Modern Management: A Celebration of the Evolution of Theory and Innovations

Many students, teachers, and businesspeople have heard, read, and seen articles, essays, and graphics depicting the differences between Leadership and Management.? Typically, the lists of Leadership qualities are all admirable qualities, and the contrasting lists of Management attributes have connotations of being less desirable and sometimes even undesirable.? Certainly, we have extremes in management such as micromanagement and toxic management; however, management evolution has a proud tradition, and the historical foundations can be placed on a pedestal equal to or almost on a par with Leadership. Oversimplifying the differences can obfuscate the similarities and confuse both the practitioners of management and the almost universal employee function of reporting to one or more managers.? This mini essay will explore the whys and wherefores of this assertion.

Ernest Dale has edited several editions (the first in 1965, the second in 1970, and the third in 1975) of a classic text entitled Readings in Management: Landmarks and New Frontiers.? Dale divides his book into the following parts:? 1) Management and its Environment; 2) The Beginnings of Modern Management; 3) The Management Functions; 4) Management of Foreign Operations; and 5) Current Trends and the Future.? Let us explore each of these very important facets of Management, as well as effective corporate or organizational leadership.

Management and its Environment

Dale’s (1975) first part focuses on the history of management (Marshall), innovation (Schumpeter), volatility (Leavitt), the history of General Motors (Durant), change (Vanderwicken), the CEO (Hook), social responsibility (Weidenbaum), labor and management (Peters), Environmentalism (Leathers), and technology (Florence). ?In Dale’s introduction to this first part, he describes the authority a manager yields and the limitations on that authority such as the guidance of the Board of Directors, financial limits, technological limits, as well as legal parameters and requirements imposed by labor.? The highlights of Dale’s part one include his description of the manager as an innovator and entrepreneur (paraphrasing Schumpeter), “He is not necessarily an “entrepreneur” in the original sense of the term, the man who undertakes the financial risks of a business, or the founder (although he [or she] often is); he is instead the man who introduces new ways of doing things” (p. 9).

Dale publishes an excerpt from “The Volatile Organization” by Harold J. Leavitt. According to Leavitt, some organizations approach a problem structurally by changing their organization, while other organizations may take a technical approach toward a solution. “Structure and technology and people are not separable phenomenon in organizations” (p. 13).? Interpersonal relations challenges will arise with either approach.? Effectively any change will generate both support and opposition.

In 1975, and in his two earlier editions, Dale and his readers generally thought of the business environment as being a collection of external factors such as local, state, and Federal regulations, financial constraints, and especially technological challenges.? In 2024, in addition to those factors, when we hear or use the term environmental we tend to think bilaterally about both the external factors and the environmental factors associated with climate change. In 1973, Murray L. Weidenbaum wrote an article entitled “Social Responsibility Is Closer Than You Think” with a prescient view of what we now call Corporate Social Responsibility (CSR).? Weidenbaum focused primarily on the biggest consumer in the U.S., the Federal Government. “… the very act of signing the procurement agreement forces them to agree to perform a wide variety of “socially responsible” actions (p. 70).? He specifies working with disadvantaged groups, improving quality of life, and improving the environment (the quality of air and water and other environmental factors are implied).

The Beginnings of Modern Management

Dale (1975) acknowledges that many thinkers, writers, and practitioners of modern management have contributed to the field, which we could call a science.? From a multitude of prominent authors and professors, Dale identifies three of the early influencers for his Part Two discussions: Frederick Winslow Taylor, Elton Mayo (known for the Hawthorne studies), and Henri Fayol.? Dale includes Peter Drucker (1909 ?– 2005, often referred to as the Father of Modern Management ), as another great icon in the evolutionary development of management theory and principles. Drucker essentially picked up the management theory torch from the likes of Taylor, Mayo, and Fayol.

Ironically, in 2024, with the ever-increasing focus on AI and robotic abilities, a discussion of F. W. Taylor (1856 – 1915, some consider the Father of Scientific Management), is fitting and still fraught with controversy.? Taylor’s presence on any shop floor with his clipboard and pocket watch was generally not a pleasant sight in the eyes of many workers.? Time and motion studies were perhaps good for the bottom line and provided a vehicle for higher pay for workers; however, as Drucker (1967) points out in a speech entitled “The Professional Management Pioneer” to criticize Taylor for ignoring “human relations” or “social problems” does not diminish the benefits we as a country and planet have reaped from his contributions to improved “production” and better data management (p. 98).

Elton Mayo (1880 – 1949) in a logical progression shifted the focus of management on not just time and motion management, but to “emotional and nonlogical attitudes and sentiments” (Dale, p. 113).? Much of Mayo’s work and writing were based on the Hawthorne motivation studies.? See graphic above.

Henri Fayol (1841 – 1945) expanded the academic management discussion to the top level of management (typically called the C-level in the 21st century). Somewhat ironically, Fayol’s focus could easily be associated with military management as he popularized concepts such as “unity of command” and expanded upon the principles of “planning, organization, command, coordination, and control” (Dale, p. 139).

The Management Functions

Dale (1975) describes management as an “integrated activity” which includes the seven functions of planning, representation, innovation, control, organization, direction, and staffing (p. 143). For military, government, and IT readers, we could cobble together the acronym of Pri-Cods.? Styles of leadership include transactional, transformational, servant, situational, and several others.? Management theory is often overlooked, but Dale identifies two organizational theories: the classical and the behavioral.? Interestingly, in academia we have the well-known degree of MBA (Master of Business Administration and lesser known and often confusing degree of DBA (Doctor of Business Administration, often confused with database administrator).? Dale includes an abridged version of W. J. M. Mackenzie’s speech and article entitled “Science and Study of Administration” (pp. 146 –150).? Mackenzie cites the challenge of organizational theory as similar to the challenge economists have with economic theories, “…postulates are either tautologies or the axioms of common sense” (p. 146). Dale follows Mackenzie’s concerns with a table of “Principles of Organization” compiled by Alvin Brown.? Brown’s principles include Purpose, Scope, Precedence, Delegation, and Obligation, which provide us with a structure similar to Standard Operating Procedures (SOPs) or organizational policies.? Probably, with tongue and check and a sense of humor, Dale follows Brown’s “policy” outline with an anonymous “Bureaucrat’s Prayer” (p. 151):

And when the Temple seems to give

Us feelings of initiative

Or when, alone we go too far

Recall us with a circular.

–an excerpt from the “Bureaucrat’s Prayer”

Management of Foreign Operations

Dale in 1975 was basically at a crossroads in management as more and more companies were extending their operations internationally and companies in other countries were increasingly setting up operations in the United States.? Clearly this internal expansion and specter of increased competition within the United States increased the complexity and the challenges of effective management.? Mao Zedong died in 1976, so China was not yet a global competitor but was soon to become one.? Nelson Mandela did not become president of South Africa until 1994, and Africa as a continent was yet to emerge as a global force.? The ending of apartheid seemed to send waves of hope and inspiration up and down the African continent with ripples of human rights and expectations of equality across the planet.

Dale (1975) selected C. P. Snow’s article entitled “A Quarter Century: Its Great Delusions” to open his Part Four.? Snow (1961) writes of the delusions Great Britain and America both held at different times and for different reasons about UK and US superiority. In 1975 and for about 25 years before, from about 1950, the Western world enjoyed prosperity, but prosperity brought delusions according to Snow.? Japan was the primary Asian business rival in 1975 with fuel efficient economy cars such as the Corolla , which made its debut in 1966, and with increasingly competitive consumer electronics.? The Volkswagen beetle (bug) had an even earlier start in 1945, but apparently the “delusion” that Snow wrote about in 1961 was not recognized and internalized by GM, Ford, and Chrysler executives as the American car manufacturers were slow to retool toward smaller and more economical vehicles.

Dale (1975) points out that developed nations, like great empires of the past, increasingly have challenges regarding keeping their markets despite depleted natural resources and the aftereffects of industrialization such as pollution.? “Development grew out of innovations introduced by industrial managers and any country can fall behind if its managers are content to continue doing things in the same way no matter how circumstances change” (p. 409).

Dale (1975) highlights a prescient article entitled “Management and Organization in Japanese Industry” written by economist Joseph N. Froomkin in 1964.? Froomkin opens his article by citing a rise in GNP of “6.5 percent per year” and industrial production increasing by?12 percent per year in?Japan (p. 418). Dale and Froomkin do not seem to satisfactorily explain Japan’s rapid industrial and economic rise.? According to the Deming Institute (2024), W. Edwards Deming worked in Japan from 1950 until approximately 1960 coaching managers and engineers on what later became known as his quality principles.? Deming ironically was not really “discovered” by the U.S. until 1980 when a documentary entitled “If Japan Can, Why Can’t We” appeared.? This documentary and increased awareness of how Japan became so successful basically launched a quality revolution in the U.S. essentially known as Total Quality Management (TQM) . Deming’s 14 points have earned a place in history reflecting and reverberating the international stature of Wilson’s 14 points formulated for the League of Nations.

Current Trends and the Future

Similar to opening up a time capsule, decades or centuries later, Dale in 1975 marveled at the increasing use of computers in the 1970s.? One of the issues Dale’s fifth part addresses is the place computer experts would take in the business hierarchy. Another key topic echoes back to Frederick Winslow Taylor with questions about where management science and operations research would be heading.? In 2024, we cannot help but think of AI and generative AI and acknowledge Dale for his prescient insights as well as his historical knowledge and synthesis of management science.? Dale highlights the ability of computers to calculate data at the speed of light as well as the potential benefits of computer-aided design, but hints at the deluge of data easily becoming overwhelming.? He also mentions the question we still grapple with 50 years later regarding where to draw the line between the man and machine interface.? One question has been answered during the decades since Dale wrote his book but keeps returning as automation cycles back and forth between man and machine.? In 1975, Dale and others wondered and worried about computers replacing clerical workers and middle managers.? In 2024, we have become increasingly dependent upon our IT professionals, but with AI taking the business world by storm we once again wonder and worry about the jobs humans must do and the jobs robots or avatars can do.?

Concluding Thoughts

This mini essay attempts to summarize Dale’s 1975 anthology about the landmarks and new frontiers of management. One of the goals of this essay is to assert that management: is not as lackluster as many would say.? In other words, the best managers are great leaders and many of our best leaders have been great managers.? Many of us have struggled with micro managers and toxic leaders along our career paths, but resilience and perseverance are needed to survive workplace and career challenges.? Changing jobs too frequently has risks and these risks seem to increase exponentially as we approach mid-career and late-career transitions.? One limitation to this essay is the necessary omission of much information. ?Part three of Dale’s book which covers the seven functions of planning, representation, innovation, control, organization, direction, and staffing (the Pri-cods of management) is the longest part or Dale’s book and we could easily cobble together an essay on each of these important topics.?

References

Dale, E. J. (1975). ?Readings in management: Landmarks and new frontiers, 3rd ?Ed. McGraw-Hill.

Demings Institute. (2024). Learn about Dr. W. Edwards Deming ?https://deming.org/learn/about-dr-deming/

Here's a link to another mini essay on management and leadership:

https://www.dhirubhai.net/pulse/management-critical-behavioral-skill-michael-j-piellusch-ma-ms-dba/?trackingId=DKyMsT02RpmSvWxSYNmMrg%3D%3D

Graphic source: HRMP and Sarita Menon Assistant Professor (MPhil MBA MCom)