Evolution of Management

Submitted By: Sohail Ahmad
Class: BBA 2nd

Section: B
Subject: Principle of
Management
Submitted to: Prof. Ashfaq Ahmed
The Evolution of Management Thought
Knowing the story behind the evolution of management thought and the evolution of theories is
essential. If you are familiar with them, including the development that brought about the current
practices in business, then you will have a better understanding of management principles that
can help you to manage people more effectively.
The point is that a lot has changed about management. Emphasis on structure and authority is no
longer as strong as it used to be in the past. Now the focus is on employees. However, there are
theories on the factors that motivate employees, but understand that knowing how these theories
came about can give you the needed knowledge to manage your employees appropriately. Read
to understand the evolution of management thought and management theories.
Evolution of Management Concept

The evolution of management thought is a process that started in the early days of man. It began
since the period man saw the need to live in groups. Mighty men were able to organize the
masses, share them into various groups. The sharing was done accord to the masses’ strength,
mental capacities, and intelligence.
The point is that management has been practiced in one way or the other since civilization began.
If you want a good example where advance management principles where applied, consider the
organization of the olden days Roman Catholic Church, military forces as well as ancient
Greece. These are all excellent examples. But the industrial revolution brought drastic change.
And suddenly, the need to develop a more holistic and formal management theory became a
necessity.
Stages of the evolution of management thought

This topic is broad, and it also requires careful explanation and thought process. One cannot
understand what it entails or appreciates how it happened without looking at the various areas
where the said evolution occurred. For better understanding, the evolution of
management thought will be shared into four different stages. These include:
o Pre-scientific management period
o Classical theory
o Neo-classical theory or behavior approach
o Bureaucratic Model of Max Weber
The Pre-Scientific Management Period
The industrial revolution that took place in the 18th century had a significant impact
on management as a whole. It changed how businesses, as well as individuals, raised capitals;
organize labor and the production of goods. Entrepreneurs had access to all the factors of
production such as land, labor, and capital. Theirs was to make an effort to combine these factors
to achieve a targeted goal successfully.
However, the new dimension that management took following the industrial revolution cannot be
discussed without mentioning notable personalities who contributed their quarter. They were
able to introduce useful ideas and approaches to give management a precise and universally
acceptable direction. Here are some of them.
o Professor Charles Babbage – United Kingdom (1729 – 1871)

Prof Babbage, a renowned professor in mathematics at Cambridge University discovered that
manufacturers were relying on guesswork and suggestions and urged them to utilize mathematics
and science to be more accurate and productive.
o Robert Owens – United Kingdom (1771 – 1858)

Robert was regarded as the father of personnel management because of his approach and focus
on employee welfare. He introduced co-operation and trade unions. Robert believed that
employee welfare could determine their performance to a large extent. He encouraged the
training of workers, education for their children, canteens in the workplace, shorter working
hours, among others.
The Types of Planning
Operational Planning
“Operational plans are about how things need to happen,” motivational leadership speaker Mack
Story said at LinkedIn. “Guidelines of how to accomplish the mission are set.”
This type of planning typically describes the day-to-day running of the company. Operational
plans are often described as single use plans or ongoing plans. Single use plans are created for
events and activities with a single occurrence (such as a single marketing campaign). Ongoing
plans include policies for approaching problems, rules for specific regulations and procedures for
a step-by-step process for accomplishing particular objectives.
Strategic Planning
“Strategic plans are all about why things need to happen,” Story said. “It’s big picture, long-term
thinking. It starts at the highest level with defining a mission and casting a vision.”
Strategic planning includes a high-level overview of the entire business. It’s the foundational
basis of the organization and will dictate long-term decisions. The scope of strategic planning
can be anywhere from the next two years to the next 10 years. Important components of a
strategic plan are vision, mission and values.
Tactical Planning
“Tactical plans are about what is going to happen,” Story said. “Basically at the tactical level,
there are many focused, specific, and short-term plans, where the actual work is being done, that
support the high-level strategic plans.”
Tactical planning supports strategic planning. It includes tactics that the organization plans to use
to achieve what’s outlined in the strategic plan. Often, the scope is less than one year and breaks
down the strategic plan into actionable chunks. Tactical planning is different from operational
planning in that tactical plans ask specific questions about what needs to happen to accomplish a
strategic goal; operational plans ask how the organization will generally do something to
accomplish the company’s mission.
Contingency Planning
Contingency plans are made when something unexpected happens or when something needs to
be changed. Business experts sometimes refer to these plans as a special type of planning.
Contingency planning can be helpful in circumstances that call for a change. Although managers
should anticipate changes when engaged in any of the primary types of planning, contingency
planning is essential in moments when changes can’t be foreseen. As the business world
becomes more complicated, contingency planning becomes more important to engage in and
understand.
Steps Involved in Planning
Planning is deciding in advance what actions and resources are required to reach a goal. Formal
planning is a systematic process.
Step # 1. Being Aware of Opportunity:

During this stage, managers create a foundation from which they will develop their plans. They
analyze current state and have a preliminary look at possible future opportunities. They examine
organisation’s strengths and weaknesses. Clemens and Mayer state: “The further you look back,
the further you can see ahead.” Managers at this point must have an understanding of “why we
wish to solve uncertainties, and a vision of what we expect to gain.”
Managers need to determine- (a) what threats to achieving the unit’s objectives are developing
and (b) how changes in the environment present opportunities for greater achievement of those
objectives.
Step # 2. Establishing Objectives:

The second step in the planning process is to establish objectives for the entire organisation and
then for each subordinate work unit. Objectives define the results to be achieved and indicate
where the primary emphasis is to be placed and what is be accomplished by the network of
strategies, policies, procedures, rules, budgets and programmes. Organisational goals provide
direction to and control the objectives of subordinate departments.
Step # 3. Developing Premises:
Premises are planning assumptions about the environment in which the plan is to be carried out.
Premises encompass the expected environment of plans in operation. Important premises
include- (a) forecasts, (b) basic policies and (c) existing company plans. Managers charged with
planning responsibility must establish, circulate, and obtain consent to utilize critical planning
premises. Managers use these premises to evaluate future events, and to develop ‘action
statements’ and alternative course of action.
To develop premises, planners need to do realistic forecasting. The process of forecasting
generally involves- (i) calculation of probable future events; (ii) analysing changes in consumer
attitude, technology, competitive forces, government policies etc. and (iii) developing the basis
for decisions and planning through systematic investigations.
Because the future events are complex, premises must be limited to assumptions that are critical
to a plan. Throughout the planning process, premises must be monitored and updated.
Step # 4. Determining Alternative Courses:
The next step is determining available alternative ways of achieving objectives. Koontz and
O’Donnell state: “There is seldom a plan made for which reasonable alternatives do not exist.”
Therefore, managers should search for and examine alternative courses of action. It is important
to note that the number of alternatives should be reduced to the most promising and fruitful ones
by preliminary look. Alternatives can be discovered through research, experimentation, and
experience.
Step # 5. Evaluating Alternative Courses:
After finding out the available alternatives and having made an analysis of their strong and weak
points, the planner must evaluate the alternatives in the light of premises and goals. Evaluation is
not an easy process because alternatives have so many variables and limitations. Some
alternatives can be seen through, some may appear to be the most profitable and will be too
expensive. Some may be less desirable or efficient than others; still another may better suit the
firm’s immediate goals.
Hence, the effective manager evaluates these alternatives against the considerations for both
feasibility and consequences. The statistical methods and computers have greatly helped the
evaluation process.
Step # 6. Selecting the Best Alternative:
This is the point at which the plan is adopted – the point of decision making. Selecting the most
appropriate alternative involves choosing the plan. Normally, managers will select the alternative
that, in their judgement, will best enable the firm to accomplish its goals. Sometimes, the
manager may decide to follow many viable, feasible or sufficient realistic courses rather than the
one best course. The worst decision is ‘to decide not to decide.’
Step # 7. Formulating Derivative Plans:
After the overall plan has been adopted, it is necessary to develop other derived plans for each
segment of the enterprise to support the major plan.
ADVERTISEMENTS:
A derivative plan may be necessary:

(a) To co-ordinate the different phases of the organisation;
(b) To develop new policies and procedures for effecting the plan; and
(c) To work along with the major plan to reach the same objective.
Step # 8. Numberizing Plans by Budgeting:
ADVERTISEMENTS:
Without budgets, plans cannot be executed; they become paper exercise. Budgets provide
meaning to plans. Hence, as a part of plan, budgets are passed to make provision for cash and
capital expenditures. Budgets provide standards against which the progress of plans can be
measured.
Budgeting is telling money where to go rather than asking it where it went. Budgets are
expressions of expectations in numerical terms. Budgets are generally financial, though they may
be expressed in other terms also such as labour hours. It is difficult to separate budgeting from
planning process.
Step # 9. Implementing the Plan:
The plan becomes a reality when it is put into operation. This involves converting it into action.
Implementation means that resources are committed and employees act. It requires the use of
other management functions, such as organizing, staffing, directing and controlling. To get co-
operation in implementation, subordinates should be associated in the planning process.
Effective implementation of a plan requires managerial co-ordination and teamwork. Managers
have to “sell” the plan to the people who will be responsible for turning it into reality. It requires
managers to keep a careful eye on plan progress and results.
Step # 10. Adjustments and Follow up of Plan:
ADVERTISEMENTS:
Changes in the environment and the organisation subvert even the best plans. Long-range plans
Eire most susceptible to change due to external forces. Good managers assume changes and plan
for them. They must monitor and maintain their plans. Constant monitoring of plans is necessary
so that adjustments and corrections can be made in a timely and relevant manner.
Through the monitoring function, managers can take corrective action if they observe
unexpected and unwanted deviations. Follow up or feedback mechanism is an attempt to
determine whether the plan has achieved the desired results. Plans should be compared with
actual results. Feedback provides managers with input that can help them to update and adjust
plan accordingly.

Evolution of Management

Uploaded by

Copyright:

Available Formats

Evolution of Management

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Evolution of Management

Uploaded by

Copyright:

Available Formats

Submitted By: Sohail Ahmad

Class: BBA 2nd

Evolution of Management Concept

Stages of the evolution of management thought

o Professor Charles Babbage – United Kingdom (1729 – 1871)

o Robert Owens – United Kingdom (1771 – 1858)

Step # 1. Being Aware of Opportunity:

Step # 2. Establishing Objectives:

A derivative plan may be necessary:

You might also like