It is a well-known fact that the world
especially the working world is changing rapidly. Over the last 100 years a lot
of things changed and many historical events happened. Not only the attitude towards
work life changed but also management and leadership become different over the
last 100 years. This report observes the historical development in the 20th

Scientific management theory

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Frederick Taylor developed the
scientific management theory in 1911. His theory states that companies should
managed in a scientific way (Sandrone,1997). The distribution of tasks is
clearly defined. Managers and workers are divided. Workers are required to obey
the instructions of the managers. He indicates that employees should be
trained. He states that the relationship between employees and management
should be harmonious. The ideal working practice should be identified by
managers. The managers should use the best working practice. It is important to
use the right worker in the right position. Another principle of Taylors theory
is that, employees who save costs are rewarded in monetary terms. (van Dam et
al. 2013). Quinn et al. (2003) states that Taylor used different techniques to
rationalize the work and he also states that he succeeded. According to Hattagandi
(2017) Ford used the approach of Taylor to develop the assembly line. The clear
division of tasks made it possible to produce a car in 90 minutes instead of 12
hours. Osterloh (2005) calls Taylors theory as “Machine model of the
organization”. He also indicates that this theory leads to a huge increase in
productivity but this led to a demotivation of employees and an increase in
staff turnover. Osterloh also indicates that the scientific management theory
is only suitable for Manufacturing organizations.


General management theory

According to the Chartered Management
Institute (CMI) (2002) Henry Fayol published his general management theory in
1916. Henry Fayol was a French managing director at a mining company and he
succeeded in getting the company out of a bad economic situation into a good
one (Sarwar, 2014). Based on his experience he was able to create his own
theory. According to van Dam et al. (2013) Fayol named the following six autonomous
management functions:

“1. Technical

2. Commercial

3. Financial

4. Security

5. Accounting

6. Directing”.

CMI (2002) points out that the last
function is a specific one, since it is the only function that deals with the
management of the entire organization. Van Dan et al. (2013) indicates that the
function “directing” coordinates the other functions. The coordination of the
first five points is done by the activity “directing”. Planning, organising,
commanding, coordinating and controlling are the five tasks of the activity
“directing”. (Mind Tool Content Team, 2017). These activities are the tasks of
management. Fayol also developed 14 principles for management. These principles
are used to provide a guideline for managers to make decisions (van Vliet,
2009). According to Deutsche Akademie für Management (DAM) the general management
theory states that there should be a clear hierarchy in companies and that the
interests of employees or managers should be secondary. According to CMI (2002)
Fayol was the first author who described that management consists of different
tasks which should be classified into subdivisions. The difference to the
scientific management theory is that the general management theory is suitable
for managing a complete company and not just a manufacturing organisation
(Osterloh, 2005).


Bureaucracy theory

Max Weber published his bureaucracy
theory in 1922 (Krems, 2013). Van Dan (2013) states that according to Webers
theory a company must comply with the following points:

“Clear and definite division of

“A hierarchical command

“Carefully defined authority
and responsibilities”

“Important relations between

“Recruitments on the basis of
ability and knowledge instead of cronyism and contacts”

“Promotion and reward in the
basis of objective criteria and procedures”

“All information, procedures
and details written down, full control is possible”

“The power of officials, even
the most senior executives, bound by documented guidelines”

According to Weber, these are the
principles for achieving a perfect bureaucracy (van Dan, 2013).


The human relations movement

According to Barnat (2014) Elton Mayo has
conducted experiments and found that employees’ performance and productivity
increases when they are motivated. Grant (2017) states that according to Mayo,
the development of employees and the definition of targets form the company’s
perspective is important. According to Riley (2017) Mayo indicates that by
satisfying the social needs of employees, they are motivated. Barnat (2014)
indicates that Mayo’s theory was further developed by Abraham Maslow and
Douglas McGregor. According to Grant (2017), McGregor divides the workers into
two categories. Theory X is assigned to workers who hate to work and must
therefore be threatened with job loss or financial motivation. Theory Y is
assigned to workers who are self-motivated. These employees represent an added
value for the company. (Grant, 2017). Maslow points out that there are five
levels of needs and he states that people must first meet the basic needs in
order to meet the higher needs. This theory has been used by many companies.
(Grant, 2017). Kelly (2014) states according to Maslow that humans have needs such
as physiological needs, security needs, social needs, esteem needs and self-actualizing
needs. Tanner (2017) points out that it is only possible for people to fulfil
the upper needs if the basic needs are met.


With the exception of the human
relations movement, no theory mentions the needs of employees. It is rather a
question of individual processes or tasks and their distribution. The workers
are considered a resource. Their needs are ignored.


Competing Values Framework

According to the Onlinetalentmanager
(2014) Quinn’s model consists of four different models. Every single model is
important for achieving an effective organisation. The major models are the
human relations model, open systems model, rational goal model and the internal
process model. According to Quinn et al. (2003) there are eight different
manager roles within his model. Two manager roles are assigned to each of the
four models. Quinn expects that managers take on these roles and play them.
Quinn states that there are conflicts between these models. But he states that
companies should be adaptable and flexible and at the same time they should be
stable and controlled. To meet this criteria companies, have to use these different
management theories. (Quinn et al. 2003).


Rational goal model & internal
process model

Quinn et al. (2003) draws our attention
to the rational goal model. According to his management model Taylor was only an
influencer at that time. Quinn indicates that the rational goal model appeared
as a management model from 1900-1925. At that time, the age of oil started,
labour costs were low and the technological development was running fast.
People were influenced by social Darwinism and they believed in “survival of
the fittest”. The assembly line was also developed in this period. Many other
techniques according to Frederick Taylor was used in this period to make the production
process more efficient. The first management model was the rational goal model.
The effectiveness of the organization was characterized by productivity and
profit. Clear instructions enabled productivity and profit. Most of the
decisions was made on rational economic way. The main goal was to achieve the
highest possible profit. Employees were often abused by supervisors and
managers. (Quinn et al. 2003)

According to Quinn et al. (2013) the
internal process model emerged at the same as the rational goal model. This
model was influenced by Henry Fayols general management theory and Max Webers
bureaucracy theory. This internal process model completed the rational goal
model. The main goal was to achieve stability and continuity. Quinn states that
a routine within a company leads to stability. Quinn et al. (2003) states the
following processes as important for this model: “definition of
responsibilities, measurement, documentation and record keeping”. There were
high hierarchies within the organization. So, the Managers had to make their
decisions according to the present rules, structures and traditions. An
efficient workflow is very important according to this theory. Managers with
roles like a monitor or coordinator fit to this theory (Quinn et al., 2003).


Human relations model

After 1925, many things changed.
Historical events like the market crash in 1929 or the second world war
happened in the second quarter of the 19th century. The
technological progress continued in various sectors like agriculture or
transportation. The publications of Max Weber and Henry Fayol was translated
into English and consequently the realization of this theories become better.
However, the previous theories no longer met the demands of the present time. The
society also changed and workers fought for their rights. So, unions made it
possible that workers earned more money. The effectiveness of the rational goal
and internal process models disappeared. Influencer at that time like Dale
Carnegie, Chester Barnard, Elton Mayo and Fritz Roethlisberger found out that
the effectiveness increased when the workers are stimulated and motivated. For
this reason, the human relations model emerged. (Quinn et al. 2003). Quinn et
al. (2003) says: “In this model, the key emphasis is commitment, cohesion, and morale
“. He also states that participation and conflict resolution are key values.
According to Quinn, managers tried to motivate the employees when their
productivity declined. One effective measure to motivate the employee was to increase
the level of participation. At the end of the forties this model was not
successful. The first satisfactory results were obtained in the following
years. (Quinn et al., 2003).


Open system model

According to Quinn et al. (2003) the
open system model emerged between 1951-1975. Historical events like the Vietnam
war or the growing economy in Japan showed that the world was changing rapidly.
Therefore, a new management concept was necessary. This model is necessary to
be adaptable to the fast-changing environment. Therefore, adaptability and
external support are key points for effectiveness. The companies should be able
to respond to changes. Within the organization there is an innovative climate.
Decisions should be made as fast as possible by managers because they do not
have much time to organize. This model requires innovative and smart managers.
(Quinn et al., 2003).

Quinn uses the existing theoretical
approaches to achieve all of an organization’s goals. So he has developed a
model that has been tested step by step by the economy over a century. All the
weaknesses and strengths of the models he has included were known to him when
he developed it.

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