The Evolution of Management: Lessons From the Past for Better Future

Introduction

Are you interested in taking your management skills to the next level and becoming a more effective leader in your field? Do you think an organization’s success solely depends on how well-organized and effective it is? Do you also wonder what you can learn from the different management theories and approaches that have emerged over the years? 

The answer to all of these questions resides in this blog. In this blog, we will gain knowledge on the evolution of management. You can apply these principles to your organization to become an effective leader, make better decisions, and drive positive change in your organization. You will learn about different theories of management, such as the classical theory of management, the neo-classical theory of management, the modern theory of management, the bureaucratic model of Max Weber, the behavioral theory of management, and the contemporary theory of management.

Evolution of Management

The process of planning, organizing, directing, and controlling resources to achieve business goals is called management. It is a constantly evolving process, from classical theories of management to modern management theories. Each management theory has a different viewpoint on the best way to conduct management to be successful. Management philosophers, practitioners, and scholars are all contributors to management theory. Modern management is built on the solid foundation laid down by management thinkers in the past. 

Management theories assist organizations in focusing, communicating, and evolving. Using management theory in the workplace allows leadership to focus on their main goals. When a management style or theory is implemented, it automatically streamlines the organization’s top priorities.

Classical Theory Of Management

The classical theory of management was developed in the late 19th and early 20th centuries. It is mainly based on the principles of scientific management and administrative management. 

Scientific Management Theory

Frederick Winslow Taylor is the father of scientific management. He believed that work should be analyzed scientifically and divided into smaller tasks to improve the efficiency of the organization. He introduces time and motion studies to determine how long it takes to complete a task and how it can be improved. His ideas paved the way for assembly line production and the standardization of work processes. The scientific approach of Taylor describes that an increase in an organization’s efficiency can result in higher productivity and profits.

Administrative Management Theory

Henry Fayol developed administrative management theory and is treated as the father of modern theory, which concentrated on the entire organization’s management. He laid down five functions of management that are planning, organizing, commanding, coordinating, and controlling. His ideas formed the foundation of modern management and have had a global impact on management practices.

Henry Fayol suggested important managerial qualities and emphasized the importance of developing such qualities. He developed fourteen principles of management out of his practical experience. These principles are universal in nature and apply to all types of organizations.

Also Read: How to Make the Right Promotion Decisions: Boost Your Team’s Performance

Neoclassical Theory of Management

The neoclassical theory of management was published in the 1920s and 1930s as a remedy for the flaws in the classical theory of management.  

Human Relations Management

Elton Mayo developed a theory after the classical management theory received criticism. The human relations approach to management was introduced by Elton Mayo. His contributions to the growth of management theory are exceptional. In order to assess the characteristics and psychological responses of employees in on-the-job situations, Mayo oversaw the team that conducted the study at Western Electric’s Hawthorne Plant from 1927 to 1932. 

Mayo talked about the things that affect how people behave. He came to the conclusion that a combination of factors, such as less restrictive supervision, granting workers autonomy, and enabling the formation of small groups of workers, were the real causes of the increase in productivity. The other factors included changing working hours and implementing rest breaks.

Behavioral Approach

A behavioral approach to management determines the hierarchy of needs of the employees. This management theory was proposed by Abraham Maslow. According to his theory, people have a hierarchy of needs that they try to fulfill. These needs are physiological, psychological, and social. By identifying the needs of the employees and providing opportunities to fulfill them, managers can motivate their employees.

Also Read: How to Make the Right Promotion Decisions: Boost Your Team’s Performance

Modern Theory Of Management

The modern theory of management emerged in the 1950s and 1960s. This theory focused on the incorporation of various management theories. 

Systems Approach

The father of modern management theory, Peter Drucker, concentrated on Management by Objectives (MBO). It also emphasized the concept of knowledge workers. MBO is the process of establishing clear goals and objectives for employees and tracking their progress toward achieving them. Employees are not only thought of as physical laborers under the concept of knowledge workers, they also possess knowledge and skill sets that are important for the organization’s success.

Contingency Approach

The contingency Approach of the modern theory of management determines that there is not a single approach to management and that the most effective management style depends on the situation and the individual or group being managed. This theory has given rise to situational leadership, which entails adapting management styles to fit the demands of the circumstances.

Behavioral Theory of Management

The behavioral theory of management centers on the study of human behavior in the workplace. This theory emerged in the 1940s and emphasizes the importance of leadership, communication, motivation, and job satisfaction in an organization’s success. The cornerstone of the behavioral theory is Douglas McGregor’s Theory X and Theory Y. 

Theory X states that employees are lazy, need constant monitoring, and are motivated by rewards and punishments. On the other hand, theory Y states that employees are self-motivated, responsible, and capable of taking initiative.

Also Read: Understanding the Skills Gap in the Workforce- Reskilling to Addressed Skill Gap

Contemporary Theory of Management 

The current trends and practices in management, including the integration of technology, globalization, sustainability, and diversity in the management of organizations, fall under the contemporary theory of management. 

Digital management is the key aspect of contemporary management theory. The way organizations operate, communicate, and compete has completely transformed with the arrival of technology. The rise of social media, big data, and cloud computing has given managers new opportunities and challenges. Now, managers need to think globally, as organizations are losing market shares even in the domestic market because of competition from foreign companies.

Theory Z Concepts

Theory Z concepts emerged in 1978 by Ouchi and Jaeger that incorporates Japanese and American management culture. This theory places a strong emphasis on the requirement to research and adopt appropriate management techniques from other countries. 

McKinsey’s 7-S approach

McKinsey’s 7-S Framework is a management theory that helps organizations understand the connections between various business components to achieve organizational change. 

Seven connected components make up the framework, all of which must work together for success. Any misalignment of these factors can result in inefficiencies, conflicts, and ultimately failure. The seven elements are strategy, structure, systems, shared values, skills, staff, and style.

Conclusion

The way organizations operate and manage their resources has changed as a result of the evolution of management. You have learned about the classical theory, the neoclassical theory, the modern theory, and the contemporary theory of management. Each theory has contributed to the development of modern management practices. Managers must comprehend the various management theories and how they can be used in various contexts. You can develop your skills as a manager by enhancing your knowledge of management theories and practices and can stay ahead of the curve, and succeed in a fast-paced business world.

Learn With DT Evolve

To enhance your management skills, DT Evolve has a course for you. This course will help you develop important skills for time management, team motivation, and personal happiness, whether you’re in charge of a small team or an entire company. At home, at work, and at every stage of your career, leadership is a necessary talent. This training would improve your life if you’re in charge of two or more people at work. Here’s the link to the course, Mastering Leadership Skills