Introduction, History, Growth & Evolution of Management

INTRODUCTION, HISTORY, GROWTH & EVOLUTION OF MANAGEMENT

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Introduction

Management is a systematic process of planning, organizing, staffing, directing and controlling human and material resources to achieve organizational goals efficiently and effectively.

• Koontz & O’Donnell: “Management is the art of getting things done through and with people in formally organized groups.”
• Henry Fayol: “To manage is to forecast, to plan, to organize, to command, to coordinate, and to control.”

Importance of Management

Management is important because it ensures that organizations function smoothly and achieve desired outcomes.

1. Achievement of Goals: Ensures objectives are clearly set and accomplished.
2. Optimal Resource Utilization: Prevents wastage of men, money, material, and time.
3. Coordination of Efforts: Brings harmony among various departments and individuals.
4. Decision Making: Provides a rational basis for choosing the best alternative.
5. Adaptability: Helps organizations cope with technological, social, and environmental changes.
6. Motivation & Leadership: Inspires employees and builds teamwork.
7. Productivity & Efficiency: Improves output and lowers cost.
8. Growth & Stability: Ensures long-term survival and competitiveness.

Nature of Management: Science or Art?

(a) Management as a Science

• Science is a systematized body of knowledge with principles based on observation and experimentation.
• Management qualifies as science because:
• It has principles and theories (planning, motivation, leadership, etc.).
• It is systematic and analytical.
• It uses cause-effect relationships (e.g., good motivation = high productivity).
• However, it is a social science, not an exact science like Physics, since human behavior is unpredictable.

(b) Management as an Art

• Art means application of knowledge and skills to achieve desired results.
• Management is an art because:
• It requires creativity, judgment, intuition, and communication skills.
• Managers use experience and personal skills in decision-making.
• Every manager develops his/her own style of managing.

·       HISTORY

       The remarkable and significant events in the history of management that contributes in the growth and evolution of management are

o   Division of Labor

§  “THE WEALTH OF NATIONS” published in 1776 by Adam Smith

§  He argued about the Division of labor and Job specialization.

§  He states about the economic advantages that a organization and society would gain from the above argues.

§  After that job specialization continues to be popular.

o   Industrial Revolution

§  Started in late 18^th century (1750 to 1850), when the machines were introduced to replace humans.

§  Changes in agriculture, manufacturing, transportation, technology and mining  had a hard effect on the

o   Social

o   Economical

o   & Cultural aspects of that time

§  It begins in Britain and spreads to other countries so fast.

Approaches to Management

·       Classical Approach

·       Quantitative Approach

·       Behavioral Approach

·       Contemporary Approach

Classical Approach

·       Scientific Management

o   In 1911 Frederic Winslow Taylor’s published the “Principles of Management” and started the concept of modern management.

o   F.W Taylor was a mechanical engineer in a steel company and was shocked by the

§  Inefficiency of the workers

§  Non existence of the working standards

§  Tasks were not allotted according to their skills

o   He tried different tools, techniques, procedures and realized that the efficiency of workers can be increased by

§  Right person equipped with right tools

§  Proper instructions

§  Motivated by a high incentive

·       General Administrative Theory

o   This theory is completely based on the two persons and their views

§  Henry Fayol and his 14 principles

·       Division of work

·       Authority

·       Discipline

·       Unity of command

·       Unity of direction

·       Remuneration

·       Subordination of individual interest

·       Centralization

·       Scalar Chain

·       Order

·       Equity

·       Initiative

·       Espirit De Corps

·       Stability of Tenure

§  Max Weber and his definition of Bureaucracy i.e

·       Division of labor

·       Well defined hierarchy

·       Rules & regulations

·       Impersonal relationship

·       Formal selection

Quantitative Approach

·       It is well known as the Operational Research or management science.

·       This approach deals with the numbers and evolved from the statistical & mathematical methods.

·       It focuses to solve the logistics and quality control problems

·       Helps to improve the managerial decision making by

§  Statistics

§  Information models

§  Optimization models

§   Computer simulations

·       The best examples of this approach are

§  Case control study

§  Cohort study

§  Sampling

§  Regression analysis

§  Correlation coefficient etc

Behavioral Approach

·       Early Advocates of OB

o   In 20^th century the peoples realizes the importance of workers in the success of an organization

o   This importance is bring into the notice by

§  Robert Owen

§  Hugo Munsterberg

§  Mary Parker Follet

§  Chester Barnard

o   They all believed that peoples were the important assets of the organisation

·       Hawthorne Studies

o   This study was design and conducted at Western Electric Company in 1924.

o   Objective of this study is to examine the effect of various lightening levels on workers’ productivity.

o   Workers was divided into two groups

§  Experimental group

§  Control Group

o   The experimental group exposed to various intensities of light but the control group worked at a constant light intensity

o   As the level of light intensity increases the productivity also increases in both the groups and when the intensity of light decreases the productivity continued to increases in both the groups.

o   The results indicates that the incentive plan had less effect on the worker output in comparison to the

§  Group Pressure

§  Acceptance

§  Security

·       Organization Behavior

o   It studies the action or behavior of the peoples at work

o   The outcomes of OB are

§  Motivating

§  Building Trust

§  Team Work

§  Managing People

Contemporary Approach

·       Systems Theory

o   A set of Interrelated parts of an organization working together for a common purpose

o   The system need the orderly arrangement and proper communication to achieve the goal

o   Generally two types of organization exist in nature

§  Closed System (Having an isolated environment)

§  Open System (Having an interactive environment)

o   Survival of the organization also depends on the external factors also such as

·       Government regulation

·       Customer taste & feedback

·       Supplier relation

o   Decision in one area affects the other areas of an organisation also.

·       Contingency Theory

o   The meaning of contingency is any future event which is possible but can’t be predicted with certainty

o   It is also well known by the name of situational approach

o   External and Internal factors must be considered and the focus should be on the action that best fits on the given situation

o   The best way to describe this approach is “If-then”.

o   Example of this theory can be the contingency management used by the Coca-Cola Corporation to handle the demand and needs of the product according to the situation.

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