The management evolution in the 20th century

The growth of communication between all aspects of the organization’s activities: production, financial, marketing, social and other, and the extension, complication and intensification of internal and external relationships led to the formation in the mid-twentieth century, the so-called system approach, which gained importance for making management decisions. Briefly about the evolution of this approach write blog posts Teen Biz.

The basis of the system approach is the idea that any organization is a system, each of the elements which, although it has its limited purpose and function, but closely linked with other elements. Despite this, management decisions are not simply derived from each other, that emphasized a process approach, and all without exception have on each other. Any changes in one cause changes in others and in the end result – throughout the organization. Therefore, each Manager their own decision-making, should be mindful of their consequences for the whole system.

The first representative of the system approach was the American researcher Chester Bernard (1887-1967), who considered the enterprise as a social system. Organization Bernard defines as a system of consciously coordinated activities of two or more people.

The head of the organization needs to provide activities the most important links to support internal communications, to formulate goals, to find the optimal balance between conflicting forces and events, to take responsibility for the actions of subordinates. The first duty of the head, according to Bernard, is to control the activity incentives, because any orders are perceived only within certain limits.

Chester Bernard has identified four types of General incentives: the attractiveness of the work; working conditions; the opportunity to experience their own participation; the ability to communicate with others and receive support. Thus he speaks of the necessity of detailed account first of all the moral factors, considering that most of the failures managers are associated with its absence.

The second representative of the system approach can be considered extremely well-known theorist in the field of management Peter Drucker (1909-2005). Drucker worked to create a holistic conepts management and defining the role of a professional Manager in the organization.

In his book “Practice of management”, he noted the exclusive role of management and managerial elite, considering it as the basis of entrepreneurship and society. Peter Drucker defines management as the art of business management and focuses on the creative side of the operations Manager, as a driving force of the entire organization. In his opinion, the Manager solves two problems: the first is that he creates from existing resources one, of the production of unity, and from this point of view he is like the conductor of an orchestra, but the Manager is both a conductor and composer.

This job requires getting rid of the weaknesses and maximize the development and use of the strengths of the organization, especially human resources. The Manager needs to constantly see the big picture, but “in the forest not to lose sight of the individual trees, because under different conditions the personal issues become critical.

Second, the Manager’s job is to always be aware of the prospects of the enterprise, do everything possible to achieve them. But to qualify for a good knowledge of all the specific problems facing the Manager in the leadership process, it is impossible.

The General functions of managers in the enterprise Drucker related:

• organization and distribution of work, creation of necessary structure;
• definition of objectives and means for achieving them, establishment of specific objectives to the people;
• create a team of individuals, responsible for various work, achievement of necessary relations in their activities, ensure Simov and motives of the work, using all available means;
• analysis of the organization, regulation, and evaluation of all employees;
• ensure recruiting and hiring.

But most important of all theoretical positions Drucker, which he formulated during his long life, was a concept, according to which the basis of control are the goals of the organization. Only after establishing such goals, in his opinion, it is possible to define its functions, the system and methods of interaction of elements of the management process.

The American researcher Jay Forrester (1918 ad) developed a formal model of organizational system of industrial enterprise. In this model there are six key parameters and six interrelated flows: raw materials, orders, money, equipment, manpower and information.

The complexity of the management of such a system, according to Forester, is that under the influence of psychological factors future result may be the opposite of the original intent. It pushes managers to achieve good results in the near future, as setting short-term goals easier through its visibility. But the control of complex systems, which relies only on short-term goals, fatally leads to the fact that their dslnet in the future will only get worse.

In 1980-e years one of the most popular theories in the framework of the system approach was the concept of ” 7-S framework, developed by Atos, Pascal, Peters and Watermann. 7-S framework the seven related variables, whose names in English begin with the letter “S”: strategy, structure, control system, personnel qualifications of employees, organizational values, systems and procedures of social technology. Changes in one of the above aspects through the system of connections affect the condition of others, so maintaining balance and harmony between them is the main task of modern management.