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ASSIGNMENT
MANAGEMENT THEORY
DATE
EARLYTHINKINGABOUTMANAGEMENT
Peoplehavebeenshapingandreshapingorganizationsformanycenturies.Looking
backthroughworldhistory,wecantracethestoriesofpeopleworkingtogetherin
formalorganizationssuchasthe
GreekandRomanarmies,theRomanCatholicChurch,theEastIndiaCompany,and
theHudsonBayCompany.Peoplehavealsolongbeenwritingabouthowtomake
organizations efficientandeffectivesincelongbeforetermssuchas"management"
cameintocommonusage.Twoprominent andinstructiveexamplesarethewritings
leftforusbyNiccoloMachiavelliandSunTzu.
MACHIAVELLIANDSUNTZU:
EARLYSTRATEGISTS
Althoughtheadjective'Machiavellian'isoftenusedtodescribecunningand
manipulativeopportunistsMachiavelliwasagreatbelieverinthevirtuesofa
republic.ThisisevidentinDiscourses, abookMachiavelliwrotein1531whilehe
livedintheearlyItalianrepublicof Florence.Theprinciples hesetforthcanbe
adaptedtoapplytothemanagementoforganizationstoday.
Anorganizationismorestableifmembershavetherighttoexpresstheir
differencesandsolve theirconflictswithinit
Whileonepersoncanbeginanorganization,"itislastingwhenitisleftinthe
careofmanyandwhenmanydesiretomaintainit."
Aweakmanagercanfollowastrongone,butnotanotherweakone,andmaintain
authority.
Amanagerseekingtochangeanestablishedorganization"shouldretainatleasta
shadowofthe ancientcustoms."
AnotherclassicworkthatoffersinsightstomodemmanagersisTheArtofWar,
writtenbytheChinesephilosopherSunTzumorethan2,000yearsago.Itwas
modifiedandusedbyMaoZedong, whofoundedthePeople'sRepublicofChinain
l949.AmongSunTzu'sdicturarethefollowing:
Whentheenemyadvances.weretreat!
whentheenemyhaltsweharass!Whentheenemyseekstoavoidbattle,we
attack!
Whentheenemyretreats,wepursue!
WHYSTUDYMANAGEMENTTHEORY?
Theoriesareperspectiveswithwhichpeoplemakesenseoftheirworldexperiences.
Formally,a theoryisacoherentgroupofassumptionsputforthtoexplainthe
relationship betweentwoormoreobservablefacts. JohnClancycallssuch
perspectives"invisiblepowers"toemphasizeseveralcrucialusesoftheories,the
"unseen"waysinwhichweapproachourworld.
First,theoriesprovideastablefocusforunderstandingwhatweexperience.
Atheoryprovidescriteriafordeterminingwhatisrelevant.
Second,theoriesenableustocommunicateefficientlyandthusmoveinto
moreand morecomplexrelationshipswithotherpeople.
Third,theoriesmakeitpossibleindeed,challengeustokeeplearningabout
ourworld.Bydefinition,theorieshaveboundaries;thereisonlysomuch
thatcanbecoveredbyanyonetheory.
THEEVOLUTIONOFMANAGEMENTTHEORY
Managementandorganizationsareproductsoftheirhistoricalandsocialtimesand
places.Thus,wecanunderstandtheevolutionofmanagementtheoryintermsof
howpeoplehavewrestledwithmattersofrelationshipsatparticulartimesin
history.
THESCIENTIFICMANAGEMENTSCHOOL
ScientificManagementtheoryaroseinpartfromtheneedtoincreaseproductivity.
IntheUnited Statesespecially,skilledlaborwasinshortsupplyatthebeginningof
thetwentiethcentury.Theonlywaytoexpandproductivitywastoraisethe
efficiencyofworkers.Therefore,FrederickW.Taylor, HenryL.Gantt,andFrankand
LillianGilbrethdevisedthebodyofprinciplesknownasscientificmanagement
theory.
FREDERICKW.TAYLOR
FrederickW.Taylor(18561915)restedhisphilosophyonfourbasicprinciples:
Thedevelopmentofatruescienceofmanagement,sothatthebestmethodfor
performingeach taskcouldbedetermined.
Thescientificselectionofworkers,sothateachworkerwouldbegiven responsibility
forthetask forwhichheorshewasbestsuited.
Thescientificeducationanddevelopmentoftheworker.Intimate,friendly
cooperationbetweenmanagementandlabor.
CONTRIBUTIONSOFSCIENTIFICMANAGEMENTTHEORY
ThemodemassemblylinepoursoutfinishedproductsfasterthanTaylorcouldever
haveimagined.
Thisproduction"miracle"isjustonelegacyofscientificmanagement.Inaddition,its
efficiency techniqueshavebeenappliedtomanytasksinnonindustrialorganizations,
rangingfromfastfoodservicetothetrainingofsurgeons.
LIMITATIONSOFSCIENTIFICMANAGEMENTTHEORY
AlthoughTaylor'smethodledtodramaticincreasesinproductivityandtohigher
payinanumberofinstances,workersandunionsbegantoopposehisapproach
becausetheyfearedthatworkingharderorfasterwouldexhaustwhateverwork
wasavailable,causinglayoffs.
Moreover,Taylor'ssystemclearlymeantthattimewasoftheessence.Hiscritics
objectedtothe"speedup"conditionsthatplacedunduepressuresonemployeesto
performatfasterandfasterlevels.Theemphasisonproductivityand,by
extension,profitabilityledsomemanagerstoexploitbothworkersandcustomers.
Asaresult,moreworkersjoinedunionsandthusreinforcedapatternofsuspicion
andmistrustthatshadedlabormanagementrelationsfordecades.
HENRYL.GANTT
HenryL.Gantt(18611919)workedwithTayloronseveralprojects.Butwhenhe
wentoutonhisownasaconsultingindustrialengineer,Ganttbegantoreconsider
Taylor'sincentivesystem.
Abandoningthedifferentialratesystemashavingtoolittlemotivationalimpact,
Ganttcameupwithanewidea.Everyworkerwhofinishedaday'sassignedwork
loadwouldwina50centbonus.Thenheaddedasecondmotivation.The
supervisorwouldearnabonusforeachworkerwhoreachedthedailystandard,
plusanextrabonusifalltheworkersreachedit.This,Ganttreasoned,wouldspur
supervisorstotraintheirworkerstodoabetterjob.
THEGILBRETHS
FrankB.andLillianM.Gilbreth(18681924and18781972)madetheircontribution
tothescientificmanagementmovementasahusbandandwifeteam.Lillianand
Frankcollaboratedonfatigueandmotionstudiesandfocusedonwaysofpromoting
theindividualworker'swelfare.Tothem,theultimateaimofscientificmanagement
wastohelpworkersreachtheirfullpotentialashumanbeings.
CLASSICALORGANIZATIONTHEORYSCHOOL
Scientificmanagementwasconcernedwithincreasingtheproductivityoftheshop
andtheindividualworker.Classicalorganizationtheorygrewoutoftheneedto
findguidelinesformanagingsuchcomplexorganizationsasfactories.
HENRIFAYOL
HenriFayol(18411925)isgenerallyhailedasthefounderoftheclassical
managementschoolnot becausehewasthefirsttoinvestigatemanagerial
behaviour, butbecausehewasthefirsttosystematizeit.Fayolbelievedthatsound
managementpracticefallsintocertainpattersthatcanbe identifiedandanalysed.
Fromthisbasicinsight,hedrewupablueprintforacohesivedoctrineof
managersonethatretainsmuchofitsforcetothisday.Withhisfaithinscientific
methods,FayolwaslikeTaylor,hiscontemporary.WhileTaylorwasbasically
concernedwithorganizationalfunctions,howeverFayolwasinterestedinthetotal
organizationandfocusedonmanagement,whichhefelthadbeenthemost
neglectedofbusinessoperations.The14principlesofmanagementFayol"most
frequentlyhadtoapply."
BeforeFayol,itwasgenerallybelievedthat"managersareborn,notmade."Fayol
insisted,however,thatmanagementwasaskilllikeanyotheronethatcouldbe
taughtonceitsunderlyingprincipleswereunderstood.
Fayols14Principlesofmanagement
DivisionofLabor. Authority.
Discipline Remuneration
UnityofCommand Centralization
UnityofDirection TheHierarchy
SubordinationofIndividualInteresttotheCommonGood Order
EspiritdeCorps (Promotingteamspirit) Initiative
StabilityofStaff Equity
MAXWEBER
Reasoningthatanygoalorientedorganizationconsistingofthousandsofindividuals
wouldrequirethecarefullycontrolledregulationofitsactivities,theGerman
sociologistMaxWeber(18641920)developedatheoryofbureaucraticmanagement
thatstressedtheneedforastrictlydefinedhierarchygovernedbyclearlydefined
regulationsandlinesofauthority.Heconsideredtheidealorganizationtobea
bureaucracywhoseactivitiesandobjectiveswererationallythoughtoutand whose
divisionsoflaborwereexplicitlyspelledout.Weberalsobelievedthattechnical
competenceshouldbeemphasizedandthatperformanceevaluationsshouldbe
madeentirelyonthebasisofmerit.
MARYPARKERFOLLETT
MaryParkerFollett(18681933)wasamongthosewhobuiltonclassicframeworkof
theclassicalschool.However,sheintroducedmanynewelementsespeciallyinthe
areaofhumanrelationsandorganizationalstructure.Inthis,sheinitiatedtrends
thatwouldbefurtherdevelopedbytheemergingbehavioralandmanagement
scienceschools.
Follettwasconvincedthatnoonecouldbecomeawholepersonexceptasa
memberofagroup;humanbeingsgrewthroughtheirrelationshipswithothersin
organizations.Infact,shecalledmanagement"theartofgettingthingsdone
throughpeople."
CHESTERI.BARNARD
ChesterBarnard(18861961),likeFollett,introducedelementstoclassicaltheorythat
wouldbefurtherdevelopedinlaterschools.Barnard,whobecamepresidentof
NewJerseyBellin1927,usedhisworkexperienceandhisextensivereadingin
sociologyandphilosophytoformulatetheoriesaboutorganizations.Accordingto
Barnard,peoplecometogetherinformalorganizationstoachieveendstheycannot
accomplishworkingalone.Butastheypursuetheorganization'sgoals,theymust
alsosatisfytheirindividualneeds.AndsoBarnardarrivedathiscentralthesis:An
enterprisecanoperateefficientlyandsurviveonlywhentheorganizationsgoalsare
keptinbalancewiththeaimsandneedsoftheindividualsworkingforit.What
Barnardwasdoingwasspecifyingaprinciplebywhichpeoplecanworkinstable
andmutuallybeneficialrelationshipsovertime.
THEBEHAVIORALSCHOOL:
THEORGANIZATIONISPEOPLE
Thebehavioralschoolemergedpartlybecausetheclassicalapproachdidnotachieve
sufficientproductionefficiencyandworkplaceharmony.Tomanagersfrustration,
peopledidnotalwaysfollow predictedorexpectedpatternsofbehavior.Thusthere
wasincreasedinterestinhelpingmanagersdealmoreeffectivelywiththe"people
side"oftheirorganizations.Severaltheoriststriedtostrengthenclassical
organizationtheorywiththeinsightsofsociologyandpsychology.
THEHUMANRELATIONSMOVEMENT
Humanrelationsisfrequentlyusedasageneraltermtodescribethewaysinwhich
managersinteractwiththeiremployees.When"employeemanagement"stimulates
moreandbetterwork,theorganizationhaseffectivehumanrelations;whenmorale
andefficiencydeteriorate,itshumanrelationsaresaidtobeineffective.Thehuman
relationsmovementarosefromearlyattemptstosystematicallydiscoverthesocial
andpsychologicalfactorsthatwouldcreateeffectivehumanrelations.
THEHAWTHORNEEXPERIMENTS.Thehumanrelationsmovementgrewoutofa
famousseriesofstudiesconductedattheWesternElectricCompanyfrom1924to
1933.These eventuallybecameknownasthe"HawthorneStudies"becausemanyof
themwereperformedatWesternElectric's
HawthorneplantnearChicago.TheHawthorneStudiesbeganasanattemptto
investigatetherelationshipbetweentheleveloflightingintheworkplaceand
workerproductivitythetypeofquestionFrederickTaylorandhiscolleaguesmight
wellhaveaddressed.
THEMANAGEMENTSCIENCESCHOOL
AtthebeginningofWorldWarII,GreatBritaindesperatelyneededtosolvea
numberofnew,complexproblemsinWarfare.Withtheirsurvivalatstake,British
formedthefirstoperationalresearch(OR)teams.Bypoolingtheexpertiseof
mathematicians,physicists,andotherscientistsinORteams,theBritishwereable
toachievesignificanttechnologicalandtacticalbreakthroughs.WhentheAmericans
enteredthewar,theyformedwhattheycalledoperationsresearchteams,basedon
thesuccessfulBritishmodel,tosolvesimilarproblems.Theteamsusedearly
computerstoperform thethousandsofcalculationsinvolvedinmathematical
modeling.
RECENTDEVELOPMENTSINMANAGEMENTTHEORY
THESYSTEMSAPPROACH
Ratherthandealingseparatelywiththevarioussegmentsofanorganization,the
systemsapproachtomanagementviewstheorganizationasaunified,purposeful
systemcomposedofinterrelatedparts.Thisapproachgivesmanagersawayof
lookingattheorganizationasawholeandasapartofthelarger,external
environment.Systems.theorytellsusthattheactivityofanysegmentofan
organizationaffects,invaryingdegrees,theactivityofeveryothersegment.