The development of the theory and practice of management

Kuznetsov. Fundamentals of management

To better understand unfolding before our eyes such a new and complex social phenomenon of management, it is useful to put it into some historical series.
Despite the huge importance of the revolutionary transformation, management development is basically an evolutionary process. It is characterized by continuity and a focus on purpose, strategy and objectives of the organization. Changing the goal and strategy specific tasks change — changing organization and methods of management. In contrast to all previous ways of managing collective actions in integrated management constant updating. The historical periods of management confirms and shows the dependence of its development, primarily from the external environment and especially from the historical stage companies. This is due to the need to consider the evolution of the theory and practice of management and its development prospects.
Despite a certain variety in the selection of schools and directions of management, there are four main current school:
1. School of scientific management;
2. Classical or administrative school;
3. School of human relations;
4. The mathematical school of management.
The relationship of all schools creates high-performance management. Each school is like a thread in the rope of control that acquires the highest strength when all the threads are interwoven into one.
School of scientific management (1885-1920). The emergence of the school of scientific management is concerned primarily with the theoretical and practical system of management of F. Taylor (1856-1915.). Drawing a parallel, we can say that the theory of Adam Smith gave the beginning to all branches of the economy, and the system Taylor — all subsequent management. P. Drucker wrote: "Taylorism is the rock on which we erect our discipline."
Along with Taylor, the founders of the school of scientific management are Frank and Lily Gilbert, Henry Gantt, and others. The creators of the school of scientific management came from the fact that, using observations, measurements, logic and analysis, it is possible to improve most of the operations of manual labor, to achieve more effective compliance. The formation of the school of scientific management based on three main points, which served as the starting principles for the development of management:
1. Rational organization of labor;
2. The development of a formal structure of the organization;
3. The definition of measures for cooperation of the Manager and the worker, i.e. the distinction between Executive and administrative functions.
Rational organization of work involves the replacement of traditional working methods by a number of rules formed on the basis of the analysis of work and the subsequent correct placement of workers and teaching them best practices.
The couple, Frank and Lily Gilbert was analyzed mostly the physical work in the production process, i.e. "study of movements" with the use of measuring methods and instruments.
Gilbert marked the beginning of the control area, now called "human resource management". She explored such issues as recruitment, placement and training. Scientific management did not neglect the human factor.
An important contribution of this school was the systematic use of incentives with the aim to motivate employees to increase productivity and production volume. Scientific management also spoke in support of Department managerial functions of thinking and planning from actual execution of the work. Taylor and his contemporaries in fact recognized that the management work is a specific specialty and that the organization as a whole would benefit if each group of employees will focus on what it does better just.
This approach contrasted sharply with the old system in which workers themselves plan their work.
Representatives of the school of scientific management is mostly devoted their work to the so-called production management. She was engaged in improving efficiency on lower level management, the so-called vamanapuram level. The ideas behind the school of scientific management, was developed and applied to the management of organizations in General, first of all representatives of the administrative management of the school.
Classical or administrative school of management (1920— 1950). The administrative development of the school occurred on two fronts — streamlining the production and study of management problems. The main concern of the representatives of the classical school was the efficiency in the work of the entire organization. The purpose of this school was the creation of universal principles of governance, the implementation of which will lead to success. Here are the work of Garrington Emerson (1853 - 1931), Henri Fayol (1841 - 1925), Lindall of Arvika (1891 - 1983), max Weber (1864 - 1920), Henry Ford (1863 - 1947). In D our country in the early 20-ies also launched an active research work in the field of scientific organization of labor, management in all sectors of the economy and the state apparatus. A great contribution to the development of the science of management has made scientists such as Alexey Gastev (1882 — 1941) and Platon Mikhailovich Kerzhentsev (1881 — 1940).
G. Emerson in his main work "the Twelve principles of efficiency" (1911) considers and formulates the principles of corporate governance, and substantiates them with examples. of industrial organizations. The concept of performance or efficiency, there is something major that has made Emerson a science of management, he first raised the question of the efficiency of production in a broad sense. Efficiency is a concept introduced for the first time, means the most favorable ratio between aggregate costs and economic results. "True performance always gives you maximum results with minimum conditions; voltage, on the contrary, gives a quite large results only under conditions of abnormally heavy."
The Twelve principles of efficiency. G. Emerson put and justified question about the necessity and appropriateness of a comprehensive, systematic approach to solving complex practical problems of production management and all activities in General. Principles of management formulated by Emerson are:
1. Just put the ideals or goals towards which strive every Manager and his subordinates at all levels of management;
2. Common sense, i.e. the approach of common sense to the analysis of each new process to meet long-term goals;
3. Competent consultation, i.e. the need for specialized knowledge and competent advice on all issues related to production and management. A truly competent advice can only be collegial;
4. Discipline — the subordination of all members of the team established rules and regulations;
5. The fair treatment of staff;
6. Fast, reliable, complete, accurate and permanent record, providing the supervisor with the necessary information;
7. Dispatching, providing clear operational management of the team;
8. Rules and schedules to accurately measure all of the shortcomings in the organization and reduce losses caused by them;
9. The normalization conditions for this combination time, conditions and cost that achieves the best results;
10. Rationing transactions, offering timing and sequence of each operation;
11. The written standard of the user providing explicit rules of performance of works;
12. Pay for performance, aimed at the promotion of the work of each employee.
Emerson gained fame also because of its research staff principle in management. Complementing the linear principle of the organization of the staff, he believed that staff principle applies not only to military organizations, but also to all types of organizations.
French mining engineer Henri fayol made a huge contribution to the science of management. He developed the General approach to the analysis of the activities of the administration and made some strictly mandatory governance principles.
1. The division of labor. This is a natural phenomenon. Its purpose is to increase the quantity and quality of production at the expenditure of the same effort. This is achieved by reducing the number of objectives that should be given attention and action. Moreover, the separation of ore are applicable not only to the technical work. The result is specialization of functions and separation of powers.
2. The power (authority) and responsibility. The authority has the right to give orders, and responsibility is sanctions — rewards or punishments — the accompanying action. Where there is authority, there is responsibility.
3. Discipline is, essentially, obedience, diligence, activity, the way to keep yourself moving. Discipline involves the implementation and respect of the agreements between the organization and its employees.
4. Unity of stewardship or unity of command. The employee may give two orders with respect to any action only one boss.
5. Unity of command, direction. One leader and one program for aggregate operations, pursuing the same goal. Each group operating under the same goal, must be United by a common plan and to have one head.
6. The subordination of private, personal interests in common. The interests of one employee or group of employees should not prevail over the interests of the larger organizations until the interests of the state as a whole.
7. The remuneration of staff payment of the executed works. It needs to be fair and to satisfy both personnel and the organization as employer and employee.
8. Centralization. As the division of labor centralization is a natural phenomenon. However, the appropriate degree of centralization varies according to specific conditions. The problem of centralization and decentralization is resolved by finding the action that gives the best overall performance.
9. Hierarchy or scalar chain. Hierarchy or scalar chain is a number of senior positions, starting from the highest to the lowest. Error is evasion without the need of hierarchy, but much was a big mistake saving it when it can harm the organization.
10. Order. The formula of the material order — a specific place for all things and every thing in its place. The formula of the social order — a specific place for each person and each person in his place. Graphic tables, charts considerably facilitate the establishment and monitoring of both social and material order.
11. Justice. Justice is the result of a combination of benevolence with justice.
12. The constancy of the composition of the staff. High staff turnover is both a cause and a consequence of a bad state of Affairs. A mediocre leader who cherishes his place, definitely preferable to the outstanding, talented Manager, who goes out quickly and not hold on to his place.
13. Initiative. The initiative is the development of the plan and its successful implementation. Freedom proposals and implementation also belongs to the category of initiative.
14. Unity staff or corporate spirit. Harmony, unity of personnel are a major force in the organization.
Fayolle, who made a huge contribution to the science of management, believed that the number of management principles is unlimited and changes in the status quo may result in changes in the rules. Unlike Taylor, fayol denied the necessity of giving employees a functional administrative rights for the first time indicated the need for a headquarters, which should not have the right leadership, and prepare for the future and identify possible ways of improving the organization. Fayolle special attention has been paid to the preparation of the plan and forecast. Merit Fayol is also concluded that not only engineers, but every member of society needs to some extent in the knowledge of the principles of administrative activities.
If fayol examined the functional aspect of management, Max Weber developed the institutional dimension. His main work "the Theory of society and economic organization" (1920) is devoted to the analysis of problems of leadership and bureaucratic power structure in the organization. Weber identifies three major types of organizations depending on the nature of power possessed by leader: charismatic, traditional and perfect (or bureaucratic).
* Charisma (gr.) — mercy, grace, divine gift. Exceptional talent, endowment of any person (a charismatic leader, prophet, preacher, politician), the actions of the Institute or character special qualities of exclusivity, infallibility in the eyes of adherents. The term was first applied in works Trench and M. Weber. Charisma — a power that is built not on logic, not on tradition, but on the strength of personal qualities or abilities of the leader.
A charismatic organization when the leader has exceptional personal qualities.
The traditional type of organization arises from charismatic when there is a natural replacement of the leader and members of organizations traditionally obey the head, who replaced the former leader. Perfect (bureaucratic)* type based on a special power-sharing, providing a leader to be a leader in your organization.
In particular, Weber developed the characteristics of the third type of organization. The bureaucratic type of organization has the following basic features:
1 — all activities of the organization is divided into simple elementary operations, the implementation of which technically is assigned to individual links;
2 — each Director shall have formalized the power and authority that operate only within the organization. The building must clearly manifest the principle of hierarchy;
3. the system of clear rules, regulations and standards governing the work and responsibilities of each member of the organization;
4 — any Manager of the organization have to maintain "social distance" must be impartial in relation to its customers and staff that promotes equally valid against all persons;
5 — it is essential that each member held a position in accordance with his qualifications and was protected from arbitrary dismissal. Promotion system frames can be built on the principle of working, performance, or both factors.
These characteristics of the ideal (bureaucratic) organization, considered by Weber, helped to focus attention on certain parameters of the organization and identify areas of formalization of its activities.
In our country, as already indicated, also conducted studies which can be attributed to the school of management.
Bureaucracy (FR. bureaucratie) — domination of the office; a specific form of social organizations in society, the essence of which lies in the primacy of form over content activities, subordinated to the rules and objectives of the functioning of the organization the purpose of its preservation and strengthening. Type of organization characterized by a specialized division of labor, a clear management hierarchy, rules and standards, indicators of performance, the principles of hiring based on competency of the employee.
WSS the work "universal organizational science" (1913 — 1917) believed that all kinds of controls in nature, society, and technology — have much in common. He was trying to create a "special organizational science", define its object, law, main categories. A number of concepts developed by Bogdanov, is used to build mathematical models of economic processes and in the solution of economic planning problems.*
Another representative of the national school — A. K. Gastev, he stressed that "attempts to create so-called organizational science outside of the specific trends mechanizirovannaya mass production inevitably are reduced to failure"**. The focus in his works he paid to the rational organization and culture and of labour, laid the Foundation for an integrated approach to control theory. P. M. Kerzhentsev understand the scientific organization of labor as the study of organizational techniques and determining the most appropriate methods of organizational work. However, he examined only the management of people, teams, regardless of the scope of their activities. In domestic literature has devoted considerable attention to the development of management principles.
So, in the monograph "Theory of management principles:
1. The principle of democratic centralism
2. The principle of the unity of political and economic management
3. The principle of planned economy
4. The principle of material and moral stimulation of work
5. The principle of scientific management
6. The principle of responsibility
7. The principle of proper selection and placement of personnel
8. The principle of economy and efficiency
9. The principle of optimal combination of sectoral and territorial management
10. The principle of continuity of business solutions
From the above principles it is evident that the objective theory of management evolved in parallel in our country and in the West, of course taking into account the specific conditions — in the conditions of command-administrative system, in the West, in conditions of market relations.
Since the late nineteenth century, the bureaucracy is an important attribute of any large organization. Multiplication of administrative functions, expansion of departments and emergence of branches, an increase in the volume of documentation and all sorts of calculations - all this contributed to the growth of the administrative staff. The advantage of bureaucracy is to create rational structures with wide possibilities of their universal application to various social institutions. Although the bureaucratic form of organization control often described as inhuman and indifferent to human needs, it nevertheless represented significant progress in comparison with the much more hard practice, the first factory system where the worker was merely raw material for exploitation. The practical implementation of the principles of management streamlined implementation of the power Manager over the performers, and therefore to a certain extent and limited it. Therefore, in these circumstances, the management process depended as if not from specific people and from a set of formal management principles.
However, the characteristic feature of bureaucracy is its aloofness. The development of this structure leads to more formal and distorted communication of the control system with actual economic reality. Bureaucracy in its negative sense, is not inevitable. It becomes real only in conditions of monopoly, when eliminated or attenuated primarily economic control of the control unit. World practice has experience blocking bureaucratization of economic life, increase of efficiency of control systems.
So, it is possible to bring the system of measures, named by the American explorers "adhocracy"*. Under it refers to special organizational arrangements to solve problems that can not quickly and effectively addressed in the bureaucracy or "fail" and "stuck" in this structure.
Methods of "adhocracy" are, in particular, in the rejection of highly centralized control of the parallel research and development in the organization of internal competition, the decentralization of production, the provision of maximum autonomy to the branches and departments.
A characteristic feature is the use of a variety of moral incentives, the attempt to maximally use "the human factor".
Analysis of the activities of large companies that use a policy of "adhocracy", showed the following characteristics. Management methods in the "best" large companies reproduce practices of small firms: maintaining a small size of enterprises and units, ease of management, low bureaucratic barriers; constant personal contact of managers with personnel; the lack of strict regulation in creative activity; formation of feelings of "single family" all working etc.
However, with the development of society is the gradual shift from command-and-control, developing indirect, indirect forms of governance, and this is manifested primarily in the development of the school of human relations.
School of human relations (1930-1950). In the 20-30-ies under the influence of which began in those years of transition from extensive to intensive methods of economic management, there is a need to search for new forms of management, more responsive to the "human factor". The formation of the school of "human relations". Researchers of this school proceeded from the fact that if the management takes great care of its employees, the satisfaction level of the employees increases, which naturally leads to an increase in productivity. In fact "only human resources able to produce economic results. All other resources are subject to the laws of mechanics. They easier to use, but their output will never be greater than the sum of the outputs".
The goal of the supporters of this school was to try to control, influencing social and psychological factors. School of "human relations" was an attempt of the management to consider each organization as a "social system".
The founder of this school of Elton Mayo (1880 — 1949) believed that the organization has a unified social structure. And task management is that in addition to the formal relationships between members of the organization to develop fruitful informal communication, which can greatly affect the results. Thus, the formal organization would be supplemented with an informal structure, which is regarded as a necessary and essential component of effective activity of the organization.
The organization is compared to an iceberg, the underwater part of which are the various elements of the informal system, and at the top of the formal aspects of the organization. Thereby underscores the priority of this system over the officially established relations in the organization, the deeper the defining character of socio-psychological characteristics in the organization.
Their conclusions E. Mayo based primarily on the well-known Howe - tomskih the experiments conducted in the working groups on Ho - toonscom the factory of the company "Western electric" (Chicago) in the United States in the years 1924-1936. In General, these conclusions can be summarized as follows:
1. The development worker is defined by group norms rather than his physical capabilities. All the rules that characterize certain standards of behavior or position of a person supported by group sanctions (e.g., threat of social ostracism). Group norms are essentially the unwritten rules of the informal organization.
2. Workers are much more likely to act or make decisions as members of groups than as individuals; their behavior in most cases is due to group norms.
3. Particular importance of informal leaders for achieving group objectives establishing and maintaining group norms. The group leader is a person whose activity coincides with group norms, i.e. the person whose behavior is perceived as the most appropriate to achieve the objectives of the group.
On this basis, the Manager performs two functions: economic and social. The first aims to maximize the organization's goals, the second on the creation and management of labour unions and groups effectively working together.
Achievement of Mayo and his followers in the analysis of the informal structure was proof of the need to expand the organizational boundaries of analysis beyond the official structure.
Based on these findings, the researchers psychological school of thought that if the management takes great care of its employees, and the level of satisfaction of workers needs to increase, which will lead to increased productivity.
School of management science or mathematical school of management (1950 — present). The mathematical school of management (sometimes also called the theory of quantitative methods for management) originated in the early 40-ies, and especially in the management of troops during the 2nd world war. Then tested with quantitative methods was moved to the office of civil organizations.
Many companies have begun to use some mathematical tools in hiring employees with placement of equipment in the production area, planning of warehouse operations. That is, mathematics was applied in nature in some areas of management.
Mathematical school is characterized primarily by the use in the management of operations research and simulation. Essentially, this school uses quantitative methods to solve management and production problems. It focuses on decision-making, economic efficiency, formal mathematical models and using computers.
The use of operations management is the application of quantitative methods to the operational problems of the organization. Having defined the problem, develop a situation model, which approximately mirrors the essential properties of reality, i.e. streamlines. This allows us to give quantitative values of variables and to objectively compare and describe each variable, as well as interdependence between them. A key feature of this school is to replace the verbal reasoning and descriptive analysis, models, symbols and quantitative values.
The formation and development of this school is connected with such names as R. Ackoff, C. bir, D. Forrester, etc. Along with operations research and modeling in the framework of this school will develop a systematic approach to management problems based on system analysis that led to the creation of "systems engineering". There are dozens of definitions of key words, revealing the essence of this approach. Will focus only on some of them, allowing him to understand. The system is a certain integrity, unity, composed of interdependent parts, each of which contributes to the characteristics of the whole. Systems approach — a comprehensive study of the phenomenon or process as a whole from the standpoint of system analysis, i.e., clarification of complex issues and structuring a series of tasks solved with the help of economic-mathematical methods, finding criteria for their solutions, detailing objectives, designing effective organization to achieve the objectives. Systems engineering is an applied science that examines the real tasks of creating complex control systems.
The process of building the system consists of six phases:
1. System analysis;
2. System programming, which includes determining current goals: preparation of schedules and work plans;
3. System design — the actual designing of the system, its subsystems and components to achieve optimum efficiency;
4. The creation of a software;
5. Entry into force and its verification;
6. Maintenance of the system.
Thus, we can say that the emergence and development of management thought can be described as vzaimoponimanija chain of three different philosophies: the classical (scientific and administrative school); philosophy of human relations or bike - wireline direction; and the mathematical school. At one time or another, each chain link was attached to the fore.