Evolution of Management Thought & Approaches

EVOLUTION OF MANAGEMENT THOUGHT AND VARIOUS MANAGEMENT APPROACHES

Management has always existed in some form or the other and its pattern has been undergoing change with the varying social and technological factors. The management though has passed through various stages to reach its present level. This led to the emergence of the variety of approaches in management.

It is divided into three stages:

THE CLASSICAL APPROACH/THEORY OF MANAGEMENT: In this stage two streams of thought are identified:

• SCIENTIFIC MANAGEMENT: This concept is introduced by F.W. Taylor, who is known as the father of scientific management. It means that performing the work of management in a scientific way. There should be efforts to find out newer and better methods of doing work. The traditional and rule of thumb methods should be discarded and better forms should be devised for increasing productivity and efficiency.

Taylor has given certain basic principles of scientific management:

• Replacement of Rule of Thumb: Taylor advocated the replacement of rule of thumb with scientific methods. The rule of thumbs emphasises estimation whereas scientific approach brings precision. Taylor suggested work study to eliminate unnecessary operations, standardisation of tools and equipment to encourage employees for better performance.
• Co-Operation: Taylor suggested the change of thinking of the management workers. Both should try to create mutual confidence, co-operation and goodwill. Thus, this principle suggests to encourage a combined effort not only among workers but also between workers and management.
• Development of Workers: In scientific management, workers have an important role to play. In this context, Taylor emphasized the development of workers so that they are able to cope with the changing methods of work. They should be scientifically selected, placed and development.
• Maximum Output: The whole philosophy of scientific management advocated increased production and productivity. Taylor wanted to change the old methods of production so that it should be increased. He suggested, both management and workers should try to increase surplus by stepping up production.
• Distribution of Work: The work and responsibilities should be distributed between workers and management. The management should design the work, set up and supervise the work and the workers are free to perform the task.

• ADMINISTRATIVE MANAGEMENT APPROACH: This approach was advocated by Henry Fayol. He looked at the problems of managing an organisation from top management point of view. For him administration was a common activity.

 GENERAL PRINCIPLES OF MANAGEMENT:

Fayol has given 14 principles which are as follows:

• Division of Work: Fayol has advocated division of work to take the advantage of specialization. He believed that segregating work in the workforce amongst the worker will enhance the quality of the product. This principle is appropriate for both the managerial as well as a technical work level.
• Authority and Responsibility: These are the key aspects of management authority facilitates the management to work efficiently, and responsibility makes them responsible for the work done under their guidance or leadership.
• Discipline: All the personnel serving in an organization should be disciplined. Discipline may be of two types: Self-imposed discipline – which brings from within the individual and it is in the nature of spontaneous response to a skillful leader. Command discipline – this stems from a recognized authority and utilizes deterrents to secure compliance with a desired action, which is expressed by established customs, rules and regulations.
• Unity of Command: It means that a person should get orders and instructions from only one superior. If an employee has to follow more than one boss, there begins a conflict of interest and can create confusion.
• Unity of Direction: According to this principle. Each group of activities with the same objective must have one head and one plan. It makes the work easier and achieve the set goal easily.
• Subordination of Individual Interest to general interest: This indicates a company should work unitedly towards the interest of the company rather than personal interest. Thus, the agreement between the employers and the employees should be fair and there should be constant vigilance and supervision.
• Remuneration of personnel: Remuneration of employees should be fair and provide maximum possible satisfaction to them. It can be monetary or non-monetary. However, it should be according to an individual’s efforts they have made.
• Centralization: In any company, the management or any authority responsible for the decision-making process, should be neutral. Everything that goes to increase the importance of subordinate’s role is decentralization, everything which goes to reduce it is centralization. Fayol stressed on the point that there should be a balance between the hierarchy and division of power.
• Scalar chain: Fayol on this principle, highlights that the hierarchy steps should be from the top to the lowest. This is necessary so that every employee knows their immediate boss and also should be able to contact any, if needed. He also suggests that this scalar chain takes time and therefore, can be substituted be gang plank without weakening the chain of command. His scalar chain and gang plank can be described as follows: