Historical Background of Management
• Management’s origin is not clearly traced in history. However, it would not be wrong to say that it is as old as the origin of human beings. • Modern management began in the late 19th century.
• Organizations were seeking ways to better satisfy customer needs. • Machinery was changing the way goods were produced.
• Managers had to increase the efficiency of the worker-task mix.
Early Management Theories
• Early Theories of Organizations emerged mainly from military and Catholic Church. The metaphor/symbol of the machine was dominant, where organizations are viewed as machines. Therefore, the organizational application was, since workers behave predictably (as machines do rarely deviate from the norm), management knows what to expect, and workers operating outside expectations are replaced. Modern management is the collaboration of people and machines to create value. In the early days of industrialization the innovators of machines and the innovators of organization and management were engineers. Engineers, after all, were the ones closest to the machines, and this fact placed them at the interaction of workers and machines. This certainly helps explain Frederick Taylor and his invention of "Scientific Management". CLASSICAL MANAGEMENT THEORIES
• Emerged in the early part of the twentieth century.
• Models were military and the Catholic Church.
▪ Strict CONTROL of workers
▪ Absolute CHAINS of COMMAND
▪ PREDICTABILITY of behavior
▪ UNIDIRECTIONAL downward influence
There are three well-established theories of classical management: ➢ Taylor’s Theory of Scientific Management, Fayol’s Administrative Theory, Weber’s Theory of Bureaucracy. Although these schools, or theories, developed historical sequence, later ideas have not replaced earlier ones. Instead, each new school has tended to complement or coexist with previous ones. 1. SCIENTIFIC MANAGEMENT
Frederick Taylor (1856-1915)? The Father of Scientific Management? • Scientific Management theory arose from the need to increase productivity in the U.S.A. especially, where skilled labour was in short supply at the beginning of the twentieth century. The only way to expand productivity was to raise the efficiency of workers. • Taylor sought to reduce the time a worker spent on each task by optimizing the way the task was done. Four Principles to increase efficiency:
1. Study the way the job is performed now & determine new ways to do it. ◆ Gather detailed, time and motion information. ◆ Try different methods to see which is best. 2. Codify the new method into rules.
◆ Teach to all workers.
3. Select workers whose skills match the rules set in Step 2. 4. Establish a fair level of performance and pay for higher performance. ◆ Workers should benefit from higher output. Taylor devised four principles for scientific management theory, which were: 1. The development of a true science of management,
2. The scientific selection and training of workers,
3. Proper remuneration for fast and high-quality work
4. Equal division of labour.
The main features of Taylor’s theory were:
1. Management is a true science. The solution to the problem of determining fair work standards and practices could be discovered by experimentation and observation. From this, it follows, that there is "one right way" for work to be performed. 2. The selection of workers is a science. Taylor's "first class worker" was someone suitable for the job. It was management's role to determine the kind of work for which an employee was most suited, and to hire and assign workers accordingly. 3. Workers are to be developed and trained. It is management's task to not only engineer a job that can be performed efficiently, but management is responsible for training the worker as to how...