Management means the act of getting people together to accomplish desired goals.

Management comprises planning, resourcing, organizing, leading or directing, and controlling

an organization or effort for the purpose of accomplishing a goal. Resourcing encompasses
the deployment (rozmiestnenie) and manipulation of human, financial, technological, and
natural resources. The word management first appeared in the middle of 19th century in USA.
It was introduced as a name of a new discipline concerning the problems with running the
companies.

The beginnings of the Management theory

Classical School of Management

o began around 1900 and continued into the 1920s
o F.W.Taylor, Henry Fayol, Max Weber, Henry Ford, Baťa.
o traditional or classical management focuses on efficiency
o the management theory has its roots back in the middle of 19th century , the era of
industrial revolution. The rapid development of the industry required the alternation of
approaches to running businesses.

Scientific Management
 scientific management focuses on worker and machine relationships
 Organizational productivity can be increased by increasing the efficiency of
production processes.
 the efficiency perspective is concerned with creating jobs that economize on
time, human energy, and other productive resources. Jobs are designed so that
each worker has a specified, well controlled task that can be performed as
instructed. Specific procedures and methods for each job must be followed with
no exceptions.
 Frederic Winslow Taylor (1856-1915), American – in 1911 he published
Principles of Scientific Management in which he proposed work methods
designed to increase worker productivity. He based his method on the
environment of a small manufacture. He decomposed the production process into
many single operations, every operation into several functions, and every
function into precisely defined moves. He then took a stopwatch and recorded
the duration of the functions and operations. This enabled him to set the norms
for the workers’ production and enabled every employer to set his own norms.
The Talyor’s principle brought:
 the productivity increase (he increased the worker's
output from 12 to 47 tons per day) +
 cost decrease +
 specialized monotonous (and demotivative) work for
workers -
 fight for the individual wage as the norms were
tightening +

Administrative Management
 emphasizes the manager and the functions of management
 Henry Fayol (1841 - 1925), French – a mining engineer who gradually became
a general manager of a mining company.
 Described main functions on management:

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 o Predicting
o Organizing
o Directing
o Coordinating
o Supervising
 He based his method on the environment of a big company. Tried to divide the
activities of the company into departments: technical, commercial, financial, accounting
 general conditions for good management:
o division of work
o authority and responsibility
o discipline
o centralization
o homogenous management
o partial interests are inferior to the interests of the company as
a whole
o order and discipline

Bureaucratic management
 Max Weber (1864 - 1920), German – the term bureaucracy is understood as
a system of strict standards, rules and duties. Weber tried to create an ideal type
of administrative organization. He set the following Principles of Bureaucratic
Organization:
o the division of work
o rights and duties of every employee must be defined
o every organization must work with the system of rules such as
standards and norms, descriptions of the activities and
instructions how to work
o a manager is responsible for discipline, efficiency, stability, and
functioning of his department

Probably the most famous person who implemented the management theory in
practice was Henry Ford. For a long time, since 1908 till 1927, Ford’s factories were
producing only one type of car – Ford T. By focusing on just one type of car, Ford introduced
the mass production. Mass production enabled the segregation of individual production
processes as it was in Taylor’s case, only this time in a large scale. This segregation enabled
the maximum usage of the machinery and workers, even those who weren’t very qualified
since they had to learn only a few moves and operations that kept repeating over and over.
This all brought Ford a significant decrease of costs and increase in productivity. The
disadvantage, however, was the monotonous work the workers were facing.
He introduced the assembly line for the first time

Tomáš Baťa (1876 -1932) Born in Czech Republic, left to Canada. Was the founder
of Bata Shoe Organization, one of the world's biggest multinational retailers, manufacturers
and distributors of footwear and accessories. Every manager in his company had to start from
the very bottom to know each operation. World War I created a booming demand for military
shoes, and the company quickly became one of the prime brands. He also set up factories and
companies in other countries like Poland, Yugoslavia, India, the Netherlands, Denmark, the
United Kingdom and the USA. Baťa is also widely regarded as a businessman with an acute

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sense of social consciousness. He said that social needs of employees are the matter of
manager not government.
The Neo-Classical Theory (Human Relations Theory)

The Classical Management Theory dominated for almost the first three decades of this
century. However, there was no human role in it, the needs of humans were underestimated.
This led to a new model – to the Human Relations Theory. This theory concerns with the
human behavior in the working process, relations within a working group, co-operation
problems, communication... One of the most famous representatives of this theory was Elton
Mayo. He recommends the managers to pay greater attention to human needs and to improve
the human relations in the company.

Modern management:
American management
Five approaches to management:
• processing – based on the theories of classical school( Max Weber and Henry
Fayol.) L. Gulick and G.R.Terry are main representatives. They recognized these
functions:
o planning
o organizing
o leading
o feedback
• psycho-sociological – based on the theory of Elton Mayo. Main representative
was Abraham Maslow - hierarchy of human needs (see Obr #1)
• systematic – founder of this theory is Ludwig von Bartalanffy. Synergetic
(spoluúčinný) effect (2+2=5) With cooperation we can achieve higher effect than
individual
• quantitative – uses mathematic method and operating analysis
• pragmatic – based on the real experiences and advice of managers. Main
representative is Peter Ducker who set up five basic activities of managers:
o managers should be active in achieving goals of company
o qualification development of the employees
o Companies should be close to the customers
o the productivity can be raised through the people (human aspect)
o the organization structure should not be complicated

Japanese management
 every employee is able to improve his work even more. A man is the main
source of the quality and productivity increase.
 managers should create the conditions for improving skills of workers
 a worker is always a part of the team and therefore the management should
encourage the cooperation tendencies and thus create a “company family“
 the interests of the company are superior to the interest o an individual

- main differences between American and Japanese management

 American management supports the internal competitiveness, while the Japanese
management prefers the harmony and cooperation within the team

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  American management relies on authoritative decisions of managers while the
Japanese management supports the participation of the lower levels on the
mutual agreement
 Contrary to the American management, the Japanese management prefers the
leadership based on informal authority
 Japanese management pays a great attention to the quality of provided goods and
services

European management
- strongly influenced by the American one. The main representatives were W.Goldsmith and
d. Clutterbuck. Kurt Nagel recognized 6 basic requirements for a successful company:
 Strategy
 Organization
 Management style
 Human resources
 Information systems
 Consumer orientation

The main aim of a manager is to maximize the output of the organization through
administrative implementation. To achieve this, managers must undertake the following
functions:
• organization
• planning
• staffing
• directing
• controlling

Styles of management:
o autocratic
• based on decisions of the manager who decides on his own without any
discussion with the subordinates, it is a good style for dealing with a lot of
unskilled people, good for crisis management (army, police)
• it requires much supervision and monitoring and workers can not make
their own decisions
• positives – quick decisions
• negatives – demotivates skilled and intelligent workers
o paternalistic
• The manager makes the decisions after consultations with others. He
explains his decisions to others and tries to persuade the people that his
decisions are correct. Human relations are important in the company.
Getting involved people in process is a good motivation (Japanese style,
Baťa)
o democratic
• the workforce participate in decision making. Managers discuss the
problems with workers, delegate the responsibilities, listen to advice
• requires much communication and confidence in the work force, increases
motivation

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 o liberal (or laissez faire)
• it is the weakest form of managerial styles, management rarely interferes in
the running of business, workforce has minimal control
• hands off style
• it is good for small highly motivated team of intelligent and skilled
workers

Managerial functions:
• planning – is setting goals of the company and the ways how to achieve these goals
• Organizing – day to day running of the company. Setting the hierarchy - this is
relation of inferiority, superiority and structure of the company – dividing the
company into departments. It is shown by the organization chart. Organization chart
can be divided either
• according to the function (eg production, accounting department)
• according to the production (eg kia sportage)
• according to the geographical area – if the firm has the filial (pobočky)
(eg headquaters in BA, branches in ZA)

o Organization chart can be flat

or tall
• flat
 decisions are
made quicker
 managers can
be overheld
(preťažení) by
many people
reporting him

• tall
 decisions take longer
time

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 • leading or deciding – leading is more than deciding
o deciding – managers have to make decisions every day. They have to have
enough information about the problem. Deciding is choosing the best alternative
from more alternatives after analyzing the problem. Deciding is always
connected with risk. Wrong decision is better than no decision because at least
they know to the future and won’t make the same mistake again.
o leading – dealing with subordinates in order to reach certain goal. Leader should
have a good communicative skills
• supervision, monitoring – is getting feedback. It is very important to monitor people
not with the aim to punish them but with aim to find way how to avoid the problem in
future.

Three levels of managers:

 top level management
o they are appointed by owners of company or the owners can be top level
managers. It is director or president of company.
 medium level management
o managers of specialized department (marketing, financed, quality department,
human resources department..)
 first line management
o they are in direct contract with workers (group leaders)