Assignment

On
Evolution of Management
Approaches to Management
Current and Emerging Management

Submitted To:
M.s Farah Choudhary
The Business School,
University of Jammu

Submitted By:
Radhika Gandotra (45-MBA-16)
VidhuArora (68-MBA-16)
Sahil Sharma (49-MBA-16)
Neha Sharma (37-MBA-16)
The Business School,
University of Jammu

Date of submission: 26 September 2016

CONTENTS
1

1. Introduction
2. Early management and study of early management
3. Classical theory of management
4. Scientific Approach
5. Administrative approach
6. Bureaucratic approach
7. Fayols 14 Principles of Management
8. Neo-Classical School of Management
9. Human Relation Management
10. The Hawthorne Studies and Human Relations.
11. Theory X and Theory Y
12. Management Science Theory
13. Organizational Environment Theory
14. The Open-Systems View
15. Contingency Theory
16. Current and Emerging Trends In Management
17. Current Trends
18. Emergence of Modern Management
19. Bibliography

INTRODUCTION
Despites the inexactness and relative crudity of management theory
and science, the development of thought on management dates back
2

to the days when people first attempted to accomplish goals by

working together in groups.
Although modern operational management theory dates primarily
from the twentieth century there was serious thinking and
theorizing about managing many years before.
We can see that the many different contributions of writers and
practitioners have resulted in different contributions of writers and
practitioners have resulted in different approaches to management,
and these make up a man management theory jungle. We will first
focus on the emergence of management thought, who have made
significant contribution in the evaluation of management thought,
major contribution are noted.
Definition of Management:
Management is the process of designing and maintaining an
environment in which individuals, working together in groups,
efficiently accomplish selected aims .In its expanded form, this
basic definition means several things. First, as managers, people
carry out the managerial functions of planning, organizing, staffing,
leading, and controlling. Second, management applies to any kind of
organization.
Third, management applies to managers at all organizational levels.
Fourth, the aim of all managers is the same to create surplus.
Finally, managing is concerned with productivity this implies
effectiveness and efficiency. Thus, management refers to the
development of bureaucracy that derives its importance from the
need for strategic planning, co-ordination, directing and controlling
3

of large and complex decision-making process. Essentially, therefore,

management entails the acquisition of managerial competence, and
effectiveness in the following key areas: problem solving,
administration, human resource management, and organizational
leadership.
First and foremost, management is about solving problems that keep
emerging all the time in the course of an organization struggling to
achieve its goals and objectives. Problem solving should be
accompanied by problem identification, analysis and the
implementation of remedies to managerial problems. Second,
administration involves following laid down procedures (although
procedures or rules should not be seen as ends in themselves) for
the execution, control, communication, delegation and crisis
management. Third, human resource management should be based on
strategic integration of human resource, assessment of workers, and
exchange of ideas between shareholders and workers. Finally,
organizational leadership should be developed a long lines of
interpersonal relationship, teamwork, self-motivation to perform,
emotional strength and maturity to handle situations, personal
integrity, and general management skills.

EARLY MANAGEMENT AND STUDY OF EARLY MANAGEMENT

Although great feats of human achievement such as the Egyptian
pyramids, the Great Wall of China, the Colosseum in Rome and
the TajMahal in India all bear testimony to skilled management in
ancient times, the formal study of management only began late in the
4

19th century.The main driving force behind this development of

management as a science was the transition from 19 th century
entrepreneurial

capitalism

to

early

20 th century

managerial

capitalism. Whereas the first capitalists were business owners who

used their own finances to fund organizations that they managed
themselves, rapid industrial growth saw the formation of large
organizations with capital often provided by outsiders. This not only
widened the gap between owners or shareholders and management,
it also brought new management challenges.
CLASSICAL THEORY OF MANAGEMENT
Classical Approach is the oldest formal school of thought which
began around 1900 and continued into the 1920s.
It

is the theory of management that focuses on the

productivity, output and efficiency of workers.

It seeks to maximize the benefits of consumers and investors
at consistent and fair levels.
Classical Approach includes
SCIENTIFIC MANAGEMENT, ADMINISTRATIVE
MANAGEMENT & BUREAUCRATIC MANAGEMENT.
SCIENTIFIC MANAGEMENT THEORY
Frederick W. Taylor (1856-1912):

Frederick

Winslow

Taylor

started

work

as

an

apprentice

patternmaker and machinist in 1875 joined the Midvale Steel

Company in Philadelphia as a machinist 1878, and rose to the position
of chief engineer afterearning a degree in engineering through
evening study. He is generally acknowledged as the father of
scientific management. Probably no other person has had a greater
impact on the early development of management.
Taylors Major Concern:
Taylors primary concern was to increase productivity through
greater efficiency in production and increased pay for workers,
through the application of the scientific method. His principles
emphasized using science, crating group harmony and cooperation,
achieving maximum output, and developing workers.
Taylor decided that the problem of productivity was a matter of
ignorance on the part of both management and labour. Part of this
ignorance arose from the fact that neither managers nor workers
knew what constituted a fair days work and a fair day pay.
Moreover he believe that both managers and workers were
concerned too much with how they should divided the surplus that
arose from productivity the split in thinking between pay and
profits-and not enough with increasing the surplus so that both
owners and labourers could get more compensation. In brief Taylor
saw productivity as the answer to both higher wages and higher
profits. He believed that the application of scientific methods,

instead of custom and rule of thumb, could yield productivity without

the expenditure of more human energy or effort.
Taylors Principle:
Taylors famous work entitled Principles of Scientific Management
was published in 1911. But one of the best expositions of this
philosophy of management is found in his testimony before a
committee of the House of Representatives; he was forced to
defend his ideas before group of congressmen, most of whom were
hostile because the believed, along with labor leaders, that Taylors
Ideas would lead overworking and displacing workers. We can outline
his principle of Scientific Management below, which is known as
Taylors Principal.
1. Replacing rules of thumb with science (Organized Knowledge)
2. Obtain harmony in group action, rather than discord
3. Achieving cooperation of human beings, rather than chaotic
individualism
4. Working for maximum output, rather than restricted output
5. Developing all workers to the fullest extent possible for their
own and their companys highest prosperity.

One of the early pioneers of management theory was Frederick

W. Taylor (1856-1915), a mechanical engineer who believed that
it was managements task to design jobs properly and to provide
incentives to motivate workers to achieve higher productivity.

While working at the Midvale Steel Company in Philadelphia,

Taylor developed a new, and at the time radical approach to
managing, known as scientific management. He conducted
studies into how workers or machines performed tasks,
measuring and analyzing each measurable aspect of the work.
He then determined standard times and sequences for the
completion of each task. With this information, Taylor provided
managers with realistic production standards per man- and
machine-hour.
Taylors scientific management changed the role of managers
from being run-of-the-mill whip men to specialized foremen
who were adequately equipped to supervise each phase of the
production process. On a larger scale, he revolutionized
managerial thought and laid the foundation for the formation
of many other management systems in decades to come.

Henry L. Gantt (1861-1919):

He is one ofthe follower of F. W. Taylor. Among the immediate
disciples of Taylor were such outstanding pioneers as Henry L. Gantt.
He is a mechanical engineer like Taylor, joined Taylor at the Midvale
Steel Company in 1887.
8

Gantt stayed with Taylor in his various assignments until when he

formed his own consulting engineering firm. Like Taylor he
emphasized the need for developing in mutuality of interests,
scientific selection of workers a harmonious cooperation between
management and labour. In doing this, he stressed the impotence of
teaching, of developing an understanding of systems on the part of
both labour and management, and of appreciating the in all problems
of management the human element in the most important one.
Gantt is perhaps best known for his development of graphic methods
of describing plans and marking possible better managerial control,
He emphasized the importance of time, as well as cost, in planning
and controlling work. This led eventually to the famous Gantt Chart,
is in wide use today and was the forerunner of such modern
techniques as the Program Evaluation and Review Technique (PERT).
The Gantt Chart is regarded by some social historians as the most
important social invention on the twentieth century.

Frank Gilbreth (1868-1924) &LilianGrlbreth(1878-1972) :

The ideas of Taylor were also strongly supported and developed by
the famous husband-and-wife team of Frank &LilianGilbreth. Giving
up going university to bricklayer, Frank Gilbert rose to the position
of chief superintendent of a building construction firm 10 Years
9

later and became a building contractor on his own shortly thereafter.

During the period, quite independently on Taylors work, he become
interested in motion study in work; by reducing the number of
bricklaying motion from 18 to 5, he made possible the doubling of a
bricklayers productivity with no greater expenditure of effort. His
contracting firm work soon gave away largely to consulting on the
improvement of human productivity. After meeting Taylor in 1907, he
combined his ideas with Taylors to put scientific management to
effect.
In undertaking his work, Frank Gilbreth was greatly aided and
supported by his wife, Lillian. She is one of the earliest industrial
psychologist and received doctors degree in this field.
Lillian Gilbreths interest in the human aspects of work and her
husbands interest in efficiency- the search for the best way of
doing a given task led to a rare combination of talents. It is not
surprising that Frank Gilbreth long emphasized that in applying
scientific management principles; we must look at worker first and
understand their personalities and needs.

The Administrative Approach

Across the Atlantic ocean Jules Henri Fayol (1841-1925), a fellow
engineer and manager of a group of French mines, came to the
conclusion that management was an activity common to all human
undertakings (including home, business, government, schools, etc.)
10

and that all these undertakings needed five basic administrative

functions

(planning,

organizing,

commanding,

coordinating

and

controlling). He argued that because management was an allencompassing activity, it should be taught in schools, colleges and
universities.
Fayols approach rejected the old notion that managers are born,
not made, proposing instead that management is a skill which can be
acquired if its principles are understood.
The Bureaucratic Approach
Max Weber (1864-1920) was a German sociologist who approached
management by focusing on organizational structure, dividing
organizations into hierarchies with clear lines of authority and
control. This meant that managers were given legal authority based
on their position in the organizational structure, to enforce rules and
policy .
Webers bureaucratic system helped large organizations to
function in a more stable, organized and systematic manner.
However, by doing away with personality based or charismatic
leadership,

individuality

and

creativity

is

often

sacrificed.

Bureaucratic leaders and workers are required to obey rules and do

only what they are told. The result is that these leaders seldom
think outside the box and therefore find it very difficult to adapt
to changing environments and new challenges.

11

Fayols (1841-1925) :Principles of Management

The father of Modern Management theory is the French industrialist
Henri Fayol.

Although there is little evidence that management

scholars, either in England or the United States, paid much heed to

Fayals work or knew much about it until the 1920 s or even years
later, his acute observation not e principle of general management
first

appeared

in

1916

in

French,

under

the

title

AdministrationIndustrielle et Generale.
Working at the same time as Weber but independently of him, Henri
Fayol(18411925), the CEO of Comambault Mining, identified 14
principles that he believed to be essential to increasing the
efficiency of the management process. Some of the principles that
Fayol outlined have faded from contemporary management practices,
but most have endured.

Fayols 14 Principles of Management

1. Division of Labour:Job specialization and the division of labour
should increase efficiency, especially if managers take steps to
lessen workers boredom.
2. Authority and Responsibility: Managers have the right to give
orders and the power to exhort subordinates for obedience.
12

3. Unity of Command: An employee should receive orders from

only one superior.
4. Line of Authority: The length of the chain of command that
extends from the top to the bottom of an organization should
be limited.
5. Centralization Authority:should not be concentrated at the top
of the chain of command.
6. Unity of Direction:The organization should have a single plan
of action to guide managers and workers.
7. Equity: All organizational members are entitled to be treated
with justice and respect.
8. Order:The arrangement of organizational positions should
maximize organizational efficiency and provide employees with
satisfying career opportunities.
9. Initiative Managers: should allow employees to be innovative
and creative.
10.

Discipline:Managers need to create a workforce that

strives to achieve organizational goals.

11.

Remuneration of Personnel:The system that managers

use to reward employees should be equitable for both
employees and the organization.

12.

Stability of Tenure of Personnel: Long-term employees

develop skills that can improve organizational efficiency.
13

13.

Subordination of Individual Interests to the Common

Interest Employees: should understand how their
performance affects the performance of the whole
organization.

14.

Esprit de Corps :Managers should encourage the

development of shared feelings of comradeship,
enthusiasm, or devotion to a common cause.

The principles that Fayol and Weber set forth still provide a clear
and appropriateset of guidelines that managers can use to create a
work setting that makes efficient and effective use of
organizational resources. These principles remain the bedrock of
modern management theory; recent researchers have refined or
developed them to suit modern conditions. For example, Webers and
Fayols concerns for equity and for establishing appropriate links
between performance and reward are central themes in
contemporary theories of motivation and leadership.

NEO-CLASSICAL SCHOOL OF MANAGEMENT

Human Relation Management
Elton Mayo (18801949) was an Australian psychologist,
sociologist, went to Harvard University.

Spent most of his career at Harvard Business School as

Professor of Industrial Research.

Main focus was on the people working in an organization.

14

 Elton Mayo conducted a research activity in Hawthorne

Electric Plant in 1924 to research effect of physical conditions
on productivity called as Hawthorne Studies.
The Hawthorne Studies and Human Relations
Elton Mayo (1880-1949) was a Harvard professor who proposed
that managers should become more people-orientated .
Conducting experiments on conditions in the workplace and
incorporating the well-published findings of the Hawthorne Studies,
Mayo declared that logical factors were far less important than
emotional factors in determining productive efficiency .
He concluded that participation in social groups and group
pressure, as opposed to organizational structures or demands from
management, had the strongest impact on worker productivity .
Mayos findings once again revolutionized the role of managers in
organizations. The work performed by individuals has to satisfy their
personal, subjective social needs as well as the companys
productive requirements. He and other proponents of this movement
therefore called for managers to accept a new role in their
relationship with workers; develop a new concept of authority; and
help foster a new social order in the workplace .

Servant Leadership

15

Although the concept of servant-leadership is found in the Bible

and might even date further back into antiquity, it was first
proposed as a management approach by Peter Greenleaf (1904-1990)
in his book Servant Leadership . He explained that becoming a
servant-leader begins with the natural feeling that one wants to
serve followed by the aspiration to lead .
This approach completely revolutionized the role of managers in
organizations as it calls for leaders to place the priorities and needs
of their followers before their own or that of the organization.
It also differentiates clearly between the functions of leadership
and management, although the ideal is that modern day servant
leader / managers should be able to perform both functions
simultaneously. Servant-leadership encourage collaboration, trust,
foresight, listening, and the ethical use of power and empowerment
as a way of improving the life of the individuals and/or the
organizations.
According to Greenleaf, the ultimate test for successful servant
leadership is whether or not followers have grown as persons as a
result of being served becoming healthier, wiser, freer, more
autonomous and more likely themselves to become servants.
Probably because of its radical nature, Folletts work was
unappreciated by managers and researchers until quite recently.
Instead, researchers continued to follow in the footsteps of Taylor
and the Gilbreths.
16

One focus was on how efficiency might be increased through

improving various characteristics of the work setting, such as job
specialization or the kinds of tools workers used. One series of
studies was conducted from 1924 to 1932 at the Hawthorne Works
of the Western Electric Company. This research, now known as the
Hawthorne studies, began as an attempt to investigate how
characteristics of the work settingspecifically the level of lighting
or illuminationaffect worker fatigue and performance. The
researchers conducted an experiment in which they systematically
measured worker productivity at various levels of illumination. The
experiment produced some unexpected results. The researchers
found that regardless of whether they raised or lowered the level of
illumination, productivity increased. In fact, productivity began to
fall only when the level of illumination dropped to the level of
moonlight, a level at which presumably workers could no longer see
well enough to do their work efficiently.
The researchers found these results puzzling and invited a noted
Harvard psychologist, Elton Mayo, to help them. Subsequently, it was
found that many other factors also influence worker behaviour, and
it was not clear what was actually influencing the Hawthorne
workers behaviour. However, this particular effectwhich became
known as the Hawthorne effectseemed to suggest that workers
attitudes toward their managers affect the level of workers
performance. In particular, the significant finding was that a
managers behaviour or leadership approach can affect performance.
This finding led many researchers to turn their attention to
17

managerial behaviour and leadership. If supervisors could be trained

to behave in ways that would elicit cooperative behaviour from their
subordinates, then productivity could be increased. From this view
emerged the human relationsmovement, which advocates that
supervisors be behaviourally trained to manage subordinates in ways
that elicit their cooperation and increase their productivity.
The importance of behavioural or human relations training became
evenclearer to its supporters after another series of experiments
the bank wiring room experiments. In a study of workers making
telephone switching equipment, researchers Elton Mayo and F.J.
Roethlisberger discovered that the workers, as a group, had
deliberately adopted a norm of output restriction to protect their
jobs. Workers who violated this informal production norm were
subjected to sanctions by other group members.
Those who violated group performance norms and performed above
the norm were called ratebusters; those who performed below the
norm were called chiselers. The experimenters concluded that both
types of workers threatened the group as a whole. Ratebusters
threatened group members because they revealed to managers how
fast the work could be done. Chiselers were looked down on because
they were not doing their share of the work. Work-group members
disciplined both rate busters and chiselers in order to create a pace
of work that the workers (not the managers) thought was fair.
Thus, a work groups influence over output can be as great as the
supervisors influence. Since the work group can influence the
18

behavior of its members, some management theorists argue that

supervisors should be trained to behave in ways that gain the
goodwill and cooperation of workers so thatsupervisors, not workers,
control the level of work-group performance.One of the main
implications of the Hawthorne studies was that the behaviorof
managers and workers in the work setting is as important in
explaining the levelof performance as the technical aspects of the
task.
Managers

must

understand

theworkings

of

the

informal

organization, the system of behavioral rules andnorms that emerge in

a group, when they try to manage or change behavior inorganizations.
Many studies have found that, as time passes, groups often
developelaborate
together,

procedures

allowing

and

norms

that

unifiedaction

either

to

bond

members

cooperate

with

management in order to raise performance or torestrict output and

thwart the attainment of organizational goals. The Hawthornestudies
demonstrated the importance of understanding how the feelings,
thoughts,and behavior of work-group members and managers affect
performance. It wasbecoming increasingly clear to researchers that
understanding behavior in organizationsis a complex process that is
critical to increasing performance. Indeed, the increasing interest in
the area of management known as organizationalbehavior, the study
of the factors that have an impact on how individuals andgroups
respond to and act in organizations, dates from these early studies.

Theory X and Theory Y

19

Several studies after the Second World War revealed how

assumptions about workers attitudes and behaviour affect managers
behaviour. Perhaps the most influential approach was developed by
Douglas McGregor. He proposed that two different sets of
assumptions about work attitudes and behaviours dominate the way
managers think and affect how they behave in organizations.
McGregor named these two contrasting sets of assumptions Theory
X and Theory Y .
THEORY XAccording to the assumptions of Theory X, the average
worker is lazy, dislikes work, and will try to do as little as possible.
Moreover, workers have little ambition and wish to avoid
responsibility.

Thus, the managers task is to counteract workers natural

tendencies to avoid work. To keep workers performance at a high
level, the manager must supervise them closely and control their
behavior by means of the carrot and stickrewards and
punishments.
Managers who accept the assumptions of Theory X design and shape
the work setting to maximize their control over workers behaviors
and minimize workers control over the pace of work. These managers
believe that workers must be made to do what is necessary for the
success of the organization, and they focus on developing rules,
SOPs, and a well-defined system of rewards and punishments to
control behaviour. They see little point in giving workers autonomy to
solve their own problems because they think that the workforce
neither expects nor desires cooperation. Theory X managers see
their role as to closely monitor workers to ensure that they
contribute to the production process and do not threaten product
20

quality. Henry Ford, who closely supervised and managed his

workforce, fits McGregors description of a manager who holds
Theory X assumptions.
THEORY YIn contrast, Theory Y assumes that workers are not
inherently lazy, do not naturally dislike work, and, if given the
opportunity, will do what is good for the organization. According to
Theory Y, the characteristics of the work setting determine
whether workers consider work to be a source of satisfaction or
punishment; and managers do not need to control workers behavior
closely in order to make them perform at a high level, because
workers will exercise self-control when they are committed to
organizational goals.
The implication of Theory Y, according to McGregor, is that the
limits of collaboration in the organizational setting are not limits of
human nature but of managements ingenuity in discovering how to
realize the potential represented by its human resources. It is the
managers task to create a work setting that encourages commitment
to organizational goals and provides opportunities for workers to be
imaginative and to exercise initiative and self-direction. When
managers design the organizational setting to reflect the
assumptions about attitudes and behaviour suggested by Theory Y,
the characteristics of the organization are quite different from
those of an organizational setting based on Theory X. Managers who
believe that workers are motivated to help the organization reach its
goals can decentralize authority and give more control over the job
to workers, both as individuals and in groups. In this setting,
individuals and groups are still accountable for their activities, but
the managers role is not to control employees but to provide support
and advice, to make sure employees have the resources they need to
perform their jobs, and to evaluate them on their ability to help the
organization meet its goals. Henri Fayols approach to administration
21

more closely reflects the assumptions of Theory Y, rather than

Theory X.
Management Science Theory
Management science theory is a contemporary approach to
management thatfocuses on the use of rigorous quantitative
techniques to help managers make maximum use of organizational
resources to produce goods and services. In essence, management
science theory is a contemporary extension of scientific
management, which, as developed by Taylor, also took a quantitative
approach to measuring the workertask mix in order to raise
efficiency.
There are many branches of management science; each of them deals
with a specific set of concerns:
Quantitative management utilizes mathematical techniquessuch
as linear and nonlinear programming, modeling, simulation, queuing
theory, and chaos theoryto help managers decide, for example, how
much inventory to hold at different times of the year, where to
locate a new factory, and how best to invest an organizations
financial capital.
Operations management (or operations research) provides
managers with a set of techniques that they can use to analyze any
aspect of an organizations production system to increase efficiency.
Total quality management (TQM) focuses on analyzing an
organizations input, conversion, and output activities to increase
product quality.
Management information systems (MIS) help managers design
information systems that provide information about events occurring
22

inside the organization as well as in its external environment

information that is vital for effective decision making. All these
subfields of management science provide tools and techniques that
managers can use to help improve the quality of their decision making
and increase efficiency and effectiveness.
Organizational Environment Theory
An important milestone in the history of management thought
occurred when researchers went beyond the study of how managers
can influence
behavior within organizations to consider how
managers control the organizations relationship with its external
environment, or organizational environmentthe set of forces and
conditions that operate beyond an organizations boundaries but
affect a managers ability to acquire and utilize resources. Resources
in the organizational environment include the raw materials and
skilled people that an organization requires to produce goods and
services, as well as the support of groups including customers who
buy these goods and services and provide the organization with
financial resources. One way of determining the relative success of
an organization is to consider how effective its managers are at
obtaining scarce and valuable resources. The importance of studying
the environment became clear after the development of opensystems theory and contingency theory during the 1960s.
The Open-Systems View
One of the most influential views of how an organization is affected
by its external environment was developed by Daniel Katz, Robert
Kahn, and James Thompson in the 1960s. These theorists viewed the
organization as an open system a system that takes in resources
from its external environment and converts or transforms them into
goods and services that are then sent back to that environment,
23

where they are bought by customers. At the input stage, an

organization acquires resources such as raw materials, money, and
skilled workers to produce goods and services. Once the organization
has gathered the necessary resources, conversion begins. At the
conversion stage, the organizations workforce, using appropriate
tools, techniques, and machinery, transforms the inputs into outputs
of finished goods and services such as cars, hamburgers, or flights
to Hawaii. At the output stage, the organization releases finished
goods and services to its external environment, where customers
purchase and use them to satisfy their needs.
The money the organization obtains from the sales of its outputs
allows the organization to acquire more resources so that the cycle
can begin again. The system just described is said to be open
because the organization draws from and interacts with the external
environment in order to survive; in other words, the organization is
open to its environment. A closed system, in contrast, is a selfcontained system that is not affected by changes that occur in its
external environment. Organizations that operate as closed systems,
that ignore the external environment and that fail to acquire inputs,
are likely to experience entropy, the tendency of a system to lose its
ability to control itself and thus to dissolve and disintegrate.
Management theorists can model the activities of most organizations
by using the open-systems view. Manufacturing companies like Ford
and General Electric, for example, buy inputs such as component
parts, skilled and semiskilled labor, and robots and computercontrolled manufacturing equipment; then, at the con-version stage,
they use their manufacturing skills to assemble inputs into outputs
of cars and computers. As we discuss in later chapters, competition
between organizations for resources is one of several major
challenges to managing the organizational environment. Researchers
using the open-systems view are also interested in how the various
parts of a system work together to promote efficiency and
effectiveness. Systems theorists like to argue that the parts are
24

more than the sum of the whole; they mean that an organization
performs at a higher level when its departments work together
rather than separately. Synergy, the performance gains that result
when individuals and departments coordinate their actions, is
possible only in an organized system. The recent interest in using
teams comprising people from different departments reflects
systems theorists interest in designing organizational systems to
create synergy and thus increase efficiency and effectiveness.
Contingency Theory
Another milestone in management theory was the development of
contingency theory in the 1960s by Tom Burns and G.M. Stalker in
the United Kingdom andPaul Lawrence and Jay Lorsch in the United
States. The crucial message of contingency theory is that there is
no one best way to organize : The organizational structures and the
control systems that managers choose depend onare contingent on
characteristics of the external environment in which the
organization operates. According to contingency theory, the
characteristics of the environment affect an organizations ability to
obtain resources. To maximize the likelihood of gaining access to
resources, managers must allow an organizations departments to
organize and control their activities in ways most likely to allow them
to obtain resources, given the constraints of the particular
environment they face. In other words, how managers design the
organizational hierarchy, choose a control system, and lead and
motivate their employees is contingent on the characteristics of the
organizational environment structure. Supervisors make all important
decisions; employees are closely supervised and follow well-defined
rules and standard operating procedures. In contrast, when the
environment is changing rapidly, it is difficult to obtain access to
resources, and managers need to organize their activities in a way
that allows them to cooperate, to act quickly to acquire resources
25

(such as new types of inputs to produce new kinds of products), and

to respond effectively to the unexpected.
In an organic structure, authority is decentralized to middle and
first-line managers to encourage them to take responsibility and act
quickly to pursue scarce resources. Departments are encouraged to
take a cross-departmental or functional perspective, and, as in Mary
Parker Folletts model, authority rests with the individuals and
departments best positioned to control the current problems the
organization is facing. In an organic structure, control is much looser
than it is in a mechanistic structure, and reliance on shared norms to
guide organizational activities is greater. Managers in an organic
structure can react more quickly to a changing environment than can
managers in a mechanistic structure. However, an organic structure
is generally more expensive to operate, so it is used only when
neededwhen the organizational environment is unstable and rapidly
changing. To facilitate global expansion, managers at Philips (a Dutch
electronics company) were forced to change from a mechanistic to an
organic structure, and their experience illustrates the different
properties of these structures.
CURRENT AND EMERGING TRENDS IN MANAGEMENT
Some Of The Recent Trends Are:
1.

Flexibility: The ability to adapt quickly to changes in volumes of

demand, in the product mix demanded, and in product design or
delivery schedules, has become a major competitive strategy and
a competitive advantage to the firms. This is sometimes called as
agile manufacturing.

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2.
Total Quality Management: TQM approach has been adopted
by many firms to achieve customer satisfaction by a never ending
quest for improving the quality of goods and services.
3.
Time Reduction: Reduction of manufacturing cycle time and
speed to marker for a new product provide a competitive edge to a
firm over other firms. When companies can provide products at the
same price and quality, quicker delivery (short lead time) provide one
firm competitive edge over the other.
4.
Worker Involvement: The recent trends is to assign
responsibility for decision making and problem solving to the lower
levels in the organization. This is known as employee involvement and
empowerment. Examples of employees empowerment are quality
circle and use of work teams or quality improvement teams.
5.
Business
Process
Re-engineering: BPR involves drastic
measures or break-through improvements to improve the
performance of a firm. It involves the concept of clean-state
approach or starting from a scratch in redesigning in business
processes.
6.
Global Market Place: Globalization of business has compelled
many manufacturing firms to gave operations in many countries
where they have certain economic advantage. This has resulted in a
steep increase in the level of competition among manufacturing firms
throughout the world.
7.
Operations Strategy: More and more firms are recognizing the
importance of operations strategy for the overall success of their
business and the necessity for relating it to their overall business
strategy.
27

8.
Lean production: Production system have become lean
production systems which have minimal amount of resources to
produce a high volume of high quality goods with some variety. These
systems use flexible manufacturing systems and multi-skilled
workforce to have advantages of both mass production and job
production.
9.
Just in time production: JIT is a pull system of production,
so actual orders provide a signal for when a product should be
manufactured. Demand-pull enables a firm to produce only what is
required, in the correct quantity and at the correct time.This means
that stock levels of raw materials, components, work in progress and
finished goods can be kept to a minimum. This requires a carefully
planned scheduling and flow of resources through the production
process. For example, a car manufacturing plant might receive
exactly the right number and type of tyres for one days production,
and the supplier would be expected to deliver them to the correct
loading bay on the production line within a very narrow time slot.
10. ComputerAidedManufacturing: Computer-aided manufacturing
(CAM) is the use of computer-based software tools that assist
engineers and machinists in manufacturing or prototyping product
components. CAM is a programming tool that makes it possible to
manufacture physical models using computer-aided design (CAD)
programs. CAM creates real life versions of components designed
within a software package. CAM was first used in 1971 for car body
design and tooling.
11. ComputerAidedDesign: Computer-aided design (CAD) is the use
of computer technology to aid in the design and particularly the
drafting (technical drawing and engineering drawing) of a part or
product, including entire buildings. It is both a visual (or drawing)
28

and symbol-based method of communication whose conventions are

particular to a specific technical field.
12. E-Supply Chain Management: Supply chain management is the
management of supply chain from suppliers to final customers
reduces the cost of transporation, warehousing and distribution
through out the supply chain. But SCM was a traditional concept
which is now being replaced by E-SCM. E-Supply chain management is
a series of Internetenabled value-adding activities to guarantee
products created by a manufacturing process can eventually meet
customer requirements and realize returns on investment.Supply
chains have advanced in the last two decades with improved
efficiency, agility and accuracy.The recent advancement of Internet
technology has brought more powerful support to improving supply
chain performance.In this context, e-supply chain management
becomes a new term that distinguishes itself by net-centric and
real-time features from traditional supply chain management.
13. Enterprise Resource Planning: Enterprise resource planning
(ERP) is an enterprise-wide information system designed to
coordinate all the resources, information, and activities needed to
complete business processes such as order fulfillment or billing.
14. Environmental Issues: Todays production managers are
concerned more and more with pollution control and waste disposal
which are key issues in protection of environment and social
responsibility. There is increasing emphasis on reducing waste,
recycling waste, using less-toxic chemicals and using biodegradable
materials for packaging.

Emerging Business is any kind of business which is driven by the new

technology or new product.
29

Emerging markets have

lower per-capita incomes
higher unemployment
lower levels of business
higher economic growth rates.
CURRENT TRENDS
Focus On Connecting Customers
Selling Through Social Media
Emphasize Fairness
Workplace Flexibility
Sales and Content Marketing

Focus On Connecting Customers

Writing for Forbes,
Ian Altman describes a connection economy , which focuses on
building relationships & create connections, rather than building
assets by industrialism.
Examples Uber is the largest taxi company yet they own no vehicles and
excel at connecting riders with drivers.
Selling Through Social Media
The importance of having a presence on the various social
networks increases a business need for content creation to
deepen and expand their messages.
Businesses with the most compelling , original voices will rise
among the noise.
30

Example- Motivational images by Nike on Pinterest.

Emphasize Fairness
Fairness is defined as A New Leadership Model that involves
less hierarchy and looser boundaries which can lead to faster
decision making. It also includes
Clarity
Communication
Support
Workplace Flexibility
This idea applies to the amount of hours we work, how it
intersects with our time off & how long we stay at our jobs.
Flexibility is necessary for employees and employers alike.
Benefits:
o

Building employee morale & commitment

Creating a more responsive & agile organisation.

Sales and Content Marketing

Acc. To Altman,
Customers can easily research the value of the product which
implies the need to integrate content marketing as the part of sales
process.

31

 Smart companies will integrate impartial content to support

customer decision. This means not only sharing where you are
the best fit but also acknowledging where you are not.

Emergence Of Modern Management

It includes :
Contributions Of Public Administrators
Contributions Of Business Managers
Contribution Of Behavioralists
Contributions Of System Scientists

Contributions Of Public Administrators

A number of scholars bring about increase efficiency in
government by means of personnel practices & better
management. Example- Woodrow Wilson, leading apostle,
sounded the call for efficient government.
Many public administrators have made major contributions in
personnel practices, planning etc.
Luther Gullick as well as pioneers like Friedrich, Simon, Dimock
are not only public administrators but also university scholars.
Contributions Of Business Managers
32

 Many of the most significant contributions in the field of

management theory have been given by businessmen including
Taylor, Fayol and Barnard. Some of the theories (writings)
given by writers:
o Russell Rob in 1910, based on his business experience defines
organization as a tool for the efficient utilization of manpower
and

materials,

tool

which

has

been

suited

to

the

circumstances of each organization.

o Sheldon in 1923 came up with The Philosophy Of Management.
Sheldon thought of management as including determination of
policy, coordination of functions, the execution of policy &
employment of organization.
o Theory

of

Mooney

and

Reilley-

They combine the elements of an organization into a logical

pattern of principle, process, effect.

Contributions OfBehavioralists
Many great behavioral scientists have taken up the study of
management in recent years.
HAWTHORNE EXPERIMENTIt was carried out by Mayo & Roethlisberger in 1927.They
disclosed that attitude towards workers may be more efficient &
productive than such material factors as illumination & even money.
33

Many sociologists such as Dubin, Selznick have contributed through

their works on groups, cultural patterns & cooperation.

Contributions Of System Scientists

Some of the major contributors of system theory were
o

Von Bertallanffy in 1951 with reference to management in

1956.

o Katz and Kahn in Social systems.

o Forrester in Industrial systems.
o Operation research contributions of Stafford Beer, Churchman
and his associates, Hertz.
o Norbert Wiener on developing & emphasizing feedback theory.

34

BIBLIOGRAPHY
http://www.bmmagazine.co.uk/in-business/advice/the-evolution-ofmanagement/
https://en.wikipedia.org/wiki/Evolution_of_Management_Systems
http://www.academia.edu/3718412/Evolution_of_management
Principals and practice of management by lm prasad
http://embanet.vo.net/o18/USC/CMGT500/Week1/docs/CMGT500_
w01_Chapter10.pdf
http://yourbusiness.com/evolution-management-theories-17356.html
http://faculty.wwu.edu/dunnc3/rprnts.historyofmanagementthought.
pdf

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