History & Development of Management

No doubt the 20th century is the era of scientific management. But this doesn’t mean that management belongs to 20th century alone. The origin of Management can be traced back to the days when man started living in group. In other words, management is as old as human civilisation itself. Thus, it is necessary for us to have a brief discussion on the evolution of management

The study of history & development of management thoughts can be divided into the following parts:

A) Early Contributions:I. Management in ancient timesII. Management in Pre-Scientific Management

periodB) Classical or Traditional Management:III. Management in Scientific periodC) Human Relations Era:IV. Management in Human Relations & Human

Behaviour periodD) Modern Management Era:V. Management in Modern Period

Management in Ancient Time

As mentioned before, management in some form or the other has been practiced in many parts of the world since man started living in group. History reveals that the concept of organisation and administration existed in

Egypt, Greece, Athens,China, &

& India

Perhaps in ancient times, the principles of science were not applied to management. Customs, traditions & institutions played an important role in the field of management.

Management in Pre-Scientific Management period

During this period(i.e., the period following Industrial Revolution upto1880), certain pioneers changed the traditional character of management & introduced new ideas and approaches. The notable contributors of this period, & their contributions are:

Robert Owen (U.K.,1771-1858)

He was one of the most successful industrialists of the early 19th century. He emphasised the recognisation of human element in industry. His philosophy was that good personnel management pays dividends to the employer. He has been referred to as the ‘Father of Personnel Management’.

Prof. Charles Babbage (U.K.,1792-1871)

He was a professor of mathematics at Cambridge University. He invented a mechanical calculator called ‘Differential Engine’. His philosophy was that the methods of science & mathematics could be applied to the solution of problems of factories. His prominent contributions were in the area of costing, engineering, & profit sharing according to productivity.

Henry Varnum Poor (U.K.,1792-1871)

He was the editor of the ‘American Railroad Journal’. He found that American railroads were being mismanaged. He emphasised the need of effective management. He advocated a managerial system with a clear organisation structure, communication & complete accountability.

The early contributions in the field of management by industrialists & intellectuals provided some insight about managerial problems and more effective utilisation of resources. However, they failed to stimulate to study management as a distinct discipline.

Management in Scientific periodThe Industrial Revolution in England

during the 18th & 19th centuries is the real beginning of scientific management. The Industrial Revolution led to the use of power & machines, large scale production, division of labour, specialisation, emergence of partnership firms, joint stock companies & factory system which had a great impact on the nature of organisation & management.

Frederick Winslow Taylor (U.S.A. 1856-1915)

F.W. Taylor was the first person to insist the introduction of scientific methods in management. He made the first systematic study of management. He started a new movement in 1910 in U.S.A, which is known as ‘Scientific Management’. Therefore, he is regarded as the ‘father of scientific management’. The concept was further developed by

Frank Gilbreth Henry Gantt

& Lillian Gibreth

Henri Fayol (U.S.A. 1841-1925)

Henri Fayol used the term ‘administration’ instead of ‘management’. He is considered as the ‘father of principles of modern management. He advocated that principles of management are universally applicable irrespective of the type of organisation & managerial situation.

Human relations eraBoth Taylor & Fayol were

criticised for their failure to recognise the significance of human element in organisations. As a result, at the end of scientific management movement there started an era of human relation movement. This period emphasised human relationships in organisations. There started an increasing application of psychology, sociology & other behavioural sciences to the management of people.

George Elton Mayo – Founder of human relations movement

Other ContributersMarry Parker Follett

A. H. Maslow

Frederick Herzberg

& Douglas McGregor