The Evolution of Management Thought

Chapter 2 - The Evolution of Management Thought

          Management is as old as man. Abundant pieces of evidence are found in the historical records of government , the army, the courts, and the church.

          In 1895, Frederick W. Taylor came up with Scientific Management. A philosophy that dealt with relationship of people and work. The basis for this relationship was finding the “the best way” for doing a job and finding the right person for each job. The goal was maximum output with minimum effort through the elimination of waste and efficiency.

          Henry L. Gantt, another major contributor to  Scientific Management ,devised the Gantt Chart. This is a bar chart comparing schedule with actual performance widely used in productions control and now in computer scheduling operations. Gantt was also the one of the first to recognize publicly the social responsibility of business and management.

          In 1916, Henry Fayol, drew up a blueprint for cohesive doctrine f management after investigating managerial behavior. He presented the breakdown of the functions of management which he listed as: planning, organizing, commanding, coordinating, and controlling. His most significant contribution was his

14 principles of Management: division of labor, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual interest to the general interest, fair remuneration of personnel, centralization, scalar chain, order, equity, stability of tenure, initiative, and ‘esprit de corps’. In spite of changing circumstances, Fayol’s insights have endured.

          The period from1920 to 1930 saw the  emergence of management as a respectable discipline.

          The Great Depression in the early 1930s shook the entire business structure. During this crisis, many companies disappeared. Other companies opted to reorganize, merge or radically improve operations. A new type of manager began to emerge.

          From late 1940’s to 1960’s, the management process and functional approach similar to Fayol’s was accepted as the methodological approach in the study of management.

          From the early to the late 1960’s, many schools of and approaches to management theory and knowledge surfaced.

          As the 1990s unfold, the prevailing belief is that no single approach or school can be set apart as most important. Rather, the complete manager must be able to recognize each approach  or school as contributing insights, perspectives, and special tools toward the accomplishment of his goal.