Evolution of Management Principles - Research Paper Example

I. Introduction Management evolved as enterprises continue to look for ways on how to better utilize the organization’s limited resources. It has evolved from a simplistic view of enhancing productivity by merely examining the production line to the more sophisticated management of considering several factors and tools that affects productivity. II. Evolution of management principles Just like any theories, management also evolved from its neoclassical origin to form what is known as modern management. a. The classical theories: Scientific management theory The evolution of management theories began after the industrial revolution. As production increased with the introduction of large scale machines in the manufacturing plants, the need to think of better ways to optimize workforce and limited resources gave birth to the scientific theory of management. Famous thinkers of scientific management are; Adam Smith with his pin theory and invisible hand- Adam Smith was the first management thinker who thought of the effects of industrial revolution. In his quest to look for better way to improve production, he introduced the factory system where a worker is only assigned to perform only one or few tasks to perform compared to the old system of craft-style manufacturing where workers are tasks to do everything. As a result of the introduction of Adam Smith’s factory system, manufacturing production significantly improved with each worker producing 48,000 pins per day compared to a mere few thousand production with the old system. This was a result of job specialization and division of labor for better organizational performance and increased efficiency. Adam Smith also first took notice the self regulating nature of the market called “the invisible hand” where market forces will determine competition (Smith, 1776). Friedrich Wilhelm Taylor (1856-1915) – introduced scientific management or quantification of production in the manufacturing plant. He viewed an organization as a machine where its several parts should efficiently work. Taylor’s management theory espouses that if the amount of time and effort each worker expends to produce a unit of output can be reduced by increasing specialization and division of labor, the production processes will become more efficient (Anon., nd). Taylor’s management principles can thus be summarized as follows(Taylor, 1911); Study the way workers perform their tasks, gather all informational job knowledge that workers possess, and experiment with ways of improving how tasks are performed. Codify the new methods of performing tasks into written rules and standard operating procedures. Carefully select workers who possess skills and abilities that match the needs of the task, and train them to perform the task according to the established rules and procedures. Establish a fair or acceptable level of performance for a task, and then develop a pay system that provides a reward for performance above the acceptable level (nd). Ford – pioneered the assembly line and linked people and work by the speed of the production line through the conveyor belt. Ford’s principles of assembly line are as follows (Anon); Place the tools and the men in the sequence of operation so that each component shall travel the least possible distance in the process of finishing. Use work slides or some other form of carrier so that when a workman complete his operation, he drops the part always in the same place – which place must always be the most convenient place to his hand – and if possible have gravity carry the part to the next workman for his operation. Use sling assembly lines by which the parts to be assembled are delivered at a convenient distances (nd). Frank (1868-1924) and Lilian Gilbreth (1878-1972) – followers of Taylor who refined Taylor’s analysis of work movements and made many contributions to time-and-motion study. Their aims were to Break up into each of its component actions and analyze every individual action necessary to perform a particular task, Find better ways to perform each component action, and Reorganize each of the component actions so that the action as a whole could be performed more efficiently—at less cost of time and effort. They also studied the effects of fatigue and what contributes to job stress that leads to poor performance. They isolated factors—such as lighting, heating, the color of walls, and the design of tools and machines—that result in worker fatigue. Their pioneering studies paved the way for new advances in management theory Administrative management theory- the study of how to create an organizational structure that leads to high efficiency and effectiveness. Organizational structure is the system of task and authority relationships that control how employees use resources to achieve the organization’s goals. Max Weber (1864 -1920) and theory of bureaucracy - a formal system of organization and administration designed to ensure efficiency and effectiveness. A bureaucratic system of administration is based on five principles Principle 1: In a bureaucracy, a manager’s formal authority derives from the position he or she holds in the organization Principle 2: In a bureaucracy, people should occupy positions because of their performance, not because of their social standing or personal contacts. Principle 3: The extent of each position’s formal authority and task responsibilities, and its relationship to other positions in an organization, should be clearly specified. Principle 4: So that authority can be exercised effectively in an organization, positions should be arranged hierarchically, so employees know whom to report to and who reports to them Principle 5: Managers must create a well-defined system of rules, standard operating procedures, and norms so that they can effectively control behavior within an organization Henri Fayol (1841-1925) – identified the 14 principles that he believed to be essential to increasing the efficiency of the management process. These principles are as follows. Fayol’s 14 Principles of management (Anon., nd). Division of labor - Job specialization and the division of labor should increase efficiency, especially if managers take steps to lessen workers’ boredom. Authority and responsibility - Managers have the right to give orders and the power to exhort subordinates for obedience Unity of command - An employee should receive orders from only one superior. Line of authority - The length of the chain of command that extends from the top to the bottom of an organization should be limited. Ccentralization - Authority should not be concentrated at the top of the chain of command. Unity of direction - The organization should have a single plan of action to guide managers and workers. Equity - All organizational members are entitled to be treated with justice and respect. Order - The arrangement of organizational positions should maximize organizational efficiency and provide employees with satisfying career opportunities. Initiative - Managers should allow employees to be innovative and creative. Discipline - Managers need to create a workforce that strives to achieve organizational goals. Remuneration of Personnel - The system that managers use to reward employees should be equitable for both employees and the organization. Stability of Tenure of Personnel - Long-term employees develop skills that can improve organizational efficiency. Subordination of Individual Interests to the Common Interest - Employees should understand how their performance affects the performance of the whole organization. Esprit de Corps - Managers should encourage the development of shared feelings of comradeship, enthusiasm, or devotion to a common cause. The principles that Fayol and Weber set forth still provide a clear and appropriate set of guidelines that managers can use to create a work setting that makes efficient and effective use of organizational resources. These principles remain the bedrock of modern management theory; recent researchers have refined or developed them to suit modern conditions. b. Behavioral management theory - l espoused a theme that focused on how managers should personally behave in order to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goals. Foremost of behavioral management theorists are Mary Parker Folet, Hawtorn and McGregor. Mary Parker Follet – focused on the human side of the organization as opposed to Taylor’s view that organization should work efficiently like a one big well-oiled machine. Hawthorn studies and human relations – also known as Hawthorn effect that a manager’s behavior or leadership approach can affect worker’s level of performance. Advocated that managers and subordinates should have behavioral training to effectively elicit cooperation from their subordinates that will increase productivity. McGregor’s Theory X and Y - proposed that two different sets of assumptions about work attitudes and behaviors dominate the way managers think and affect how they behave in organizations. McGregor named these two contrasting sets of assumptions Theory X and Theory Y Theory X The average worker is lazy, dislikes work, and will try to do as little as possible. Moreover, workers have little ambition and wish to avoid responsibility. Thus, the manager’s task is to counteract workers’ natural tendencies to avoid work. To keep workers’ performance at a high level, the manager must supervise them closely and control their behavior by means of “the carrot and stick”—rewards and punishments. Theory Y Assumes that workers are not inherently lazy, do not naturally dislike work, and, if given the opportunity, will do what is good for the organization. According to Theory Y, the characteristics of the work setting determine whether workers consider work to be a source of satisfaction or punishment; and managers do not need to control workers’ behavior closely in order to make them perform at a high level, because workers will exercise self-control when they are committed to organizational goals. c. Management science theory – an approach to management that uses rigorous quantitative techniques to help managers make maximum use of organizational resources. Quantitative techniques - utilizes mathematical techniques—such as linear and nonlinear programming, modeling, simulation, queuing theory, and chaos theory—to help managers decide. Operations management - provides managers with a set of techniques that they can use to analyze any aspect of an organization’s production system to increase efficiency. Total quality management (TQM) - focuses on analyzing an organization’s input, conversion, and output activities to increase product quality. Management Information System (MIS) - help managers design information systems that provide information about events occurring inside the organization as well as in its external environment—information that is vital for effective decision making. d. Organizational development theory - —management theory that looks beyond the set of forces and conditions that operate beyond an organization’s boundaries but affect a manager’s ability to acquire and utilize resources. Resources in the organizational environment include the raw materials and skilled people that an organization requires to produce goods and services, as well as the support of groups including customers who buy these goods and services and provide the organization with financial resources. e. Recent development in management Transformational leadership – posits that by inspiring subordinates to the vision of an organization, they will commit themselves to it and will strive to perform better. III. Compare/contrast and relate one or more of the different schools of management theory and management practices at Wal-Mart. Issue of rank segregation at Wal-Mart The nagging issue of rank segregation in Wal-Mart is a cause for concern not only as a management practice but also its inconsistency to the values upheld by the country it was incorporated. As a former Assistant Manager at Wal-Mart attested at a blog “assistant managers are only allowed to hang out or go to break or lunch with other assistant managers, not with hourly associates, not with co-managers, not the store manager”.  No matter what management glossing or sugarcoating Wal-Mart will put into that practice, it is just plain and simple “discrimination” (Montgomery, 2011). It is also not consistent with behavioral management theory, to be specific, of Hawthorn’s theory that a manager or supervisors ‘treatment of employee or subordinates affect how such subordinate performs his or her job. Modern management, especially those who are transformation in nature, put a premium on employee relationship for the employees to relate to the greater objective of the organization. The practice of segregating employees alienates employees from the management which may partly explain why turnover rate at Wal-Mart is high. References: Anon., (nd). Evolution of Management Theory. Chapter Two. Online. Available at. Retrieved on October 27, 2011. Montgomery, Adrian Campblell (2011). How Walmart Trains Managers. Labor Notes online. Available at . Retrieved on October 27, 2011. Smith, Adam (1776). The Wealth of Nations. Online. Available at Retrieved on October 27,2011. Taylor, F.W., 1911. Principles of scientific manamgent. New York: Harper. Read More