History, Growth & Evolution of Management
HISTORY, GROWTH & EVOLUTION OF MANAGEMENT
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Introduction
·
Management is not a word that introduced
yesterday, it exist from thousands of years and get evolution from time to time.
·
The view of history helps us to understand
the today’s management theories & practices and help to see that what has
worked and what has not.
·
The Pyramids of Egypt, Great Wall of China,
Taj Mahal, Qutub Minar and many more things of this world tells us the degree
of management that exist at that time.
·
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 18th 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 20th 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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