Evolution of Management Theories

Sources

1. Class lecture
2. Lecture slides

Early Forms of Management

Management originally referred to describe the handling of business enterprises. It originated from the Italian term maneggiare.¹

History of Management

1. 3000 BC - Egypt
   • Egypt were one of the first large states and had a centralized government.
     • It was composed of provincial governors (monarchs) and bureaucrats (taxation, irrigation).
   • It carried out large scale construction projects
     • Pyramids, sphinx, temples
     • Their workforce were made up of thousands of peasants (potentially slaves or war prisoners)
2. 600 BC - China and General Sun Tzu’s Art of War
   • Even though it revolved around military strategies, The Art of War is currently being used to learn about management
   • Example principles:
     • Battle ought to have a moral reason
     • Leader should be courageous, wise, benevolent, and strict.
     • Leaders should think a lot, especially about battles they will face and important things to consider.
     • Situation appraisal: strengths, weaknesses, opportunities, and threats.
3. 200 BC - Rome and Cato’s De Re Rustica
   • Defined instructions for the management of a commercial farm, particularly to the following:
     • If they were an absentee landlord
     • and were slaves
     • and the area of operation is comprised of olives or wine grapes
   • Take great care of the work oxen and flatter the ox drivers to potentially improve their chances of taking better care of the oxen.
   • The household head should make the round of the farm when he arrives at the farmhouse. If they cannot do this on the same day, they should perform it at least on the next.²

Administrative Management Theory

• Popularized in 1916 by Henri Fayol’s Industrial and General Administration, the Administrative Management Theory was the first prominent formal management theory.
• It was developed in different parts of the world, predominantly the West.
• It was founded on the importance of responsibly following impersonal rules and authority.
• It is currently widely used in government.
• It posits that management is a universal teachable skill.

Fayol’s 5 Functions of Management Process (POCCC)

1. Planning
2. Organizing³
3. Command and Coordination (now called Leading)
4. Control

14 Principles for the Business and Manager to Succeed

1. Organizing Stage
   1. Division of work - break down jobs into tasks and designate it to different members. This leads to specialization, which enhances accuracy and speed.
   2. Authority and responsibility - each member should have authority and responsibility, where greater authority entails greater responsibility.
   3. Centralization - the most critical decisions should be made by the people at the top level.
   4. Unity of command - each employee only has one direct manager
   5. Scalar chain - the organization’s hierarchy of authority and communication
   6. Unity of direction - employees under the same project should share the same goals, both company-wide objectives and smaller individual objectives

Scientific Management

Human Relations Management

Contemporary Management

Footnotes

1. It means “to handle a horse” ↩

2. In other words, it is recommended to do regular audits to impose control over an area or the people you manage. ↩

3. Organize your people ↩