Page 492 - Encyclopedia of Business and Finance

eobf_M 7/5/06 3:15 PM Page 469

Management

Human Skills. Relating to other people is vital in order to how managers manage today include classical, behavioral,
be a good manager. Workers come in every temperament contemporary, closed, and open management thought.
that can be imagined. It takes a manager with the right
human skills to manage the variety of workers effectively. Classical Thought. The classical school of management
Diversity in the workplace is common. The manager must thought emerged in the late 1800s and early 1900s as a
understand different personality types and cultures to be result of the Industrial Revolution. Since the beginning of
able to supervise these workers. Human skills cannot be time, managers have needed to know how to perform the
learned in a classroom, but are best learned by working functions discussed earlier. The Industrial Revolution
with people. Gaining an understanding of personality emphasized the importance of better management as
types can be learned from books, but practice in dealing organizations grew larger and more complex. As industry
with diverse groups is the most meaningful preparation.
developed, managers had to develop systems for control-
ling inventory, production, scheduling, and human
Computer Skills. Technology changes so rapidly it is resources. It was the managers who emerged during the
often difficult to keep up with the changes. It is necessary Industrial Revolution, many of whom had backgrounds
for managers to have computer skills in order to keep up
in engineering, who discovered that they needed organ-
with these rapid changes. Many of the processes that
ized methods in order to find solutions to problems in the
occur in offices, manufacturing plants, warehouses, and workplace.
other work environments depend on computers and thus
Classical management theorists thought there was
necessitate managers and workers who can skillfully use
the technology. Although computers can cause headaches, one way to solve management problems in the industrial
organization. Generally, their theories assumed that peo-
at the same time they have simplified many of the tasks
ple could make logical and rational decisions while trying
that are performed in the workplace.
to maximize personal gains from their work situations.
The classical school of management is based on scientific
Time-Management Skills. Because the typical manager is
management, which has its roots in Henri Fayol’s work in
a very busy person, it is important that time be managed
effectively. This requires an understanding of how to allo- France and the ideas of German sociologist Max Weber.
Scientific management is a type of management that bases
cate time to different projects and activities. A manager’s
standards upon facts. The facts are gathered by observa-
time is often interrupted by telephone calls, problems
with workers, meetings, others who just want to visit, and tion, experimentation, or sound reasoning. In the United
other seemingly uncontrollable factors. It is up to the States, scientific management was further developed by
manager to learn how to manage time so that work can be individuals such as Charles Babbage (1792–1871), Fred-
completed most efficiently. Good time-management skills erick W. Taylor (1856–1915), and Frank (1868–1924)
can be learned, but managers must be willing to prioritize and Lillian (1878–1972) Gilbreth.
activities, delegate, deal with interruptions, organize
work, and perform other acts that will make them better Behavioral Management Thought. It was because the
managers. classical management theorists were so machine-oriented
that the behavioralists began to develop their thinking.
Technical Skills. Different from computer skills, technical The behavioral managers began to view management
skills are more closely related to the tasks that are per- from a social and psychological perspective. These man-
formed by workers. A manager must know what the agers were concerned about the well-being of the workers
workers who are being supervised are doing on their jobs and wanted them to be treated as people, not a part of the
or assistance cannot be provided to them. For example, a machines.
manager who is supervising accountants needs to know Some of the early behavioral theorists were Robert
the accounting processes; a manager who is supervising a Owen (1771–1858), a British industrialist who was one of
machinist must know how to operate the equipment; and the first to promote management of human resources in
a manager who supervises the construction of a home an organization; Hugo Munsterberg (1863–1916), the
must know the sequence of operations and how to per-
father of industrial psychology; Walter Dill Scott
form them.
(1869–1955), who believed that managers need to
improve workers’ attitudes and motivation in order to
MANAGEMENT THOUGHT increase productivity; and Mary Parker Follett
There are many views of management, or schools of man- (1868–1933), who believed that a manager’s influence
agement thought, that have evolved over the years. Some should come naturally from his or her knowledge, skill,
of the theories of management that have greatly affected and leadership of others.

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION 469