The Evolution Of Management Commerce Essay

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Management over a period of time has evolved into a global phenomenon everything on this planet has a beginning and an end. While the most difficult part is creation it is easier to reach an end. Similar management is a very big umbrella whose creation was the most difficult it involved the phenomenal works of Dale Carnaige, Henry Fayol and Max Webber in the past and the creation was maintained by the modern philosophies of Ron Coffman, and Mr Shiv Khera.

Management began at homes itself. The managerial work used to be an everyday phenomenon till people actually gave the phenomenon the name "Management". According to Dr Dennis Leary (1996) "Management is like a ladder of success that changes size width shape and form after every step".

In the past management was based on two outlooks. A scientific outlook and a service outlook, this was the period of creation of management, the two theories that shaped management the way modern world sees it today.

Scientific Theory of management (Henry Fayol)

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According to the scientific theory of management Henry Fayol mentioned that a man's work was directly proportional to his working hours i.e. for how long has he been at work and what is his muscular capacity to perform a certain kind of work.

The other scientific approach in the history of management that was well appreciated was the "Hawthorne studies". A study conducted on factory workers and how management work or work in general was affected by the intensity of light in a working place. The more the intensity of light the more work output the lesser the intensity the lesser was the output.

Service theory of management (Dale Carnaige)

The theory of service management depends on the working environment, motivation, and friends and other environment related issues. According to Dale carnage's authored book "How to win friends and influence people" (1988) he mentions the very fact, that a sound service mentality and the ability to influence colleagues is what increases the efficiency of a working individual.

So this involves the basic history of management and it provides us with a good understanding of management before we go into contemporary theories of management given by Ron Coffman and Shiv Khera.

Theory of management by Ron Koffman:

The Bounce back Theory, a Graph study:

The bounce back theory of management is probably one of the strongest theories of management sequence that ever came into existence. Look at the graph above imagine all the red spots to be the alphabets A B C D and E respectively. Let us now do a study of management let us listen to the case study of a Gucci Showroom.

"Mr Jack wakes up one morning; he is the CEO of one of the Best textile companies in the US. He decides his professional shoes have been worn out he needs new ones and that too the ones that people appreciate. He picks up a cab and tells his chauffer to drive him to the nearest Gucci Showroom. He walks out and enters the showroom. A good looking sales man opens the door for him and greets him "Welcome, to the Gucci showroom sir, how may I assist you" with a smile. The loyalty of Mr Jack reaches to the first red dot a, he is happy.

After a few minutes beautiful lady steps up to Mr Jack and asks him "Sir, May I show you some of our finest shoes," "Yes, definitely" replied Jack. The lady takes him to where the shoes are stacked and brings out sets of three most beautiful formal shoes, "Shoes are many sir, but I feel these fit your personality the best" saying this she makes him try one of them. Seeing the hospitality and the care Mr Jacks loyalty goes up to the next red dot that is B.

After Jack selects his shoe he goes for getting it packed. The shoe is packed neatly placed in a bag of Gucci and handed to him by the lady he is billed with a discount of thirty percent because he is the first customer "Thank you for shopping with us sir, we hope to be of genuine service to you and hope that you look up to us whenever you need your next product" says the manager standing at the billing desk. Mr Jack is duly escorted to his car by one of the sales people and is given an outstanding courteous see off, Mr Jacks loyalty with the showroom reaches up to the next level that is C he is extremely happy with the product and the staff."

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This is how a management should be proactive, concerned, Hospitable and neat and service capable. Now how should it act to increase loyalty just in case the product is defective, let us continue with the case study

"Mr Jack is returning from office on foot, the time is the week after he is purchased the shoes. He is very happy with the quality of the product they are comfortable and classy, just what he needs. Suddenly he trips over a rod length lying on the street, there is a ripping noise. The heel of a brand new Gucci shoes just falls off, a shoe for which Mr Jack had paid not less than 30,000, He was furious, he did not have the receipt, he was conned and he was unhappy.

Mr Jack picks up a cab and rushes to the showroom with the broken shoes dangling in his hand his loyalty for the showroom has fallen to D which was even less than his first. He wants to brag about the shops insolence to everyone. He does not smile at the lady today but straight away steps up to the desk and bangs the broken shoes on the managers table. Mr Jack expects the manager to ask him for a receipt at which point he would start shouting on the staff for the product and its quality but Mr Jack gets something different which stuns him.

"We are extremely sorry Mr Jack we would just replace the shoes". The manager immediately packs a new pair of shoes, he folds a brand new socks and keeps it with them and he also packs an original Gucci wallet with them "We are really concerned about your loss sir and please allow us to, make the necessary corrections and if at any moment of the day you want to report something this is our personal number" says the manager giving Mr Jack his direct number. Mr Jack's loyalty shoots up to E, with the surprising attitude of the manager and all new products.

Imagine what would have happened if the manager would have asked for the receipt of the shoe and asked Mr Jack to repay?

Hence we know management is one of the most exciting concepts of business if it is proper the business shoots the stars if it's not proper it dies.

The different schools of management:

Classic Scientific school:

One of the first schools of management thought, the classical management theory, developed during the Industrial Revolution when new problems related to the factory system began to appear. Managers were unsure of how to train employees (many of them non-English speaking immigrants) or deal with increased lab or dissatisfaction, so they began to test solutions

Frederick Taylor is often called the "father of scientific management." Taylor believed that organizations should study tasks and develop procedures. As an example, in 1898, Taylor calculated how much iron from rail cars Steel plant workers can unload if they were using the correct movements, tools, and steps. The result was an amazing 47.5 tons per day instead of the mere 12.5 tons each worker had been unloading. In addition, by redesigning the shovels the workers used, Taylor was able to increase the length of work time and therefore decrease the number of people shovelling from 500 to 140 in a particular day. He developed an

Incentive system that paid workers more money for meeting the new standard. Productivity shot up overnight. As a result, many theorists followed Taylor's philosophy when developing their own principles of management.

Frank and Lillian Gilbreth, who was a husband-and-wife duo, studied job processes. In Frank's early career as a trainee bricklayer, he was interested in standards and method study. He watched bricklayers and saw that some workers were slow and inefficient, while others were very good. He discovered that each bricklayer used a different set of techniques to lay bricks. From his observations, Frank isolated the basic movements necessary to do the job and eliminated unnecessary hurdles. Workers using these movements raised their output from 1,000 to 2,700 cubes per day. This was the first motion study designed to isolate the best possible method of performing a given task. Later, Frank and his wife Lillian studied job using a camera and a split-second clock. When her husband died at the age of 56, Lillian continued to work.

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Thanks to these contributors and others, the basic ideas regarding scientific management developed which include the following:

Developing new standard methods for doing each job

Selecting, training, and developing workers instead of letting them choose their own tasks and train themselves

Developing a spirit of cooperation between workers and management to ensure that work is carried out in accordance with devised procedures

Dividing work between workers and management in almost equal shares, with each group taking over the work for which it is best fitted

Classic administrative school:

Contributors to this school of thought have Max Weber, Henri Fayol and Mary Parker Follett; These theorists studied the flow of information within an organization and sermonized the importance of understanding how an organization worked.

In the 1800s, Max Weber disliked that many European organizations were managed on a "personal" family-like basis and that employees were loyal to individual heads rather than to the organization. He believed that organizations should be managed impersonally and that a formal organizational structure, where specific rules were followed, was important. In other words, he didn't think that authority should be based on a person's personality. He thought authority should be something that was part of a person's job and passed from individual to individual as one person left and another took over. This non personal, objective form of organization was called a bureaucracy.

Weber believed that all bureaucracies have the following characteristics:

A well-defined hierarchy. All positions within a bureaucracy are made in a way that permits the higher positions to supervise and control the lower positions. This clear chain of command manages control and order throughout the organization.

Division of labour and specialization. All responsibilities in an organization are specialized so that each employee has the necessary expertise to do a particular task.

Rules and regulations. Standard operating procedures govern all organizational activities to provide certainty and facilitate coordination.

Impersonal relationships between managers and employees. Managers should maintain an impersonal relationship with employees so that favoritism and personal prejudice do not influence decisions.

Competence. Competence, not "who you know," should be the basis for all decisions made in hiring, job assignments, and promotions in order to foster ability and merit as the primary characteristics of a bureaucratic organization.

Records. A bureaucracy needs to maintain complete files regarding all its activities.

Henri Fayol, a French mining engineer, developed 14 principles of management based on his management experiences. These principles provide modern-day managers with general guidelines on how a supervisor should organize her department and manage her staff. Although later research has created controversy over many of the following principles, they are still widely used in management theories.

Division of work: 

Division of work and specialization produces more and better work with the same effort.

Authority and responsibility: Authority is the right to give orders and the power to exact obedience. A manager has official authority because of her position, as well as personal authority based on individual personality, intelligence, and experience. Authority creates responsibility.

Discipline: Obedience and respect within an organization are absolutely essential. Good discipline requires managers to apply sanctions whenever violations become apparent.

Unity of command: An employee should receive orders from only one superior.

Unity of direction: Organizational activities must have one central authority and one plan of action.

Subordination of individual interest to general interest: The interests of one employee or group of employees are subordinate to the interests and goals of the organization.

Remuneration of personnel: Salaries - the price of services rendered by employees - should be fair and provide satisfaction both to the employee and employer.

Centralization: The objective of centralization is the best utilization of personnel. The degree of centralization varies according to the dynamics of each organization.

Scalar chain: A chain of authority exists from the highest organizational authority to the lowest ranks.

Order: Organizational order for materials and personnel is essential. The right materials and the right employees are necessary for each organizational function and activity.

Equity: In organizations, equity is a combination of kindliness and justice. Both equity and equality of treatment should be considered when dealing with employees.

Stability of tenure of personnel: To attain the maximum productivity of personnel, a stable work force is needed.

Initiative: Thinking out a plan and ensuring its success is an extremely strong motivator. Zeal, energy, and initiative are desired at all levels of the organizational ladder.

Esprit de corps: Teamwork is fundamentally important to an organization. Work teams and extensive face-to-face verbal communication encourages teamwork.

Behavioural school of management

The theory directs our attention to the human involved concept of management a school based on attributes of management that depend on psychological psych motive and psychological aspects of human behaviour that in turn affect management usefully/ gravely.

The pioneer of this theory was Walter newton according to him anyone in a workplace would not work to their complete expectancy unless the employer would not fulfil the behavioural demands of the person involved. The demands were based on factors like challenges credibility sustenance reality work environment etc.

Elton Mayo conducted the Hawthorne studies. Controlled experiments with group of people and there by understanding their potential to work under certain behavioural conditions. It is believed that workers would work more if their behaviours were attended to by managers and supervisors

Contingency school of ,management

The contingency theory of organizational structure presently provides a major framework for the study of organizational desi It holds that the most effective organizational structural design is where the structure fits the contingencies.

There are, however, several major challenges to it. Some of these are theoretical, while some are empirical. This paper will assess some of these challenges and show that they are overstated. However, some challenges lead to innovations in theory. Other challenges are accompanied by innovations in method. Both these theoretical and methodological innovations constitute opportunities for the contingency theory of organizational structure. In turn, they can feed into the study of organizational design. This paper will discuss first some theoretical challenges to, and opportunities for, the contingency theory of organizational structure.

It will then discuss the empirical and methodological challenges to, and opportunities for, the contingency theory of organizational structure

The Function of Management:

There are five functions of management which are Planning, Organizing, Staffing, Leading, and Controlling.

(1)Planning:

Planning involves selecting missions and objectives and the actions required to reach decisions, the choice of future courses of action among several alternatives. There are five types of planning:

1. Missions and objectives.

2. Strategies and polices.

3. Procedures and rules.

4. Programs.

5. Budgets.

(2)Organizing

The organization is the part of management that involves establishing an intentional structure of roles for people to fill in an organization. The purpose of an organizational structure is to create an enabling environment for human performance. That's when management tools, not an end. Although the structure must define the task, well defined rules should be designed taking into account the capabilities and motivations of people available to design an effective organizational structure are not an easy task management. Many problems arise in making structures fit situations.

(3)Staffing

Staffing involves filling and keeping filled, the positions of the organization. This is done by identifying the workforce requirements of people available inventory and the recruitment, selection, placement, promotion, evaluation, career planning, compensation and training.

(4)Leading

Leadership is influencing people so that they can contribute to the objectives of the organization and the group. All directors agreed that most of the problems arising from the wishes of the people and problems, their behaviour as individuals and in groups and effective managers also need to be effective leaders. Leading involves motivation, leadership styles and approaches and communication.

(5)Controlling:

The control is the measurement and correction of people and organizational performance. These measure performance against goals and plans, shows where the standard deviations of output and help correct them. In short control facilitates the realization of the plans. Activity control generally refers to the measurement of achievement. Some means of control as the expenditure budget, inspection, registration of work hours lost, are generally familiar. Each sample if the plans are working.

(6) Staffing

The organization makes certain specific contributions to achieve organizational objectives. Hence the person occupying the position should have sufficient ability to meet its requirement. Staffing is that part of the process of management which is concerned with obtaining, utilizing and maintaining a satisfactory and satisfied work force. It is the process of identifying, assessing, placing, evaluating and developing individuals at work. Staffing is a very important function of the management. No organization can be successful unless it can fill and keep filled the various positions with the right type of employees.

Staffing is the function by which managers build an organization through recruitment, selection and development of individuals as capable employees.