Evolution of

Organization and
Management
1. Introduction

The early management thought came from the observations and experiences of practicing
executives and administrators.

After World War 11, during the industrial revolution in England, the growth and complexities of
organization led to the emergence of managerial or administrative functions. . . .

. . . . . But common to most of them have given impetus to do:

1) Scientific research in many related disciplines;

2) Generation of an underlying body of knowledge and;

3) The interaction between theory and practice.

11. Evolution of Organization and Management

1. Traditional or Classical Theory

11. Behavioral or (neo-classical) theory

111. Divergence in theory

1V. Systems Approach/theory

V. The Contingency view

V1. Entering an era of dynamic engagement

 
1. Three Pillars of Classical Management Theory

1. Scientific management theory

2. Bureaucratic management theory

3. Administrative management theory

1.1. Scientific Management Theory (Frederick Taylor) Emphasized :

◦ value of hard work,

◦ economic rationality,
◦ individualism, and
◦ each man had a role in society.

The PRIMARY aim was to increase worker efficiency. This leads to the
development of:
"one best method“

“time and motion” studies

“selection of workers”

“training workers “
CRITICISMS

It was an engineering approach,

Viewed worker as an adjunct to a machine.
Does not consider human side of workers,
It gives a pessimistic view of man.
Tight control must be maintained,
Workers motivation is by economic rewards.
1.2. Bureaucratic Management Theory (Max Weber)

This model has a strong flavor of depersonalization and explicit attempt to offset
nepotism, political favoritism, and general capriciousness in decision-making.

Ideal bureaucracy is characterized by:

A division of labor based upon functional specialization;
Well-defined hierarchy of authority;
A system of rules governing the rights and duties of
positional incumbents;
A system of rules and procedures from dealing with work
situations;
Impersonality of interpersonal relations;
Promotion and selection of employee based upon technical
competence.
CRITICISM

This model is highly structural in approach;

It controls the movement and creativity of man;
It did not consider consequences functional to organization.
Modern view suggest to utilize this model only when appropriate.

This led to the emergence of new model known as the Administrative Management
model
1.3. Administrative Management Theory (Henri Fayol)

The emphasis was on the development of macro concepts. It focuses on formal

structure and the delineation of the basic processes of general management. Henri H.
Fayol divided activities into six groups:
Technical activities - production, manufacturing and
adaptation
Commercial activities - buying, selling, exchange
Financial activities - search for an optimum use of capital
Security activities - protection of persons and property
Accounting activities - planning, organizing, commanding,
coordinating, control
1. Division of work - specialization of labor for work efficiency.
2. Authority and responsibility - the right to give orders and the power to exact obedience.
3. Discipline - Essential for the smooth running of business,
4. Unity of command - employee should receive orders from one superior only.
5. Unity of direction - one head and one plan for a group of activity.
6. Subordination of individual interest to general interest - employee interest should not
prevail over that of the organization.
7. Remuneration of personnel – fair and just employee compensation,
8. Centralization - is natural consequence of organizing.
9. Scalar chain - chain of authority and responsibility.
10. Order - the organization should provide an orderly place for every worker.
11. Equity - equity and a sense of justice pervade the organization
12. Stability of tenure of personnel – tenure of office is assured for employees
13. Initiative - at all levels, zeal and energy are augmented by initiative.
14. Esprit de corps - emphasis on teamwork and interpersonal relationships.
 
CRITICISM

 
This model is criticized as very rigid in approach
it did not consider the psychological and sociological factors.
CRITICISM OF THE TRADITIONAL VIEW

It provides the narrow view of organization;

increase efficiency through structuring and controlling human participants;
People were assumed to be primarily motivated by economic incentives
specialize tasks and provide detailed instructions and control;
Close supervision is necessary to ensure cooperation;
Administration was the primary integrative force and the formal hierarchy was the
mechanism for achieving coordination;
It views organization as close mechanistic system isolated from environment; and
It is pro management and neglected the human factor of the organization.

The above criticism however, paves the way for the birth of new management model
known as the neo-classical or the behavioral theory.
11. BEHAVIORAL or (NEO-CLASSICAL) THEORY

The behavioral school emerged partly because the classical approach did not achieve
sufficient production efficiency and workplace harmony.

Elton Mayo with his associates pioneered in the study of human behavior in their series of
experiments carried out at the Hawthorne Plant of the Western Electric Company between
1927 and 1932.

The first study focused on investigating the relationship between the intensity of
illumination and the productivity of workers.

Two pillars of neo-classical theory are:

1. Behavioral Science
2. Quantitative Science.
 
Mayo, Roetlishberger and Whiteheads developed some concepts of
human behavior in organization. Some of their ideas:

1. The business organization is a social system as well as technical economic system. This social system
defines individual roles and establishes norm that may be at variance with those of the formal
organization.
2. Individual is motivated by diverse social and psychological factors as well as economic incentives.
Behavior is affected by feelings, sentiments, and attitudes.
3. The informal work group is a focal unit of consideration. The group has an important role in
determining the attitudes and performance of individual workers.
4. Leadership patterns based on the formal structure and authority of position in organization under
the traditional view should be modified substantially in order to consider psychosocial factors. The
human relations emphasized "democratic" rather than "authoritarian" leadership pattern.
5. Workers satisfaction generally associated with productivity. The increase of satisfaction would lead
to increased effectiveness.
6. Effective communication channels should be developed between the various levels in the hierarchy
to allow the exchange of information. Thus "participation" becomes an important approach of the
human relations movement.
7. Management requires effective social skills as well as technical skills.
8. Participants are motivated in the organization by having certain social psychological needs fulfilled.
1.1. Hierarchy of Needs
by: Abraham Maslow What he wants is
what
Self Actualization he gets. Authority &
influence

Stability, decision
Self Esteem & respect

Challenging work,
Sense of promotion, membership
to organizations &
Belongingness Identity

Safety & Training, exposures,

& Security of tenure
Security Needs
Physiological Basic Needs &
employment
Needs
 1. 2. The theory X and Theory Y, espoused two kinds of workers

Theory X Theory Y

1. Average person dislikes work 1.work is as natural as play or rest

2. people needs to be forced to accomplish 2. workers are self-motivated to do work

goals

3. Average worker is basically passive 3. workers commitment are high

4.close supervision is needed 4. need not have close supervision

These two are only among the many theories of motivations

11.2. Quantitative Science Theory

The post world war II development and is otherwise known as Operation Research,
management theory with the addition of more sophisticated methods, computer
technology and an orientation toward more comprehensive problems.

Most of the quantitative scientists come from mathematics, engineering, economics

which have economic and technical orientation. They use scientific methods as a
framework for problem solving with emphasis upon objective analysis rather than
subjective judgment.

Recently with the aid of computer technology, simulation and heuristic decision
making, it is now dealing with ill-structured problems.
111. Divergence Theory - Behavioral and quantitative theories have modified much the
traditional theories in organization and management practice.

Ideally, these theories would be integrated with the traditional views but because of
differences in values and ideologies and because of diverse disciplines were evolved
who brought with them their pre-occupation the neoclassical have fragmented the
traditional concept of organization theory and man agreement practice

1. System Approach
2. Contingency View
 Environmental Supra System

Goals and values

subsystem Technical subsystem

Culture,
philosophy
Organization goals, Knowledge,
group goals Techniques',
Individual goals facilities
& equipment

Managerial
subsystem
Goods &
Resources Managerial
Performs:
subsystem
Services
Management functions.
Management process, and
Management techniques

Physiological Structural
subsystem subsystem

Human relations, Task, authority, Work

group dynamics, flow, policy, rules,
Perceptions, attitudes, Procedure,,
Motivation & communication information
V. THE CONTINGENCY VIEW

The contingency view approach (sometimes called the situational approach) was
developed by managers, consultants and research who tried to apply the concept
of the major schools in real-life situations.

Accordingly, manager's task is to identify which technique will, in a particular

situation, under particular circumstances, and at a particular time, best contribute
to the attainment of management goals
5. ENTERING NEW ERA OF DYNAMIC ENGAGEMENT

The dynamic engagement approach suggest new ways of thinking about

relationships and time. And, managers to think of the world as a "global village."

The scope of international and intercultural relationships is rapidly expanding, the

pace of organizational activity picks up dramatically. These trend indicate a
heightened level of intensity in organization and management today.

There are six dimensions involve in the dynamic engagements approach. These are:
 
1. New Organizational Environment - The dynamic engagements approach
recognizes that an organization's environment is not some fixed, impersonal
forces

2. Ethics and Social Responsibility - Managers using a dynamic engagement

approach pay close attention to the values that guide people in their
organizations, the corporate culture that embodies those values, and values
held by the people outside of the organization

3. Globalization and Management - The dynamic engagement approach

recognizes that the world is at the manager's doorstep in the 1990s.

Kenichi Ohmae makes this point as he describes a "borderless" world where

managers treat all customers as "equidistant" from their organizations."
4. Inventing and Reinventing Organizations - Managers who practice dynamic engagement
continually search for ways to unleash the creative potential of their employees and themselves

◦ Michael Hammer and James Champy have made their concept of "reengineering the corporation"

5. Culture and Multiculturalism - Managers who embrace the dynamic engagement approach
recognizes that the various perspectives and values that people of different cultural
backgrounds brings to their organizations are not only a fact of life but a significant source of
contributions

6. Quality - By the dynamic management approach, Total Quality Management (TQM) should be
in every manager's vocabulary.

Total Quality Management adds one more dynamic dimension to management, because quality,
too, is always a moving target.
 Evolution of Organization and Management
Traditional View Modifications Emerging Approaches Dynamic
Engagement

Systems Theory Contingency View

Scientific
Management Management
Sciences, Environmental 1. Public market
(Frederick Taylor)
Economic – Supra system 2. Insurance
technical Hotel 1. Ethics &
rationality 3. Rail ways Responsibility
Goals & Values
subsystem
Technical
subsystem
4. Armed forces
5. Church 2. Globalization &
Bureaucratic Management
6. Hospital
Management
Managerial
Managerial 7. Mosque
(Max Weber) subsystem
subsystem 3. Culture &
Etc. Multiculturalism
Behavioral
Sciences Psychological Structural 4. Sustainable
Psychological subsystem subsystem
Develop-
and
ment
Administrative Cultural issues
Management Etc.
(Henri Fayol)
 - End -

Thank You Very Much