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CHAPTER I
INTRODUCTION

1.1 Background
As we know, management science continues to grow today. Management science
provides us with an understanding of important approaches or procedures in researching,
analyzing and solving problems related to managers.

II Your management is one of the social science disciplines. In 1886 Frederick

W. Taylor conducted a time and motion study experiment with his theory of conveyor
belts. From here the concept of efficiency and effectiveness was born. Then Taylor wrote
a book called The Principle of Scientific Management (1911) which was the beginning
of the birth of management as a science.In addition, management science as a science
has the following characteristics:
1. The existence of a human group, namely a group consisting of two or more
people.
2. There is cooperation from the group.
3. The existence of activities / processes / businesses
4. The purpose

Furthermore, management science is a collection of social science disciplines that

study and see management as a phenomenon of modern society. Where the phenomenon
of modern society is a social phenomenon that brings change to the organization.
In reality management is difficult to define because there is no universally
accepted management definition. Mary Parker Follet defines management as an art in
completing work through other people. This definition implies that managers to achieve
organizational goals through the arrangement of others to carry out various tasks that
might be done. Management can indeed mean that, but it can also have more
understanding than that. So in reality there is no definition that is used consistently by
everyone. Stoner put forward a more complex definition as follows:
"Management is a process of planning, organizing, directing and supervising, the
efforts of the members of the organization and the use of other organizational resources
so as to achieve the stated organizational goals".

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From the above definition it can be seen that Stoner has used the word "process",
not "art". Understanding management as "art" means that it is a personal ability or skill.
Whereas a "process" is a systematic way to do work. Management is defined as a
process because all managers without having to pay attention to specific skills or skills,
must carry out activities that are interrelated in achieving the desired goals.
Each view may be useful for a variety of different problems. There are three schools
of management thinking, namely:
a. Classic flow
b. Human relations flow
c. Moderate management flow
d. Quantitative flow

1.2 Formulation of the Problem

Based on the background above, the problem can be formulated as follows:
1. What is the Perfect Competition Market?
2. What is the Monopoly Market?
3. What is the Monopolistic Competition?
4. What is the Oligopoly Market?

1.3 Writing purpose

1. In order to know the Perfect Competition Market
2. In order to know the Monopoly Market
3. In order to know the Monopolistic Competition
4. In order to know the Oligopoly Market

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CHAPTER II
DISCUSSION

2.1 Management Development

What was introduced by Owen and Babbage in the late 19th century made a valuable
contribution to management practitioners that business organizations need to be
managed properly, especially if the organization is large scale and involves a large
number of people and resources that must be managed. Owen and Babbage's
contribution seemed to open the eyes of business practitioners at that time how business
should be run. Also emerging after that are various theories in management science.

2.2 Development Of Management Science

Management science has a history of its own development like other sciences. In
management science there are three schools of management thought, each of which
seeks to help managers understand and lead the organization, as well as overcome its
problems. The three schools of management thought are classical schools (this school
has two branches, namely scientific management and classical organizational theory),
the flow of human relations (often called the neoclassical flow of behavior), and the flow
of management science.
2.2.1 Management as art
Understanding management as art means that in management there are elements
of talent or disposition or talent. This means that in management, people can
organize, supervise, or lead an organization with different character, attitude and
leadership spirit in each person.
According to Mary Parker Follet (Stoner, 1986) management is the art of getting
things done through people which means the art of how to order other people to work
together to carry out work.
Basically human activities are managing (regulating) and to regulate here an art
is needed, so, management is seen as art by Follet because management reaches the
target through ways by arranging other people to carry out the tasks.
Despite the controversy about the art of management itself because it is
subjective, it is seen from the person who does it and the freedom to do whatever he
wants, but the role of management aims to achieve the ideals and hopes well.

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2.2.2 Management as Science and Art

Management is a science and art, why is it called that, it can be understood that
the elements of both cannot be separated. Management as a science, because it has
been studied for a long time, and has been organized into a theory. This is due to
explaining management symptoms, symptoms This phenomenon has been
investigated using scientific methods which are formulated in the form of principles
that are manifested in the form of a theory.
While management as an art, here views that in achieving a goal it is necessary
to collaborate with others, how to order others to cooperate. In essence human
activities in general are managing (regulating), to regulate this is needed an art,
where other people do work to achieve common goals.
2.2.3 Management as Process
Management is basically a process. According to Sergiovanni and his friends
(1987) the management process includes planning (organizing), organizing
(mobilizing) (leading), and supervision (controlling). According to Gorton,
management is essentially a problem-solving process, so management steps are like
the steps to solving problems, namely:
1. identification of problems
2. diagnosis of the problem
3. goal setting
4. decision making
5. planning
6. organizing
7. coordination
8. delegation
9. penginisian
10. communication
11. work with groups
12. Assessment

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2.2.4 Management as Profession

Much effort has been made to classify management as a profession. Edgar
H.Scheint described the characteristics or criteria for determining something as a
profession which can be specified as follows:
1. Professionals make decisions on the basis of general principles. The existence of
education, courses and formal training programs shows that there are certain
reliable management principles.
2. Professionals get their status because they reach certain professional profession
standards, not because of favoritism or because of ethnicity or religion and other
political or social criteria.
3. Professionals must be determined by a strong code of ethics, with discipline for
those who become their clients.
Management has developed into an increasingly professional field through
striking developments in management training programs in universities or private
management institutions, and through the development of organizational (company)
executives.

2.3 Management Thinking

2.3.1 Classical Flow
The very beginning of management science arose as a result of the industrial
revolution in England in the 18th century. The thinkers gave attention to the
management problems that arose both in the business community, industry and
society. The thinkers who were exposed were among others, Robert Owen, Henry
Fayol, Frederick W Taylor and others.
1. Robert Owen (1771 -1858)
Robert Owen is a person who opposes the practice of employing children
aged 5 or 6 years and working standards 13 hours per day. Touched by the very
sad working conditions, he proposed an improvement in these working
conditions.
In the early years of the industrial revolution, when workers were considered
helpless instruments, Owen looked at improving working conditions at the
factory, raising the minimum age for work for children, reducing employee work
hours, providing food for factory employees, setting up shops to sell the
necessities of life of employees at reasonable prices, and try to improve the

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environment where employees live, by building houses and making roads, so that
the environment and factories become attractive. Therefore, he was called the
"Father of Personal Modem Management". In addition, Owen paid more attention
to workers, because according to him, an important investment for managers was
human resources. In addition to improving work conditions, he also made
procedures to improve productivity, such as work assessment procedures and
open competition
2. Charles Babbage (1792 -1871)
Charles Babbage was a professor of mathematics who was interested in
efforts to evaluate efficiency in the operations of a factory, by applying scientific
principles to realize increased productivity and reduced costs. He first proposed
the existence of a division of labor based on the specialization of work in
accordance with certain skills, so that work was made routine and easier to
control with a calculator. Babbage was the inventor of a mechanical calculator in
1822, called "Difference Machine", the basic principles used in calculating
machines almost a century later. In 1833 he compiled an analytical machine, an
automatic computer and was the basis of modern computers, so he was often
called the Father of Computers.
His writing is written in his book entitled "On the Economy Of Machinery
and Manufactures" (1832). He was also interested in the principle of efficiency in
the division of tasks and the development of scientific principles, to determine a
manager must use facilities, materials, and labor to get the best results. Besides
that Babbage was very concerned about human factors, he suggested there should
be a kind of profit sharing system between workers and factory owners, so that
workers get a share of the profits of the factory, if they contribute to increasing
productivity. He suggested that workers should accept fixed payments on the
basis of the nature of their work, added with profit sharing, and bonuses for every
suggestion they gave in increasing productivity.
2.3.2 Scientific Management
Scientific management figures include:
1. Frederick W. Taylor (1856 -1915)
Frederick W. Taylor is known for his scientific management in an effort to
increase productivity. His famous movement is the movement of work efficiency.
Taylor makes the principles that are the core of scientific management that is

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well known for wage plans that result in lower costs and increase productivity,
quality, employment income and employee morale.
The Taylor philosophy has 4 principles that are set, namely:
1. Development of scientific management correctly.
2. Work is selected scientifically by placing work that is suitable for one job.
3. The existence of education and scientific development of workers.
4. Good cooperation between management and workers.
In applying these four principles, he advocated the need for a mental
revolution among managers and workers.
The basic principles according to Taylor approaching science are:
1. The existence of science that replaces careless work methods.
2. There is a relationship of time and group movement.
3. There is cooperation among fellow workers, and not working individually.
4. Work for maximum results.
5. Develop all employees to the highest degree, for the maximum level of
welfare of the employees themselves and the company.
Taylor's famous books are "Shop management (1930)", “Principles of
Scientific Management (1911)", and "Testimory Before Special House Comittee
(1912)". And in 1947, the three books were combined in 1 (one) book with the
title "Scientific Management.
2. HenryL Gant (1861 -1919)
The famous donations of Henay L. Grant are the daily bonus system and
extra bonuses for the foremen. He also introduced the "Charting" system which is
famous for "Gant Chart".
He stressed the importance of developing mutual relations interests between
management and employees, namely harmonious cooperation. Henry considers
that human element is very important so it underscores the importance of
teaching, developing understanding of the system on the part of employees and
management, as well as the need for respect in all management problems.
His famous method is the graphical method of describing plans and allowing
for better managerial control. By emphasizing the importance of time and cost in
planning and controlling work. This has resulted in the creation of the famous
"Gantt Chart".

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2.3.3 Classical Organizational Theory

1. Henry Fayol (1841 -1925)
Henry Fayol compiled the book "General and Industrial management". In
1916, as the classical management theory which was very concerned about
factory productivity and workers, besides paying attention to management for a
complex organization, he presented a method of management teaching that was
more intact in blueprint. Fayol believes the success of managers is not only
determined by his personal quality, but because of the use of appropriate
management methods.
The biggest contribution from Fayol in the form of his views on management
is not merely personal intelligence, but rather a skill that can be taught from
understood the basic principles and general theories that have been formulated.
Fayol divides the company's activities and operations into 6 types of activities:
1. Technical (production) which is trying to produce and make manufactured
goods.
2. Trade (Buy, Sell, Exchange) while holding purchases of raw materials and
selling products.
3. Finance (optimum search and use of capital) seeks to obtain and use capital.
4. Security (protection of property and human prices) in the form of protecting
workers and company property.
5. Accounting with the recording and bookkeeping of costs, debts, profits and
balance sheets, as well as various statistical data.

Managerial consisting of 5 functions:

1. Planning in the form of determining steps that allow the organization to
achieve its objectives.
2. Organizing in the sense of mobilizing material materials and human
resources to implement the plan.
3. Commanding by giving direction to employees to be able to fulfill their
work duties.
4. Coordinating by ensuring that the organization's resources and activities
take place harmoniously in achieving its objectives.
5. Control (Controlling) by monitoring plans to prove whether the plan has
been properly implemented.

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Besides that, Fayol also stated fourteen management principles which are
summarized as follows:

1. Division of labor - the existence of specialization will improve the

efficiency of work implementation
2. Authority - the right to give orders and be obeyed
3. Discipline - there must be respect and obedience to the roles and objectives
of the organization
4. Unity of orders - each employee only receives instructions about certain
activities from only a superior
5. Unity of direction - operations in organizations that have the same goal must
be directed by a manager with the use of one plan
6. Put individual interests under the public interest - the interests of individuals
must be subject to organizational interests
7. Reward - compensation for work carried out must be fair to both employees
and owners
8. Centralization - the right balance between centralization and
decentralization
9. Chain of switches (lines of authority) - clear lines of authority and orders
10. Orders - materials and people must be in the right place and time
11. Justice - there must be equal treatment in the organization
12. Stability of organizational staff - a high level of labor turnover is not good
for implementing organizational functions
13. Initiatives - subordinates must be given the freedom to run and complete the
plan, even though some errors may occur
14. The spirit of the corps - the implementation of the organization's operations
needs to have pride, loyalty, and a sense of belonging from the members
reflected in the spirit of the corps

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2.3.4 Bureaucratic organization

Bureaucratic organization, is a systematic approach developed in Europe that views
organizations as a whole subfield in a classical perspective. Max Weber (1864-1920), a
theorist from Germany, introduced almost all concepts from bureaucratic organizations.
During the late 1800s, many European organizations were managed on a "personal"
basis, such as family businesses. Employees tend to be loyal to an individual rather than to
an organization or mission. The dysfunctional consequences of management practices are
more resources used to realize individual desires than organizational goals. As a result,
employees have organizations and use resources more for their own benefit than serving
customers. Weber dreamed of an organization that would be managed on a rational and not
personal basis. This form of organization is called bureaucracy.
Six characteristics of the bureaucracy as specified by Weber
1. Labor is divided by clear definitions according to legitimized authority and
responsibility as official tasks
2. Organizational positions according to an authority hierarchy, and each position is
under the authority of a higher position
3. All personnel are selected and promoted based on technical qualifications, which
are based on training and experience
4. Administrative actions and decisions are recorded in writing, copying provides
the memory and survival of the organization over time
5. Management is separate from organizational ownership
6. Managers depend on rules and procedures that will ensure reliable and
predictable behavior. The regulations are not personal and apply to all employees

2.3.5 Flow of Human Relations (NeoClassics)

There are three people who pioneer the flow of behavior, namely:
1. Hugo Munsterberg (1863 -1916)
The most important contribution is the use of psychology in realizing
productivity goals as well as with other management theories. The book is
"Psychology and Indutrial Efficiency", it provides 3 ways to increase
productivity:
a. Placing the best worker who is best suited to the field of work to be done.
b. Creating the best working procedures that meet psychological requirements
to maximize productivity.

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c. Using psychological influences to get the most appropriate impact in

encouraging employees.
2. William Ouchi (1981)
William Ouchi, in his book "Z-theory of America America Can Meet The
Japanese Challen Ge (1981)", introduced the Z theory in 1981 to describe
American adaptation to the behavior of Japanese organizations. His theory is
based on comparison of management in organizations. Japan is called the type
of Japanese company with management in an American company - called an
American type company. Here are the differences between American and
Japanese type organizations.
The contribution of scientists who have human relations can be seen in the
increased understanding of individual motivation, group behavior, or the
relationship between person in work and the importance of work for humans.
Managers are expected to be more sensitive and skilled in handling and dealing
with their subordinates. Even different types of concepts appear that are more
reciting on leadership problems, resolving disputes, acquiring and utilizing
power, organizational change and the concept of communication. Nevertheless
this flow is not free from criticism, because in addition to being too general,
abstract and complex, it is very difficult for managers to explain about human
behavior that is so complex and difficult to choose scientific advice which
should be followed in achieving solutions within the company.
3. Elton Mayo (1880-1949)
If "personnel management" encourages more and better work, human
relationships within the organization are "good". If morale and efficiency
deteriorate human relations in the organization are "bad". To create good human
relationships, managers must understand why employees act the way they do
and what social and psychological factors motivate them.
Another finding is that informal work groups, employee social environments,
also have a large influence on productivity. The concept of "social beings" is
motivated by social needs, the desire for reciprocal relationships in work, and
more responsive to the encouragement of management supervision work
groups, and which are motivated by human physical needs.

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2.3.6 Modern Management Flow

This flow appears more to quantitative flow is a combination of Operation
Research and Management Science. In this school the mathematical, physical, and
other exact scholars are gathered in solving more complex problems. This
undergraduate team in the United Kingdom, in the United States, after World War II
was known as "OR Themes" and after the war was utilized in industrial fields. The
complicated problems that require "OR Team" are among others in the fields of
transportation and communication.
The presence of computer technology, makes the OR procedure more informed
of the flow of your II Modem Management. Development of models in solving
complex management problems. With the help of computers, it can provide more
rational problem solving to managers in making decisions. These management
science techniques help organizational managers in a variety of important activities,
such as capital budgeting, cash flow management, production scheduling, production
development strategies, human resource planning and so on.
This flow also has a weakness because it gives less attention to human relations.
Therefore it is very suitable for the field of planning and control, but cannot answer
individual social problems such as motivation, organization and staffing. The
concept of this flow is actually difficult to understand by managers because it can
involve quantitative so that managers feel distant and not involved with the use of
management techniques that are very scientific and complex.

2.3.7 Quantitative Flow

Quantitative flow is used in many activities such as capital budgeting, cash flow
management, production scheduling, product strategy development, planning of
human resource development programs, maintaining optimal inventory levels and so
on. The steps of the quantitative flow approach are as follows:
1. Formulation of the problem.
2. Preparation of a systematic model.
3. Getting a solution from the model.
4. Approval of the model and results obtained from the model.
5. Determination of supervision of results.
6. Implementation of results in activity-implementation.

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CHAPTER III
CLOSING
3.1 Conclusion
The development of management theory starts from classical management theory
with scientific management thinking from Taylor and the classical organization theory
from Mayo. Scientific management emphasizes efforts to find the best method for
carrying out management tasks scientifically. While classical organizational theory
emphasizes the need to manage complex organizations that focus on efforts to establish
and apply the principles and skills underlying effective management.
The development that gives a very different focus from classical management theory
is called neoclassical management theory which is characterized by a change in
management focus that emphasizes behavior both on human behavior and organizational
behavior. Good management according to neo classical theory is management that
focuses on effective staff management based on deep sociological and psychological
understanding.
The next development is by emphasizing a system approach that is united and
directed from interrelated parts or components. But now the application of management
is based on a contingency approach that combines the scientific flow with the behavior
in a system that is applied according to the situation and environment faced.
3.2 Sugestions
Based on the Management paper introductory material above, there are four main
elements that we recommend that readers pay attention to, the discussion. Because these
four elements are the parent of history so that knowledge about management is formed.

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BIBLIOGRAPHY

Amirullah, Haris Budoyono 2004. Pengantar Manajemen. Yogyakarta: Graha Ilmu.

Sule, Ernie Trisnawati, Kurniawan Saefulloh. 2005. Pengantar Manajemen. Jakarta:
Prenada Media Group.
Tim Dosen Administrasi Pendidikan Universitas Pendidikan Indonesia. 2009.
Manajemen Pendidikan. Bandung: Alfabeta.
Pidarta Made DR. 1988. Manajemen Pendidikan Indonesia. Jakarta: PT. Bina Aksara.
T. Hani Handoko Dr, M.B.A.2009.Manajemen.Yogyakarta:BPFE-YOGYAKARTA

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