ASSIGNMENT: By Pradip Hamal (Roll no: 39) 8th sem ‘B’

 Write a theoretical perspectives/aspect briefly on “Historical Developments

and Current Trends in Management”.
 Management came into practice a long time ago with the development of human civilizations
and societies. Although great feats of human achievement such as the Egyptian pyramids, the
Great Wall of China, the Colosseum in Rome and the Taj Mahal in India all bear testimony to
skilled management in ancient times, the formal study of management only began late in the
19th century. The main driving force behind this development of management as a science
was the transition from 19th century “entrepreneurial capitalism” to early 20th century
“managerial capitalism”.
The following are the historical development phases or practices in management:

1. Management in Antiquity and early management pioneers.

“Antiquity” may be defined as the period in world history ending with the fall of
Rome in 476 CE. Usually a study of Antiquity or ancient history would begin with the
rise of the first civilization in Sumer early in the fourth millennium BCE.
Ancient Phoenician, Egyptian, Chinese, Greek, and Roman culture are examined. The
examination of several ancient societies and their management practices moves the
dialogue past simply the origins of scientific management and toward a more holistic
understanding of current management theory and practices. The some of the
contributions in this period were like used management practices to construct
pyramids, used organized structure for communication and control, used extensive
organization structure for government agencies and the arts, used organization design
and planning concepts to control the seas etc.

The early management pioneers to contribute in the field of management are:

 Robert Owen:
Robert Owens (1771–1858) was a successful Scottish entrepreneur and a
utopian socialist who sowed the first seeds of concern for the workers. He was
repulsed by the working conditions and poor treatment of the workers in the
factories across Scotland. Owen deplored the evils of the division of labor and
in his ideal system believed each man would do a number of different jobs
switching easily from one job to another.

 Charles Babbage:
Charles Babbage (1792–1871) is known as the patron saint of operations
research and management science. Babbage's scientific inventions included a
mechanical calculator (his "difference engine"), a versatile computer (his
"analytical engine"), and a punch-card machine. Babbage's most successful
book, On the Economy of Machinery and Manufacturers, described the tools
and machinery used in English factories. It discussed the economic principles
 of manufacturing, and analyzed the operations; the skills used and suggested
improved practices.
Babbage believed in the benefits of division of labor and was an advocate of
profit sharing. He developed a method of observing manufacturing that is the
same approach utilized today by operations analysts and consultants analyzing
manufacturing operations.

 Hennery Robinson Towne:

Henry Towne, president of the Yale and Towne Manufacturing Company,
began applying systematic management practices as early as 1870. In 1866 he
wrote a paper, The Engineer as an Economist, that suggested that ASME
become a clearinghouse for information on managerial practices, since there
was no management association.
Towne also published several papers and a book, Evolution of Industrial
Management, on the use of "gain sharing" to increase worker productivity. In
his last book Towne contrasted the status of scientific management in 1886
and in 1921, noting the establishment of industrial management courses, and
crediting Frederick Taylor as the apostle of the scientific movement.

 Henry Metcalfe:
Another early application of the scientific principles of management occurred
when Captain Henry Metcalfe developed a system of controls that he applied
to the management of the Frankford Arsenal. In 1885, Metcalfe published The
Cost of Manufactures and the Administration of Workshops, Public and
Private. This book is considered a pioneer work in the area of management
science.

2. Classical perspective of Management:

The classical theory represents the traditional thoughts about organizations. It

is based on the prototype industrial and military organization. The theory
concentrates on organization structure and their management. The classical
writers include Taylor, Fayol, Weber. They placed emphasis on work
planning, the technical requirements, principles of management, formal
structure, and the assumption of rational and logical behavior.

Classical approach is based on three main points i.e.

a. Scientific management
b. Administrative management
c. Bureaucratic theory
 a. Scientific management:
As manufacturing firms became larger and more complex in
the late 1800s, not all managers could continue to be directly involved
with production. Many began to spend more of their time on planning,
scheduling, and staffing activities. As a result, a need was created for
operation specialists who could solve the personnel and productivity
problems that, if not addressed, could threaten operating efficiency. Thus
the stage was set for Frederick Winslow Taylor (1856-1915) to do his
pioneering work in scientific management. Whereas bureaucratic
management looks at broad organizational structures and work systems,
scientific management focuses on individuals and their machines or tools.
Its philosophy is that management practices should be based on fact and
observation, not on hearsay or guesswork. (F.W.Taylor, 1947).
b. Administrative management approach:
Administrative management focuses on the manager and basic managerial
functions. It evolved early in the 1900s and is most closely identified with
Henry Fayol (1841-1925), a French industrialist. Fayol credited his
success as a manager to the methods he used rather than to his personal
qualities. He felt strongly that, to be successful, managers had only to
understand the basic managerial functions - planning, organizing, leading,
and controlling - and apply certain management principles to them. He was
the first person to group managers’ functions in this way. (FI.Fayol, 1995).
Like the other traditionalists, Fayol emphasized formal structure and
processes, believing that they are necessary for the adequate performance
of all-important tasks.
c. Bureaucratic Approach of Organization:
Bureaucratic management relies on rules, a set hierarchy, a clear division
of labor, and detailed procedures. Max Weber (1864-1920), a German
social historian, is most closely associated with bureaucratic management
(so named because Weber based his work on studies of Germany’s
government bureaucracy). Although Weber was one of the first theorists to
deal with the problems of organizations, he wasn’t widely recognized by
managers and scholars' in the United States until his work was translated
into English in 1947. He was concerned primarily with he broad social and
economic issues facing society; his writings on bureaucracy represent only
part of his total contribution to social theory (M. Weber, 1947.)
Bureaucratic management provides a blueprint of how an entire
organization should operate. It prescribes seven desirable characteristics: a
formal system of rules, impersonality, division of labour, hierarchical
structure, a detailed authority structure, lifelong career commitment, and
rationality.
3. Behavioral Management Theory:
The behavioral management theory is often called the human relations
movement because it addresses the human dimension of work. Behavioral
 theorists believed that a better understanding of human behavior at work, such
as motivation, conflict, expectations, and group dynamics, improved
productivity.
Mayo's management theories (1924) grew from his observations of employee
productivity levels under varying environmental conditions. His experiments
drew a number of conclusions about the real source of employee motivation,
laying the groundwork for later approaches to team building and group
dynamics. Mayo management theory states that employees are motivated far
more by relational factors such as attention and camaraderie than by monetary
rewards or environmental factors such as lighting, humidity, etc.

In his 1943 paper “A Theory of Human Motivation,” psychologist Abraham

Maslow proposed what is considered the classic theory of needs: Maslow’s
Hierarchy of Needs. Maslow proposed that human behavior is purposeful and
is motivated by the desire to satisfy needs and that lower-level needs must be
met before a person can focus on the next level of needs. A need that is
satisfied no longer motivates. An unmet need is a primary motivator. Thus,
Maslow’s hierarchy provides managers with a visual representation of
employee motivation.
Douglas McGregor (1960s) was heavily influenced by both the Hawthorne
studies and Maslow. He believed that two basic kinds of managers exist. One
type, the Theory X manager, has a negative view of employees and assumes
that they are lazy, untrustworthy, and incapable of assuming responsibility. On
the other hand, the Theory Y manager assumes that employees are not only
trustworthy and capable of assuming responsibility, but also have high levels
of motivation.

4. . Quantitative Perspective of Management:

The quantitative approach to management involves the use of quantitative
techniques, such as statistics, information models, and computer simulations,
to improve decision making. Today, this view encourages managers to use
mathematics, statistics, and other quantitative techniques to make management
decisions.
a. Management science theory (1967): This theory focuses on model equation
and representation of similar reality. This approach believes that most of the
organizational and business problems can be better solved using different
mathematical and statistical techniques. Complex problem relating to planning
inventory operation and transportation are easily solved through models and
other mathematical tools. The development of computer and other
information’s technology had extended management science approach in
many other areas of business.
b. Operational management: Operation management is concerned with helping
the organization more efficiently produce its product and service and can be
applied on wide range of problems. Operation management is somehow less
 mathematical and statistically sophisticated than management science and can
be directly applied to managerial situation. Operation management or
operation research provides managers with a set of technique that can be used
to utilize organizational production system to increase efficiency.

5. Contemporary Perspective of Management:

a. Systems management theory (1937): The systems management theory has had
a significant effect on management science. A system is an interrelated set of
elements functioning as a whole. An organization as a system is composed of
four elements. They are inputs, Transformation process, output and feedback.
In relationship to an organization, inputs include resources such as raw
materials, money, technologies, and people. These inputs go through a
transformation process where they're planned, organized, motivated, and
controlled to ultimately meet the organization's goals. The outputs are the
products or services designed to enhance the quality of life or productivity for
customers/clients. Feedback includes comments from customers or clients
using the products. This overall systems framework applies to any department
or program in the overall organization.
b. A contingency theory (1964) is an organizational theory that claims that there
is no best way to organize a corporation, to lead a company, or to make
decisions. Instead, the optimal course of action is contingent (dependent) upon
the internal and external situation. A contingent leader effectively applies their
own style of leadership to the right situation. Contingent leaders are flexible in
choosing and adapting to succinct strategies to suit change in situation at a
particular period in time in the running of the organization.
c. Chaos theory (1980s) is a scientific principle describing the unpredictability of
systems. Most fully explored and recognized during the mid-to-late 1980s, its
premise is that systems sometimes reside in chaos, generating energy but
without any predictability or direction. These complex systems may be
weather patterns, ecosystems, water flows, anatomical functions, or
organizations. While these systems’ chaotic behavior may appear random at
first, chaotic systems can be defined by a mathematical formula, and they are
not without order or finite boundaries. This theory, in relation to
organizational behavior, was somewhat discounted during the 1990s, giving
way to the very similar complexity theory.

6. Contemporary Applied Perspectives:

a. Z theory: Management professor William Ouchi developed this theory which
appeared in his book, Theory Z: How American Management Can Meet the
Japanese Challenge. The benefits of Theory Z, Ouchi claimed, would be
reduced employee turnover, increased commitment, improved morale and job
satisfaction, and drastic increases in productivity. Theory Z stresses the need
to help workers become generalists, rather than specialists. It views job
rotations and continual training as a means of increasing employees’
 knowledge of the company and its processes while building a variety of skills
and abilities.
b. Globalization: Globalization is the free movement of goods, services and
people across the world in a seamless and integrated manner. Increasingly
rapid development of new sophisticated technologies and methods of
organization poses increasing demands for rapid adjustment and action on the
behalf of management. They are only possible to achieve through continuous
improvement and education of managers on all levels in order to be in line
with global requirements and resist the challenges of the global economy.
c. Work force diversity: Managing workforce diversity implies creating an
organizational climate in which a heterogeneous workforce performs to its
best potential; without the organization favoring /dis-favoring any particular
segment of workforce with a view to facilitating the best attainment of
organizational goals.
d. Multiculturism: Multiculturalism refers to the existence of linguistically,
culturally and ethnically diverse segments in an organization. To travel, work
and study in different countries makes people discover different cultures,
notice the different customs of those cultures, and learn how to deal with
multiculturalism. Travelers are more open-minded and willing to use
multiculturalism as a strength not only in their daily life, but also in their
job.
e. Quality and CSR: In the past 30 years, quality as a discipline has been well
integrated into business operations. One indication of this is fewer corporate
VPs and directors focused solely on quality. CSR may follow a similar path—
some even argue that the success of CSR integration will be measured by a
diminishing need for a corporate level CSR or sustainability function—and
there are many lessons from the path that quality has taken. Relatively
speaking, CSR is a young field, while quality is three times older. Investing in
making products cheaper, faster, and more attractive is now seen as
worthwhile business endeavors beyond just PR.

Management thought as we know it today is in some respects a twentieth century concept. It

has attained its position, however, through the efforts of a host of men working in its behalf
over the centuries. It stands tall because it stands on the shoulders of past theoreticians and
scholars- a meaningful product of history.
At present, organizational change aimed at making significant changes within the
organization as a whole, which is in opposition with small changes which involve non-
essential modifications of the organizational structure, work program or other persons in
managerial or executive positions. Organizational change involves changing an organization's
mission and vision, introducing new technologies with new types of activities, introducing a
performance appraisal system and redesigning the payroll system, performing essentially
changes into the organizational structure, orientating to new groups of target customers
having other needs and behavior totally different from the previous ones, introducing the
management system by the means of objectives and more. Organizational change should be a
new fundamental and radical trend in respect of ways in which the organization is to conduct
their activities, with critical implications on the behavior of all the organization’s
components, from chief executive to executive staff.