It is a well-known fact that the worldespecially the working world is changing rapidly. Over the last 100 years a lotof things changed and many historical events happened. Not only the attitude towardswork life changed but also management and leadership become different over thelast 100 years. This report observes the historical development in the 20thcentury.Scientific management theoryFrederick Taylor developed thescientific management theory in 1911.
His theory states that companies shouldmanaged in a scientific way (Sandrone,1997). The distribution of tasks isclearly defined. Managers and workers are divided. Workers are required to obeythe instructions of the managers.
He indicates that employees should betrained. He states that the relationship between employees and managementshould be harmonious. The ideal working practice should be identified bymanagers.
The managers should use the best working practice. It is important touse the right worker in the right position. Another principle of Taylors theoryis that, employees who save costs are rewarded in monetary terms. (van Dam etal. 2013).
Quinn et al. (2003) states that Taylor used different techniques torationalize the work and he also states that he succeeded. According to Hattagandi(2017) Ford used the approach of Taylor to develop the assembly line. The cleardivision of tasks made it possible to produce a car in 90 minutes instead of 12hours. Osterloh (2005) calls Taylors theory as “Machine model of theorganization”. He also indicates that this theory leads to a huge increase inproductivity but this led to a demotivation of employees and an increase instaff turnover. Osterloh also indicates that the scientific management theoryis only suitable for Manufacturing organizations.
General management theoryAccording to the Chartered ManagementInstitute (CMI) (2002) Henry Fayol published his general management theory in1916. Henry Fayol was a French managing director at a mining company and hesucceeded in getting the company out of a bad economic situation into a goodone (Sarwar, 2014). Based on his experience he was able to create his owntheory. According to van Dam et al. (2013) Fayol named the following six autonomousmanagement functions:· “1. Technical· 2.
Commercial· 3. Financial· 4. Security· 5. Accounting· 6. Directing”.
CMI (2002) points out that the lastfunction is a specific one, since it is the only function that deals with themanagement of the entire organization. Van Dan et al. (2013) indicates that thefunction “directing” coordinates the other functions. The coordination of thefirst five points is done by the activity “directing”. Planning, organising,commanding, coordinating and controlling are the five tasks of the activity”directing”. (Mind Tool Content Team, 2017). These activities are the tasks ofmanagement. Fayol also developed 14 principles for management.
These principlesare used to provide a guideline for managers to make decisions (van Vliet,2009). According to Deutsche Akademie für Management (DAM) the general managementtheory states that there should be a clear hierarchy in companies and that theinterests of employees or managers should be secondary. According to CMI (2002)Fayol was the first author who described that management consists of differenttasks which should be classified into subdivisions.
The difference to thescientific management theory is that the general management theory is suitablefor managing a complete company and not just a manufacturing organisation(Osterloh, 2005). Bureaucracy theoryMax Weber published his bureaucracytheory in 1922 (Krems, 2013). Van Dan (2013) states that according to Weberstheory a company must comply with the following points:· “Clear and definite division oftasks”· “A hierarchical commandstructure”· “Carefully defined authorityand responsibilities”· “Important relations betweenofficials”· “Recruitments on the basis ofability and knowledge instead of cronyism and contacts”· “Promotion and reward in thebasis of objective criteria and procedures”· “All information, proceduresand details written down, full control is possible”· “The power of officials, eventhe most senior executives, bound by documented guidelines”According to Weber, these are theprinciples for achieving a perfect bureaucracy (van Dan, 2013). The human relations movementAccording to Barnat (2014) Elton Mayo hasconducted experiments and found that employees’ performance and productivityincreases when they are motivated.
Grant (2017) states that according to Mayo,the development of employees and the definition of targets form the company’sperspective is important. According to Riley (2017) Mayo indicates that bysatisfying the social needs of employees, they are motivated. Barnat (2014)indicates that Mayo’s theory was further developed by Abraham Maslow andDouglas McGregor. According to Grant (2017), McGregor divides the workers intotwo categories. Theory X is assigned to workers who hate to work and musttherefore be threatened with job loss or financial motivation. Theory Y isassigned to workers who are self-motivated. These employees represent an addedvalue for the company.
(Grant, 2017). Maslow points out that there are fivelevels of needs and he states that people must first meet the basic needs inorder to meet the higher needs. This theory has been used by many companies.(Grant, 2017). Kelly (2014) states according to Maslow that humans have needs suchas physiological needs, security needs, social needs, esteem needs and self-actualizingneeds. Tanner (2017) points out that it is only possible for people to fulfilthe upper needs if the basic needs are met. With the exception of the humanrelations movement, no theory mentions the needs of employees. It is rather aquestion of individual processes or tasks and their distribution.
The workersare considered a resource. Their needs are ignored. Competing Values FrameworkAccording to the Onlinetalentmanager(2014) Quinn’s model consists of four different models.
Every single model isimportant for achieving an effective organisation. The major models are thehuman relations model, open systems model, rational goal model and the internalprocess model. According to Quinn et al. (2003) there are eight differentmanager roles within his model. Two manager roles are assigned to each of thefour models.
Quinn expects that managers take on these roles and play them.Quinn states that there are conflicts between these models. But he states thatcompanies should be adaptable and flexible and at the same time they should bestable and controlled. To meet this criteria companies, have to use these differentmanagement theories. (Quinn et al. 2003).
Rational goal model & internalprocess modelQuinn et al. (2003) draws our attentionto the rational goal model. According to his management model Taylor was only aninfluencer at that time. Quinn indicates that the rational goal model appearedas a management model from 1900-1925. At that time, the age of oil started,labour costs were low and the technological development was running fast.People were influenced by social Darwinism and they believed in “survival ofthe fittest”.
The assembly line was also developed in this period. Many othertechniques according to Frederick Taylor was used in this period to make the productionprocess more efficient. The first management model was the rational goal model.The effectiveness of the organization was characterized by productivity andprofit.
Clear instructions enabled productivity and profit. Most of thedecisions was made on rational economic way. The main goal was to achieve thehighest possible profit. Employees were often abused by supervisors andmanagers. (Quinn et al. 2003)According to Quinn et al. (2013) theinternal process model emerged at the same as the rational goal model. Thismodel was influenced by Henry Fayols general management theory and Max Webersbureaucracy theory.
This internal process model completed the rational goalmodel. The main goal was to achieve stability and continuity. Quinn states thata routine within a company leads to stability. Quinn et al. (2003) states thefollowing processes as important for this model: “definition ofresponsibilities, measurement, documentation and record keeping”. There werehigh hierarchies within the organization. So, the Managers had to make theirdecisions according to the present rules, structures and traditions.
Anefficient workflow is very important according to this theory. Managers withroles like a monitor or coordinator fit to this theory (Quinn et al., 2003).
Human relations modelAfter 1925, many things changed.Historical events like the market crash in 1929 or the second world warhappened in the second quarter of the 19th century. Thetechnological progress continued in various sectors like agriculture ortransportation.
The publications of Max Weber and Henry Fayol was translatedinto English and consequently the realization of this theories become better.However, the previous theories no longer met the demands of the present time. Thesociety also changed and workers fought for their rights. So, unions made itpossible that workers earned more money. The effectiveness of the rational goaland internal process models disappeared. Influencer at that time like DaleCarnegie, Chester Barnard, Elton Mayo and Fritz Roethlisberger found out thatthe effectiveness increased when the workers are stimulated and motivated. Forthis reason, the human relations model emerged.
(Quinn et al. 2003). Quinn etal. (2003) says: “In this model, the key emphasis is commitment, cohesion, and morale”. He also states that participation and conflict resolution are key values.
According to Quinn, managers tried to motivate the employees when theirproductivity declined. One effective measure to motivate the employee was to increasethe level of participation. At the end of the forties this model was notsuccessful. The first satisfactory results were obtained in the followingyears. (Quinn et al.
, 2003). Open system modelAccording to Quinn et al. (2003) theopen system model emerged between 1951-1975. Historical events like the Vietnamwar or the growing economy in Japan showed that the world was changing rapidly.Therefore, a new management concept was necessary.
This model is necessary tobe adaptable to the fast-changing environment. Therefore, adaptability andexternal support are key points for effectiveness. The companies should be ableto respond to changes. Within the organization there is an innovative climate.Decisions should be made as fast as possible by managers because they do nothave much time to organize. This model requires innovative and smart managers.
(Quinn et al., 2003).Quinn uses the existing theoreticalapproaches to achieve all of an organization’s goals.
So he has developed amodel that has been tested step by step by the economy over a century. All theweaknesses and strengths of the models he has included were known to him whenhe developed it.