Early Developments and Classical Perspective

Early Developments

Although management practices date back to 2500 B.C., it wasn't until the late 1800s when huge enterprises first appeared that it received considerable attention. Organizations have been shaped and reshaped by people over many ages. When we look back across world history, we may see examples of people cooperating in formal organizations like the Greek and Roman armies and large-scale building projects like the Egyptian pyramids and the Great Wall of China.

The Industrial Revolution served as a roadmap for industrialization to start in western nations. Large factories with considerable potential for mass manufacturing of commodities were built in Europe and the USA. On the other hand, virtually little was known about how these factories worked. Very little was known about how these groups should be run. As a result, it was soon clear that acceptance of such organizations' management was necessary. Thus, the fundamental characteristics of management and its connection to the production processes were the focus of the early approaches to the study of management. The earliest pioneers were:

• A Chinese general by the name of Sun Tzu created the amazing masterpiece "The Art of War" some 2500 years ago. Sun Tzu acknowledges the necessity of staff planning, structure, and internal and external communications in his work.
• Two Greek philosophers, Socrates and Aristotle, wrote about the nature of executive power and the principles of management between the years 400 and 360 B.C.
• One of the first manufacturing managers to treat his employees with respect and dignity was the British businessman Robert Owen (1771–1858). He improved working conditions, increased the age limit for child labor, cut back on hours, and provided lunches.
• English mathematician Charles Babbage (1792–1871) used mathematical principles to figure out how to utilize resources and tools in the most effective way possible. He supported profit-sharing programs as well.
• Early in the seventeenth century, Andrew Ure invented management ideas. At Anderson's institution in Glasgow, he was among the first instructors in the entire globe to teach management ideas.
• Around 200 years ago, Adam Smith discussed the advantages of dividing labor and specialization. Smith came to the conclusion that worker splitting boosted productivity and efficiency by improving each person's ability and efficiency, saving time lost in task switching, and producing labor-saving innovations and machines.
• The industrial era has long been associated with Henry Ford (1863–1955). His name is closely associated with industrial scale manufacturing and the advancement of contemporary management theory. In 1903, he founded the Ford Motor Company. He realized that making an automobile required producing it in large quantities at low cost. Ford's industrial efforts were concentrated on coherence, mechanization, and breaking down tasks into their smallest parts. Ford is a crucial management thinker since he created theories and concepts on how organizations function.

The Classical Perspective

The Classical Theory is where contemporary management analysis started. This notion first appeared in the late nineteenth and early twentieth centuries, and many managers still use and adopt it today. The goal of the traditional theory is to generalize managers. The underlying tenet of this hypothesis is that if a specific business operation is successful or if a specific problem was successfully solved by the application of a specific strategy, then the methods of strategies through success was achieved by the managers could be equally, effectively, and efficiently used by others in the case of similar business situations in the future. The premise of this theory is that humans are rational economic beings. They seek financial benefit.

The traditional management viewpoint actually covers three areas:

• Scientific Management Theory
• Administrative Management Theory
• Bureaucracy Theory

Scientific Management Theory

Two significant issues were addressed by Scientific Management Theory: (1) how to raise the production of the typical worker, and (2) how to increase management efficiency. Managers can use scientific management theory as a foundation for problem-solving and decision-making. This strategy was developed to increase production productivity by making the best use of available material and labor resources. This idea is job-focused. It is concerned with raising each worker's level of performance. Thus, scientific management promoted the use of scientific methods to assess work and establish the most effective way to execute production tasks.

Among the very first proponents of scientific management are:

Fredrick W. Taylor (1856-1915)

Taylor, who is regarded as the founding father of scientific management, separated each task into several subdivisions based on how long it would take to complete it, as well as on motion and fatigue studies. As a result, production costs dropped and the ratio of items' quantity to quality rose significantly. This approach placed a strong emphasis on the system of pay based on performance.

• He calculated that worker output at the Midvale Steel Company and Bethlehem Steel Company was only one-third of what was practical. They moved slowly while working. Furthermore, there were no established procedures, activities, or tools. There were essentially no efficient work norms. These had a dysfunctional work system.
• Then he devised the most effective method for carrying out each component of the overall task after determining what each worker should be generating.
• He put in place a system of varied piece rates (increasing the pay of each worker who met and exceeded the target level of the output set for his job).
• As an adviser for many businesses, Taylor analyzed and reconfigured the occupations, included rest breaks to reduce drowsiness, and put in place a piece rate system. Higher yield quality and quantity as well as enhanced morale were the outcomes.
• He developed the concepts behind "scientific management" as a result of his experiences and observations.

Taylor's entire philosophy of scientific management was based on the notion that there is only one optimum and appropriate technique to accomplish every task. The basic tenets of Taylor's scientific management philosophy are as follows, as explained in his groundbreaking book "The Principles of Scientific Management," which was released in 1911.

• Standardization
  • It is important to fix the process, tools, and standards of work through scientific research into the nature of work. Workers previously applied the "rule-of-thumb" approach.
• Time and Task Study
  • To establish the worker's standards, employ time and task analysis. The task should only have one optimum approach to complete it. Before, there were no time or work criteria in place.
• Systematic and Selection Training
  • The operatives should be chosen, instructed, developed, and trained using scientific methods. Workers used to pick their jobs and educate themselves as best they could.
• Pay Incentives
  • For employee motivation, the remuneration should be connected to the output. Pay should be based on the quantity of work each employee has completed. To boost productivity, the relationship between effort and reward should be preserved. Workers used to receive equal compensation regardless of output in the past.
• Close Co-operation Between Managers and Operatives
  • To complete work in accordance with the scientific method, task division, and incentive system, managers and workers should work together. Previously, there was constant dispute between management and employees.

Frank Gilbreth (1826-1924) and Lillian Gilbreth (1878-1972)

The Gilbreth couple, who were both industrial engineers by trade, made substantial contributions to the growth of scientific management theory in the early 1900s. Their name is connected to methodological research. Also referred to as the "first lady of management," Lillian Gilbreth. The Gilbreth examined hand and body actions using motion picture footage. They watched every move the bricklayer made as they dissected and examined bricklaying. They do away with pointless movements. The phrase "economy of mobility" was their first priority. They placed a strong emphasis on employing strategies and tactics to support employees in realizing their full potential through education, better working conditions, and standardized work practices. Their significant contributions were considered to be:

• Utilizing motion studies to simplify work
• Use of "flow chart" approaches to capture process and work-flow patterns,
• Study of worker weariness and how it affects productivity and health, and
• The use of management principles and motion analysis to enhance organizational performance.

William H. Leffingwell (1864-1932)

Leffingwell is regarded as the founding father of office administration. He used scientific management techniques in his workplace operations. Leffingwell created five guidelines for productive labor. These included: (1) organizing the task; (2) arranging for it; (3) carrying it out; (4) measuring it; and (5) compensating the employee. These concepts can be applied to any company because they pertain to the proper management of all work.

Henry L. Gantt (1861-1919)

In the 1880s, Gantt, a mechanical engineer, collaborated with Taylor at the Midvale Steel Company. He improved the methods for cost and production control. One of these is a Gantt chart, which may be created for each and every worker individually for a challenging project as a whole. Gantt also improved Taylor's theories concerning the piecework system. Gantt chart principles serve as the foundation for management techniques like Critical Path Method (CPM) and Program Evaluation and Review Technique (PERT).

Harrington Emerson (1853-1931)

Emerson was interested in management as a whole, rather than just work productivity and efficiency. Emerson placed a strong emphasis on items like overall aims, cost accounting, and the duties of the staff department in his 1911 book Twelve Principles of Efficiency. He mostly conducted his research in American businesses, and he promoted cost-effectiveness measures like the unit standard cost.

Contributions Scientific Management Approach

The following is a list of the contributions made by scientific management:

• Modern management philosophy is built on the principles of scientific management. It marks a significant turning point in the evolution of management theory. It offered a framework on which subsequent theories could be built.
• Scientific management developed strategies for reducing wastages and offered insightful analysis into the effectiveness of production.
• Scientific management placed a strong emphasis on bettering working conditions by lowering fatigue and redesigning equipment.
• Numerous management techniques, including flowcharts and time, motion, and fatigue studies, were developed through scientific management. Even now, there are several applications for these tools.
• It alters both the employer's and the employees' attitudes.
• It promotes higher economic development and raises workers' living standards.

Limitations of Scientific Management Approach

The scientific management method has various drawbacks. The following are some common objections to the scientific management approach:

• The "shop level" was mostly the focus of scientific management. It only applies to other management-related issues.
• Scientific management made the assumption that organizations will remain stable and straightforward. As a result, general practices were recommended. These views do not reflect current business reality.
• It largely considers the financial demands of employees. The informal relationships that exist amongst employees on the job to satisfy their social needs are not emphasized.
• The repetitive nature of the labor that employees are required to perform leads to boredom. There is no life outside of work for workers.
• Workers are compelled to hurry up the process beyond their capacity in the name of efficiency.
• It is not permitted for workers or laborers to take the initiative. The foreman gives specific directions regarding the work that has to be done and how it should be done.

Administrative Management Theory

The administrative management theory is a management strategy that looks at an organization from the perspective of the executives and managers in charge of coordinating the operations of various groups and units across the board. It sees management as a field that can be studied by grasping fundamental ideas. It is focused on the practices, values, and operations of management. In terms of administrative administration, Henry Fayol, Dyndale Urwick, Max Weber, Chester I. Barnard, and Marry Parker Follett were the main contributors.

Henry Fayol (1840-1925)

The philosophy of administrative management was created by French industrialist and mining engineer Henry Fayol. He lived in Taylor's time period. He made an effort to provide a thorough conceptual framework as well as a general management and organization that are relevant to all companies. While Administrative Theory is concerned with the full spectrum of management performance, Scientific Management only focuses on issues that arise on the shop floor, such as employee compensation and job design. Fayol asserts that management is a separate subject of study that encompasses a variety of managerial tasks, including forecasting, planning, organizing, coordinating, and controlling. His book, "Administration Industrialle et," was released in 1916. general'. Later, the title of this book was changed to "General and Industrial Management" in the English language. He grouped all industrial endeavors into six categories, including:

• Specialized actions (production, manufacturing)
• Commercial endeavors (purchasing, selling and trading)
• Financial transactions (search, identify, and collect for and optimum use of funds)
• Security measures (security of property, goods and people)
• Accounting operations (stock taking, cost statistics and balance sheet)
• Managerial endeavor (planning organizing, directing, coordinating and controlling)

He created the fourteen management concepts, which are generally relevant to all kinds of businesses, based on his experience. The following are brief summaries of Henry Fayol's management principles:

• Division of Work
  • The division of labor advocated by Adam Smith is comparable to this idea. This suggests that each employee should only be given one type of task. Specialization improves productivity by making workers more knowledgeable and effective.
• Authority and Responsibility
  • Responsibility and authority coexist, and they must work together. Responsibility is the duty to carry out the desired outcome, whereas authority is the power to command and issue instructions. While duty without authority would render a person ineffectual, authority without responsibility breeds reckless behavior.
• Discipline
  • The rules that govern the company must be followed and respected by all employees. Clear and fair agreements, effective supervision, and careful administration of sanctions are all necessary for discipline.
• Unity of Command
  • Only one superior should be giving orders and directions to an employee at once. A subordinate who has more than one superior may experience delays in performance since it will erode authority, impair discipline, divide loyalties, and cause confusion.
• Unity in Direction
  • For a set of activities with the same goal, there should be one leader and one plan. There should be a single group overseeing all linked activities, a single action plan, and a single manager in charge of them.
• Subordination of Individual Interest to General Interest
  • The interest of the organization as a whole should always come first, not the interest of any one person or group of employees. Therefore, efforts should be taken to balance individual and collective interests. When there is a conflict between the two, the organization's interest need to take precedence above personal interest.
• Remuneration of Personnel
  • Employees ought to receive fair compensation commensurate with their contributions. Any form of employee exploitation needs to stop. Both the employer and the employees must be satisfied with the compensation scheme.
• Centralization
  • While decentralization increases the role of the subordinates, centralization indicates a reduction in that function. Regarding the amount of power to be retained at the top level or distributed among the lower levels, there are no hard and fast rules that can be established. Depending on the state of the business and the capacity of subordinates, the ideal balance between the two must be maintained.
• Scalar Chain
  • The chain of superiors in an organization that extends from the highest level of authority to the lowest level is referred to as the scalar chain. It is the organizational structure's continuous chain of command from top to bottom. The chain of command should be followed in all communications.
• Order
  • Everything should have a place, and that place should be where it belongs. In a similar vein, everyone must have a space, and that location must belong to them. The first is referred to as material order, and the second as social order.
• Equity
  • All employees should be treated fairly and equally by management. When dealing with subordinates, there should be no discrimination and there should be equality of treatment. Favoritism and nepotism ought to be avoided.
• Stability of Tenure of Personnel
  • The manager's top priority should always be to retain talented, productive workers. All employees should get fair security of service. Employee loyalty and connection might grow as a result of tenure stability.
• Initiative
  • The management should motivate employees to plan out and complete the assignment more carefully. Even though mistakes could happen, subordinates should be allowed the flexibility to come up with and carry out their own plans.
• Espirit De Corps
  • According to this tenet, "Union is Strength." The individuals that make up a company must work together with a sense of teamwork. The divide and conquer method of management should not be used. Unity is power, and an organization's power depends on how well its members work together and in harmony.

Contributions of Administrative Management Theory

The following are the main contributions of administrative management theory:

• Universal management principles were heavily emphasized in administrative management.
• Planning, organizing, staffing, directing, and controlling are examples of managerial functions that were studied as a result of the theory's establishment.
• The conceptual framework for studying the management process has been supplied by this theory.
• With the use of this theory, management has been separated apart and studied separately.
• This approach has also identified six managerial skills, including technological expertise, education, moral character, and technical knowledge.

Limitations of Administrative Management Theory

The following are some drawbacks of administrative management theory:

• The human behavioral characteristics of an organization have not received enough consideration in this theory.
• This theory is erroneous. The contextual aspects have not been taken into account.
• It's hazy. The lines between organizational process and structure are not always apparent.
• It does not specify when a principle should be used or which principle, when applied, should take precedence over the other.
• This idea is supported by some observation and personal experience.

Comparison Between Taylor and Fayol

Taylor and Fayol's respective bodies of work compliment one another. They made an effort to create a logical and systematic management framework. Fayol was a management philosopher, therefore his theories combine humanism, social consciousness, and commercial effectiveness. Taylor, though, was a management engineer. He concentrated on improving shop floor productivity. Following is a summary of how Taylor and Fayol vary in their ideas:

Bureaucratic Management (Max Weber 1864-1920)

Max Weber was a sociologist from Germany. He created a bureaucratic hypothesis. A form of organization known as bureaucracy is characterized by a hierarchy that is clearly defined, comprehensive rules and regulations, and impersonal relationships. There should be a defined division of labor based on skill and functional specialization, as well as a hierarchy of authority with a superior-subordinate relationship and chain of command.

The Max Weber bureaucracy theory is especially prevalent in large organizations and government agencies. It is applicable to businesses that hire a large number of workers to carry out specific tasks in order to achieve group objectives. They must carry out their tasks while adhering to a set of rules, regulations, and systems. There should be a distinct separation of tasks, powers, and responsibilities. Each employee should answer to their direct supervisors.

Principles or Characteristics of Bureaucratic Management Theory

The bureaucracy concept, which Max Weber introduced and is regarded as one of the most effective management principles. This principle emphasizes a hierarchy with a well defined line of authority running from the highest level to the lowest level. The bureaucratic theory of management is characterized by the following tenets or traits:

• Formal Rules and Procedures
  • Every business needs a structure and a process for completing specific tasks. These guidelines must be followed by all members at all times during their activities. Nobody in the organization, from the top down to the lowest level, is allowed to break the rules.
• Functional Specialization
  • The division of work among the staff should be based on their functional specialization. In other words, the core idea of this principle is the matching of the appropriate individual with the appropriate job. It is beneficial to increase the working efficiency of the workforce to divide the labor according to skills, knowledge, efficiency, and experience. This helps to make the best use of the resources that are already accessible, which will ultimately aid to complete job quickly and cheaply.
• Well Defined Hierarchy of Authority
  • It emphasizes the scalar chain of command from the highest level to the lowest level. the clearly defined authority structure that runs from the top down to lower levels. the clearly defined authority structure that runs from the top down to lower levels. To keep everyone on task and moving in the same direction, there must be a clear hierarchy of authority from the top down. This principle promotes the division of labor, fosters employee responsibility, and brings about consistency in organizational performance.
• Supervision by a Higher Authority
  • An organization is divided into many levels of management based on its size and type. Subordinate levels of management receive authority and accountability from higher levels of management. The higher level authority must occasionally watch over the deputies to learn about their successes and issues. This is necessary to resolve issues immediately and finish the work indefinitely.
• Technical Competence for Employment and Promotion
  • One of the key aspects of bureaucrat theory is this. The technical expertise of applicants is taken into account when making hiring, promotion, and placement decisions. Similar to this, factors including effectiveness, knowledge, skill, and experience are taken into account when promoting employees. This is necessary to keep relationships between all of the organization's employees strong and reduce resource waste. Employee ejections on arbitrary grounds must be prevented.
• All Decision Should be Recorded
  • Management makes a variety of decisions depending on the circumstance. At various times, various acts are passed and actions are taken. For future reference, those deeds, deeds, and judgments ought to be documented in a separate book. It aids in the future decision-making process.
• Interpersonal Relation
  • Employee relationships should be maintained in an organization on the basis of rules and regulations. The interpersonal relationship is not considered. Positions, not personalities, are the foundation of interpersonal relationships.

Advantages or Contributions of Bureaucratic Management:

The contributions of bureaucratic management are as follows:

• Focus on Chain of Command
  • A chain of command and a structure of authority with relationships between superiors and subordinates should exist. Each subordinate should have a single line of reporting. This helps to establish accountability.
• Proper Division of Work
  • According to this view, work should be properly divided based on natural laws. Once tasks have been divided, workers should be assigned to each task based on their functional expertise and level of competency. It aids in raising organizational productivity.
• Specific Procedures
  • There should be a set of guidelines, policies, and practices. The organization's specific rules and regulations should be taken into account by all members. Additionally, they must adhere to specified guidelines in order to do their assignment.
• Relationship Based on Position
  • The impersonality of a rule of law is seen in interpersonal interactions. According to bureaucratic theory, relationships within an organization are determined by roles rather than individuals. It aids in repairing duty and authority.
• Focus on Technical Competency
  • The division of work among the employees should take into account their functional specialization. Technical proficiency is the basis for employee incentives and advancement.
• Job Security
  • It places a strong emphasis on the stability of employees' jobs inside the company. The practice of periodically terminating employees from their jobs must be stopped. It encourages people to be committed to their jobs and to the company.

Limitations of Bureaucratic Management Theory:

The following are some of bureaucratic theory's drawbacks:

• Rigid Rule and Regulation
  • This idea places a strong emphasis on following specific guidelines, rules, and processes for accomplishing any task. As society's environment changes, it is more challenging to adapt laws and regulations. This could be the cause of the failed business.
• Ignores Innovation
  • Innovation and creativity are crucial for adapting to the changing corporate environment. Only rules and regulations are created and put into effect by top level management. On creative work, they are unable to provide more.
• Lack of Effective Communication
  • For the transformation of information both inside and outside the company, the appropriate communication route should be used. In order to communicate effectively, more time and procedures are required, making rapid communication impossible.
• Problem of Role Conflict
  • Role conflicts among employees may occasionally develop as a result of out-of-date or murky rules and regulations. Such miscommunication among employees creates barriers to focusing on accountability and generating seamless performance.
• Ignores Informal Relationship
  • The informal relationships among those who work for the organization are not considered. The allocated authority serves as the foundation for maintaining relationships between personnel. Lack of informal relationships among members might occasionally make it harder to resolve complex issues.

Reference

(Poudyal, S.R., Pradhan, G.M. and Bhandari, K.P. (2011). Principles of Management. Kathmandu: Asmita Books publishers and Distributors Pvt. Ltd.)