Part One

First section

Different approaches to management and the development of organization theory is

absolutely crucial for today Managers. However, some argue that It is really no more than a

luxury for students and the time could be spent better on the study of other topical areas.

According to Robbins, “students’ interest in history is minimal” and that “the classical

material in management textbooks has little value to today’s students” (Stephen Cummings,

2011) . He asserted that students would really like to know how to manage, not trace back the

history of management research. And It might be better if it demonstrated what was actually

going on in the world of business industry practice.

We contend that if students were more involved with the history of management, they

would be much more likely to have a positive influence on the future of management. A

better understanding of management’s history helps students learn the lessons of past

mistakes or that a better understanding of history assists students to think about how

supposedly “new” management practices really are (Stephen Cummings, 2011).

Having knowledge of various historical approaches to development in the context of

organizational theory would result not just in better students in the present but also in

fundamental improvements for the future of the field. We contend that by encouraging

students to think critically about the construction of management history, they will be able to

think more creatively about what management can be. Students must have a solid foundation

of factual knowledge on the key concepts of various approaches to management and

organizational theory.

By looking at history, we have a better understanding of how different approaches to

management and the development of organization theory were formed in that time period.

We can study patterns in organization theory and learn more about the development of

management, the way they develop, and what’s important to them. Knowing what questions

to ask of sources and why caution is required in understanding the management of the past is
essential. It means knowing what to look for in evaluating a history of the past. In short, it

means having some sense of what today’s managers do. Managers must develop an in-depth

knowledge of past and present models, theories and processes in order to manage effectively

and intelligently (Wolfgang Pindurand, 1995). Contemporary management practice is

pervasive in every aspect of human life within all types of organizations (Wolfgang

Pindurand, 1995).

This knowledge gives managers a reasonable business framework and limits within

which to operate in the pursuit for excellence.

Historical studies assist managers in better understanding how to interact with

employees. Through such studies, managers can learn from their previous generation on how

to engage with their employees in order to promote cohesion and create a better atmosphere

for maximum production. For example, recognizing and rewarding exemplary employees

who prove their amazing skills and innovative minds can add value to the firm. So, this kind

of appreciation can be a strategy implemented to motivate employees with unique potential

and encourage others to unleash their full potential. Doing so will have a positive impact on

the firm's productivity.

Historical data serves as a foundation or basis for developing new ideas from existing

ones. Managers can use previous ideologies as a basis for creating new concepts relevant to

the current economy, as the industry is very dynamic and new technology is advancing at a

rapid pace. For example, in the 1920s, managers were more concerned with employee

engagement and firm productivity; this was later changed to scientific management by John

Mees, who deployed the use of policies and concepts that provided a deeper insight into this

field of research. Therefore, managers must move with the times by innovating and

developing new systems and structures that are more effective and highly efficient.

Using management theory in an organization allows leaders to concentrate on their

primary objectives. When one theory does not suit a particular situation, it is critical to

consider developing a new theory, that will lead in a unique and more applicable direction.
 Finally, thinking critically about how management history relates to the present

should help students see history as a highly relevant repository of useful events and ideas

with which to approach current issues, rather than a long-gone irrelevancy best avoided in

order to focus on our current heights. The primary goal of embracing management history

should be to work against being limited by what others have regarded as a no practical

relevance and a waste of time. Studying history can help you gain an understanding of the

domain over which managers actually have power and influence. It assists you in determining

where you can have an impact. It allows you to understand what happened and what could

happen in the future.

Part One
Second section

The birth of management theory can be traced back to the Industrial Revolution. The

Industrial Revolution, which lasted from the late 1700s to the early 1900s, brought about

significant changes in the workplace and forever altered the way businesses are run, allowing

businesses to perform more efficiently than ever before and dramatically increase output.

However, increased output meant lower prices, which in turn increased demand, necessitating

the hiring of more workers. Companies that once had a few dozen employees were now

transforming into massive corporations. It was no longer feasible for a company to track

every last one of their employees.

While setting productivity goals is simple, managing a team to achieve productivity

goals has not been. Because of theses, the owner had to come up with new and creative ways

to motivate a large number of employees to perform. To coordinate these larger

organizations, owners had to rely on others, whom economists refer to as "agents" and the

rest of us refer to as "managers” [9].

The emphasis was solely on mass production execution, and managerial solutions

such as standardized processes, labour specialization, quality control, workflow planning, and

basic accounting were put in place. By the early 1900s, the term "management" was in wide

use, and Adam Smith's ideas were coming into their own. Others, including Frederick

Winslow Taylor, Frank and Lillian Galbreth, Herbert R. Townes, and Henry L. Gantt,

developed theories that emphasized efficiency, consistency of production, and predictability

[10]. The goal was to maximize the number of outcomes that could be produced from a set of

inputs.

Management theories have been categorized differently by different scholars who

divided them into six groups, such as, i. the management process school, ii. the empirical

school, iii. the human behavioral school, iv. the social system school, v. the decision theory

school, and vi. the mathematical school [11] [12]. on the other hand, categorized it into three
broad categories: (a) classical management theory, (b) neo-classical management theory, and

(c) modern management theory [13].

Classical Approach to Management

According to the theory, laborers just needed physical and economic needs, and this required
labor specialization. These theories advocate centralized leadership and decision-making,
with a focus on profit maximization. Taylor's scientific theory, Fayol's administrative theory,
and Weber's bureaucratic management are the three streams of classical management theory.

Scientific management

Scientific management goal to increase economic efficiency, specifically labor productivity.

Taylor held the simple belief that what motivates people at work is money. He suggested that
workers should be paid reasonably for a fair day's task, and should be equivalent to output.
As a result, he proposed the variance piece rate system for paying workers' wages.

Aiming to make work more efficient, Taylor created four principles to his theory which were
as follows:

1. Each task should be studied to determine the most efficient way of doing the task,
disrupting traditional work processes
2. Workers should be matched to jobs that align with both their abilities and motivation
3. Workers should be monitored closely to ensure they only follow best working practices.
4. Managers should spend time training employees and planning for future needs

Administrative theory developed by a French mining engineer named Henri Fayol. He

focuses on the entire organizational structure of a company. It is important to note that Fayol
agreed with many of Taylor's ideas and ideologies. However, the main difference is that
Taylor was more concerned with the process of completing the work as efficiently as
possible. Fayol highlighted fourteen principles that he believed were the foundation for
strong and successful businesses. A clear division of labour, ensuring each employee had
only one direct manager to report to, and a healthy manager-employee relationship were
some of Fayol's principles.

Bureaucratic Management developed by the father of modern sociology Max Weber.

Weber proposed that a business is at its most effective when it is hierarchical structure of
management with clearly defined rules and regulations. This ensures order and uniformity
throughout an organization, producing a specialized workforce.

Neo-Classical Theory

As the name implies, neoclassical is made up of two parts: neo and classical. The term neo
refers to something new, whereas classical refers to the work of a group of economists, as in
the 18th and 19th centuries. The Neo-Classical Theory was more human-oriented, with a
focus on workers' motivations, time needs, attitudes, and behaviours.

The neoclassical organizational theory discusses methods and ideas cantered on the
organization's emotional beings. The human relations movement and the behavioural
science approach are the two primary sources of neoclassical organizational theory.

Human Relations

Organization was viewed as a social system by the human relations movement. In addition to
technical skills, social physiologists and sociologists emphasized group dynamics and
promoted people-management skills.

Elton Mayo, along with Frank Roethlisberger and William Dickson, is the main champion of
the human relations movement, which later evolved into organizational behaviour. They
argued that inter-relationships among group members are an important aspect in
organizational settings [15]. Their "Hawthorne experiment" proved to be a paradigm shifter
in management studies. The "Hawthorne Effect" is a term that describes the phenomenon in
which people work harder and perform better when they are observed. Organization could be
considered as a social system by the human relations movement.

Behavioural Schools

The theory suggests ideas for how managers should act in order to motivate their employees.
And the goal is to motivate employees to accomplish organizational objectives by performing
at the highest level possible. A.H. Maslow, Douglas McGregor, Argyris, F. Herzberg, Rensis
Likert, J.G. Likert, Kurt Lewin, and Keith Davis were among the sociologists and
psychologists who contributed to this. It is an advanced version of human relations theory. 

The behavioral science approach considers human behavior in organizations and promotes
human development and its benefits at both the individual and organizational levels.

Theory X and Theory Y

Theorist Douglas McGregor is credited with developing these two management styles which
opposing concepts this are: authoritarian (Theory X) and participative (Theory Y).

Leaders are more likely to use the authoritarian managerial style if the members of the team
display little passion for their work. However, if employees show a willingness to learn and
are enthusiastic about their work, their manager is more likely to use participative
management. A manager management style could very well impact how well he/she can
motivate his team members.

Theory X views workers as pessimistic in the sense that they cannot work in the absence of
incentives. Theory Y, on the other hand, has a positive attitude toward employees. According
to the latter theory, employees and managers can develop a collaborative and trusting
relationship [16].

Modern Management Theory

Modern management theory emphasizes the application of systematic mathematical methods

to analyse and comprehend the interrelationships between managers and employees across all
aspects. There are three parts in the modern theory of management: Quantitative, Systems
and Contingency. 

Quantitative Theory

To solve complex problems, the quantitative approach to management implements statistics

and mathematical techniques. Managers may use techniques such as computer simulations or
information models to assess performance, depending on the business. This analysis allows
them to understand what is working and what is not in the business, and then develop
solutions to solve or improve the problems they discover. Managers can also use these
techniques and data to assess the advantages and disadvantages of various ideas. This
approach can help managers in making objective decisions that support the business based on
facts data rather than personal opinions or feelings.

System Theory

According to systems theory, a confined organization cannot exist. According to systems

theory, a confined organization cannot exist. To operate efficiently, managers need to
consider external variables impacting the organization. Open and closed are two types of
systems.
“An open system interacts with its environment such includes; all biological, human and
social systems whereas several mechanical and physical systems are regarded as closed
systems”. Interestingly, organisation as a closed system is view of traditional organisational
theorists whereas organisation treated as an open system is a viewpoint of modern theorists.
[10] [19]

Contingency Theory

Contingency theories emphasize both the leader's persona and the situation/environment in
which they operate. These theories consider the context of leadership, which means whether
or not the leadership style suits a specific situation, and state that a leader can be effective in
one situation but fail in another. A leader will be more successful if he/she chooses an
appropriate leadership style for a given environment or situation. And this will make
contingent leaders more versatile and adaptable.

Some of the earlier management theorists, such as Fayol, Mintzberg, and Katz, are still
relevant in the modern workplace. Markets, communication systems, automation, and
technology have all changed significantly since these theories were developed. Some modern
observers question whether their theories have any actual benefit or application in the 21st
century.

Every previous management theory is significant to managers in some way. All management
theories address different aspects of management and provides insight on the best way to
manage [21]. Despite the limitation of earlier management theories have it still have they
form important foundation to management decisions and practice.

For example, while classical theories attempt to improve an organization's performance

through supervision, training, and remuneration, human behavioral theories attempt to do so
by addressing concerns such as work satisfaction [22].  McGregor presented Theory X and
Theory Y, which build on the earlier theories in an attempt to unify classical and human
behavioral theories [23]. As a result, a manager can select key management concepts from
diverse management theories.

A manager is not expected to implement all management theories developed in the 19th and
early 20th centuries in the context of current organizations. Instead, managers should draw on
various management theories to devise the best strategy. In today's highly competitive and
dynamic environment, contingency management theory can be extremely useful.
 The five major functions of theory management are planning, organizing, staffing,

directing, and controlling. Each of these functions is critical to helping organizations achieve

their goals in an efficient and effective manner.

Effective management and leadership involve creative problem solving, motivating

employees, and making sure the organization accomplishes the objectives and goals that have

been put in place (Edwin C Leonard & Trusty, 2014). In the following part it will be describe

briefly each of the five functions of management followed by an example of the

implementation of each.

Planning is major and basic function of management controls all the planning that

allows the organization to run smoothly. Planning entails specifying a goal and identifying

the most efficient course of action for achieving it (Edwin C Leonard & Trusty, 2014) .

Planning also involves knowledge of the company’s resources as well as the future objectives

of the business (Edwin C Leonard & Trusty, 2014). Typically, planning embodies flexibility,

which means that the path to it is not predetermined. Everyone understands exactly what the

goal is that the participants are striving to achieve (especially when it comes to software

development).

For example, my organization participate in various projects based on the stakeholder

needs or National interest either way planning will be set based on the project size and

duration. Let look one of many projects which is National ID Project (NIDP) targets to enrol

70 million residents in that time period, while offering digital authentication to service
providers in the public, private, finance and social services across Ethiopia. As per the 2030

African Union digital agenda and to support individual identity use cases for both citizens

and legal residents of Ethiopia by 2025. let's say Mr. X the project manager has a goal to

archive individual identity through digital ID system for the nation. Mr. X needs to first

spend time mapping out the necessary steps his team of member representatives must take so

that they can deliver digital ID system. These steps might include things like forming team in

a particular field, Outline Deliverables, Develop Tasks, Assign Tasks and Deadlines and so

on.

The next function of management is the organizing function, which is the foundation

for an organization. Without this organizational structure daily operation of the business

becomes difficult to be done. Organizing also involves developing the organizational

structure and chain of command within the company (Edwin C Leonard & Trusty, 2014).

Organizing involves designating tasks and responsibilities to employees with the specific

skill sets needed to complete the tasks.

Using the first example, the project manager will use or crate a team to respond to the

project needs and set the proper communication path for members of the team and team

leader to management. In other words, the chain of command will be established, and each

member’s role will be outlined for him or her as well as the other group members. Based on

the criticality of the project, different divisions will be involved.

The staffing function of management purpose is to hire the right people for the right

jobs to achieve the objectives set forth by the company (Barnett, 2016). Aside from

recruitment, staffing includes training and development, performance evaluations,

promotions, and transfers of employees.

Continuing with an example, based on the project size and technology requirements,

having the right staff is very important for a project because it ensures the project's success. If

management notices a lack of knowledge and less qualified personnel to do the task, based on
the assignment, the first measurement so far is to equip personnel with proper training. If that

doesn’t work, management will look for new qualified personnel outside the organization.

The leading is the fourth function of management controls all the guidance given to

the employees toward accomplishing the objectives and goals that are set for the project

(Edwin C Leonard & Trusty, 2014). The follow through and follow up function requires the

leader to be continually mentoring, encouraging, inspiring, and engaging with the workers.

Using the above example as reference, the project manager encourages employees by

organizing different events to motivate employees, and the best employee will be rewarded.

The team manager monitors all the task progress and mentors’ employees as well as gives

direction.

Controlling is the final function of management demands, establishing performance

criteria and monitoring employee productivity to determine whether or not their performance

matches those requirements (Edwin C Leonard & Trusty, 2014). The control process

frequently results in the discovery of issues that must be addressed by developing new

performance standards. For example, my organization controls its progress by using the

Balanced Scorecard (BSC) measurement method, which helps performance metrics identify,

improve, and control various functions and their resulting outcomes. By using this method of

measurement, the organization will have control over employees and score their progress.

In summary, the five major management functions of planning, organizing, leading,

staffing, and controlling are critical to an organization's business and have a direct impact on

its outcomes. It is critical for an organization to establish standards for all employees to

follow and to take corrective steps to guarantee that the standards are met. Every employee

should be aware of their daily tasks and have the chance to ask questions or raise concerns

about the tasks assigned to them. This group of people must have certain talents or abilities to

transform knowledge into action. This will result in the desired performance. Leaders must

assist other employees to become more productive in order to inspire the people who turn to

them for guidance. The main objective is to make the firm you work for more lucrative as a
result of your efforts, and using these functions as an outline is a wonderful way to get started

toward that aim.

References
Barnett, T. (2016, April 5). Management Functions. Retrieved from
referenceforbusiness.com: http://www.referenceforbusiness.com/management/Log-
Mar/Management-Functions.html

Edwin C Leonard, J., & Trusty, K. A. (2014). Supervison:Concepts and Practices of

Management. Boston, MA: Cengage Learning. doi:978-1-285-86637-6