Origin of Management

Prepared by :-

Diwas Sharma

Man Mohan Mishra

Index

• Historical notes

• Formal study of management

• Scientific management

• Taylor’s ideas

• Fayol’s administrative approach

• Weber’s Bureaucratic Approach

• Servant relationship

• References

Historical Notes :--

Since the very beginning of the human civilization , peoples have been using the concept of management as a very special tool to perform their tasks efficiently.

In almost every ancient civilization , we can see the influence of management. It was impossible to make those well – equipped and advanced cities without proper management skills.

Historical Ideas and Practices throughout history :---• 5000 BC - Sumerians -- Record Keeping.

• 1800 BC - Hammurabi -- Controls and written documents.

• 400 BC - Xenophon -- Management as a separate art.

• 400 BC - Cyrus -- Human relations and motion study.

• 900 AD - Alfarabi -- Listed leadership traits.

Formal study of management :---

Although great feats of human achievement such as the Egyptian pyramids, the Great Wall of China, the Colosseum in Rome and the Taj Mahal in India all bear testimony to skilled management in ancient times, the formal study of management only began late in the 19th century.

One of the early pioneers of management theory was Frederick W. Taylor (1856-1915), a mechanical engineer who believed that it was management’s task to design jobs properly and to provide incentives to motivate workers to achieve higher productivity.

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The main driving force behind this development of management as a science was the transition from 19th century “entrepreneurial capitalism” to early 20th century “managerial capitalism”. Whereas the first capitalists were business owners who used their own finances to fund organizations that they managed themselves, rapid industrial growth saw the formation of large organizations with capital often provided by outsiders. This not only “widened the gap” between owners or shareholders and management, it also brought new management challenges. (Smit & Cronjé, 2002, p34-35; George, 1968)

Continued ….

Scientific Management

Studies and tests methods to identify the

best, most efficient ways“Seats of the pants” management

-No standardisations of procedures-No follow-up on improvements

Frederick W. Taylor (1856-1915)

Frederick W. Taylor is known today as the father of the scientific management. One of his many contributions to modern management is the common practice of giving employees rest breaks throughout the day.

Taylor’s 4 principles –

1- Study the way workers perform their tasks, gather all informational job knowledge that workers possess and experiment with ways of improving how tasks are performed.

2. Codify the new methods of performing tasks into written rules and standard operating procedures.

3. Carefully select workers who possess skills and abilities that match the needs of the task, and train them to perform the task according to the established rules and procedures.

4. Establish a fair or acceptable level of performance for a task and then develop a pay system that provides a reward for performance above the acceptable level.

Fayol’s Approach

•The Administrative ApproachAcross the Atlantic ocean Jules Henri Fayol (1841-1925), a fellow engineer and manager of a group of French mines, came to the conclusion that management was an activity common to all human undertakings - home, business, government, schools.

Continued…..

and that all these undertakings needed five basic administrative functions – 1. planning2. organizing 3. commanding 4. Coordinating5. controlling.

Fayol’s approach rejected the old notion that “managers are born, not made”

Max Weber (1864-1920)

• The Bureaucratic Approach

Max Weber was a German sociologist who approached management by focusing on organizational structure, dividing organizations into hierarchies with clear lines of authority and control. This meant that managers were given “legal authority” based on their position in the organizational structure, to enforce rules and policy

Weber’s bureaucratic system helped large organizations to function in a more stable, organized and systematic manner. However, by doing away with personality based or charismatic leadership, individuality and creativity is often sacrificed. Bureaucratic leaders and workers are required to obey rules and do only what they are told. The result is that these leaders seldom think “outside the box” and therefore find it very difficult to adapt to changing environments and new challenges.

The Human Relations Movement :---Elton Mayo (1880-1949) was a Harvard professor who proposed that managers should become more “people-orientated” . Conducting experiments on conditions in the workplace and incorporating the well-published findings of the Hawthorne Studies, Mayo declared that “logical factors were far less important than emotional factors in determining productive efficiency” . He concluded that participation in social groups and “group pressure”, as opposed to organizational structures or demands from management, had the strongest impact on worker productivity .

Servant Leadership : ---

Although the concept of servant-leadership is found in the Bible and might even date further back into antiquity, it was first proposed as a management approach by Peter Greenleaf (1904-1990) in his book Servant Leadership . He explained that becoming a servant-leader “begins with the natural feeling that one wants to serve” followed by the aspiration to lead .

Summary and Recommendations :---

The role and responsibilities of leaders in organizations has undergone some radical changes over the last 100 years. Evolving from the strong-armed bosses of early entrepreneurial capitalism to bureaucrats whose authority rested in their organizational position, to leaders who have to find new ways to convince employees to follow them in the quick-changing information era, the challenges and opportunities for leadership is perhaps now greater than ever. 

References :---

• 75 Years of Management Ideas and Practice, David Sibbet, September/October 1997 Supplement, Harvard Business Review, Reprint number 97500.

• The Hunters and the Hunted, Swartz, James, 1994, Productivity Press, Portland OR.

• What You Can Learn from 100 Years of Management Science: A Guide to Emerging Business Practice, Stauffer, David, January 1998, Harvard Business Review, Reprint number U9801A.

Thank You