Administration Management History and Leaders A Summary
Early management thought was dominated by cultural values that were antibusiness,
antiachievement, and largely antihuman in Pre-Classical era.
Industrialization was emerged by the people who were free from monarchs’ ruler, and
begun to seek for individual fulfillment and betterment.
Although some early ideas of management appeared locally in Pre-Classical era,
economies and societies were essentially static before the Industrial Revolution because
of political values that involved one-sided decision-making by some central authority.
Most leadership models in the Pre-Classical era, were run on the divine right of the kings
on the appeal of dogma to the faithful, and on the rigorous discipline of the Leadership
Models military.
Under these leadership models, there was little or no need to develop a formal body of
management.
The Protestant ethic took important role to challenge to the central authority of the
church, and a response to the needs of people for achievement in this world; the liberty
ethic showed the old struggle between monolithic and representative forms of
government that sought to protect individual rights and the market ethic as Wren notes.
The cultural rebirth set up the preconditions of industrialization, and faced with a
competitive, changing environment, and changed the emergence and refinement of the
market economy that needed managers for a rational, formalized, systematic consistency
of knowledge to manage, become more creative, and manage better organization. The
change did not come suddenly but devised over a long period as the culture changed.
In Classical era, Frederick W. Taylor was a central figure in developing management
thought, and the American industrial scene at a time of transition from entrepreneurial,
manager-owner firms to large-scale, fully combined corporations. Taylor provided
credibility to management.
The engineers opened the door for economizing resource use for turning to technical
subjects, and left to open for Taylor and others to promote systematic management with
its popularized label of scientific management.
Advancing technology, market growth, labor unrest, and a lack of knowledge of
management, industry in the United States was looking for better ways to produce and
market products. Answer for this needs, Taylor summarized voice, a spirit that captured
the imagination of the public, business leaders, and academics. Taylor sought the world a
better way to live through improved productivity but was not well received because of his
ideas to the industrial world as a medicine rather than a candy. Thus, Taylor’s Principles
Leadership Models of Scientific Management contained more advocacy than fact, and
was more reform minded than scientific Wren, 2004).
Whatever opponents disagreed or criticisms on Taylor’s works, undoubtedly he left a
lasting mark in his time and ours, and he was not alone but was joined by many others
who could apply, adapt, refine, and spread the idea of scientific management to improve
not only for management skills but also for effective leadership models today. Wren
continues Taylor provided the polestar to a significant era in devising management
thought. “Taylorism is brilliant in theory but execution in compete detail remains untried
90 years later” (Metzgar, 2004, p.49).
Post-Modernism era, the new leadership models were developed redefine from a general
theory of management of Fayol’s theory, that continuously studied and researched by
Newman, Irwin, Terry, Koontz and O’Donnell, Kotter, Drucker, and Porter. In this era,
reawakening general management theory that occurred as organizations grew, diversified,
and with the need for more broadly educated general managers, and Fayol’s heirs took his
elements and formed them into the management process approach as Wren wrote.
There were several people in the twentieth century who recognized the importance of the
human factor to an organization's success; some of them are Follett and Barnard (Winter,
2003).
Koontz revisited and found more diversity in management. Drucker highlighted the need
to improve the practice of management, and condemned the often sterile research of the
academics. Fayol’s general management theory provided a framework for the transition to
business policy and strategic management. To the firm; however, attention Leadership
Models was turned to general management as an integrating activity in business policy as
it devised to strategic management.
This connection suggests the compatibility between general management theory and
strategic leadership as firms are led to invent and innovate in a dynamic fashion to
survive. History and evolving administration and highlights the contributions of pioneers:
- Frederick Taylor,
- Henry Fayol:
- Luther Gulick,
- Lyndall Urwick,
- Mary Parker Follett,
- Elton Mayo and Fritz Roethlisberger,
- Chester Barnard,
- Herbert Simon and Max Weber in the field.
- Huen Yu, 2004).
Henri Fayol's five functions of management, which are planning, forecasting, organizing,
coordinating, commanding (directing/leading), and controlling. Strategic skills give
managers the wherewithal to understand how administration fits into the “bigger
picture” and the impact that a good (and indeed bad) administrative service can have on
overall organizational effectiveness and bottom line performance (McLean, 2006).
Administration and Management Schools \ Philosophies
6 - Management by Objectives: This is one of the recent management styles and in
today's diverse market, it is very useful. It was popularized by Peter Drucker in 1954.
(Back to Stone Age)
5 - Complex man: This management style is a critique on all the previous management
style. It believed in Safety Culture. Propounded by EH Schein in the 1960s
4 - Human Needs & Motives: Maslow's theory on the Hierarchy of Needs had many
implications for management style.
3 - Hawthorne Effect: Developed in the 1930s and 1940s, the Hawthorne experiments
by Elton Mayo were the basis of this management style. This management style believes in
the concept of: "a happy worker, is a good worker.
2 - Process Approach: This is the second of the early business management styles. The
process approach was propounded by Henry Fayol in the 1920s
1 - Scientific Management: This is one of the earliest management styles. Propounded
and developed by Frederick Winslow Taylor in 1900
MOST POULARY MANGEMENT STYLES
As management encompasses man, money and material, there are several aspects that
govern and are governed by management styles. Since man is the first and foremost
consideration, the leadership styles followed by different managers has led to forging
different management styles as well. There are a few such popular management styles.
Autocratic or Authoritarian
In this style the complete authority is in one person's hand and no one else can question
it. It is also known as totalitarianism or dictatorship. It does forge an atmosphere of
discipline in the organization. However, it can at times cause dissatisfaction and a lack of
"creative space" for the employees. For such a manager, the employees are just a
replaceable resource and not the core of the organization. The manager believes in topdown communication, wherein orders are given by the higher hierarchical level to the
lower ones. The concept of "employee satisfaction" does not hold importance for such a
manager.
Paternalistic: In this style, the authority is in the hand of one individual. However, that
one individual cares more about the employees than outcomes and profits. That means the
manager will be more like a parent rather than a boss. In this kind of a management style
also, the complete authority lies in the hands of one individual, however the method of
functioning is very different as compared to Autocratic. In such a management style, the
employees are the heart of the organization. "Employee satisfaction" holds higher priority
than profits. This kind of a manager believes in top-down as well as bottom-up
communication.
Democratic: in this management style, the management allows the employees to voice
their opinions. Most company policies and decisions are made, taking into consideration
employee opinions. It is also known as Participative style. This means that a meeting is
held with representatives from each hierarchical level, in order to take a decision about the
smallest company policies, as well as the major ones. Such a manager will prefer to have
an open-door policy in the organization to ensure that the management and the employees
communicate openly and freely with each other. "Confidentiality" is not of much substance
to such a manager.
Laissez-faire: In this management style, the targets are communicated to the
employees, however, the employees can go about meeting those targets in whichever way
they want. It is a very liberal management style. However, there is a lot of chaos in the
delegation of authority as well as responsibility. Communication is free, however, more
through the grapevine. This leads to the employees taking their work for granted. On the
other hand, the manager evades his duty very conveniently. If out of control, this
management style can spell "doom" for an organization. However, it is adopted in control
by many organizations these days and working well, when in compatibility with the other 3
styles.
The above mentioned management styles are more closely linked to the personality and
leadership qualities of a leader-manager. They are based on the style and principles
followed by a manager in particular, not the organization, as a whole. If there is a change
in a manager, an autocratically managed organization can become a paternalistic one!
Further, different requirements in organizations have led to development of many more
management styles. They are as follows.
Management by Coaching and Development (MBCD):
In this management style, the manager is more like a coach in a nurturing role. The
employees have a long learning curve and the general work experience is more like a
learning experience. In this management style, the manager leads not by ordering but by
coaching and in this way performs his role of employee training.
Management by Competitive Edge (MBCE):
In this management style, the concept of healthy competition is duly fostered. In an
organization following such a management style, all the employees and encouraged to
compete with each other. This is mostly done with the help of R&R strategies (rewards and
recognition strategies).
Management by Consensus (MBC):
This management style is more along the lines of democratic style. It encourages the
employees to give their opinions, suggestions and feedback. This helps the organization in
taking adequate employee-centric decisions. It is followed to quite an extent in
organizations these days.
Management by Decision Models (MBDM):
In this management style, decision models are prepared in order to work as precedent.
These decision models are prepared with the help of hypothetical situations and
projections made therefrom. This kind of a plan of action can work at many times,
however, in case of a contingency, it would fail.
Management by Exception (MBE):
In this management style, the concept of delegation of authority is highly followed. Each
manager delegates as much responsibility and authority down the ladder, as possible. He
only steps in as an end responsible and when consulted.
Management by Information Systems (MBIS):
As the name of the management style amply suggests, this style is based on results
generated out of a database. The MBIS is depended upon for decision-making and interrelatedness. It is used for efficiency analysis and to increase efficiency as well.
Management by Matrices (MBM):
In this management style, decisions and policies are made with reference to charts and
variables. These charts help the management to figure out the efficiency, productivity,
interrelation and other factors.
Management by Organizational Development (MBOD):
In this management style, the managers work on improving the employee communication
and relations. It is like the paternalistic style, but the organization's priority is profit rather
the "employee satisfaction". Nonetheless, an organization following this management
style, will work on having good employee relations and communication as well.
Management by Performance (MBP):
In this management style the key is performance. The managers believe that profitability
is a derivative of performance. Hence, the work on motivating the employees to achieve
higher and higher performance. They do this with the help of R&R combined with employee
satisfaction techniques.
Management by Styles (MBS):
This is probably the most flexible of all management styles. It believes in changing the
management style and adapting it as per the changing scenario and requirement. As such,
this management style is prepared for contingency in spite of being flexible.
Management by Walking Around (MBWA):
Yes, it sounds a little "out there", but Dave Packard, co-founder of Hewlett-Packard,
developed this management style. It believes in the manager walking around the office
interacting with the employees. This not only helps the manager get the feel of the
employee sector, but also makes the employees feel cared for and connected to the
management. It helps motivate the employees and results in better output and loyalty
form the employees. This style is based on the premise that communication is the key.
Management by Work Simplification (MBWS):
This management style believes in only one method. Simplification! So if it means that the
work gets divided to double the number of people or change in a policy, that is what they
will do. This is a very liberal method, yet it also leads to a lot of discipline and control.
Further, employees feel secure and satisfied.
Management by Intercourse:
Now, before you start imagining, this management style is also known as Management by
Interaction. This management style believes that both male and female employees are
required in an organization, to achieve a balance and optimum equilibrium of performance
and profitability. Hence, it works on having conducive interpersonal relations between all
employees.
The bottom line that any management needs to keep in mind is that along with profits,
they need to ensure employee satisfaction as well.
The perfect blend of all the positive and conducive aspects of all the management styles
and techniques can lead to a harmonious and profitable organization-specific management
style.
This is where I sign off!! All the best!!
By Rashida Khilawala
Last Updated: 9/23/2011
2 - Process Approach: This is the second of the early business management styles. The
process approach was propounded by Henry Fayol in the 1920s
Fayolism follows 14 principles of Administration:
1. Division of work
2.
3.
4.
5.
6.
Authority
Discipline
Unity of command
Unity of direction
Subordination of Individual Interests to the Common
Interest
7. Remuneration of personnel
8. Centralization
9. Scalar chain
10.
11.
12.
13.
14.
Order
Equity
Stability of personnel tenure
Initiative
Esprit de corps (Union is strength)