unit2
unit2
UNIT- 2
SYLLABUS CONTAIN- Evolution fo management thought, Tylor,
Fayol, Elton Mayo, Liket & Webber ( Theories of Management) :
Recent trends and future challenges of Management.
AN INTRODUCTION TO EVOLUTION OF MANAGEMENT
Peter Ferdinand Drucker, one of the leading management gurus, said it best—“Management is
doing things right; leadership is doing the right things”.
In any organization, teamwork and leadership act as catalysts for business success. The way
someone manages their team or the entire workforce has a direct impact on the organization’s
growth and profitability. The evolution of management can be studied in the way different
theories emerged at different points in time.
Over time, different management theories emerged, evolved and continue to be practiced in
several business environments. Read on to explore various types of management theories and
how they contributed to the evolution of management principles.
The Industrial Revolution in the early 19th century brought monumental changes in the
workplace. As factories were the primary source of employment, management theorists studied
the operations and workforce present on the factory floors. There were times when the demand
was high but the lack of productivity and efficiency held workplaces back. The Industrial
Revolution gave birth to multiple management theories and concepts that developed over time
and are still relevant today.
TRACING EVOLUTION OF THE MANAGEMENT THROUGH THEORIES
Management theories help you study an organization, its corporate designs, structures and
behavior of individuals or groups. By studying the impact of internal and external business
environments, these theories provide a lens to address critical questions about how a business
works or operates. Management theories can be grouped under three categories—classical theory,
neoclassical theory and modern management theory. Let’s take a look at the individual theories in
detail:
• Administrative Management
Henry Fayol, a French mining engineer, laid down five functions and 14 principles of
management under the theory of Fayolism. This gave way to the school of administrative
management. He believed that these functions and principles can guide managers to fulfill their
responsibilities effectively and they should have the liberty to determine how to use them.
• Contingency Approach
The Contingency Management Theory suggests that there isn’t any perfect way to organize a
business or corporation. The optimal solution lies in the situation that an organization
operates in. A business is contingent (depends) upon internal or external environments.
It’s evident that in the long history of the evolution of management, the focus has shifted from
the structure and authority to the people behind the scenes. Many of these principles hold
relevance in modern workplaces even if society continues to evolve. Practicing the principles of
various management theories will not only bring success to your organization but also improve
your relationship with your team.
Then, after experimenting with different tools and/or procedures, which often
included varying rest intervals, the tools and/or procedure that would produce
the optimal productivity could be determined.
And finally, with optimal tools and/or procedures determined, such tools and/or
procedures could be documented and used as standard for a given task.
Principle Two: Scientifically Select, Train, Teach, and Develop the worker
Given the “science” of the task, Taylor then said that individuals “especially
suited” for the work should be selected. In his example of a pig-iron handler,
he found that approximately only one in eight current workers were capable
of meeting the newly established standards. That being said, he also
determined that there were plenty of other internal and external candidates
that would be capable of fulfilling the role. Thus, combined, it was clear to
him that selection and correct assignment were critical to the theory of
Scientific Management.
Regarding training and development, if a worker was performing below
standard, Taylor believed that a “competent teacher should be sent to show [the
worker] exactly how [their] work can be best done, to guide, help, and
encourage [them]…[and give them] the time and the help required to make
[them] proficient at [their] present job.”
However, if after studying the worker it was found that they would be unable to
perform according to standards, the worker should then be “shifted to another
class of work for which [they are] either mentally or physically better suited.”
Therefore, training and development were also important and inextricably
connected to selection and assignment.
Otherwise, it is important to note that Taylor recommended gradual
implementation of a new science to a job. This is because it requires a “change
in the mental attitude of the [worker]” and “it is impossible to hurry it beyond a
certain speed.”
In particular, he believed that “only one [worker] at a time should be dealt
with…until this single [worker] has been thoroughly convinced that a great gain
has come to [them] from the new method.” Then, after “one-fourth to one-third
of the [workers]…have been changed from the old to the new, very rapid
progress can be made, because at about this time there is…a complete
revolution in the public opinion…[about] the new plan.”
Principle Three: Cooperate with the Worker
When speaking about the Bethlehem Steel Company, Taylor said that work
should be distributed among four parties and in the following fashion:
Simultaneously, Taylor said that management should also be “side by side with
the [workers], helping, encouraging, and smoothing a way for them.” Therefore,
management was responsible for enforcement of methods, adoption, and
cooperation, while workers received extra pay for performance.
Finally, when rewarding workers, Taylor stated that it “must come soon after
the work has been done.” This was because he found that workers would lose
motivation if rewards came too far in the future. From his bicycle ball study, he
determined that communication of performance and rewards should come daily
and encouragement through personal attention “as often as once an hour.”
Thus, in addition to being the father of Scientific Management, Taylor was also
ahead of his contemporaries in his understanding of reward-related motivation.
Elton Mayo's contribution to management theory helped pave the way for
modern human relations management methods.
Based on his well-known Hawthorne experiments, Mayo's management theories
grew from his observations of employee productivity levels under varying
environmental conditions. His experiments drew a number of conclusions about
the real source of employee motivation, laying the groundwork for later
approaches to team building and group dynamics. Mayo management theory
states that employees are motivated far more by relational factors such as
attention and camaraderie than by monetary rewards or environmental factors
such as lighting, humidity, etc.
Elton Mayo developed a matrix which he used to illustrate the likelihood that a
given team would be successful. His matrix demonstrates the role that varying
combinations of group norms and group cohesiveness play in team
effectiveness.
The following are the four combinations of Mayo theory and the effect
of
each on
1. Groups with low norms and low cohesiveness are ineffective; they have no
impact, since none of the members are motivated to excel, according to Mayo's
theory.
2. Groups with low norms and high cohesiveness have a negative impact, since
1. Are valid within the tradition; or, if not specific to the tradition,
2. Are otherwise ethical (i.e. fair, useful, or of benefit to the majority).
Someone with traditional authority can maintain respect, compliance, and
their position as long as people believe in the tradition and their commands
fall within the aforementioned parameters.
Companies like Apple, Facebook, and WeWork are known for charismatic leaders — and the associated
lack of rigid protocols, for better or worse.
Almost all of us have, at some time, had to use this type of simple perceptual scale. It
is called a Likert Scale, after Rensis Likert, who invented it early in his career. But
there is more to him than that, as we shall see.
Rensis Likert, 1903 – 1981
Short Biography
Rensis Likert was born in 1903, in Cheyenne, Wyoming. In 1922, he went to study
Civil Engineering (following his father) at the University of Michigan. However, during
a Sociology class in his senior year, he realised he was more interested in people
than in things, so switched subject and won his bachelors degree in Sociology and
Economics, in 1926. In 1932, he was awarded a PhD for research in the new field of
Social Psychology, by Columbia University. As a part of his research he developed a
simplified scale for gauging opinions, which bears his name today. His research
demonstrated that, despite its simplicity, it was able to achieve equally reliable
results, when compared with more sophisticated approaches.
After the war, Government contracted and surveys were no longer mandated by
Congress. So Likert, along with his colleagues sought to establish a centre for reseach
into surveys at one of the universities. In 1946, they settled at the University of
Michigan and founded the Survey Research Center with Likert as its first Director. The
centre changed its name in 1949 to the Institute for Social Research (ISR) and has
grown and thrived ever since. Likert remained Director until his retirement in 1970,
when his co-founder, Angus Campbell, became the second ISR Director.
During the 1950s and 60s, Likert directed his research interest towards management.
His 1961 book, New Patterns of Management, proved highly influential. It introduced his
four systems of management and articulated his advocacy for ‘System 4‘. He followed
this, in 1967, with Human Organization: Its Management and Value. This further detailed
System 4, and contains his most widely quoted statement:
‘…the greater the loyalty of the members of a group toward the group, the greater is the motivation among the
members to achieve the goals of the group, and the greater is the probability that the group will achieve its
goals.’
System 2. Benevolent-Authoritative
This is a patriarchal, patronising system based on a master-servant relationship
between management and employees. Rewards are the motivators and teamwork,
communication, and a sense of ownership of the organisation’s goals are still minimal.
System 3. Consultative
In this style, managers trust subordinates but not wholly. They motivate with both
rewards and involvement, and expect a higher level of responsibility for meeting
goals. There is a moderate amount of teamwork and some communication across and
between levels.
System 4. Participative
Participative management is based on trust and confidence in employees. Goals are
determined collectively and form a basis for motivation and rewards. This fosters a
collective sense of responsibility for meeting company goals, and
incentivises collaborative teamwork and open communication.
1. Supportive group relationships, both within the group and between the group
members and the leader. A sense of care and collaboration.
2. Each person’s individual contribution, needs, value, and development needs to
be equally respected.
3. The group undertakes problem solving together, and aligns behind their
eventual consensus solution.
4. Different groups overlap, with certain individuals playing the role of ‘linking
pin’ between them. These are people whom Karen Stephenson refers to
as ‘Gatekeepers’.
This all has a very modern feel to it and it is hard to feel the sense of novelty Likert’s
ideas had in the 1960s. This, I suggest, is a measure of the importance of Likert’s
ideas. So I choose Option e. Strongly Agree.
Almost all of us have, at some time, had to use this type of simple perceptual scale. It
is called a Likert Scale, after Rensis Likert, who invented it early in his career. But
there is more to him than that, as we shall see.
After the war, Government contracted and surveys were no longer mandated by
Congress. So Likert, along with his colleagues sought to establish a centre for reseach
into surveys at one of the universities. In 1946, they settled at the University of
Michigan and founded the Survey Research Center with Likert as its first Director.
The centre changed its name in 1949 to the Institute for Social Research (ISR) and has
grown and thrived ever since. Likert remained Director until his retirement in 1970,
when his co-founder, Angus Campbell, became the second ISR Director.
During the 1950s and 60s, Likert directed his research interest towards management.
His 1961 book, New Patterns of Management, proved highly influential. It introduced his
four systems of management and articulated his advocacy for ‘System 4‘. He followed
this, in 1967, with Human Organization: Its Management and Value. This further detailed
System 4, and contains his most widely quoted statement:
‘…the greater the loyalty of the members of a group toward the group, the greater is
the motivation among the members to achieve the goals of the group, and the greater
is the probability that the group will achieve its goals.’
System 2. Benevolent-Authoritative
This is a patriarchal, patronising system based on a master-servant relationship
between management and employees. Rewards are the motivators and teamwork,
communication, and a sense of ownership of the organisation’s goals are still minimal.
System 3. Consultative
In this style, managers trust subordinates but not wholly. They motivate with both
rewards and involvement, and expect a higher level of responsibility for meeting
goals. There is a moderate amount of teamwork and some communication across and
between levels.
System 4. Participative
Participative management is based on trust and confidence in employees. Goals are
determined collectively and form a basis for motivation and rewards. This fosters a
collective sense of responsibility for meeting company goals, and
incentivises collaborative teamwork and open communication.
1. Supportive group relationships, both within the group and between the group
members and the leader. A sense of care and collaboration.
2. Each person’s individual contribution, needs, value, and development needs to
be equally respected.
3. The group undertakes problem solving together, and aligns behind their
eventual consensus solution.
4. Different groups overlap, with certain individuals playing the role of ‘linking
pin’ between them. These are people whom Karen Stephenson refers to
as ‘Gatekeepers’.
This all has a very modern feel to it and it is hard to feel the sense of novelty Likert’s
ideas had in the 1960s. This, I suggest, is a measure of the importance of Likert’s
ideas. So I choose Option e. Strongly Agree.
Almost all of us have, at some time, had to use this type of simple perceptual scale. It
is called a Likert Scale, after Rensis Likert, who invented it early in his career. But
there is more to him than that, as we shall see.
After the war, Government contracted and surveys were no longer mandated by
Congress. So Likert, along with his colleagues sought to establish a centre for reseach
into surveys at one of the universities. In 1946, they settled at the University of
Michigan and founded the Survey Research Center with Likert as its first Director.
The centre changed its name in 1949 to the Institute for Social Research (ISR) and has
grown and thrived ever since. Likert remained Director until his retirement in 1970,
when his co-founder, Angus Campbell, became the second ISR Director.
During the 1950s and 60s, Likert directed his research interest towards management.
His 1961 book, New Patterns of Management, proved highly influential. It introduced his
four systems of management and articulated his advocacy for ‘System 4‘. He followed
this, in 1967, with Human Organization: Its Management and Value. This further detailed
System 4, and contains his most widely quoted statement:
‘…the greater the loyalty of the members of a group toward the group, the greater is
the motivation among the members to achieve the goals of the group, and the greater
is the probability that the group will achieve its goals.’
System 2. Benevolent-Authoritative
This is a patriarchal, patronising system based on a master-servant relationship
between management and employees. Rewards are the motivators and teamwork,
communication, and a sense of ownership of the organisation’s goals are still minimal.
System 3. Consultative
In this style, managers trust subordinates but not wholly. They motivate with both
rewards and involvement, and expect a higher level of responsibility for meeting
goals. There is a moderate amount of teamwork and some communication across and
between levels.
System 4. Participative
Participative management is based on trust and confidence in employees. Goals are
determined collectively and form a basis for motivation and rewards. This fosters a
collective sense of responsibility for meeting company goals, and
incentivises collaborative teamwork and open communication.
1. Supportive group relationships, both within the group and between the group
members and the leader. A sense of care and collaboration.
2. Each person’s individual contribution, needs, value, and development needs to
be equally respected.
3. The group undertakes problem solving together, and aligns behind their
eventual consensus solution.
4. Different groups overlap, with certain individuals playing the role of ‘linking
pin’ between them. These are people whom Karen Stephenson refers to
as ‘Gatekeepers’.
This all has a very modern feel to it and it is hard to feel the sense of novelty Likert’s
ideas had in the 1960s. This, I suggest, is a measure of the importance of Likert’s
ideas. So I choose Option e. Strongly Agree.
Page Contents
• New Trends in Management
o #1 Workforce Diversity
o #2 Outsourcing
o #3 Knowledge Management
o #4 Learning Organization
o #5 Time Management
o #6 Business Process Reengineering (BPR)
o #7 Conflict Management
o #8 Stress Management
o #9 Participative Management
o #10 Green Management
o
New Trends in Management
Due to the rapid development of science and technology, globalization in
business, transportation, and communication system, increase the new pace
of economic development emerge various new perspectives in
management that a manager has to apply to today’s obstacles. Some of the
recent trends in management are as follows:
1. Workforce Diversity
2. Outsourcing
3. Knowledge Management
4. Learning Organization
5. Time Management
6. Business Process Reengineering
7. Conflict Management
8. Stress Management
9. Participative management
10. Green Management
Describing individually the above management trends are as follows:
#1 Workforce Diversity
Workforce diversity is the involvement of heterogeneous types of
employees in the organization who represents their age, gender, and
ethnicity. Due to changes in population dimensions, improved workforce,
social pressure, and increased globalization the diversity is constantly
increasing.
The world’s increasing globalization requires more interaction among
people from diverse cultures, beliefs, and backgrounds. People no longer
live and work in an insular marketplace, they are now part of the
worldwide economy with competition coming from nearly every continent.
Due to these reasons, profit and non-profit organizations need more
diversity to become more creative and open to change.
#2 Outsourcing
Outsourcing means getting resources from outside. It is the process of
providing some parts of jobs to other organizations to bring quality and get
the benefit of specialization.
#3 Knowledge Management
Knowledge management is the process that helps organizations to identify,
select, organize, disseminate, and transfer important information and
expertise for organizational prosperity. It emphasizes that knowledge can
be turned into business ideas and used for the success of the organization.
The effective management of knowledge enables management for effective
and efficient problem solving, dynamic learning, strategic planning, and
decision making.
It focuses on identifying knowledge, explicating it in such a way that it can
be shared formally, and showing its value through reuse. For
organizational success, knowledge, as a form of capital, must be
exchangeable among persons, and must be able to grow. And, for problem-
solving, knowledge, must be captured, so that knowledge management can
promote organizational learning, and lead to further knowledge creation.
#4 Learning Organization
Learning organization involves institutions where there is the provision of
continuous learning to adapt to the changing environment of businesses.
You know, the business environment is an ever-changing process. So, to
bring new concepts into the business, the innovation of new ideas, models,
design, structure, and technology is essential. A business organization
performing at the highest level today will not remain the same in the future
if there is no provision of learning.
#5 Time Management
Time management is prioritizing the activities for using time effectively. It
is used for scheduling time. Time is a unique and most important resource
and if it is wasted, it can never be recovered.
Time management may help employees who are suffering from a lack of
planning, sort out their priorities, etc. It is about balancing different aspects
of life which makes the goal achievable. But remember time is always
limited.
#7 Conflict Management
Conflict refers to all kinds of opposition or antagonistic interaction
between or among individuals and groups. It exists when one party has
hampered or is about to hamper the accomplishment of goals.
The manager should identify the reasons for conflicts and solve them
through proper ways such as skill encouragement, handling constructive
conflict, and resolving dysfunctional conflicts.
#8 Stress Management
Stress refers to the body’s psychological, physiological, and emotional
response to any demand. Stress occurs when the pressure is greater than
resources. Large workload, long work hours, fewer resources, less job
security are the major causes of stress to the employees.
#9 Participative Management
It means involving subordinates in the decision-making process with their
immediate superiors. Here, both the manager and the subordinates are
involved in the decision-making process. It increases the value of the
employees by considering them as part of the management.
Employees may experience periods of time where they are not as productive as usual. A decrease
in productivity can sometimes affect other team members and overall goals, making it important
to help employees feel motivated.
Managers who consistently review processes and procedures within the company can increase
efficiency. Perform a workflow analysis to review your current systems and restructure weak
areas. Another way to address this challenge is by asking questions and offering solutions to their
problems. One-on-one meetings provide a great opportunity for managers to reestablish work
hours and expectations regarding work productivity.
2. Being understaffed
Managers must recognize when it's time to hire another team member to help fulfill
responsibilities within their department. Because the hiring process is time-consuming, it's
helpful to get assistance from other managers and human resources professionals when pursuing
a new candidate.
If needed, ask for help when creating a job description, interviewing applicants and selecting the
right person for the desired role. Consider having applicants complete a sample work test to help
you determine the best fit for your team.
3. Lack of communication
Another challenge managers face when overseeing teams is ensuring effective communication.
Because every team member has a different personality, there is a chance for miscommunication
from time to time.
Increase the frequency of communication to ensure employees know exactly what you expect of
them and when you need them to complete it. Redefine standards that reinforce your team's goals
and purposes. Consider implementing a messaging platform for the workplace that allows
everyone to communicate quickly. Let them know if you prefer one form of contact over
another.
4. Poor teamwork
Sometimes, employees may lose focus on collaboration when they spend a lot of time
completing individual tasks. To re-establish teamwork, managers should revisit the purpose of a
project. Managers who take the time to acknowledge their team's efforts and clarify the purpose
of their work commonly see increased levels of motivation.
Consider dividing your team members into partners so they have a chance to work with someone
for a specific project. Team-building exercises are another great way to help everyone learn how
to work better together. Base the content of your exercises around the challenges your team
faces. For example, if they need to get to know each other better, focus on relationship building.
5. Pressure to perform
Some managers, especially new managers, to feel like they are under pressure to achieve
greatness from the very start of their role. If you frequently feel stressed about your leadership
position, take time to revisit the reasons why you were hired for the job. Recognize that leaders
learn from experience and mistakes. While planning helps, you will likely face unexpected
situations. The way that you choose to resolve conflicts and react to challenges reflects your
ability to lead.
6. Absence of structure
A common challenge that managers face in the workplace is the absence of structure, especially
when overseeing a new team. Depending on the work environment, some teams may need to be
supervised more closely than others in order to maintain productivity levels.
Take time to develop an organizational structure that helps employees know what you expect of
them. In addition, show your team respect to encourage loyalty.
7. Time management
Because managers are responsible for overseeing the members of their team and communicating
with other department heads, they typically struggle with balancing their own tasks. One way to
prioritize your own work responsibilities is by scheduling time throughout the day to do specific
work. Let your team know the times you'll be available to them and the times you plan to focus
on your work. Regularly update your calendar, and share it with team members so they know
when they can reach you.
8. Inadequate support
Managers sometimes need approval from the executive team of a company or the business owner
before moving ahead with a project. When the decision-making process takes longer than
expected, it may slow down their team's progress overall. The most important thing to do in this
situation is to be honest with your team members. Let them know that you are waiting for
information from the executive team, and if possible, allow them to work on other projects. Try
to arrange for a one-on-one with the decision-maker to expedite progress.
9. Skepticism
Teams often question the transparency of management when they feel distanced from their
supervisors, especially if certain employees feel like they are doing more work than others.
When people feel they are not part of the plan, their level of trust becomes compromised. Clear
communication and honest interactions help resolve skepticism in most instances because it
builds trust between an employee and manager. When you delegate tasks, explain why you
assigned it and how it contributes to the overall goal.
Sometimes, managers oversee employees who cause tension in the workplace. Knowing how to
properly address any issues before they become major problems is one common challenge
managers face. To address specific concerns, request feedback from your team members to learn
about any issues they may have with completing work or communicating with team members.
Implement any feasible suggestions to show you're listening to your team. Take time to listen to
their concerns and find out what you can about the situation. If you're unsure of what to do next,
consider enlisting the support of an HR professional in your company. Their training supports
conflict resolution and other aspects of employee relations.
People who get promoted at work often find themselves managing old coworkers. This situation
may feel awkward at first, but with time and the right leadership, it may become less of an issue.
Ensure team members that you're there to support their efforts and ensure they have everything
they need to accomplish their goals. It may help to have a meeting shortly after the transition
where you address the change in roles and allow your team members to ask any questions.