EVOLUTION OF MANAGEMENT CONCEPTS

During the industrial revolution, there was a lot of pressure on industries to produce to fill the demand gaps left after the ruins of the Second World War. Managers at that time adopted a certain philosophy or approach of organising work. This approach or thinking was known as the Classical approach.

The teachings of the classical management philosophy were based on two main theories; these are the scientific theory and the administrative theory.

SCIENTIFIC THEORY

The scientific theory by Taylor focused on the improvements of operational efficiencies through the systematic and scientific study of work methods, tools and performance standards. The work done is mostly routine and “mechanical”, there is no job rotation or new job enhancement skills.

The emphasis was on getting the work done through any means necessary. It was not concern about the man doing the work, it was purely based on the “carrot and stick approach’’. Reward is based on performance or output and not extrinsic rewards.

ADMINISTRATIVE THEORY

This theory mainly emphasises the need to organise and coordinate the activities of the entire organisation. Henri Fayol formulated the functional definition of management and stated that management is to:

Forecast and Plan Organise and Command Coordinate and Control

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He had other principles like division of work, responsibility, and authority of work.

Max Weber’s contribution to the administrative theory was the introduction of the theory of BUREAUCRACY. This theory posits that management is by office or position rather than by the person, so that it matters not who you are but what you are!

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It is based on Legal-Rational authority. It envisions an organisation to develop around a set of impersonal and logical rules, routine and clear division of labour, thus selection should be based on technical qualifications and strict adherence to clear chain of command.

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Limitations of the Classical Approach They were devoid of human factor. They

rather emphasised on machines, tasks, authority and goals without taking into consideration the human factor.

Because of the limitations of the classical approach, a new management theory called the behavioural theory was born.

BEHAVIOURAL THEORY

This theory was lead by Mary Parker, Abraham

Maslow, Elton Mayo etc. The new thinking emphasised on understanding the importance of human behaviour, needs and attitudes within formal organisations

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Mary Parker Follet She advocated a break from the classical

management approach and viewed effective management as based on self control and cooperation of groups of workers. She argued that work groups were one of the following sources of influence of behaviour even more than management and reward system

CONTDN.. Elton Mayo Elton Mayo conducted the famous Hawthorn studies

to find out the effects of work environment on workers performance or productivity. The experiment was conducted by varying the work conditions given to different set of workers. The general conclusions drawn were that;

Human relationships and the social needs of workers were crucial aspects of business management

It emphasise the nature and significance of human behaviour, feeling and attitudes at work and the role of informal groups within formal organisations.

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Abraham Maslow’s Hierarchy of needs Abraham Maslow developed the need theories of

human motivation. He advocated that a humanistic approach to management. He proposed that people’s behaviour at work could be explained by a need of something beyond monetary considerations for their basic existence. He stated that when basic survival and security needs are fulfil by money, then other needs become important as a source of continuous motivation to work.

HIERARCHY OF NEEDS

Self-Actualiz-

ation

Esteem

Belongingness and Love

Safety

Physiological

CONTDN.. Physiological Needs

These include the most basic needs that are vital to survival, such as the need for water, air, food, and sleep. Maslow believed that these needs are the most basic and instinctive needs in the hierarchy because all needs become secondary until these physiological needs are met.

Security NeedsThese include needs for safety and security. Security needs are important for survival, but they are not as demanding as the physiological needs. Examples of security needs include a desire for steady employment, health care, safe neighbourhoods, and shelter from the environment.

CONTDN.. Social Needs

These include needs for belonging, love, and affection. Maslow described these needs as less basic than physiological and security needs. Relationships such as friendships, romantic attachments, and families help fulfil this need for companionship and acceptance, as does involvement in social, community, or religious groups.

Esteem NeedsAfter the first three needs have been satisfied, esteem needs becomes increasingly important. These include the need for things that reflect on self-esteem, personal worth, social recognition, and accomplishment.

Self-actualizing NeedsThis is the highest level of Maslow’s hierarchy of needs. Self-actualizing people are self-aware, concerned with personal growth, less concerned with the opinions of others, and interested fulfilling their potential

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Douglass McGregor He developed the theory X and Y

management concept. He stated that theory X is based on the assumption that people are naturally lazy, irrational, laid back and must be threatened, forced or pushed to work. In fact theory X compels management to implement a Quality Management System to force people to achieve the quality goals.

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He went on to say that theory Y is based on the assumption that people naturally want to work and are capable of self control; they like to take on challenging tasks, they are creative and strive to fulfil higher needs. It is therefore the responsibility of management to integrate their goals into that of the organisational goals

SYSTEMS APPROACH OR THEORY It viewed organisations and the environment within

which they operate as a set of interrelated parts to be managed as a whole to achieve a common goal. A system therefore can be considered as a set of interrelated parts that interacts with its external environment.

The effectiveness of a system can be analysed in terms of the extent to which that system is closed or opened. A closed system interacts little with its external environment and therefore receives less or no feedback whiles an open system interacts continually with its environment and so it is well informed about changes in its surroundings and its position relative to these changes. There are two notable advocates of the system theory; they are Bernard Chester and Edward Deming.

CONTDN.. Bernard Chester He advocates that formal organisations are

necessary tools through which individuals can achieve goals they would not have been able to achieve on their own. There must be cooperate systems that allows people to work together. Cooperation is achieved by making employees interested in the goals of the organisation. But this is possible if the organisational gaols are in alignment with their personal goals. This is what he calls “The Acceptance Theory of Authority’’, which means that in a formal organisation, authority lies in the person who receives the command and not the one issuing the command

CONTDN.. The reasons for this are It will depend on his understanding of the

command. It will depend on his believe that the command is

consistent to the goals of the organisation. Whether that command is compatible with his

personal interest and The ability of the person to physically and

mentally comply with the order

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Edward Deming He advocated for the integration of

quantitative methods (management based on facts) and the psychological and social dimensions of the work environment.

CONTINGENCY APPROACH It emphasised the need to identify the key

variables in each management situation and designing the organisation to fit each situation. It has been criticized for being theoretically weak but nonetheless it has inspired research on how understanding how the gap between management theories and practice can be bridged. Simply put, there is no one best way of managing an organisation through all situations, adaptability and flexibility is the key.

THE Z APPROACH

It is based on the Japanese culture that emphasises on the concept of job for life, job rotation etc instead of division of labour. This concept promotes loyalty and commitment to achieving both personal goals and organisational goals.