Account Login Historical background Like all professions and aspiring professions, management has evolved as the result of a combination of accidents, piecemeal and isolated incidents and initiatives, together with lucky discoveries, pioneering and targeted activities, expert research and pioneering ventures. Management has had to respond to public, economic and environmental demands, and the pressures placed by politicians, financial interests and social and legal changes. Management has had to come to terms with industrial, social and technological revolutions, and to become and remain effective in response to the constraints and opportunities offered by each. Above all, management is a human activity, requiring a strong identity and affinity with the people who make up the stakeholder bodies — customers, suppliers, staff and backers, as well as vested interests, experts and commentators. There is no agreed body of knowledge, understanding or expertise for management, though this is in the clear process of development.
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Account Login Historical background Like all professions and aspiring professions, management has evolved as the result of a combination of accidents, piecemeal and isolated incidents and initiatives, together with lucky discoveries, pioneering and targeted activities, expert research and pioneering ventures. Management has had to respond to public, economic and environmental demands, and the pressures placed by politicians, financial interests and social and legal changes.
Management has had to come to terms with industrial, social and technological revolutions, and to become and remain effective in response to the constraints and opportunities offered by each. Above all, management is a human activity, requiring a strong identity and affinity with the people who make up the stakeholder bodies — customers, suppliers, staff and backers, as well as vested interests, experts and commentators.
There is no agreed body of knowledge, understanding or expertise for management, though this is in the clear process of development. The vast majority of managers are not self regulating; indeed the main professional bodies of management have little statutory influence, though they do seek de facto to set the highest possible standards for their members.
The points that follow are some of the main landmarks of which all students of management and practising managers should be aware. The text here was originally produced in detail for the third edition of this book; it has been edited and mended in order to ensure that it is fully up to date, and that it delivers the lessons in the present context.
Marxism The ferment of ideas that ran concurrently with the industrial and social upheaval brought with it the concept of communism. Written and developed by Karl Marx and Friedrich Engels, the Communist Manifesto propounded that industrial society as it stood was to be a place of permanent upheaval and revolution; that the workers, the wage slaves, would not tolerate the current state of industrial society, but would rather overthrow it and seize control of it for themselves.
Egalitarian in concept, it rejected the then emerging concepts of capitalism, bourgeoisie the middle and professional classes , and the fledgling wage-work bargain. Largely discredited as a philosophy above all by the collapse of the communist bloc that called itself Marxist , Marxism never succeeded in translation into an effective code for the organisation of work.
However, it does illustrate the extreme or radical perspective on working situations; the extent to which the workforce may become alienated either from the organisation for which they work or from its managers. It also voices genuine concerns for the standards, dignity and rights of those who work for others in the pursuit of supporting their own lives.
It became the cornerstone of the trade union movement in the UK and elsewhere. The attraction lay in the egalitarianism preached and the utopian vision of shared ownership of the means of production and economic activity.
Example 1: Marxism and Egalitarianism Paradoxically, at exactly the time when Marxism is discredited as a political and social philosophy, it is possible to identify more clearly a direct link between economic prosperity, organisational longevity, and high levels of organisational staff output and quality.
For example: Lincoln Electric: which makes manufacturing, welding and electronic equipment for the American ship and automobile industries, has paid out extensive bonuses to all staff, based on a combination of suggestions received and organisational profitability, since The result of this has been that the company has not had a single lay-off since that date, and that the staff regularly earn, in productivity and performance-related bonuses, approximately double their income.
Nissan UK: based at Washington, Tyne and Wear, consistently achieves the highest levels of productivity of any car company anywhere in the world with the exception of one factory in Japan and one in Korea , and this is founded in the adoption of, and commitment to, single staff status for all those working for the company.
Bureaucracy and the permanence of organisations Weber developed the concept of the permanence and continuity of organisations. This was the basis of the theory of bureaucracy. Weber saw bureaucracy as an organisational form based on a hierarchy of offices and systems of rules and with the purpose of ensuring the permanence of the organisation, even though jobholders within it might come and go.
The knowledge, practice and experience of the organisation would be preserved in files, thus ensuring permanence and continuity. Authority in such circumstances is described as legal-rational, where the position of the office holder is enshrined in an organisation structure and fully understood and accepted by all jobholders. The organisation itself is continuous and permanent. Everything that is done in the name of the organisation and its officials is recorded.
Jobholders are appointed on the basis of technical competence; the jobs exist in their own right; jobholders have no other rights to the job. The work and the control of it is enshrined in rulebooks and procedures which must be obeyed and followed. Order and efficiency are thus brought to this state of permanence. Thus, the overall purpose of bureaucratic structure was, and remains, to attain the maximum degree of efficiency possible and to ensure the permanence of the organisation.
Failure to do this leads to red tape, excessive procedures, obscure and conflicting rules and regulations. In the worst cases, the rules and procedures become themselves all-important to the detriment of the product or service that is being offered. The origins of welfarism The Cadbury family who pioneered and built up the chocolate and cocoa industries in Great Britain in the nineteenth century came from a strong religious tradition they were Quakers.
Determined to be both profitable and ethical, they sought to ensure certain standards of living and quality of life for those who worked for them. They built both their factories and the housing for their staff as a model industrial village at Bourneville on the then edge of Birmingham. The village included basic housing and sanitation, green spaces, schools for the children and company shops that sold food of a good quality.
The purpose was to ensure that the staff were kept fit, healthy and motivated to work in the chocolate factories, producing good quality products. This was by no means the rule, though it was considered a commitment by the new middle classes of the eighteenth and nineteenth centuries, who saw their role as contributing to overall prosperity as well as their own.
Nevertheless, many employers continued to treat their people very harshly, keeping them in bad conditions, under-paying them and using fear as the driving force.
However, the work of the Cadburys and the others is important as one of the most enduring early industrial examples of the relationship between concern for the staff and commercial permanence, profitability and success. And most of the above companies exist to this day; while most of those that sought to profit from poor conditions do not.
Henri Fayol The work of Henri Fayol is important because he was the first to attempt a fully comprehensive definition of industrial management. This was published in under the title General and Industrial Administration. It identified the components of any industrial undertaking under the headings of technical; commercial; financial; security; accounting; and managerial.
This last group of components comprised forecasting, planning, organisation, command, coordination and control of the others; the overall function is to unify and direct the organisation and its resources in productive activities. Authority and responsibility, the right to give commands and the acceptance of the consequences of giving those commands. Unity of command, each employee has an identified and recognised superior or commander. Unity of direction, one commander for each activity or objective.
The subordination of individual interests to the organisational interest. Remuneration and reward in a fair and equitable manner to all. Centralisation and centrality of control.
A discernible top-to-bottom line of authority. Order as a principle of organisation, the arrangement and coordination of activities. Equity, the principle of dealing fairly with everybody who works for the organisation.
Employee discipline, ensuring that everybody receives the same standard of treatment at the organisation. Stability of job tenure, by which all employees should be given continuity of employment in the interests of building up expertise.
Encouragement of initiative on the part of everyone who works in the organisation. Esprit de corps, the generation of organisation, team and group identity, willingness and motivation to work. Fayol also recognised that these principles did not constitute an end in themselves; that their emphasis would vary between situations; and that they would require interpretation and application on the part of those managing the situation.
Scientific management The concept of scientific management, or the taking of a precise approach to the problems of work and work organisation, was pioneered by Frederick Winslow Taylor His hypothesis was based on the premise that the proper organisation of the workforce and work methods would improve efficiency.
It was based on the experience of his career in the US steel industry. He propounded a mental and attitudinal revolution on the part of both managers and workers. Work should be a cooperative effort between managers and workers.
Precise performance standards would be predetermined by job observation and analysis and a best method arrived at; this would become the normal way of working. Everyone would benefit - the organisation because it cut out all wasteful and inefficient use of resources; managers because they had a known standard of work to set and observe; and workers because they would always do the job the same way.
Everyone would benefit financially also from the increase in output, sales and profits, and the reflection of this in high wage and salary levels. In a famous innovation at the Bethlehem Steel Works, USA, where he also worked, Taylor optimised productive labour at the ore and coal stockpiles by providing various sizes of shovels from which the men could choose to ensure that they used that which was best suited to them.
He reduced handling costs per tonne by a half over a three-year period. He also reduced the size of the workforce required to do this from to Example 2: Scientific Management Criticised The great weakness of the scientific management approach is that it took no account of the human and social needs of those working in these conditions. Taylor reasoned that by guaranteeing high levels of pay, satisfaction would automatically follow. This has consistently been shown not to be the case.
For example:. The UK coal mining industry lost , jobs between the years The miners were among the best paid workers in the UK. Despite exhortations from their trade union, when the miners were offered redundancy payments, the vast majority took them - again, because they were treated as a disposable commodity, rather than human beings. Those going to work in Dot.
They quickly discovered that, apart from the chosen few who owned the companies, they were to be required to work in cubicles, in front of computer screens, for long periods of time. The directors of Dot. The great advances that Taylor and those that also followed the scientific school made were in the standardisation of work, the ability to put concepts of productivity and efficiency into practice.
In the pursuit of this, scientific management also helped create the boredom, disaffection and alienation of the workforces producing these goods that still remain as issues to be addressed and resolved into the 21 st century see Summary Box 1. The human relations school The most famous and pioneering work carried out in the field of human relations management was the Hawthorne Studies at The Western Electric Company in Chicago.
These studies were carried out over the period Originally designed to draw conclusions between the working environment and work output they finished as major studies of work groups, social factors and employee attitudes and values, and the effect of these at the place of work.
The Hawthorne Works employed over 30, people at the time, making telephone equipment. Elton Mayo, Professor of Industrial Research at Harvard University, was called in to advise the company because there was both poor productivity and a high level of employee dissatisfaction.
The first of the experiments was based on the hypothesis that productivity would improve if working conditions were improved. The first stage was the improvement of the lighting for a group of female workers; to give a measure of validity to the results, a control group was established whose lighting was to remain consistent.
However, the output of both groups improved and continued to improve whether the lighting was increased or decreased. The second stage extended the experiments to include rest pauses, variations in starting and finishing times, and variations in the timing and length of the lunch break.
At each stage the output of both groups rose until the point at which the women in the experimental group complained that they had too many breaks and that their work rhythm was being disrupted. This was conducted over the period The fourth and final stage consisted of observation in depth of both the informal and formal working groups in These may be summarised as follows.
Individuals need to be given importance in their own right, and must also be seen as group or team members. The need to belong at the workplace is of fundamental importance, as critical in its own way as both pay and rewards and working conditions. There is both a formal and informal organisation, with formal and informal groups and structures; the informal exerts a strong influence over the formal.
Introduction to Management by Richard Pettinger (Paperback, 2006)
Introduction to Management Summary Introduction to Management by Richard Pettinger This popular core textbook provides an authoritative introduction to business management. Covering all the functional areas of the field, the text provides a robust framework to help students understand the inter-relatedness of different aspects of management and how they fit together in an organisation. Strong emphasis is placed throughout on providing students with a thorough and practical grounding in the topic, with a focus on helping them developing effective management skills. Now in its fourth edition, Introduction to Management has been fully updated and expanded to cover new developments in the field. Written by a leading expert with extensive management experience, this is ideal reading for students studying introductory courses in management at undergraduate, postgraduate or MBA level. It does not require prior knowledge of business and management. He has written over 30 books on management, business and related areas.
Introduction to Management