The Evolution of Management Theory

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During the industrial revolution that took place in Western Europe and North America in the 18th century; various machines were built and the economy which was based on manual labor was replaced by machines. Then factories of large scale in the garment sector, automobile sector etc emerged rapidly and the need to increase organizational efficiency and effectiveness has guided the evolution of management theory till today. Managers, theorists, researcher searched for way of how to utilize their resources to the maximum and thereby attain efficiency and effectiveness.


In the pre-classical era, that is during the emerge of various mass production factories
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Ford Motor Company's first moving assembly line was located in Highland Park, Michigan in 1913. Above, the exterior of the Ford building was used for lowering the auto body on the chassis. Ford Motor Company was one of the first manufacturing plants to use assembly lines to mass produce "look alike automobiles." The process allowed Henry Ford to keep prices down and better control the quality of the automobile.


Administrative management focuses on management and operation of the total organization. The administrative theorists looked for the best way to combine jobs and people into an efficient organization.

One administrative theorist whose ideas stand out is Henri Fayol. Fayol divided management into five activities: _planning, organizing, commanding, coordinating, and controlling_. At the heart of his theory was the use of foresight (planning). He advocated both long-range planning and participation by man agers.

Within the group of five major activities, Fayol developed a list of basic management principles for achieving a good organization. These principles are summarized as below.

_DIVISION OF WORK._ The intent of division of work is to produce more and better work for the same effort. Specialization is the most efficient way to use human effort.

_AUTHORITY AND RESPONSIBILITY._ Authority is the right to give orders and obtain obedience, and responsibility is a corollary
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