basic idea for evolution of studies of management

1. Origin of Management
Prepared by :-
Diwas Sharma
Man Mohan Mishra

2. Index
• Historical notes
• Formal study of management
• Scientific management
• Taylor’s ideas
• Fayol’s administrative approach
• Weber’s Bureaucratic Approach
• Servant relationship
• References

3. Historical Notes :--
Since the very beginning of the human civilization , peoples have
been using the concept of management as a very special tool to
perform their tasks efficiently.
In almost every ancient civilization , we can see the influence
of management. It was impossible to make those well – equipped
and advanced cities without proper management skills.

4. Historical Ideas and Practices throughout
history :---
• 5000 BC - Sumerians -- Record Keeping.
• 1800 BC - Hammurabi -- Controls and written documents.
• 400 BC - Xenophon -- Management as a separate art.
• 400 BC - Cyrus -- Human relations and motion study.
• 900 AD - Alfarabi -- Listed leadership traits.

5. Formal study of management :---
Although great feats of human achievement such as the Egyptian
pyramids, the Great Wall of China, the Colosseum in Rome and the Taj Mahal in India
all bear testimony to skilled management in ancient times, the formal study of
management only began late in the 19th century.
One of the early pioneers of management theory was Frederick W. Taylor
(1856-1915), a mechanical engineer who believed that it was management’s task to
design jobs properly and to provide incentives to motivate workers to achieve higher
productivity.
( ….Continued)

6. The main driving force behind this development of management as a
science was the transition from 19th century “entrepreneurial capitalism” to
early 20th century “managerial capitalism”. Whereas the first capitalists were
business owners who used their own finances to fund organizations that they
managed themselves, rapid industrial growth saw the formation of large
organizations with capital often provided by outsiders. This not only “widened
the gap” between owners or shareholders and management, it also brought new
management challenges. (Smit & Cronjé, 2002, p34-35; George, 1968)
Continued ….

7. Scientific Management
“Seats of the pants” management
-No standardisations of procedures
-No follow-up on improvements

8. Frederick W. Taylor (1856-1915)
Frederick W. Taylor is known today
as the father of the scientific
management. One of his many
contributions to modern
management is the common practice
of giving employees rest breaks
throughout the day.

9. taylor’s 4 principles –
1- 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.

10. 2. Codify the new methods of performing tasks
into written rules and standard operating
procedures.
3. 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

11. 4. 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.

12. Fayol’s Approach
•The Administrative Approach
Across the Atlantic ocean Jules Henri Fayol (1841-1925), a fellow
engineer and manager of a group of French mines, came to the
conclusion that management was an activity common to all human
undertakings - home, business, government, schools.

13. Continued…..
and that all these undertakings needed five
basic administrative functions –
1. planning
2. organizing
3. commanding
4. Coordinating
5. controlling.

14. Fayol’s approach rejected the old notion that
“managers are born, not made”

15. Max Weber (1864-1920)
• The Bureaucratic Approach
Max Weber was a German sociologist who approached
management by focusing on organizational structure, dividing
organizations into hierarchies with clear lines of authority and
control. This meant that managers were given “legal authority”
based on their position in the organizational structure, to enforce
rules and policy

16. Weber’s bureaucratic system helped large organizations to function
in a more stable, organized and systematic manner. However, by
doing away with personality based or charismatic
leadership, individuality and creativity is often sacrificed.
Bureaucratic leaders and workers are required to obey rules and do
only what they are told. The result is that these leaders seldom think
“outside the box” and therefore find it very difficult to adapt to
changing environments and new challenges.

17. The Human Relations Movement :---
Elton Mayo (1880-1949) was a Harvard professor who proposed that managers
should become more “people-orientated” . Conducting experiments on
conditions in the workplace and incorporating the well-published findings of
the Hawthorne Studies, Mayo declared that “logical factors were far less
important than emotional factors in determining productive efficiency” . He
concluded that participation in social groups and “group pressure”, as opposed
to organizational structures or demands from management, had the strongest
impact on worker productivity .

18. Servant Leadership : ---
Although the concept of servant-leadership is found in the
Bible and might even date further back into antiquity, it was first
proposed as a management approach by Peter Greenleaf (1904-
1990) in his book Servant Leadership . He explained that becoming a
servant-leader “begins with the natural feeling that one wants to
serve” followed by the aspiration to lead .

19. Summary and Recommendations :---
The role and responsibilities of leaders in organizations has
undergone some radical changes over the last 100 years. Evolving
from the strong-armed bosses of early entrepreneurial capitalism to
bureaucrats whose authority rested in their organizational position,
to leaders who have to find new ways to convince employees to
follow them in the quick-changing information era, the challenges
and opportunities for leadership is perhaps now greater than ever.

20. References :---
• 75 Years of Management Ideas and Practice, David
Sibbet, September/October 1997 Supplement, Harvard Business
Review, Reprint number 97500.
• The Hunters and the Hunted, Swartz, James, 1994, Productivity
Press, Portland OR.
• What You Can Learn from 100 Years of Management Science: A Guide to
Emerging Business Practice, Stauffer, David, January 1998, Harvard Business
Review, Reprint number U9801A.

21. Thank You