Tiberiu Nechifor, Marketing With Hospitality Management, Year 1

Management Theory

Management can be describe like a process of getting activities completed well and fast, with the help of people. Management has different theorys, which where invented many years ago and upgraded. The modern Management includes a large number of abilities and orientations and the most of them are based on using the information technology, accountably and mathematics. The management accentuates the rational thinking and logical on resolving any problem. Management involves, of course peoples, so individual skills are very important, as well as the ability to work with other individuals or with groups. Any society or culture presents different forms of social organisations. For example, per country, the managers are the presidents, kings, cancellers etc. The management theories started to make them known and become a subject, to research for the theorists, in the begging of the year 1900. Scientific management appeared in the early 20th century and was lead by Henri Fayol, a French scientist, who publicised General and Industrial Management. Fayol believed that management is based on a rational system and thought that in any business is needed for: activities, either techniques, commercial, financial or security. He also believed that every department has to be ruled using the standard managerial rules. Fayol had 14 principles of management, division of work (the specialisation of every member of the company on one subject so the efficiency would rise), authority and responsibility (the right to give orders and the power to obey them), discipline (the way the workers are used with the thought that they are under someone, the way they consume they energy and the way they act are determined by the ones who rule them), unity of command

Tiberiu Nechifor, Marketing With Hospitality Management, Year 1 (one man, one leader), unity of direction (a organisation has to have a goal), subordination of individual (the preoccupation for the company is more important then personal preoccupation), the pay (pay should be fair and both individuals and firm), centralisation (always present to a grater or lesser extent; belongs to the natural order), scalar chain (a good organisation with good and distinct line of authority), order (the peoples and the merchandise have to be in the right place at the right time and people have to go to the post that are the most suitable for them), equity (the loyalty of the employed has to be encouraged through correctitude and kind), stability (if a large number of workers leave is because the inefficiency, the good organisations have a straight goal), initiative (the necessity to create a plan, follow it and offer opportunities to the workers to complete it), and the last but not the least esprit de corps (the oral communication must be used to assure the harmony of the company). Fayol theories were, very good for the industrial companys who where the most in that period. In the 1900, the most of the companies were factories, so the managerial theories where based on factories workers. Fayol was French, so all of his theories were written in French, a big disadvantage for other countries because they couldnt use them. Many firms were using Fayols principles like GGGVeritas, Ernest Goin & Cie and of course car factories such as Citroen, Renault and Peugeot etc. In present, beside some of them still can be used, most of them are not. Recent research demonstrate that the management represents no more than the rational process of following step by step of some principles, like scientists describe it in the beginning. The orientation of scientific management was defined in U.S.A. by Frederick Taylor, known as the parent of the scientific management. Taylor thought that the manager had to

Tiberiu Nechifor, Marketing With Hospitality Management, Year 1 discover the best working way, to lower the costs of the firm and have a bigger production with a grater quality. First of all he thought that the manager should analyse every post of the firm and to research the different elements and movement that forms the team. The next task would be that he had to research for a way to upgrade the post and make it more profitable. The base, on this research was the efficiency. Taylor didnt understand entirely, the human relationship, like there were explained by Maslow, Herzberg or Aldefer. This theory is like a mechanical system where the goal is the efficiency and profit and was measured with the help of the efficiency. The Taylor efforts were continued by many other scientists, the most relevant where Frank and Lillian Gilbreth, But the accent in management started to fall because new theorys appeared. Frederick Herzberg analyse the same as Taylor when is coming to the base duties of the post. In the same time Taylor wanted to make the work it self easier but longer, in stead Herzberg believed that if the workers thought, their work was something like a provocation, they would be more determined and of course their self esteem was grater, as well as their evolution. Herzberg was in the first wave who thought that he must pay attention on standard working condition. Taylor was an example for many companies in U.S. The most profitable and most known all around the World is the car manufacturing Ford. The Ford manager used Taylors theories and applied them. They managed to be one of the most known company in the World. Ford managed to have a impressive number of cars soled in all the World over the last years and they achieved the reward for the most soled cars in U.S. in 2005, 2006, 2007. So Ford is one of the companies that Taylor theories help and had a big success. Professor Elton Mayo from Harvard, was asked to complete a series of studies, about the work productivity at Western Electric factory from Hawthorne, Illinois. The results of Hawthorne studies started a new type of theories named human relations. This theory

Tiberiu Nechifor, Marketing With Hospitality Management, Year 1 shows the importance of the relation between the leaders and workers, a better the relation results to a bigger productivity, The initial investigation at Hawthorne analysed the result of the employers in different stages of illumination, Back then, in 20 the electric light wasnt so spread and the electric companies sustained that the workers can produce more with more light. Mayos results showed that the productivity raised regardless of the intensity of the light. The analyse, of this initial study, borne a new term known as the Hawthorne effect. The one that analysed the situation observed that the reason for the rising productivity was that the workers believed that they are a important part to the experience; they worked more because they knew that they were under surveillance and the result of the experiment is depending on them. From the discovery of this reaction everyone who are doing researching based on experimenting try to avoid what happened at Hawthorne. It was thought that the productivity raised because on the experiment time the managerial stile had been changed: the leaders paid more attention to the workers. The initial study upon the lighting lead to a series of detailed studies upon what would happen to the workers in a series of conditions. They were selected 6 operators for creating a special test group who are designated to assembly telephonic relays. For 5 years they collected data about this group in different conditions: when they were free, modes to repay the work, like a bonus, which were modified to see their reaction, they worked less days per week, etc. The result determined the theorists to affirm that the most important factor is to create an environment where the communication between the workers exists and where it exist a sentiment of group identity. On the higher hierarchy it also observed that if the manager has a special behaviour with his employs the team spirit is greater.

Tiberiu Nechifor, Marketing With Hospitality Management, Year 1 The management stile 20 years before was based in making money of peoples work. The owner hired foreigners to work for a small amount of money, but because they need them and they couldnt find anything to work they worked very hard. The management stile was relatively simple because the manager wasnt interested in workers needs or feelings, the main goal and the only one was to make money for the company. So for example Fayol of course invented a managerial stile to conform with the times. Back then they looked for a person to work in the same place, to learn how to do something, but make it faster and good. The managers didnt understand that if they lost one man the costs of hiring another and teach him to reach the same level as the one it left costs money. Another reason could be the modern technology. When computers appeared and also the new informational and communication systems, the managers had to change their managerial way and try to adapt more to the technology.

Tiberiu Nechifor, Marketing With Hospitality Management, Year 1

Biography:

- http://www.shoptaylorford.com/about.htm

- The Penguin Business Library, Edited by D.S. PUGH Organization Theory Selected Reading Second Edition Appeared in 1984

- International Edition. Management Eight Edition Stephen P. Robbins / Mary Coulter Appeared in 1996.