In appendix A, “The Evolution of Management” there are nine theories classified into two approaches: The Classical Approaches and The Contemporary Approaches. In the classical approaches, there are five theories including systematic management, scientific management, administrative management, human relations, and bureaucracy. Quantitative management, organizational behavior, systems theory, and contingency perspective are the four theories from contemporary approaches.
Systematic management is a holistic approach to management that allows leaders to perate in complex environment, navigate through strategic uncertainty and effectively manage change in organizations. Cocheco Company uses systematic management to draw up a labor contract provisions in the 1850s. Scientific management is a theory of management that analyzes and synthesizes workflows, improving labour productivity.
One of the most famous examples of the application management is the factory Henry Ford built to produce the Model-T. Administrative management is theory that focuses on how a business should be organized and the practices an effective manager should follow. It emphasized the perspective of senior managers within the organization, and argued that management was a profession and could be taught. In 1955, the first MacDonald’s opens and it uses administrative management.
Human relations are an approach that is aimed at understanding how psychological and social processes interact with the work situations to influence performance. This approach was the first major approach to emphasize informal work relationships and worker satisfaction. Bureaucracy theory is to be believed by Max Weber who is believed bureaucratic structures can eliminate the variability that esults when managers in the same organization have different skills, experiences, and goals. The first Wal-Mart is open in Roger, Arizona in 1962.
Quantitative management is a theory that emphasizes the use of mathematical and statistical techniques in management and focuses on finding the right answers to managerial problems, which are solved through decision making. In 1971, Intel introduces their first microprocessors and IBM introduces its first floppy disk. Organizational behavior is the studies and indentifles management activities that promote employee ffectiveness through an understanding of complex nature of individual, group, and organizational processes.
Netscape goes public and kicks off the dot. com boom in 1995. Systems theory emphasizes that an organization is one system in a series of subsystem. Contingency perspective is an approach that is based on the idea that there is no one best way to manage and that to be effective, planning, organizing, leading, and controlling must be tailored to the particular circumstances faced by an organization. AOL is the first internet browser and it merges with Time Warner the year.