History of Management

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History of Management
Definition of Management

Traditionally, the term "management" refers to the activities
(and often the group of people) involved in the four general
functions: planning, organizing, leading and coordinating of
resources. Note that the four functions recur throughout the
organization and are highly integrated. Emerging trends in
management include assertions that leading is different than
managing, and that the nature of how the four functions are
carried out must change to accommodate a "new paradigm" in
management. This topic in the library helps the reader
accomplish broad understanding of management (including
traditional and emerging views), and the areas of knowledge
and skills required to carry out the major functions of
management.
Traditional Interpretations of
Management

There are a variety of views about this term.
Traditionally, the term "management" refers
to the activities (and often the group of
people) involved in the four general functions
listed below. (Note that the four functions
recur throughout the organization and are
highly integrated):
Interpretations of Management
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Another common view is that "management" is getting things
done through others. Yet another view, quite apart from the
traditional view, asserts that the job of management is to
support employee's efforts to be fully productive members of
the organizations and citizens of the community.
To most employees, the term "management" probably means
the group of people (executives and other managers) who are
primarily responsible for making decisions in the
organization. In a nonprofit, the term "management" might
refer to all or any of the activities of the board, executive
director and/or program directors.
Interpretations of Management

Some writers, teachers and practitioners assert that
the above view is rather outmoded and that
management needs to focus more on leadership
skills, e.g., establishing vision and goals,
communicating the vision and goals, and guiding
others to accomplish them. They also assert that
leadership must be more facilitative, participative
and empowering in how visions and goals are
established and carried out. Some people assert that
this really isn't a change in the management
functions, rather it's re-emphasizing certain aspects
of management.
Scientific Management Theory
(1890-1940)

At the turn of the century, the most notable organizations
were large and industrialized. Often they included ongoing,
routine tasks that manufactured a variety of products. The
United States highly prized scientific and technical matters,
including careful measurement and specification of activities
and results. Management tended to be the same. Frederick
Taylor developed the :scientific management theory” which
espoused this careful specification and measurement of all
organizational tasks. Tasks were standardized as much as
possible. Workers were rewarded and punished. This
approach appeared to work well for organizations with
assembly lines and other mechanistic, routinized activities.
Bureaucratic Management Theory
(1930-1950)

Max Weber embellished the scientific
management theory with his bureaucratic
theory. Weber focused on dividing
organizations into hierarchies, establishing
strong lines of authority and control. He
suggested organizations develop
comprehensive and detailed standard
operating procedures for all routinized tasks.
Human Relations Movement
(1930-today)

Eventually, unions and government regulations
reacted to the rather dehumanizing effects of these
theories. More attention was given to individuals and
their unique capabilities in the organization. A major
belief included that the organization would prosper if
its workers prospered as well. Human Resource
departments were added to organizations. The
behavioral sciences played a strong role in helping to
understand the needs of workers and how the needs
of the organization and its workers could be better
aligned. Various new theories were spawned, many
based on the behavioral sciences (some had name
like theory “X”, “Y” and “Z”).
Contemporary Theories in
Management
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Contingency Theory
Basically, contingency theory asserts that when managers
make a decision, they must take into account all aspects of the
current situation and act on those aspects that are key to the
situation at hand. Basically, it’s the approach that “it
depends.” For example, the continuing effort to identify the
best leadership or management style might now conclude that
the best style depends on the situation. If one is leading
troops in the Persian Gulf, an autocratic style is probably best
(of course, many might argue here, too). If one is leading a
hospital or university, a more participative and facilitative
leadership style is probably best.
Systems Theory

Systems theory has had a significant effect on management
science and understanding organizations. First, let’s look at
“what is a system?” A system is a collection of part unified to
accomplish an overall goal. If one part of the system is
removed, the nature of the system is changed as well. For
example, a pile of sand is not a system. If one removes a sand
particle, you’ve still got a pile of sand. However, a
functioning car is a system. Remove the carburetor and
you’ve no longer got a working car. A system can be looked
at as having inputs, processes, outputs and outcomes. Systems
share feedback among each of these four aspects of the
systems.
Systems Theory

The effect of systems theory in management is that writers,
educators, consultants, etc. are helping managers to look at
the organization from a broader perspective. Systems theory
has brought a new perspective for managers to interpret
patterns and events in the workplace. They recognize the
various parts of the organization, and, in particular, the
interrelations of the parts, e.g., the coordination of central
administration with its programs, engineering with
manufacturing, supervisors with workers, etc. This is a major
development. In the past, managers typically took one part
and focused on that. Then they moved all attention to another
part. The problem was that an organization could, e.g., have a
wonderful central administration and wonderful set of
teachers, but the departments didn’t synchronize at all.
Chaos Theory

As chaotic and random as world events seem today, they seem as
chaotic in organizations, too. Yet for decades, managers have acted
on the basis that organizational events can always be controlled. A
new theory (or some say “science”), chaos theory, recognizes that
events indeed are rarely controlled. Many chaos theorists (as do
systems theorists) refer to biological systems when explaining their
theory. They suggest that systems naturally go to more complexity,
and as they do so, these systems become more volatile (or
susceptible to cataclysmic events) and must expend more energy to
maintain that complexity. As they expend more energy, they seek
more structure to maintain stability. This trend continues until the
system splits, combines with another complex system or falls apart
entirely. Sound familiar? This trend is what many see as the trend
in life, in organizations and the world in general.
4 Functions of Management

Planning, including identifying goals,
objectives, methods, resources needed to
carry out methods, responsibilities and dates
for completion of tasks. Examples of planning
are strategic planning, business planning,
project planning, staffing planning,
advertising and promotions planning, etc.
4 Functions of Management

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Organizing resources to achieve the goals in an
optimum fashion. Examples are organizing new
departments, human resources, office and file
systems, re-organizing businesses, etc
Leading, including to set direction for the
organization, groups and individuals and also
influence people to follow that direction. Examples
are establishing strategic direction (vision, values,
mission and / or goals) and championing methods of
organizational performance management to pursue
that direction.
4 Functions of Management

Controlling, or coordinating, the organization's
systems, processes and structures to reach effectively
and efficiently reach goals and objectives. This
includes ongoing collection of feedback, and
monitoring and adjustment of systems, processes and
structures accordingly. Examples include use of
financial controls, policies and procedures,
performance management processes, measures to
avoid risks etc.
Management Styles
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Managers have to perform many roles in an
organization and how they handle various situations
will depend on their style of management. A
management style is an overall method of leadership
used by a manager. There are two sharply
contrasting styles that will be broken down into
smaller subsets later:
Autocratic
Permissive
Characteristics of Management Styles
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Autocratic: Leader makes all decisions unilaterally.
Permissive: Leader permits subordinates to take part
in decision making and also gives them a
considerable degree of autonomy in completing
routine work activities.
Combining these categories with democratic
(subordinates are allowed to participate in decision
making) and directive (subordinates are told exactly
how to do their jobs) styles gives us four distinct
ways to manage:
Characteristics of Management Styles
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Directive Democrat: Makes decisions
participatively; closely supervises subordinates.
Directive Autocrat: Makes decisions unilaterally;
closely supervises subordinates.
Permissive Democrat: Makes decisions
participatively; gives subordinates latitude in
carrying out their work.
Permissive Autocrat: Makes decisions unilaterally;
gives subordinates latitude in carrying out their
work.
In what situations would each style
be appropriate? Inappropriate?
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Managers must also adjust their styles
according to the situation that they are
presented with. Below are four quadrants of
situational leadership that depend on the
amount of support and guidance needed:
Telling: Works best when employees are
neither willing nor able to do the job (high
need of support and high need of guidance).
In what situations would each style
be appropriate? Inappropriate?
Delegating: Works best when the employees are willing to do
the job and know how to go about it (low need of support and
low need of guidance).
 Participating: Works best when employees have the ability to
do the job, but need a high amount of support (low need of
guidance but high need of support).
 Selling: Works best when employees are willing to do the job,
but don’t know how to do it (low need of support but high
need of guidance).
The different styles depend on the situation and the relationship
behavior (amount of support required) and task behavior
(amount of guidance required).

Decide NOW

Below are a few situations and options for
what you would do. Try to decide which of
the four situational styles would work best in
each situation. Then pick the option that best
fits that style.
Situation 1
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The employees in your program appear to be having serious
problems getting the job done. Their performance has been
going downhill rapidly. They have not responded to your
efforts to be friendly or to your expressions of concern for
their welfare. Which style would you pick? What would
you do?
Reestablish the need for following program procedures and
meeting the expectations for task accomplishment.
Be sure that staff members know you are available for
discussion, but don’t pressure them.
Talk with your employees and then set performance goals.
Wait and see what happens.
Situation 2
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During the past few months, the quality of work done by staff
members has been increasing. Record keeping is accurate and
up to date. You have been careful to make sure that the staff
members are aware of your performance expectations.Which
style would you pick? What would you do?
Stay uninvolved.
Continue to emphasize the importance of completing tasks
and meeting deadlines.
Be supportive and provide clear feedback. Continue to make
sure that staff members are aware of performance
expectations.
Make every effort to let staff members feel important and
involved in the decision making process.
Situation 3
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Performance and interpersonal relations among your staff
have been good. You have normally left them alone.
However, a new situation has developed, and it appears that
staff members are unable to solve the problem themselves.
Which style would you pick? What would you do?
Bring the group together and work as a team to solve the
problem.
Continue to leave them alone to work it out.
Act quickly and firmly to identify the problem and establish
procedures to correct it
Encourage the staff to work on the problem, letting them
know you are available as a resource and for discussion if
they need you.
Situation 4
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You are considering a major change in your program. Your
staff has a fine record of accomplishment and a strong
commitment to excellence. They are supportive of the need for
change and have been involved in the planning.Which style
would you pick? What would you do?
Continue to involve the staff in the planning, but direct the
change.
Announce the changes and then implement them with close
supervision.
Allow the group to be involved in developing the change, but
don’t push the process.
Let the staff manage the change process.
Organizational Life Cycles and
Management Styles

Based on the book "Barbarians to Bureaucrats"
by Lawrence Miller, published by C.N. Potter: New York.
Edited by Carter McNamara, MBA, PhD
In this very enlightening book, Miller suggests there is a strong relationship
between the life-cycle stage of an organization and the nature of its leadership. He
asserts this evolutionary life-cycle is typical to cultures as well as organizations.
His work shows powerful insights to the nature of organizations and their
management and matches the experiences of many practitioners. His work can be
referenced to explain much of the wide variation in management styles, yet close
association between styles of management and stages of an organization's life.
Miller suggests that the life of an organization is similar to the shape of a bell
curve, that is, the organization experiences a rise of health, it peaks, and then
gradually declines. The life-cycle stages of Prophet, Barbarian, Builder, Explorer
stages are on the way up the curve of health, the Synergist is at the peak, and the
Administrator, Bureaucrat, and Aristocrat stages are on the way back down the
curve of health.
Synergist

Miller says a synergist is "... a leader who has
escaped his or her own conditioned tendencies
toward one style and incorporated,
appreciated and unified each of the styles of
leadership on the life-cycle curve. The best
managed companies are synergistic." Miller
asserts that the synergist is a synergy of the
other management styles, and therefore, is
best described by a set of principles.
Synergist

1. Spirit - Corporations are both spiritual and material in nature. In their youth,
they possess spiritual rather than material assets. In decline, this is reverse. Health
is maintained by unifying the spiritual and material assets.
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2. Purpose - The purpose of the business organization is to create real wealth by
serving its [stakeholder!]. It is a function of leadership to instill and reinforce social
purpose.
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3. Creativity - The first and most important act of business is the creative act: the
creation of new and improve products, services, selling and means of production.
Change, youthfulness and energy are requirements until death. (Those who lean
toward creativity will be required to sacrifice for the sake of administrative sanity.)

4. Challenge and response - The task of leaders is to create or recognize the
current challenge, respond creatively, and avoid a condition of ease. Reliance on
yesterday's successful response in the face of new challenges leads to decline. (It is
an irony of life that satisfaction and security are the enemies of excellence.)
Synergist
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5. Planned urgency - The urgency to decide and act promptly leads to expansion
and advance. Prompt action must be balanced by deliberate planning. There will
always be conflict between promptness and planning.
6. Unity and diversity - Advancing cultures are socially unifying and become
diverse in character. Leaders must act to unify diverse talents and traits. Leaders
must actively resist the tendency to attract and promote like personalities and
skills.
7. Specialized competence - Specialized knowledge and skills and the integration
of those competencies must be pursued vigorously. Efficient methods are derived
from specialized competence; however, specialized competence leads to
inefficient methods.
8. Efficient administration - Efficient administration is required to achieve
integration and performance as differentiation increases. Unchecked
administration inevitably leads to bureaucracy and the decline of creativity and
wealth creation.
9. On-the-Spot Decisions - Decisions should be made by those on-the-spot,
close to the customer, product or service. The further decisions are removed
from the point of action and knowledge, the worse the quality and the higher the
cost. Consensus is a sign of maturity and health.
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