Transcript for:
Evolution of Management Theories

Although the history of management goes back thousands of years, we didn't really study management until the Industrial Revolution, when all of a sudden, we had factories full of people, and we needed to manage them. The first study of management dealt with efficiency and was appropriately named Scientific Management. The theory was that A.

Materials plus B. Labor equals C. Product. The goal of scientific management is to improve the productivity of the individual work. Consultants identify the most efficient and effective ways to work, and managers taught those techniques to all employees.

Because employees were paid based on their production, they benefited as the company benefited. Next, a German sociologist named Max Weber came up with bureaucratic management. Max believed in a formal organization with specific roles, tasks, and rules for everybody, and layers of reporting levels, so the manager was distanced from the workers. This is where we came up with the term bureaucracy. Finally, a French mining company owner named Henri Fayol decided it was important to consider the worker and the organization as a whole entity.

He came up with administrative management, which focused on the organization working together as a whole. And he defined a manager's role to include planning, organizing, commanding, coordinating, and controlling.