MPOB/U1 Topic 2 Evolution

of Management
THESTREAK17 MAY 2018 2 COMMENTS

The practice of management is as old as human civilization. The ancient civilizations of

Egypt (the great pyramids), Greece (leadership and war tactics of Alexander the great) and
Rome displayed the marvelous results of good management practices.

The origin of management as a discipline was developed in the late 19th century. Over time,
management thinkers have sought ways to organize and classify the voluminous
information about management that has been collected and disseminated. These attempts
at classification have resulted in the identification of management approaches. The
approaches of management are theoretical frameworks for the study of management. Each
of the approaches of management are based on somewhat different assumptions about
human beings and the organizations for which they work.

The different approaches of management are

A) Classical approach,

B) Behavioral approach,

C) Quantitative approach,

D) Systems approach,

E) Contingency approach.

The formal study of management is largely a twentieth-century phenomenon, and to some

degree the relatively large number of management approaches reflects a lack of consensus
among management scholars about basic questions of theory and practice.

A) THE CLASSICAL APPROACH:

The classical approach is the oldest formal approach of management thought. Its roots pre-
date the twentieth century. The classical approach of thought generally concerns ways to
manage work and organizations more efficiently. Three areas of study that can be grouped
under the classical approach are scientific management, administrative management, and
bureaucratic management.

(i) Scientific Management

Frederick Winslow Taylor is known as the father of scientific management. Scientific
management (also called Taylorism or the Taylor system) is a theory of management that
analyzes and synthesizes workflows, with the objective of improving labor productivity. In
other words, Traditional rules of thumb are replaced by precise procedures developed after
careful study of an individual at work.

(ii) Administrative Management

Administrative management focuses on the management process and principles of

management. In contrast to scientific management, which deals largely with jobs and work
at the individual level of analysis, administrative management provides a more general
theory of management. Henri Fayol is the major contributor to this approach of
management thought.

(iii) Bureaucratic Management

Bureaucratic management focuses on the ideal form of organization. Max Weber was the
major contributor to bureaucratic management. Based on observation, Weber concluded
that many early organizations were inefficiently managed, with decisions based on personal
relationships and loyalty. He proposed that a form of organization, called a bureaucracy,
characterized by division of labor, hierarchy, formalized rules, impersonality, and the
selection and promotion of employees based on ability, would lead to more efficient
management. Weber also contended that managers’ authority in an organization should be
based not on tradition or charisma but on the position held by managers in the
organizational hierarchy.

B) THE BEHAVIORAL APPROACH

The behavioral approach of management thought developed, in part, because of perceived

weaknesses in the assumptions of the classical approach. The classical approach
emphasized efficiency, process, and principles. Some felt that this emphasis disregarded
important aspects of organizational life, particularly as it related to human behavior. Thus,
the behavioral approach focused on trying to understand the factors that affect human
behavior at work.

(i) Human Relations

The Hawthorne Experiments began in 1924 and continued through the early 1930s. A
variety of researchers participated in the studies, including Elton Mayo. One of the major
conclusions of the Hawthorne studies was that workers’ attitudes are associated with
productivity. Another was that the workplace is a social system and informal group influence
could exert a powerful effect on individual behavior. A third was that the style of supervision
is an important factor in increasing workers’ job satisfaction.

(ii) Behavioral Science

Behavioral science and the study of organizational behavior emerged in the 1950s and
1960s. The behavioral science approach was a natural progression of the human relations
movement. It focused on applying conceptual and analytical tools to the problem of
understanding and predicting behavior in the workplace.

The behavioral science approach has contributed to the study of management through its
focus on personality, attitudes, values, motivation, group behavior, leadership,
communication, and conflict, among other issues.

C) THE QUANTITATIVE APPROACH:

The quantitative approach focuses on improving decision making via the application of
quantitative techniques. Its roots can be traced back to scientific management.

(i) Management Science (Operations Research)

Management science (also called operations research) uses mathematical and statistical
approaches to solve management problems. It developed during World War II as strategists
tried to apply scientific knowledge and methods to the complex problems of war. Industry
began to apply management science after the war. The advent of the computer made many
management science tools and concepts more practical for industry

(ii) Production And Operations Management

This approach focuses on the operation and control of the production process that
transforms resources into finished goods and services. It has its roots in scientific
management but became an identifiable area of management study after World War II. It
uses many of the tools of management science.

Operations management emphasizes productivity and quality of both manufacturing and

service organizations. W. Edwards Deming exerted a tremendous influence in shaping
modern ideas about improving productivity and quality. Major areas of study within
operations management include capacity planning, facilities location, facilities layout,
materials requirement planning, scheduling, purchasing and inventory control, quality
control, computer integrated manufacturing, just-in-time inventory systems, and flexible
manufacturing systems.

D) SYSTEMS APPROACH:

The simplified block diagram of the systems approach is given below.

The systems approach focuses on understanding the organization as an open system that
transforms inputs into outputs. The systems approach began to have a strong impact on
management thought in the 1960s as a way of thinking about managing techniques that
would allow managers to relate different specialties and parts of the company to one
another, as well as to external environmental factors. The systems approach focuses on the
organization as a whole, its interaction with the environment, and its need to achieve
equilibrium

E) CONTINGENCY APPROACH

The contingency approach focuses on applying management principles and processes as

dictated by the unique characteristics of each situation. It emphasizes that there is no one
best way to manage and that it depends on various situational factors, such as the external
environment, technology, organizational characteristics, characteristics of the manager, and
characteristics of the subordinates. Contingency theorists often implicitly or explicitly
criticize the classical approach for its emphasis on the universality of management
principles; however, most classical writers recognized the need to consider aspects of the
situation when applying management principles.
CONTRIBUTION OF FAYOL AND TAYLOR

F.W. Taylor and Henry Fayol are generally regarded as the founders of scientific
management and administrative management and both provided the bases for science and
art of management.

Taylor’s Scientific Management

Frederick Winslow Taylor well-known as the founder of scientific management was the first
to recognize and emphasis the need for adopting a scientific approach to the task of
managing an enterprise. He tried to diagnose the causes of low efficiency in industry and
came to the conclusion that much of waste and inefficiency is due to the lack of order and
system in the methods of management. He found that the management was usually
ignorant of the amount of work that could be done by a worker in a day as also the best
method of doing the job. As a result, it remained largely at the mercy of the workers who
deliberately shirked work. He therefore, suggested that those responsible for management
should adopt a scientific approach in their work, and make use of “scientific method” for
achieving higher efficiency. The scientific method consists essentially of

Observation
 Measurement

Experimentation and

Inference.

He advocated a thorough planning of the job by the management and emphasized the
necessity of perfect understanding and co-operation between the management and the
workers both for the enlargement of profits and the use of scientific investigation and
knowledge in industrial work. He summed up his approach in these words:

Science, not rule of thumb

Harmony, not discord

Co-operation, not individualism

Maximum output, in place of restricted output

The development of each man to his greatest efficiency and prosperity.

Elements of Scientific Management: The techniques which Taylor regarded as its

essential elements or features may be classified as under:

 Scientific Task and Rate-setting, work improvement, etc.

 Planning the Task.
 Vocational Selection and Training
 Standardization (of working conditions, material equipment etc.)
 Specialization
 Mental Revolution.

Scientific Task and Rate-Setting (work study)

Work study may be defined as the systematic, objective and critical examination of all the
factors governing the operational efficiency of any specified activity in order to effect
improvement.

Work study includes.

Methods Study: The management should try to ensure that the plant is laid out in the
best manner and is equipped with the best tools and machinery. The possibilities of
eliminating or combining certain operations may be studied.

Motion Study: It is a study of the movement, of an operator (or even of a machine) in

performing an operation with the purpose of eliminating useless motions.
Time Study (work measurement): The basic purpose of time study is to determine
the proper time for performing the operation. Such study may be conducted after the motion
study. Both time study and motion study help in determining the best method of doing a job
and the standard time allowed for it.

Fatigue Study: If, a standard task is set without providing for measures to eliminate
fatigue, it may either be beyond the workers or the workers may over strain themselves to
attain it. It is necessary, therefore, to regulate the working hours and provide for rest pauses
at scientifically determined intervals.

Rate-setting: Taylor recommended the differential piece wage system, under which
workers performing the standard task within prescribed time are paid a much higher rate per
unit than inefficient workers who are not able to come up to the standard set.

Planning the Task: Having set the task which an average worker must strive to perform
to get wages at the higher piece-rate, necessary steps have to be taken to plan the
production thoroughly so that there is no bottlenecks and the work goes on systematically.

Selection and Training: Scientific Management requires a radical change in the

methods and procedures of selecting workers. It is therefore necessary to entrust the task
of selection to a central personnel department. The procedure of selection will also have to
be systematised. Proper attention has also to be devoted to the training of the workers in
the correct methods of work.

Standardization: Standardization may be introduced in respect of the following.

Tools and equipment: By standardization is meant the process of bringing about

uniformity. The management must select and store standard tools and implements which
will be nearly the best or the best of their kind.

Speed: There is usually an optimum speed for every machine. If it is exceeded, it is likely
to result in damage to machinery.

Conditions of Work: To attain standard performance, the maintenance of

standard conditions of ventilation, heating, cooling, humidity, floor space, safety etc., is very
essential.

Materials: The efficiency of a worker depends on the quality of materials and the method
of handling materials.

Specialization: Scientific management will not be complete without the introduction

of specialization. Under this plan, the two functions of ‘planning’ and ‘doing’ are separated in
the organization of the plant. The `functional foremen’ are specialists who join their heads to
give thought to the planning of the performance of operations in the workshop. Taylor
suggested eight functional foremen under his scheme of functional foremanship.
The Route Clerk: To lay down the sequence of operations and instruct the
workers concerned about it.

The Instruction Card Clerk: To prepare detailed instructions regarding different aspects
of work.

The Time and Cost Clerk: To send all information relating to their pay to the workers and
to secure proper returns of work from them.

The Shop Disciplinarian: To deal with cases of breach of discipline and absenteeism.

The Gang Boss: To assemble and set up tools and machines and to teach the workers
to make all their personal motions in the quickest and best way.

The Speed Boss: To ensure that machines are run at their best speeds and proper tools
are used by the workers.

The Repair Boss: To ensure that each worker keeps his machine in good order
and maintains cleanliness around him and his machines.

The Inspector: To show to the worker how to do the work.

Mental Revolution: At present, industry is divided into two groups – management

and labour. The major problem between these two groups is the division of surplus. The
management wants the maximum possible share of the surplus as profit; the workers want,
as large share in the form of wages. Taylor has in mind the enormous gain that arises from
higher productivity. Such gains can be shared both by the management and workers in the
form of increased profits and increased wages.

Henry Fayol’s 14 Principles of Management:

The principles of management are given below:

Division of work: Division of work or specialization alone can give maximum productivity
and efficiency. Both technical and managerial activities can be performed in the best
manner only through division of labour and specialization.

Authority and Responsibility: The right to give order is called authority. The obligation
to accomplish is called responsibility. Authority and Responsibility are the two sides of the
management coin. They exist together. They are complementary and mutually
interdependent.
Discipline: The objectives, rules and regulations, the policies and procedures must
be honoured by each member of an organization. There must be clear and fair agreement
on the rules and objectives, on the policies and procedures. There must be penalties
(punishment) for non-obedience or indiscipline. No organization can work smoothly without
discipline – preferably voluntary discipline.

Unity of Command: In order to avoid any possible confusion and conflict, each member
of an organization must received orders and instructions only from one superior (boss).

Unity of Direction: All members of an organization must work together to

accomplish common objectives.

Emphasis on Subordination of Personal Interest to General or Common Interest: This

is also called principle of co-operation. Each shall work for all and all for each. General or
common interest must be supreme in any joint enterprise.

Remuneration: Fair pay with non-financial rewards can act as the best incentive or
motivator for good performance. Exploitation of employees in any manner must be
eliminated. Sound scheme of remuneration includes adequate financial and non financial
incentives.

Centralization: There must be a good balance between centralization and decentralization

of authority and power. Extreme centralization and decentralization must be avoided.

Scalar Chain: The unity of command brings about a chain or hierarchy of command
linking all members of the organization from the top to the bottom. Scalar denotes steps.

Order: Fayol suggested that there is a place for everything. Order or system alone
can create a sound organization and efficient management.

Equity: An organization consists of a group of people involved in joint effort. Hence,

equity (i.e., justice) must be there. Without equity, we cannot have sustained and adequate
joint collaboration.

Stability of Tenure: A person needs time to adjust himself with the new work
and demonstrate efficiency in due course. Hence, employees and managers must have job
security. Security of income and employment is a pre-requisite of sound organization and
management.

Esprit of Co-operation: Esprit de corps is the foundation of a sound organization. Union

is strength. But unity demands co-operation. Pride, loyalty and sense of belonging are
responsible for good performance.

Initiative: Creative thinking and capacity to take initiative can give us sound
managerial planning and execution of predetermined plans.
Skills of a Manager
A skill is the learnt capacity or talent to carry out pre-determined results often with the
minimum outlay of time, energy, or both1. In other words, a skill is an ability or proficiency
that a person possesses that permits him or her to perform a particular task.

Technical Skills

Technical skill is the ability to use specific knowledge, techniques, and resources in
performing tasks. Examples of technical skills are writing computer programs, completing
accounting statements, analyzing marketing statistics, writing legal documents, or drafting a
design for a new airfoil on an airplane. Technical skills are usually obtained through training
programs that an organization may offer its managers or employees or may be obtained by
way of a college degree. Indeed, many business schools throughout the country see their
role as providing graduates with the technical skills necessary for them to be successful on
the job.

Analytical Skills

These skills are the abilities to identify key factors and understand how they interrelate, and
the roles they play in a situation. Analytical skills involve being able to think about how
multiple complex variables interact, and to conceive of ways to make them act in desirable
manner.

Decision Making skills

These skills are present in the planning process. A manager’s effectiveness lies in making
good and timely decisions and is greatly influenced by his or her analytical skills.

Digital Skills

These are important because using digital technology substantially increases a manager’s
productivity. Computers can perform in minutes tasks in financial analysis, HRP, and other
areas that otherwise take hours, even days to complete.

Human Skills

Human skill involves the ability to interact effectively with people. Managers interact and
cooperate with employees. Human skills, therefore, relate to the individual’s expertise in
interacting with others in a way that will enhance the successful completion of the task at
hand.

Communications Skills

Effective communication is vital for effective managerial performance. The skill is critical to
success in every field. Communication skills involve the ability to communicate in ways that
 other people understand, and to seek and use feedback from employees to ensure that one
is understood.

Conceptual Skills

Conceptual skill is the ability to see the “big picture,” to recognize significant elements in a
situation, and to understand the relationship among the elements. Examples of situations
that require conceptual skills include the passage of laws that affect hiring patterns in an
organization, a competitor’s change in marketing strategy, or the reorganization of one
department which ultimately affects the activities of other departments in the organization.

Design Skills

It is the ability to solve problems in ways that will benefit the organization. To be effective,
particularly at upper levels, mangers must be able to do more than see a problem. They
must also be able to design a workable solution to the problem.

Tasks of a Professional Manager

Specialization in every field, technological advancement, globalization of business results
into appointment of qualified managers. They can be called as professional managers.

A professional manager is an expert, trained and experienced enough to adeptly manage

any type of organization be it a manufacturing house, a service organization, a hospital or a
government agency. Professional managers:

 Are objective, focussed and performance oriented.

 Help in meeting competitive challenges of business.
 Are creative and dynamic.
 Follow management practices based on world wide experiences and information.
 Apply theories of management to solve emerging organizational problems.

Some Professional Manager Tasks

Providing direction to the firm: The first task, envisioning goals, is one of the tasks that
should never be delegated. This is the ability to define overarching goals that serve to unify
people and focus energies. It’s about effectively declaring what’s possible for the team to
achieve and compelling them to accomplish more than they ever thought possible.

Managing survival and growth: Ensuring survival of the firm is a critical task of a
manager. The manager must also seek growth. Two sets of factors impinge upon the firm’s
survival and growth. The first is the set of factors which are internal to the firm and are
largely controllable. These internal factors are choice of technology, efficiency of labour,
competence of managerial staff, company image, financial resources, etc. The second set
of factors are external to the firm like government policy, laws and regulations, changing
customer tastes, attitudes and values, increasing competition, etc.
Maintaining firm’s efficiency: A manager has not only to perform and produce results, but
to do so in the most efficient manner. The more output a manager can produce with the
same input, the greater will be the profit.

Meeting the competition challenge: A manager must anticipate and prepare for the
increasing competition. Competition is increasing in terms of more producers, products,
better quality, etc.

Innovation: Innovation is finding new, different and better ways of doing existing tasks. To
plan and manage for innovation is an on-going task of a manager. The manager must
maintain close contact and relation with customers. Keeping track of competitor’s activities
and moves can also be a source of innovation, as can improvements in technology.

Renewal: Managers are responsible for fostering the process of renewal. Renewing has to
do with providing new processes and resources. The practices and strategy that got you
where you are today may be inadequate for the challenges and opportunities you face
tomorrow.

Building Human Organization: Man is by far the most critical resource of an organization.
A good worker is a valuable asset to any company. Every manager must constantly look out
for people with potential and attract them to join the company.

Leadership: Organizational success is determined by the quality of leadership that is

exhibited. “A leader can be a manager, but a manager is not necessarily a leader,” says
Gemmy Allen (1998). Leadership is the power of persuasion of one person over others to
inspire actions towards achieving the goals of the company. Those in the leadership role
must be able to influence/motivate workers to an elevated goal and direct themselves to the
duties or responsibilities assigned during the planning process. Leadership involves the
interpersonal characteristic of a manager’s position that includes communication and close
contact with team members. The only way a manager can be acknowledged as a leader is
by continually demonstrating his abilities.

Change management: A manager has to perform the task of a change agent. It’s the
managers task to ensure that the change is introduced and incorporated in a smooth
manner with the least disturbance and resistance.

Selection Information technology: Today’s managers are faced with a bewildering array
of information technology choices that promise to change the way work gets done.
Computers, the Internet, intranets, telecommunications, and a seemingly infinite range of
software applications confront the modern manager with the challenge of using the best
technology.

Example
A professional manager or a chief administrative officer for a city has duties which include
meeting with elected council to determine polices that are determined by the council and to
notify council members and citizens about the local government operations. Discussing of
certain reforms, installing a bridge, setting up new traffic plans, or proposing a new building-
all these and many more things which can affect community life are some of the
responsibilities of the professional manager in a township. He is also responsible for
preparing the annual budget, presenting it to elected officials for sanction and then
implementing it, after it is approved. Listening to citizen grievances with regards to
administration, civic problems, law and order and presenting the matter to the elected
officials for appropriate actions are some of the tasks of a professional manager who is in
charge of the administration of a city.

Role of a manager
Different managers perform at different levels and require different skills. To meet the
demands of performing their functions, managers assume multiple roles. A role is an
organized set of behaviors. Henry Mintzberg has identified ten roles common to the work of
all managers. The ten roles are divided into three groups: interpersonal, informational, and
decisional.

Interpersonal Roles

The three interpersonal roles are primarily concerned with interpersonal relationships. By
assuming these roles, the manager also can perform informational roles, which, in turn, lead
directly to the performance of decisional roles.

In the figurehead role, the manager represents the organization in all matters of formality.
Some examples of the figurehead role include a college dean who hands out diplomas at
graduation, a shop supervisor who attends the wedding of a subordinate’s daughter, and
the CEO who cuts the ribbon on a new office building.

The leader role defines the relationships between the manger and employees. It involves
directing and coordinating the activities of subordinates. It may involve – hiring, training,
motivating, and encouraging employees. First-line managers, in particular, feel that
effectiveness in this role is essential for successful job performance. 1

The liaison role involves managers in interpersonal relationships outside of their area of
authority. This role may involve contacts both inside and outside the organization. The top-
level manager uses the liaison role to gain favors and information, while the supervisor uses
it to maintain the routine flow of work.
Informational Roles

Receiving and communicating information are perhaps the most important aspects of a
manager’s job. There are three informational roles in which managers gather and
disseminate information.

As monitor, the manager constantly looks for information that can be used to advantage.
The information gathered might be competitive moves that could influence the entire
organization or the knowledge of whom to call if the usual supplier of an important part
cannot fill an order.

In the disseminator role, the manager distributes to subordinates important information

that would otherwise be inaccessible to them. Example: The president of a firm may learn
during a lunch conversation that a large customer of the firm is on the verge of bankruptcy.
Upon returning to the office, the president contacts the vice president of marketing, who in
turn instructs the sales force not to sell anything on credit to the troubled company.

In the role of spokesperson, the manager disseminates the organization’s information into
its environment. Thus, the top-level manager is seen as an industry expert, while the
supervisor is seen as a unit or departmental expert.

Decisional Roles

According to Mintzberg, there are four decisional roles the manager adopts. In the role of
entrepreneur, the manager tries to improve the unit. For example, when the manager
receives a good idea, he or she launches a development project to make that idea a reality.

In the disturbance handler role, the manger deals with threats to the organization.
Examples: An emergency room supervisor responds quickly to a local disaster, a plant
supervisor reacts to a strike, etc.

The resource allocator role places a manager in the position of deciding who will get what
resources. These resources include money, people, time, equipment, and information. This
is one of the most critical decisional roles. Example: A college dean must decide which
courses to offer next semester, based on available faculty.

Managers spend a great deal of their time as negotiators, because only they have the
information and authority that negotiators require. The negotiations may concern work,
performance, objectives, resources, or anything else influencing the unit. Examples: A
company president works out a deal with a consulting firm; A front line supervisor may
negotiate for new typewriters.

Management by Objectives
An effective management goes a long way in extracting the best out of employees and
make them work as a single unit towards a common goal.
 The term Management by Objectives was coined by Peter Drucker in 1954.

What is Management by Objective ?

The process of setting objectives in the organization to give a sense of direction to

the employees is called as Management by Objectives.

It refers to the process of setting goals for the employees so that they know what they are
supposed to do at the workplace.

Management by Objectives defines roles and responsibilities for the employees and help
them chalk out their future course of action in the organization.

Management by objectives guides the employees to deliver their level best and achieve the
targets within the stipulated time frame.

Need for Management by Objectives (MBO)

 The Management by Objectives process helps the employees to understand their duties at
the workplace.
 KRAs are designed for each employee as per their interest, specialization and educational
qualification.
 The employees are clear as to what is expected out of them.
 Management by Objectives process leads to satisfied employees. It avoids job mismatch
and unnecessary confusions later on.
 Employees in their own way contribute to the achievement of the goals and objectives of the
organization. Every employee has his own role at the workplace. Each one feels
indispensable for the organization and eventually develops a feeling of loyalty towards the
organization. They tend to stick to the organization for a longer span of time and contribute
effectively. They enjoy at the workplace and do not treat work as a burden.
 Management by Objectives ensures effective communication amongst the employees. It
leads to a positive ambience at the workplace.
 Management by Objectives leads to well defined hierarchies at the workplace. It ensures
transparency at all levels. A supervisor of any organization would never directly interact with
the Managing Director in case of queries. He would first meet his reporting boss who would
then pass on the message to his senior and so on. Every one is clear about his position in
the organization.
 The MBO Process leads to highly motivated and committed employees.
 The MBO Process sets a benchmark for every employee. The superiors set targets for each
of the team members. Each employee is given a list of specific tasks.

Limitations of Management by objectives Process

 It sometimes ignores the prevailing culture and working conditions of the organization.
 More emphasis is being laid on targets and objectives. It just expects the employees to
achieve their targets and meet the objectives of the organization without bothering much
about the existing circumstances at the workplace. Employees are just expected to perform
 and meet the deadlines. The MBO Process sometimes do treat individuals as mere
machines.
 The MBO process increases comparisons between individuals at the workplace. Employees
tend to depend on nasty politics and other unproductive tasks to outshine their fellow
workers. Employees do only what their superiors ask them to do. Their work lacks
innovation, creativity and sometimes also becomes monotonous.