School of Business

Course Code - MGMT 111

Course Title - Business Ethics and Environment

Course Lecturer - Miku, F

Name of Student - Mpendaye, Philorian M.

Registration Number - 2011101022

Topic: Evolution of Management

5th of November 2012

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1.0 MEANING AND DEFINITION OF MANAGEMENT

Management is defined as a set of activities including planning and decision

making, organizing, leading and controlling, directed at an organization’s
resources including human, financial, physical and information with the aim of
achieving organizational goals in an efficient and effective manner.

Donally, Gibson and Invancerick define the term management as the process of
getting things done through the efforts of other people in order to achieve the
predetermined objectives of the organization.

2.0 EVOLUTION OF MANAGEMENT THOUGHT

2.1 Classical Management Theory

Classical management theory was developed during industrial revolution when

new problems related to the factory system began to appear. This school of
thought is made up of three branches: scientific, administrative and bureaucratic
schools as described below:

2.1.1 Scientific Management School

The theory arose to increase production and it aimed to expand

productivity through raising efficiency of workers. Frederick W. Taylor,
Henry L. Gantt and Frank and Lillian Gilbreth derived body of principles
known as Scientific Management Theory.

Frederick W. Taylor (1856 - 1915)

Frederick W. Taylor was the father of scientific management and

developed four basic principles of management:

 Development of a true science of management to determine

performance of tasks,

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 Scientific selection of workers to be given responsibility for the task for
which he or she was best suited,

 Scientific education and development of workers, and

 Intimate and friendly cooperation between management and workers.

Taylor developed differential rate system based on more pay to productive

workers than others.

Henry L. Gantt (1861 - 1919)

Gantt abandoned Taylor’s principle of differential rate system based on

more pay to productive workers than others as it was having too little
motivational impact to the workers and developed idea based on:

 Every worker who finished a day’s assigned work load would win a
bonus for the work done,

 Supervisor would earn a bonus for each worker who reached the duty
standard plus an extra bonus if all workers reached it, and

 Charting system for production scheduling which used to assist

planning, managing and controlling complex organizations.

Frank B. and Lillian M. Gilbreth

Frank B. and Lillian M. Gilbreth (1868 - 1924 and 1878 - 1972) contributed
to the scientific management movement on fatigue and motion and
focused on ways of promoting the industrial worker’s welfare. To them, the
ultimate aim of scientific management was to help workers reach their full
potential as human beings.

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 In their conception, motion and fatigue were intertwined. Every motion that
was eliminated reduced fatigue. Using motion picture cameras, they tried
to find the most economical motions for each task in order to upgrade
performance and reduce fatigue. The Gilbreths argued that motion study
would raise worker morale because of its obvious physical benefits and
because it demonstrated management's concern for the worker.

2.1.2 Administrative School

Henri Fayol, Max Weber, Mary P. Follett, and Chester I. Barnard derived
different management principles.

Henri Fayol (1841 - 1925)

Henri Fayol developed 14 principles of management which included the

followings:

 Division of Labor. The more people specialize, the more efficiently they
can perform their work. This principle is epitomized by the modern
assembly line.
 Authority. Managers must give orders so that they can get things done.
While their formal authority gives them the right to command,
managers will not always compel obedience unless they have personal
authority (such as relevant expertise) as well.
 Discipline. Members in an organization need to respect the rules and
agreements that govern the organization. To Fayol, discipline results
from good leadership at all levels of the organization, fair agreements
(such as provisions for rewarding superior performance), and
judiciously enforced penalties for infractions.
 Unity of Command. Each employee must receive instructions from only
one person. Fayol believed that when an employee reported to more
than one manager, conflicts in instructions and confusion of authority
would result.

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 Unity of Direction. Those operations within the organization that have
the same objective should be directed by only one manager using one
plan. For example, the personnel department in a company should not
have two directors, each with a different hiring policy.
 Subordination of Individual Interest to the Common Good. In any
undertaking, the interests of employees should not take precedence
over the interests of the organization as a whole.
 Remuneration. Compensation for work done should be fair to both
employees and employers.
 Centralization. Decreasing the role of subordinates in decision making
is centralization; increasing their role in decentralization. Fayol
believed that managers should retain final responsibility, but should at
the same time give their subordinates enough authority to do their jobs
properly. The problem is to find the proper degree of centralization in
each case.
 Hierarchy. The line of authority in an organization often represented
today by the neat boxes and lines of the organization chart runs in
order of rank from top management to the lowest level of the
enterprise.
 Order. Materials and people should be in the right place at the right
time. People, in particular, should be in the jobs or positions they are
most suited to.
 Equity. Managers should be both friendly and fair to subordinates.
 Stability of Staff. A high employee turnover rate undermines the
efficient functioning of an organization.
 Initiative. Subordinates should be given the freedom to conceive and
carry out their plans, even though some mistakes may result.
 Espirit de Corps. Promoting team spirit will give the organization a
sense of unity. To Fayol, even small factors should help to develop the
spirit. He suggested, for example, the use of verbal communications
instead of formal, written communication whenever possible.

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 2.1.3 Bureaucratic Management

Max Weber (1864 - 1920)

Max Weber was the German sociologist who developed a theory of

bureaucratic management that stressed the need for a strictly defined
hierarchy governed by clearly defined regulations and lines of authority
and he believed that all bureaucracies have the following characteristics:
 Well defined hierarchy,
 Division of labour and specialization,
 Rules and regulations,
 Impersonal relationships between managers and employees,
competence and records.

2.2 Behavioural Management School

As classical management school ignored employee motivation and behaviour,

the behavioural school was a natural outgrowth of this revolutionary management
experiment. Mary P. Follett, Chester I. Bernard, Elton Mayo, Abraham Maslow
and Douglas McGregor derived different management principles.

Mary P. Follett (1868 - 1933)

Mary P. Follett contributed on classic framework of the classical school and she
introduced many new elements especially in the area of human relations and
organizational structure. She called management “the art of getting things done
through people” hence she was convinced that no one could become a whole
person except as a member of a group.

Chester I. Barnard (1886 - 1961)

Chester I. Barnard used his work experience and his extensive reading in
sociology and philosophy to formulate theories about organizations. According to
Barnard, people come together in formal organizations to achieve ends they

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cannot accomplish working alone. He arrived with the principle that an enterprise
can operate efficiently and survive only when the organization’s goals are kept in
balance with the aims and needs of the individuals working for it.

Elton Mayo (1880 - 1949)

Elton Mayo was the founder of human relations movement. He studied to

determine the relationship of lighting levels to worker productivity and concluded
that worker productivity increased as the lighting levels decreased. Latter, Elton
Mayo and Fritz J. Roethlisberger (1898 - 1974) developed the principle of
increased motivation to result productivity.

Abraham Maslow (1908 - 1970)

Abraham Maslow, a practicing psychologist, developed one of the most widely

recognized need theories, a theory of motivation based upon a consideration of
human needs. His theory of human needs had three assumptions:

 Human needs are never completely satisfied.

 Human behavior is purposeful and is motivated by the need for satisfaction.

 Needs can be classified according to a hierarchical structure of importance,

from the lowest to highest.

Maslow broke down the needs hierarchy into five specific areas:

 Physiological needs. Maslow grouped all physical needs necessary for

maintaining basic human well-being, such as food and drink, into this
category. After the need is satisfied, however, it is no longer is a motivator.
 Safety needs. These needs include the need for basic security, stability,
protection, and freedom from fear. A normal state exists for an individual to
have all these needs generally satisfied. Otherwise, they become primary
motivators.

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  Belonging and love needs. After the physical and safety needs are satisfied
and are no longer motivators, the need for belonging and love emerges as a
primary motivator. The individual strives to establish meaningful relationships
with significant others.

 Esteem needs. An individual must develop self-confidence and wants to

achieve status, reputation, fame, and glory.

 Self-actualization needs. Assuming that all the previous needs in the

hierarchy are satisfied, an individual feels a need to find himself.

Maslow's hierarchy of needs theory helped managers visualize employee

motivation.

Douglas McGregor (1906 - 1964)

Douglas McGregor identified an approach of creating an environment within

which employees are motivated through authoritative, direction and control or
integration and self-control, which he called theory X and theory Y. An important
aspect of McGregor's idea was his belief that managers have to create self-
fulfilling prophecies that through their behavior, these managers create situations
where subordinates act in ways that confirm the manager's original expectations.

2.3 Quantitative Management School

During World War II, mathematicians, physicists, and other scientists joined
together to solve military problems. The quantitative school of management
resulted from the research conducted during World War II and the theory
included:

2.3.1 Management Science School

Management science school emerged to treat the problems associated

with global warfare. This view encourages managers to use mathematics,
statistics, and other quantitative techniques to make management
decisions. Managers use several science applications such as
mathematical forecasting helps make projections useful in planning
process; inventory modeling helps control inventories; and queuing theory

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 helps allocate service personnel or workstations to minimize customer
waiting and service cost.

2.3.2 Operations Management

Operations management focuses on managing the process of

transforming inputs or factors of production such as labour and capital into
useful goods and/or services to customers, hence the transformation
process, in turn, is the actual set of operations or activities in which
operations management today pays close attention to the demands of
quality, customer service and competition.

2.4 Contingency Management School

Contingency management school focuses on appropriate management actions

and approaches to depend on the situation. Managers with a contingency view
use a flexible approach, draw on a variety of theories and experiences and
evaluate many options as they solve problems. Contingency thinking avoids the
classical “one best way” arguments and recognizes the need to understand
situational differences and respond appropriately to them.

2.5 Quality Management School

Quality management school involves employees in decision making as a way to

prevent quality problems so as to continually improve performance by focusing
on customers while addressing the needs of all stakeholders. Quality
management school considers the following in its theory: organization makeup,
quality of goods and services, continuous improvement in goods and services,
employees working in teams and developing openness and trust,

2.6 Modern Approaches to Management Thought

Modern approaches to management recognize that people are complex and

variable. Employee needs change over time; people possess a range of talents
and capabilities that can be developed. Organizations and managers, therefore,
should respond to individuals with a wide variety of managerial strategies and job
opportunities.

3.0 CONCLUSION

Evolution of management goes as far back as ancient times. It includes classical

management theory, behavioural theory, quantitative theory, contingency
management theory, qualitative management school and modern management
thoughts.