Approach from the standpoint of the allocation of various schools in the management
Topic 2 Evolution of Management
Goals:
The study of this topic will allow:
• explain the significance of the historical experience of organizing management systems in the development of management theory;
• consider the evolution of management thought;
• comment on the contribution to the development of science management, supporters of the school of scientific management;
• Describe the contribution of administrative school adherents;
• to characterize the school of human relations and behavioral sciences;
• to formulate the main provisions of the empirical school;
• describe the theoretical approaches of management;
• reveal the peculiarities of Kazakhstan management.
Lecture plan’s
Socio-economic background of management. Evolution of managerial thought
Approach from the standpoint of the allocation of various schools in the management
Situational, systemic and process approaches in management
Socio-economic background of management. Evolution of managerial thought
1. Management came along with society. Where at least two people came together to achieve a common goal, there was a need for coordination and their joint activities, and one had to take on the duties of a leader, to manage, and the other to become subordinate and execute his orders. The Egyptian pyramids and the Great Wall of China appear to be vivid evidence that very large-scale projects, which tens of thousands of people worked on, were implemented long before our days.
In 5-6 millennia BC. the practice of consulting specialists on various “narrow” issues and written inquiries came into use. At about the same time, in neighboring Babylon, a set of laws by King Hammurabi was written on clay tablets. The testimonies were legalized in them, the transfer of responsibility on their subordinates was forbidden by officials, the payment of work of free people was established by law. And a thousand years later, Nebuchadnezzar II, who ruled there, saw in it a powerful stimulus of labor. He is also credited with introducing the principles of production control into practice.
The problems of work organization, labor management of many people interested and the ancient Greeks. Plato belongs to the idea of the need for the division of labor, specialization by type of work. Socrates considered management as a special area of activity: government, labor, trade, troops requires one and the same thing - to put the necessary person in the right place and to achieve the implementation of the instructions made to him.
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The sleepy Middle Ages, where there was no need to manage powerful empires and huge armies, and economic life rarely went beyond the feudal estates and craft workshops, almost nothing compared with antiquity in solving the problems of our interest. Only in 900, one of the greatest scientists of the East, Al-Farabi, formulated, and the Muslim theologian from Persia, Al-Ghazali, supplemented and developed the system of requirements for leaders.
Much later, in Europe these problems were dealt with by the Italian Niccolò Machiavelli, who also advanced the principle of mass agreement and justified the role of goal-setting in the organization’s activities, while his contemporary Englishman Thomas More analyzed the adverse effects of poor management.
All these examples from the past indicate that organizations have existed for many millennia, and as much time there is management. However, it was only in the last few centuries, and especially in the 20th century, that systematic studies of management problems began. The most important incentives for further study of management problems were two significant events.
The first event was the publication in 1776 of Adam Smith of classical economic labor, The Wealth of Nations, in which he described the economic benefits that organizations and society receive as a result of the division of labor.
The second event that influenced the development of the theory and practice of management in the 20th century was the industrial revolution. She demanded the use of not only empirical methods, but also the widespread introduction of a scientific experiment, with the help of which attempts were made to determine the rates of production and wages, the maximum speed of equipment operation, calculate the optimal output, improve the organization of production and labor. The emergence of powerful machines, the emergence of mass production, the rapid expansion of the railway network contributed to the development of large corporations, there was a need for a formal theory, on the basis of which managers could be trained to manage organizations.
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Approach from the standpoint of the allocation of various schools in the management
From the standpoint of the modern understanding of the development of management theory in the history of management, four basic schools can be distinguished: scientific management, classical, human relations and behavioral sciences, and the empirical school (Fig. 3).
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classics
Figure 3. Development of mainstream management organization schools
Scientific management (1885-1920)This school is based on the works of Frederick Taylor, Frank and Lilian Gilbretov, Henry Gantt, Harrington Emerson, Henry Ford. The rationalistic school, more often called the school of scientific management, and in everyday life Taylorism, can be reduced to a number of key points:- recognition of management as an independent sphere and type of activity, the main function of which is rationalization of production;- the dismemberment of the production process and labor operations into individual units and elements and the identification of the range of time spent on their implementation, which allows them to rationing;- planning based on work assignments standards; performance of planning functions by special units that determine the sequence, time, deadlines for the performance of certain works;- increase in labor productivity with the help of higher wages; 
- selection of workers in accordance with the physiological and psychological requirements and their training.Administrative (classical) school (1920-1950)The group of authors, which belongs to the school of administrative management in the study of management problems focused on organizational issues. They developed general theories about the work of management personnel and the components of successful management practices. The most famous representatives of this school were Henri Fayol, Max Weber, Ralph Davis, Urvik. This school, which is also called classical, had a greater influence on management practice than Taylorism, since it developed and proposed universal management principles suitable for all its levels in all types of organizations (Table 1).
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| 1. The division of labor. Narrow specialization leads to an increase in production, since it contributes to an increase in the efficiency of the workers' labor.2. Powers. The manager must be able to give orders. Powers give him this right. However, with the receipt of authority comes responsibility.3. Discipline. Employees must obey and respect the rules on which their organization operates. Discipline is the result of effective leadership, the understanding by managers and employees of the rules and regulations of their organization and the fair use of fines for breaking the rules.4. One-Man Team. Each employee must receive instructions from only one superior. |
| 5. Unity of direction. Each group of different types of organizational activities, united by a single goal, must be managed by one manager, working according to a single plan. |
| 6. The subordination of personal interests to the public. The interests of an individual employee or group of employees should not prevail over the interests of the organization as a whole. |
| 7. Remuneration. Workers should receive a fair salary for their work. |
| 8. Centralization. This term describes the involvement of subordinates in the decision-making process. How much it should be centralized (the competence of the managerial personnel) or decentralized (the competence of the subordinates) this process is a matter of proper proportion. The task is to find the optimal degree of centralization for each specific situation. |
| 9. Scalar chain (hierarchy). The chain of authority from top management to the lowest levels is called the "scalar chain." Business communication should be carried out on this chain. However, if such a structure leads to delays, it is acceptable to use a cross-structure that needs to be agreed with all parties and about which the bosses should be informed. |
| 10. Order. People and materials must be in the right place at the right time. |
| 11. Impartiality (justice). Managers must be equally kind and fair to all their subordinates. |
| 12. The stability of the staff. High staff turnover is ineffective. Management personnel are required to properly plan the personnel work of the personnel and ensure that the necessary specialists are available to fill vacancies. |
| 13. Initiative. Employees who are given the right to make and execute plans show great interest in the work. |
| 14. Corporate spirit (collectivism). Team spirit helps create an atmosphere of harmony and unity in the organization. |
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School of Human Relations (1930-1950) and Behavioral Science (1950-present.)Representatives of the school of human relations viewed management from the point of view of the human resources that the organization has. They considered the technocratic approach to organizing management to be narrow and one-sided and replaced the Smith concept of "economic man", adopted by Taylorism, with the new concept of "social man." 
The largest representatives of this school were Mary Parker Follett and George Elton Mayo. They believed that rationalization of production and high wages do not always lead to an increase in labor productivity; Desired goals for managers and entrepreneurs can be achieved not only under the influence of material incentives, but also by the forces generated by the interaction between colleagues within the workforce. The basis of such conclusions were the results of experiments conducted by E. Meio at the Western Electric plant in Hawthorne. These experiments lasted from 1927 to 1939. The meaning of the experiments was to study the effect on labor productivity of the conditions, organization and payment for work, as well as the relations of the members of the work collective among themselves and with the management of the enterprise. The main conclusion from the Hawthorne experiments was the proof that, by creating a favorable socio-psychological climate in the enterprise, one can significantly increase labor productivity.
The further development of the “school of human relations” was the “school of behavioral sciences”, otherwise, the “behavioral direction”. The major researchers of this school include Abraham Maslow, Chris Argyris, Rensys Likert, Douglas MacGregor, Frederick Herzberg and others. They studied various aspects of social interaction, motivation, nature of authority and authority, organizational structure, communication in organizations, leadership, changes working life.
This approach was intended to help the employee to a greater degree in realizing his own abilities based on changing the concept of behavioral sciences to building and managing a firm, the main goal of this school is to increase the efficiency of the firm by increasing the efficiency of human resources.
"Empirical" school of management (≈1960 on the present.).
The basis of this approach is the idea that management is a special profession. The main task of scientists in the field of management is the collection and synthesis of practical materials and the development of recommendations on this basis for managers. This approach has determined the composition of representatives of this direction. These include major managers, presidents and vice-presidents of companies, consultants, and others directly involved in management practice. The most prominent representatives of the "empirical" school are P. Drucker, R. Davis, L. Newman, D. Miller, and others.Representatives of this school have identified and formulated the general functions and tasks that should be addressed by a manager of any profile and scale. They tried to give practical advice to the managers. For example, it is considered necessary for the manager to give serious attention to the problems of interconnections, and in particular the establishment of lines of communication. The manager is recommended to adhere to the following basic principles:1. Strive for clarity of your ideas and thoughts before you begin communication.2. Analyze the purpose of each message.3. Maintain feedback that will allow for timely corrective action.4. Strive to not only understand you, but also try to understand. Be a good listener.There are a lot of similar recommendations in the "empirical" school. Their scientific value is questionable, but they emphasize the complexity of the manager’s activities, the degree of his influence on other employees in the organization, and the need for thoughtful solution of management problems.
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