History of Management

Overview

• The study of management dates back thousands of years but gained prominence during the Industrial Revolution.
• The need to manage factories with large numbers of employees spurred the development of management theories.

Key Management Theories

1. Scientific Management

• Origin: First study of management focused on efficiency.
• Formula: A. Materials + B. Labor = C. Product.
• Goal: Improve individual productivity.
• Method: Consultants identify efficient work methods, which managers teach to employees.
• Incentive: Employees paid based on their production, aligning their benefits with company performance.

2. Bureaucratic Management (Max Weber)

• Concept: Focused on formal organization structures with defined roles, tasks, and rules.
• Hierarchy: Introduced layers of reporting to distance managers from workers.
• Term: Coined the term "bureaucracy" to describe this structured management approach.

3. Administrative Management (Henri Fayol)

• Perspective: Emphasized the importance of considering the organization and workers as a whole.
• Manager's Role: Defined five key functions of management:
  • Planning
  • Organizing
  • Commanding
  • Coordinating
  • Controlling

Conclusion

• Management theories evolved to address the complexities of managing people and organizations effectively.