Management Evolution: From Pyramidal to Collaborative

Management Philosophy

• Mid-Nineteenth Century

  Management was pyramidal, with the manager as the highest authority, dictating fixed ideas and implementation methods. Employees simply executed activities.

• Late Twentieth Century

  Managers and employees collaboratively set objectives. Employees have autonomy in organization and control, driving results.

Historical Features of Management

Administration predates Christ, originating in court administration. Mid-eighteenth-century methods persisted until 40 years ago. Subsequent industrial-level investigations led to:

• Increased use of machinery
• Centralization of production activities
• New employer-employee relationships
• Separation of customer and producer

The need for evolving goal-setting methods led to the emergence of three management scholars:

• Charles Babbage

  Developed criteria based on research.

• Frederick Taylor

  Identified communication as a key issue and applied the scientific method.

• Henri Fayol

  Proposed improvements in modern management.

Taylor's Scientific Method: His Biggest Contribution

Taylor's method, known as Scientific Management, is based on four principles, representing his greatest contribution to the administrative process:

1. Development of a more efficient working method
2. Selection and development of workers
3. Integration of the best method with selected and trained workers
4. Close relationship between managers and employees

Fayol and the Industrial Process

Fayol's contributions are based on his experiences. His book, "Administration Industrielle et Générale", published in 1916 and widely recognized in 1949, analyzes the functions essential to any company, regardless of size. These six functions are:

• Technical
• Commercial
• Security
• Financial
• Accounting
• Administrative

Fayol also defined 14 Principles of Scientific Management:

• Division of work
• Authority and responsibility
• Discipline
• Unity of command
• Unity of direction
• Subordination of individual interest to the general interest
• Remuneration of staff
• Centralization
• Hierarchy
• Order
• Equity
• Stability of personnel
• Initiative
• Esprit de corps (staff union)

Definition of Management

"It is a social science consisting of principles, techniques, and practices that, when applied to human groups, enable the establishment of sound systems of cooperative efforts, through which individual purposes, not easily achievable alone, can be attained." - W. Jiménez Castro