2.1 History of Management Theories

Views on management have changed substantially over the past century.

Planning, organizing, leading and controlling activities have existed for a long time.

One of the Seven Wonders of the World, the Egyptian pyramids, is an example that the act of management had been used in the early days when the pyramids were constructed.

Historical Background of Management

Two historical events significant to the study of management are:

Work of Adam Smith, in his book,' The Wealth of Nations', in which he argued brilliantly for the economic advantages of division of labor (the breakdown of jobs into narrow, repetitive tasks).

The Industrial Revolution is second important pre-twentieth-century influence on management. The introduction of machine powers combined with the division of labor made large, efficient factories possible. Planning, organizing, leading, and controlling became necessary activities.

2.1 History of Management Theories

Major Approaches to Management

It is only appropriate that we begin our study of management by appreciating the historical events that had laid the foundations for all our practices of management today.

There are six major approaches to management.

They are explained as follows:

Scientific Management

Scientific management is defined as the use of the scientific method to determine the "one best way" for a job to be done.

In 1911, Frederick Taylor published Principles of Scientific Management. This book described the theory of scientific management, which is about the use of scientific methods to define the one best way to do a job.

Taylor's is a mechanical engineer in a steel company, he noticed that workers were placed in jobs with little or no concern of for matching their abilities with the tasks that they do. He then pursued finding one best way for doing those jobs. He put the right person on the job using the correct tools and equipment, following his exact instructions and being motivated with economic incentive with a higher daily wage.

2.1 History of Management Theories

Taylor was later known as the "Father of Scientific Management".

The Gilbreths studied hand and body motions in bricklaying where wasted motions were identified and eliminated. Using Gilbreth's techniques, a bricklayer was more productive and less fatigued at the end of the day.

			Elements of scientific management still used include:
			1. Using time and motion studies. 2. Hiring best qualified workers. 3. Designing incentive systems based on output.

General Administrative Theory

Henri Fayol and Max Weber were the two most prominent proponents of the general administrative approach who focused on the entire organization, developed more general theories of what managers do and what constitutes good management practice.

General administrative theory described what managers do and what constituted good management practise.

2.1 History of Management Theories

			Henri Fayol stated 14 principles of management which are as follows:
			1. Division of work 2. Authority 3. Discipline 4. Unity of command 5. Unity of direction 6. Subordination of individual interests to the general interest 7. Remuneration 8. Centralization 9. Scalar chain 10. Order 11. Equity 12. Stability of tenure of personnel 13. Initiative 14. Esprit de corps

In the early 1900s, Max Weber developed a theory of authority structures and relations whereby he described the ideal type of organization as bureaucracy.

A bureaucracy is a form of organization characterized by division of labour, a clearly defined hierarchy, detailed rules and regulations and impersonal relationships.

2.1 History of Management Theories

			Weber's bureaucratic structure consisted of:
			1. Division of labour 2. Authority hierarchy 3. Formal selection 4. Formal rules and regulations 5. Impersonality 6. Career Orientation

Quantitative Approach to Management

The quantitative approach, sometimes known as operations research or management science, uses quantitative techniques to improve decision making.

It originated during World War II as mathematical and statistical solutions to military problems were developed for wartime use and these techniques were later applied to businesses e.g. linear programming, work scheduling, optimization models and economic order quantity model.

The relevance of quantitative approach today is that it has contributed most directly to managerial decision making, particularly in planning and controlling.

2.1 History of Management Theories

Organizational Behaviour

Organizational behavior (OB) is the field of study concerned with the behaviour of people at work.

Organizational behaviour research includes studies of leadership, trust, teamwork, and conflict management.

The Hawthorne Studies is the most significant contribution to the field of organizational behaviour.

In the present day context behavioural approach assists managers in designing jobs that motivate workers, in working with employee teams, and in facilitating the flow of communication within organizations.

The behavioural approach provides the foundation for current theories of motivation, leadership, and group behaviour and development.

2.1 History of Management Theories

The Systems Approach

During the 1960s, management researchers began to analyze organizations from a systems perspective.

A system is a set of interrelated and interdependent parts arranged in a manner that produces a unified whole.

The two basic types of systems are open and closed. A closed system is not influenced by and does not interact with its environment. An open system interacts with its environment. Organizations are open systems where they take in inputs from the environment to be transformed into outputs that are then distributed into the environment.

The systems approach recognizes that organizations are not self-contained; they rely on and are affected by factors in their external environment.

2.1 History of Management Theories

The Contingency Approach

The contingency approach to management is a view that the organization recognizes and responds to situational variables as they arise.

The contingency approach or the situational approach explains that organizations are different from one another; they face different situations and require different ways of managing.

			There are various contingency variables that can have impact on managers but there are four which represents the most widely used and can impact managers significantly. They are:
			1. Organization size 2. Routineness of task technology 3. Environmental uncertainty 4. Individual differences