CHAPTER 1: The evolution of management theories
7.
Partnership for goals. While Sappi is already engaged in, and has been
contributing to many partnerships and collaborations, they are looking
forward to working more deeply with others to scale their ambition in pursuit
of achieving the Sustainable Development Goals by 2030.
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In South Africa, home to Sappi’s global headquarters, they have selected an additional
priority SDG that reflect the socio-economic development priorities that reinforce their
unique and longstanding investments in people and local communities in the country.
Their target is to advance their Broad-based Black Economic Empowerment to Level 1.
LO 1:
Present an overview of the traditional theories of management.
1.1
The traditional theories of management
Management theories all have one thing in common – to find an answer to the
question ‘What is the best way to manage a business?’ The theories of management
can be categorised in the traditional and contemporary theories of management. In
this section, we will focus on the traditional theories, starting from the early 1800s,
even though examples of management thought and practice can be found throughout
history. For example, the earliest recorded instance of information management dates
to Sumer (modern Iraq), 8000–3000 BC, when Sumerian businessmen used small clay
tokens to calculate quantities of grain and livestock, and later value-added goods,
like perfume and pottery, that they owned and traded at city gates. Different shapes
and sizes of the tokens represented different types and quantities of goods. The tokens
were used to store data. They were kept in clay envelopes and the token shapes
were impressed on the outside of the envelopes to indicate what was inside. What
a tedious process. Eventually, someone figured out that it was easier to just write
these symbols with a stylus on a tablet rather than using tokens. Eventually, the new
technology of writing led to more efficient management of the business of Sumerian
temples. Another example is the building of the great pyramids in Egypt (4000 BC
to 2000 BC), which was bound to present many problems that would lead to the
development of managerial ideas and theories. When building the pyramids,
the Egyptians recognised the need for planning, organising and controlling.
Furthermore, requests for materials were submitted in writing and decisions were
made after consultation with staff for advice. There are numerous other examples of
management thought and practice – in 1800 BC Hammurabi established controls by
using witnesses and writing to document transactions, in 600 BC Nebuchadnezzar
used wage incentives and production control, and in 1525, Machiavelli promoted
cohesiveness, power and leadership in organisations.
Then came the first Industrial Revolution (1750–1900), and jobs and organi­
sations changed dramatically.
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The traditional theories of management that we will peruse in more detail dates
to the mid-1800s and include the scientific approach; bureaucratic management;
administrative management; the human relations approach to management; and the
operations, quality, information, systems and contingency approaches to management.
1.1.1 Scientific approach to management
The First Industrial Revolution occurred from the mid-18th to the early 19th century
in certain areas of Europe and North America. An Industrial Revolution can be defined
as the process of change from an agrarian and handicraft economy to one dominated
by industry and machine manufacturing. Mass production of goods took place, with
a focus on increased efficiency, higher productivity, and reduced average costs. Rapid
industrialisation and scientific discoveries had a cost in terms of pollution and poor
working conditions for labour during this time. Company owners hired ‘bosses’, and
they were used to make decisions haphazardly, without any systematic study, thought,
or collection of information. If bosses decided workers should work harder, no thought
was given to worker motivation. Moreover, each worker did the same job in his or her
own way with different methods and different tools. In short, there were no procedures
to standardise operations, no standards to judge whether performance was good or
bad, and no follow-up to determine whether quality and productivity improved when
certain changes were made. This all changed with the development of the scientific
approach to management. The scientific approach to management involved a thorough
study and testing of different work methods to identify the best, most efficient way
to complete a job. Four individuals contributed tremendously to the development of
scientific management, namely Frederick W Taylor, often referred to as the father of
scientific management, Frank and Lillian Gilbreth, and Henry Gantt.
■
F W Taylor (1856–1915). According to F W Taylor, scientific management is to
find the ‘one best way’ to perform each task. To do that, each manager must follow
four principles developed by Taylor. The first principle is to develop a science
for each element of the work – study each element, analyse it, and determine
the one best way to perform the job. The second principle is to scientifically
select, train, teach and develop workers to help them reach their full potential.
The third principle is the cooperation of managers with employees to ensure that
the scientific principles are implemented. The fourth and last principle entails the
division of the work and the responsibility equally between managers and workers.
Taylor’s principles can be used to determine a fair day’s work, that is, what an
average worker could produce at a reasonable pace, day in and day out. Once that
was determined, it was management’s responsibility to pay workers fairly for that
day’s work. Taylor was trying to align management and employees so that what
was good for employees was also good for management and the business.
■
Frank (1868–1924) and Lillian Gilbreth (1878–1972). They are best known
for their use of motion studies to simplify work, but they also made significant
contributions to the employment of disabled workers and industrial psychology.
Motion studies were not only used to simplify work, but also to improve
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