Introduction
Management has been defined differently by
different authors in the field. Follet M.P has defined it as the art of getting
things done through people. Stoner J.A.F on the other hand gives a more
detailed definition of management as the process of planning, organizing,
leading and controlling the efforts of organization members and of using all
other organizational resources to achieve stated organizational goals.
Management has evolved over the years with the
changes in the theories of management being developed and system changes such
as advances in technology.
This papers seeks to expound on the history of
management and key theories that have shaped management to what it is to date.
Scientific Management Theory
(1890-1940)
The Scientific management theory was propagated
mainly by Taylor F.W who is regarded as the father of scientific management. At
the turn of the century, the most notable organizations were large and
industrialized. Often they included ongoing, routine tasks that manufactured a
variety of products. Many organizations then highly prized scientific and
technical matters, including careful measurement and specification of
activities and results. Management tended to be the same. Frederick Taylor
developed “the scientific management theory” which espoused this careful
specification and measurement of all organizational tasks. Tasks were
standardized as much as possible. Workers were rewarded and punished. This
approach appeared to work well for organizations with assembly lines and other
mechanistic, routinized activities. There was focus on increasing
productivity and efficiency through standardisation, division of labour,
centralisation and hierarchy. A very ‘top down’ management with strict control
over people and processes dominated across industries.
Administrative School of Management (Henry
Fayol, early 20th century).
This school of management was propagated by Henry
Fayol, who’s often regarded as the father of management theory. On the basis of
his personal experiences, Fayol developed 14 principles of management that
include the following:
i)
Division of work: Work should be divided among
individuals and groups to ensure that effort and attention are focused on
special portions of the task. Fayol presented work specialization as the best
way to use the human resources of the organization.
ii)
Authority: The concepts of Authority and responsibility
are closely related. Authority was defined by Fayol as the right to give orders
and the power to exact obedience. Responsibility involves being accountable,
and is therefore naturally associated with authority. Whoever assumes authority
also assumes responsibility.
iii)
Discipline: A successful organization requires the
common effort of workers. Penalties should be applied judiciously to encourage
this common effort.
iv)
Unity of Command: Workers should receive orders from
only one manager.
v) Unity of Direction: The entire organization should be moving towards a common objective in a common direction.
vi)
Subordination of individual interests to the general
interests: The interests of one person should not take priority over the interests
of the organization as a whole.
vii)
Remuneration: Many variables, such as cost of living,
supply of qualified personnel, general business conditions, and success of the
business, should be considered in determining a worker’s rate of pay.
viii)
Centralization: Fayol defined centralization as
lowering the importance of the subordinate role. Decentralization is increasing
the importance. The degree to which centralization or decentralization should
be adopted depends on the specific organization in which the manager is
working.
ix)
Scalar Chain: Managers in hierarchies are part of a
chain like authority scale. Each manager, from the first line supervisor to the
president, possess certain amounts of authority. The President possesses the
most authority; the first line supervisor the least. Lower level managers
should always keep upper level managers informed of their work activities. The
existence of a scalar chain and adherence to it are necessary if the
organization is to be successful.
x)
Order: For the sake of efficiency and coordination, all
materials and people related to a specific kind of work should be treated as
equally as possible.
xi)
Equity: All employees should be treated as equally as
possible.
xii)
Stability of Tenure of Personnel: Retaining productive
employees should always be a high priority of management. Recruitment and
Selection Costs, as well as increased product-reject rates are usually
associated with hiring new workers.
xiii)
Initiative: Management should take steps to encourage
worker initiative, which is defined as new or additional work activity
undertaken through self-direction
xiv)
Espirit De Corps: Management should encourage harmony
and general good feelings among employees.
Bureaucratic Management Theory (1930-1950)
This theory was propagated by Max Weber, a
sociologist who reacted to the abuses of power by people in managerial
positions. He recommended an organisational system that would be run by rules
and regulations he referred to as Bureaucracy.
Bureaucracy emphasizes order, systems, rationality,
uniformity and consistency. Weber believed that the most efficient and
effective organization had a hierarchical structure based on formal authority. Weber
focused on dividing organizations into hierarchies, establishing strong lines
of authority and control. He suggested organizations develop comprehensive and
detailed standard operating procedures for all routinized tasks. Some of the
outstanding characteristics of Bureaucracy according to Weber are:
a)
Clear division of labour (by functional specialisation).
b)
Employment decisions based on Merit.
c)
Formal Hierarchy of authority.
d)
Job and Job holder remain separate/Autonomous Decisions
by Office Holders.
e)
Impersonal approaches to all interpersonal activities.
f)
Maintenance of clear written records, constant communication.
g)
Well spelt out rules and regulations governing the
conduct of employees.
Human Relations Movement (1930-today)
Unions and government regulations reacted to the
rather dehumanizing effects of the scientific, administrative and bureaucratic
theories and more attention was given to individuals and their unique
capabilities in the organization. A major belief included that the organization
would prosper if its workers prospered as well. Human Resource Departments were
added to organizations. The behavioural sciences played a strong role in
helping to understand the needs of workers and how the needs of the
organization and its workers could be better aligned. Various new theories were
spawned, many based on the behavioural sciences like theory “X”, “Y” and “Z”
and other motivational theories.
With the Human Relations Movement, training
programs recognized the need to cultivate supervisory skills such as
delegating, career development, motivating, coaching and mentoring, among
others.
Contemporary Theories of Management
Contingency Theory
The contingency theory asserts that when managers
make a decision, they must take into account all aspects of the current
situation and act on those aspects that are key to the situation at hand. For
example, the continuing effort to identify the best leadership or management
style might now conclude that the best style depends on the situation...
Systems Theory
Systems theory has had a significant effect on
management science and understanding organizations. A system is a collection of
parts unified to accomplish an overall goal. If one part of the system is
removed, the nature of the system is changed as well. For example a functioning
car is a system. Remove the battery and you no longer got a working car. A
system can be looked at as having inputs, processes, outputs and outcomes.
Systems share feedback among each of these four aspects of the systems.
Chaos Theory
As chaotic and random as world events seem today,
they seem as chaotic in organizations, too. Yet for decades, managers have
acted on the basis that organizational events can always be controlled. Chaos
theory recognizes that events indeed are rarely controlled. Many chaos
theorists (as do systems theorists) refer to biological systems when explaining
their theory. They suggest that systems naturally go to more complexity, and as
they do so, these systems become more volatile (or susceptible to cataclysmic
events) and must expend more energy to maintain that complexity. As they expend
more energy, they seek more structure to maintain stability. This trend
continues until the system splits, combines with another complex system or
falls apart entirely.
Conclusion
Management thinking and practice have evolved over
the last century as a result of increased understanding of human and
organisational behaviour, the economic climate and historical context and the
changes in generations over time. How employers lead their people and how they
solve problems and innovate, are some of the most important aspects of
Management to get right. Managers will therefore often blend the various
management theories developed over time depending on the context or situation
that they are handling at any given time.
References
Harper, Douglas (2014). "Management". Online
Etymology Dictionary.
Retrieved
9th
May 2017.
Ngigi David (2016). Management Functions – Draft
(ODEL Module) School of Business, Kenyatta University Publishing Press
