Running Head: HISTORY OF MANAGEMENT THEORY
History of Management Theory
Troy Thompson
5409 Foxglove Drive, Bossier City, LA 71112
318-918-7413
Troythompson98@yahoo.com
MSM 500
May 21, 2010
Class Instructor: Dr. David Bouvin
Ellis University
Introduction
People and processes are the main elements under management purview, and it is interesting to learn how managerial philosophy pertaining to these two elements has evolved from the Industrial Revolution throughout the Progression Era and into the modern workplace. The purpose of this paper will focus on Frederick Taylor’s Scientific Management, also known as the Taylor System, and Elton Mayo’s Human Relations business models and how they relate to this
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All these adoptions gave rise to a new management school of thought centered around a more productive work place, which Taylor considered to be “maximum prosperity” (Taylor, 1911). Taylor firmly believed in developing “captains of industry” rather than waiting on natural-born leaders to come along (Taylor, 1911). He also recognized a need for more involvement from the supervisors in the workplace to help eliminate what he referred to as soldiering, or, laxed employee output. He said, “The 30 percent to 100 percent increase in wages which the workmen are able to earn beyond what they receive under the old type of management, coupled with the daily intimate shoulder to shoulder contact with the management, entirely removes all cause for soldiering” (Taylor, 1911). As the turn of the twentieth century neared, the progressive landscape begged for more efficient business practices (The Eleanor Roosevelt Papers, line 16). This was the optimal time for the principles by which operational capacity could be measured, analyzed, streamlined, and controlled to take hold. This system then became a cornerstone on beset of the Great Depression and followed by future management theorists from then on after.
One criticism of Scientific Management is that it demanded top-performance in every worker and near perfect throughput on the production line, developing into a quasi authoritarian-style form of bureaucracy. Workers were afraid to out-produce one another on the
Frederick Taylor’s fundamental thoughts on scientific management dated back to early 1880s when he was employed at Midvale Steel Company and observed his coworkers “soldiering” at work. In the following two decades, he moved around different companies while developing his management theory
Scientific Management is also known as Taylorism. Fredrick Winslow Taylor wanted to divide the work process into small, simple and separate steps (Division of Labor). Division of Labor meant every worker only had one or two steps, this was created to boost productivity. Taylor also believed in Hierarchy, he wanted a clear chain of command that separated the managers from workers. He did this so managers would design work process and enforced how the work was performed and employees would simply follow directions. Taylor wanted to select and train high performing workers or first-class employees and match them to a job that best suited them. Taylor believed the most productive workers should be paid more. Employees who could not meet the new higher standard were fired.
Every manager must have a set of principles, values, and core beliefs that he must follow. These principles, values, and beliefs make up his philosophy of management. Webster defines philosophy as “the most basic beliefs, concepts, and attitudes of an individual or group.” (Webster) I will be discussing the principles, values, and beliefs I as a manager will have to do my job efficiently. I will also discuss the different biblical beliefs that support my management style.
Frederick W. Taylor was ahead of his time for his concept of Scientific management. It was a revolutionary way of running a business, that swept all over the globe, and his ideas were applicable to many different industries. Substituting disorder and conflict for a new untested method of control, cooperation, and science. Taylor understood there were no incentives for working harder. Knowing this, he payed workers based on output, allowing workers to make more money on any given day. It seemed like everyone would enjoy and prosper under this system, but that was not the case. Workers liked the opportunity to make more money in this system but many of them resisted this new idea. Being under constant supervision made work much harder for them.
But I'm coming to believe that all of us are ghosts .... It's not just what we inherit from our mothers or fathers. It's also the shadows of dead ideas and opinions and convictions. They're no longer alive, but they grip us all the same, and hold on to us against our will.
Taylorism is a management system which was popular in the late 19th century. It was designed to increase efficiency by breaking down and specialising repetitive tasks. This is exhibited as mentioned in ‘Selection and Development: A new perspective on some old problems’ that several jobs presently no longer consist of clusters of similar tasks, but are now process based collections of activities (Harrington, Hill & Linley 2005). According to Weber’s foundation of organisation theory; bureaucracy was portrayed as an “instrument or tool of unrivalled technical superiority which entailed charismatic, traditional and rational authority” (1978, cited in Clegg 1994). Thereafter, other theories derived based on the instrument being used as a form of manipulation. This is evident in Knights & Roberts’ (1982) concept of human resource management and staff misunderstanding the nature of power, treating it as if it were an individual possession, as opposed to a relationship between people (Knights & Roberts 1982). Subsequently, this led to the establishment of unions and increasing cooperative resistance in the workplace as employees seek change in the occupational structure (Courpasson & Clegg 2012). The change in this occupational structure was based around the ‘superior-inferior’ concept where managers prioritise their own success
In the early 1900’s, some of the first ideas were thrown together to allow an organization to flourish in the upcoming modern era. The first theories were known as scientific and classical management, which focused on three separate theories from Frederick Taylor, Henri Fayol, and Max Weber. The three theories have similar ideology in the fact that organization is driven by management authority, employees only source of motivation is money, and organizations are machinelike with employees making up the parts of the machine (Papa, Daniels, & Spiker, 2008). In the Prophecy Fulfilled case study, Mary Ann (senior auditor) takes on a management role with subordinates similar to that of Weber’s Bureaucratic Theory (Daniels 1987, pp. 77-78).
In management literature today, the greatest use of the concept of Taylorism is as a contrast to a new, improved way of doing business. In political and
Scientific Management theory arose from the need to increase productivity in the U.S.A. especially, where skilled labor was in short supply at the beginning of the twentieth century. The only way to expand productivity was to raise the efficiency of workers.
“The principle object of management should be to secure maximum prosperity for the employer, coupled with the maximum prosperity for the employee…” (Taylor, 1911, p.9)
The year 1911 saw Frederick Winslow Taylor publish a book titled ‘The principles of scientific management’ in which he aimed to prove that the scientific method could be used in producing profits for an organization through the improvement of an employee’s efficiency. During that decade, management practice was focused on initiative and incentives which gave autonomy to the workman. He thus argued that one half of the problem was up to management, and both the worker and manager needed to cooperate in order to produce the greatest prosperity.
Taylor imagined that workers would be able to make out the relationship between completion of more work in units and the economic rewards been increased. Taylors work as described by (Buchanan and Huczynski, 2004) depicts how theories were to take place at shop floor levels, then how facts were substituted for opinion and guess work. Henri Fayol, his fellow classical writer had a different perception which looked at organisation from top to bottom. The pace setters of classical theories had engineering background hence derived theories with scientific approach. (Buchanan and Huczunski, 2004). (Cole, 2004) talks about how the production environment under the classical theory in America had created difficulties, where labour force were skint, uneducated, and in quest of making economic fortunes. (Lemak, 2004) point out how the classical management has had
Management in business is the coordination of people to accomplish set goals efficiently and effectively. It comprises of planning, organising, staffing, leading, and controlling an organisation. Management itself is also an academic discipline, a social science whose object of study is social organisation in order to accomplish a mutual goal.
There are a number of management theories that have changed the management business environment in the twentieth century. The theories have assisted managers to come up with better ways of management and organization of people. Managers have been able to increase profits, reduce costs and maximize efficiency. The purpose of this essay is to compare and contrast the contributions of scientific management and the human relations movement to the modern management. This essay will use Frederick Winslow Taylor’s theory on scientific management and Elton Mayo’s human relations theory. These two movements have been proven to increase productivity in the workplace (Mullins, 2005).
The definition of ‘management’ is controversial and subject to much debate. There have been many contradictory views on what the term ‘management’ means and accordingly how one should correctly manage an organisation. These theories have been put forward by several highly regarded management scholars over time. By taking into account past knowledge and contemporary views on management, we are able to ‘’explore how thinking has changed through time’’. (Brooks, 2006). Moreover, businesses have, and can continue to be able to adapt these theories and put them into practice. Successfully applying correct management practices is especially vital in a global business environment which is becoming very competitive. ‘’Most management theories, even those that do not resonate comfortably with the prevailing mood, have attractive and valid elements to them.’’ (Robinson, 2005). For example, some of these theories can be seen flourishing in fast food chains like McDonalds.