. Hierarchical positions 
  2. Rules of system 
  3. Division of  labour for specialization 
  4. Impersonal relationship
 ADMINISTRATIVE MANAGEMENT (Henry Fayol)
Henri Fayol was real father of modern Management. Fayol laid the foundation of management as a separate body of knowledge. He always insisted that if scientific forecasting and proper methods are used in management than company can get satisfactory results.Henri Fayol’s Administrative Management is based on six admin activities. They are-
1.     Technical : Production and manufacture
2.     Managerial : Planning, controlling, co-ordination
3.     Commercial : Purchasing and selling
4.     Financial : Use of capital
5.     Accounting : Asset, Liabilities, cost, profits
6.     Security : Protection of goods and Person


BEHAVIOURAL MANAGEMENT THEORY Researchers have described
many different approaches to managerial behaviour, including Theories X and Y.
Often, the managerial behaviour that researchers suggest reflects the context of
their own historical era and culture. Mary Parker Follett advocated managerial
behaviours that did not reflect accepted modes of managerial behaviour at the
time, but her work was largely ignored until conditions changed.

MANAGEMENT SCIENCE THEORY The various branches of management
science theory provide rigorous quantitative techniques that give managers
more control over their organization’s use of resources to produce goods
and services.

Six different themes in management theory:
1. New Organizational environment: The dynamic engagement approach recognizes that an organization environment is not some set of fixed, impersonal forces. Rather it is a complex, dynamic, web at people interacting with each other. As a result Managers not only pay attention to their own concerns, but also understands what is important for other managers within the organization and in other organization. They interact with theses other managers to create jointly the condition under which these organizations prosper and struggle.
2. Ethics and Social Responsibility: Managers using a dynamic engagement approach pay close attention to the values that guide people in their organizations, the corporate Culture that embodies those values, and values held by the people outside the organization.
3. Globalization and Management
4. Inventing and Re-inventing Organizations: Managers who practice dynamically engagement continually search for ways to unleash the creative potential of their employees and themselves. A growing chorus of theorist is urging managers to rethink the standard organization structures to which they have become accustomed.
5. Cultures and Multiculturalism: Managers who embrace the dynamic engagement approach recognize that the various perspective and values that people of different cultural backgrounds bring to their organizations are not only a fact life but a significant source of contributions.
6. Quality: By the dynamic engagement approach, total quality management (TQM) should be in every manager’s vocabulary. All managers should be thinking about how every organizational process can be conducted to provide product and service .That is responsible to tougher and tougher customer and competitive services. Strong and lasting relationships can be fruitful by product of quality frame of mind and action by this view. Total quality management adds one more Dynamic dimension to management because quality too is always a moving Target.

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