Define Managers and Discuss the Changing Nature of Management

Presented to
Perry Barton
MGMT2215-Team Project

By
Tammie Boyd

Date
February 8, 2015

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What is management? Management is staffing, planning, organizing, leading, and
controlling an organization in order to accomplish a goal. A manager is the person that is
responsible for the planning, staffing, organizing, leading or administering the tasks in the
organization or company. The primary function of management is meeting the needs of various
stakeholders of the organization, such as debtors, customers, and owners. It is the act of engaging
with an organizations human talent and using the physical resources at a managers disposal to
accomplish desired goals and objectives efficiently and effectively (Management Functions and
Process, Management Thought). In order to understand how management functions the way it
does today one must look back at how the foundation of management was built. This paper will
examine how the nature of management and managers has changed over the years.
In the late 1800s Fredrick Taylor introduced Scientific Management. Taylor believed that
over working employees was not the best way to do things. He felt that there was a better way to
get the most productivity out of his people. He published The Principles of Scientific
Management. He found that by optimizing and simplifying jobs productivity would increase.
Taylor also believed that managers and employees should have a solid working relationship. At
this particular time in the business world, the manager did not have contact with the employees.
They (the employee) were left on their own to produce the product. There were no set standards
and no real motivation to do a good job. In other words, there was no incentive to get the job
done with a sense of urgency or any efficiency.
Taylor believed that workers were motivated by money. He pushed the idea of giving an
employee a fair pay in exchange for a fair days worth of work. Basically if a worker did not
produce the same amount as the other employees in a day, they should be paid less than the
employees that were very productive. Taylor designed workplace experiments to find the best
performance levels for employees. He used the motions performed by bricklayers to find the best
way to do the task. He applied the scientific method to research the best way to do any type of
task in the workplace. He used the time needed to do the task to come up with the best way to
complete the task.
This research also proved that certain individuals could work faster than others. This was the
type of individuals that managers should be looking to hire. In other words, selecting the right
individual for the job was another important aspect of efficiency. The four principles of Scientific
Management came from information gathered from his research. Taylors four principles are:
1. Use the scientific method to research a better way to do the job instead of the way the
employees are currently doing the job.
2. Instead of giving out various tasks to employees, match the employee to the job based on
their skills. Then teach them to perform at the maximum productivity level.
3. Pay attention to the work the employee is doing. Supervise employees and make sure
they are using the most efficient method to get the job done.
4. Make sure the work is separated between the employees and managers. Managers need to
have time to plan and train employees, while employees are efficiently doing their jobs
(Fredrick Taylor and Scientific Management).
Henry Gantt also changed the nature of management by initiating the pay for performance
plans and the training and development of workers. He developed a chart that visually indicated

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what task needed to be completed at what times in order to complete the project (Williams). The
Gantt chart is the best way to feature tasks or activities versus time. On one side of the chart you
will see a list of the activities. On the top of the chart you will see the time increments. A line on
the chart represents each activity; the position and length of the line signal the start date, duration
and end date of the activity. This lets you immediately see:

The activities that are planned

The start and finish of each activity
The length of time for each activity
Any overlapping
The start and end date of the whole project

Originally Karol Adamiecki created these work charts. Henry Gantt came along years later and
devised the version that became known and popular in Western countries. In the beginning these
charts were created from scratch. Every time there was a new project a new chart had to be
created. Today the charts are popular with project management jobs. With computers and the
correct software Gantt charts can be easily updated and created (What is a Gantt Chart).
Finally, Gantt encouraged companies to train and develop their employees. During his tenure,
he found that employees performed better if they were trained first. However, supervisors were
hesitant to train employees for fear that they would lose their job to a more knowledgeable
employee. Gantt decided to give bonus to supervisors that did properly train their employees.
This was the first documented effort to make it profitable for the supervisor to train the
employee. It was groundbreaking and cannot be overlooked. Gantt had a direct method of
training:

Study the work and find the most effective way to get it done in the shortest time frame.
A supervisor with the ability to effectively train the employee in the shortest time frame.
Bonus for the supervisor and employee if it is successful.

Building on the management principles started by Fredrick Taylor and Henry Gantt, Henri
Fayol took it another step and came up with the five functions of management. They include:
Planning, Organizing, Commanding, Coordinating, and Controlling. These functions are in
addition to the fourteen principles of management Fayol came up with to use as guidelines for
the decisions and actions of managers. Fayol believed that management could and should be
passed on to others. He felt that the measure of success for a manager was if the manager could
efficiently perform the five managerial functions.
These five managerial functions provide a point of reference to managers so that problems
can be solved in a creative manner. They also help build the relationship between managers and
employees.
1. Planning- Planning is looking to the future. It is one of the hardest functions in
management. Coming up with a good plan of action requires active participation from the
entire organization. In order to guarantee continuity, planning must consist of the

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2.

3.

4.

5.

organizations resources and the flexibility of personnel. Basically the manager needs to
determine the goals for the organization and figure out a way to make them happen.
Organizing- The Company can only function properly if it is well put together. This
means that there must be enough money, employees and supplies so that the business
runs effectively. This also helps to build a good working structure. In other words there
must be a manager or person in charge to make decisions. Also everyone must know who
will do what jobs and who is in charge.
Commanding- Employees expect to know what is required of them and the exact way to
do the job. The manager will be able to get the most out of the employee if they are given
clear and concise instructions with respect to the tasks that must be carried out by them.
Managers that have integrity; know how to communicate effectively, and base their
decisions on performance are more successful than those who do not. They motivate and
encourage employees to take the initiative. Bottom line is that the manager is inspiring
and motivating the employees to work hard. This in turn helps the company achieve their
organizational goals.
Coordinating- The organizational operation will run smoother when all of the activities
fall in line. Managers should encourage positive behavior within the teams and working
environments. Coordination is aimed at provoking motivation and discipline within the
team. This means communication must be clear and sound leadership is in place.
Controlling- it is important to make sure all activities carried out in accordance with the
plan that is in place. There are four steps in the control process:
Review organizational objectives and set goals
Actual performance is measured against goals
Team/employee performance will be compared to results
Correction action taken if needed

This four-step process is about finding a solution to a problem in a creative way.

Discovering a solution can be just as hard as finding exactly what the problem is. It can be just as
difficult as making choices or even the decision making process it self. It starts with creating an
environmental analysis of the organization and it ends with evaluating the results of the
implemented solution (Vliet).
Also according to Fayol, effective management is based on the fourteen Principles of
Management. These principles should be flexible in case any changes needed to be made in the
future.
1. Division of Work- Work should be divided according to each individuals ability to do the
task instead of one person doing the entire task. This will increase production.
2. Authority and Responsibility- a managers authority should be equivalent to the
managers responsibility.
3. Discipline- any successful project or working environment needs discipline. One must
have respect for authority, obedience, and observance of established rules. Managers at
all levels should be able to explain the rules and regulations to employees. They should
also be able to provide discipline as well as rewards. By disciplining himself, a manager
is setting a good example to his/her employees.

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4. Unity of command- the employee should only receive information or be answerable to
one supervisor at a time. If there is more than one supervisor giving the employees
instruction the employee may get confused.
5. Unity of Direction- When there is only one activity with the same objective then there
should only be one supervisor. Employees should only have to take direction from one
supervisor at a time.
6. Subordination of Individual Interest to General Interest- The general interest or interest of
the organization is above everything.
7. Remuneration to employees- in order for employees and owners to find the same amount
of satisfaction, employees must get paid fairly. In other words, compensation should be
fair and satisfactory to the employee and the company. Do not over pay or under pay
employee.
8. Centralization and Decentralization- Single authority or centralization and
decentralization of power should be effective. Superiors should have the authority to
decide important matters. They should pass issues of less importance, such as daily
decisions to other employees.
9. Scalar Chain- refers to the chain of command. It moves from highest to the lowest job
classification in order. Communication should be linear. It should move from top to
bottom or vice versa. It is very important that the chain of command is not broken.
10. Order- There should be no overlapping of responsibility. There is a position and a place
for everyone. Keeping the tangible assets in order means that there is a proper place for
everything and everything needs to be its right place. In addition, keeping the human
resources in order means having a place for everyone and everyone in his appointed
place.
11. Equity- Tells managers that everyone should be treated fairly. Employees will be
dedicated and more attached to their work if they feel like they are being treated fairly.
All employees should be treated this way. These types of treatment will encourage loyalty
and devotion.
12. Stability of Personnel- It is bad to have a high employee turnover rate. This is a reflection
of poor management. A low turnover rate saves the company money by improving
performance, lowering cost and giving employees time to learn their job.
13. Initiative- Means doing more than you are asked to do without being told. It is the
managers responsibility to encourage this type of employee behavior, making sure it is
kept within the limit of authority and discipline.
14. Esprit de corps- team spirit should be created and built upon by the manager within the
employees. The manager should encourage unity and a strong sense of morale that fosters
teamwork. (Pinjari).
Henry Fayols fourteen management principles are still in use today by many organizations.
Managers on a daily basis use some if not all of the principles.
Bringing management into the 21st. century was Peter Drucker. He was also known as the
father of modern management. He was an influential thinker and writer on the subject of
management theory and practice. In the 1960s Drucker came up with the term knowledge
worker and considered their productivity to be the next big thing in management. He has written
over thirty books on management and how people function across society in business,
government, and non-profit areas.

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Peter Drucker was of Austrian decent but became a naturalized citizen in the United
States in 1943. He was a professor of management for over twenty years at New York University.
From there he went on the Claremont Graduate University and developed one of the countrys
first MBA programs. Around this same time his freelance writings and political thinking landed
him access to the inner circle of General Motors. He was able to go behind the scenes and
conduct a two-year analysis of the company. Drucker was able to interview employees, sit in on
board meetings, study production methods and review their decision making process.
From his two-year analysis, Mr. Drucker put all of his findings in a book, Concept of the
Corporation. Here he discussed the multi-divisional structure of corporations. He also informed
General Motors that they might want to review their policies on customer relations, employee
relations and dealer relations. General Motors however was not impressed with the outcome of
Druckers findings. They considered Drucker to be very critical and considered the book to be
non-existent.
Also from his experiment, Drucker found himself to be more intrigued by people who
worked with their minds rather than physical labor. He found it interesting that some employees
knew more than their bosses or peers about certain topics but they still had to work with others in
the organization. Drucker analyzed this and explained how it challenged the common thinking
about how organizations should be run. This is where the idea of the knowledge worker came
about. He explained how these employees were beneficial to corporations worldwide. He felt
that knowledgeable workers are the essential ingredients of the modern economy. People are the
most valuable resource to an organization. Managers are there to prepare people or employees to
perform and allow them to do so freely. He let it be known that employees needed to be
respected and considered as assets not liabilities.
Drucker felt that organizations worked best when they were decentralized. That is
decision-making should not fall on one authority figure. Mid and lower level managers should be
able to make certain decisions within the organization. Having a broad based management team
helps to make sure the company has knowledgeable managers and executives to handle any
business situation. Unfortunately, it can also lead to issues trying to get everyone on the same
page. Drucker made executives and corporations aware that in most cases when the organization
is failing it is due to: out dated ideas, having no idea of the real problem or internal issues (Peter
Drucker).
Peter Drucker also introduced Management by Objectives. This is where organizations
define objectives or goals that need to be accomplished. Management and employees agree to
said objectives and have a better understanding of what they need to do in order to achieve them.
This allows employees and management to participate in setting goals and choosing the course of
action that should be taken. The management and employee sit down together to identify the
common goals, and then define each individuals goals and whats expected of him or her. There
are five steps to the MBO process:
1. Review organizational objectives: The manager must have a sound knowledge of the
organizations objectives.

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2. Set worker objectives: The manager and employee sit down to agree on objectives and a
time frame that they should be met. Most of the time it is by the end of the operational
period.
3. Monitor progress: During a certain time period progress should be checked to see if
employee is going in the right direction and objectives will be reached.
4. Evaluating performance: Employees are evaluated and based upon their performance and
how close they are to meeting the organizational objective. The evaluations take place at
the end of the operational period.
5. Give reward: Bonus are given to employees who meet organizational objectives.
Organizations may also offer a bonus to those employees who come close to meeting the
objective. (Management by objectives).
Finally, Drucker had a management consulting business based upon his personal relationship
with some of the top managers. He advised organizational heads from companies such as: Sears,
General Electric, IBM and others. He also offered his management advice to not for profit
organizations such as the Salvation Army and the Red Cross. Many executives around the
country relied on Peter Druckers advice. (Peter Drucker).
In conclusion, the world of management has changed over the years. Organizations are
more global and divers than ever before. Managers today must be innovative and not let
technological advances stand in the way of moving their organizations forward. Managers must
also accept the knowledge worker as an organizational asset not a liability. Just as we have seen
management change since the 1800s it will continue to change and advance until the end of
time.

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Works Cited
Fredrick Taylor and Scientific Management. www.Mindtools.com. 2015
February <www.Mindtools.com>.
"Management by objectives." Wikipedia, the free encyclopedia. 10 February
2015 <http://en. wikipedia.org/w/index.php?
title=management_by_objectives>.
Management Functions and Process, Management Thought. www.Kalyancity.blogspot.com. 2015 Feb <www.Kalyan-City.blogspot.com>.
"Peter Drucker." Wikipedia. 10 February 2015 <http://en.wikipedia.org>.
Pinjari, Saritha. 14 Fundamental Principles of Management Formulated by
Henri Fayol. 2015 February.
Vliet, Vincent Van. Five Functions of Management. 2014 23-June. 2015
February <www.toolshero.com>.
What is a Gantt Chart. 2015 February <www.gantt.com>.
Williams, Chuck. MGMT 6 Student Edition. Mike Schenk, 2013.