The History of the Development of Management

2.1 Management Now and Then

Judging by its development, management is actually born from the moment the human being
carries out self-regulatory activities with his family and group for something of a purpose that
he wants. The goal can be in the form of art or beauty, the achievement of a material or also
its survival. For example, in the previous century, many great works of art by man could be
enjoyed by man until now.In this world, we know the terms of the seven wonders of the
world, such as Borobudur Temple in Indonesia. This masterpiece was born at a time when
science and technology were not yet so developed. Borobudur Temple and other temples in
Indonesia are amazing works of art, created by the Indonesian people themselves in the
heyday of the kingdoms in the country. To build the temple, hundreds or even thousands of
people were needed to help with the construction work of the temple. Previously unknown,
whose name is cement to unite

It is said that adhesive was once made from the whites of chicken eggs.In other words, to
compile the building, millions of chicken eggs are needed. This big job requires high
management skills, which include how to manage thousands of working people as well as the
allocation of other resources. This is the case with other world-major buildings where at that
time it was not yet known whose name was management skills. However, along with the
development of the times where science and technology have developed

Something that was once considered a great work may now be considered mediocre.The
difference between management then and now lies in science and technology. In the past,
skills and expertise were still simple, but now, due to the development of technology and
information, people's skills and expertise have increased rapidly. With internet facilities, for
example, events in a country can be quickly seen or heard by residents of other countries that
have a very long distance from the country in question, even to remote villages and villages.
The development of satellite science can bring us an even wider understanding of the nature
of this universe. We can clearly see the roof.

At the home of our relatives who are abroad, we can see the alma mater campus at Monash
University, Melbourne, Australia. For example, just by looking at the laptop (notebook) in
the bedroom, we are using internet facilities.

2.2. Evolution of Management Theory

Daft (2003) says that the historical perspective on management reflects the perspective or
environment to translate the opportunities and problems that arise. Nonetheless, history not
only structures events in a chronological order but also develops an understanding of the
impact of a social force on an organization. Studying history is a way to develop strategic
thinking, see a broad and correct picture, and improve conceptual skills. Social power itself
refers to various aspects of culture that also influence relationships between people. The
power of this person forms what is known as the social contract, which is the rule and
perception.
generally unwritten regarding the relationships between people and between employees and
management.

The theory itself is an assumption that is interconnected and expressed in order to describe a
linkage among the various facts that can be observed. For example, if the weather in the
afternoon is cloudy, then in the evening or soon it will rain. This sentence is a hypothesis or
temporary conjecture, and if based on research, it turns out to support the hypothesis, then the
hypothesis becomes a theory. Management is a science and an art, with expert-created
theories.Management and organization are products created from history, social situations,
and scenes. Based on this, the evolution of management theory is understood in relation to
the way humans are involved in a problem.

relationships at some point in history.

2.2.1 Streams of Scientific Management

Around the 17th century, there were major changes in the sphere of production. Consumer
goods can be produced in quantities that have not previously occurred. The increase in the
production of goods is due to the discovery of many goods processing equipment. By that
time, the role of labor could have been partially replaced with new machines. Scientific
management was born along with the development of technology produced by engineering
experts working for large companies in Europe and the United States. At that time, it was
known by businessmen as the industrial revolution. Engineers across Europe and the United
States are working to develop new ways to manage the company. The Theory of Scientific
Management itself was developed thanks to the need for increased productivity. In this case,
productivity can be increased by increasing the efficiency of workers. Some variables in
scientific management can be identified as follows:

1. increase the productivity of the enterprise.

2. utilization of labor and its requirements.
3. improvement of employee welfare.
4. a good environment for increased work productivity.

Managers are very instrumental in determining the direction of company policy. Managers
who update work conditions, how to determine work systems and procedures, job
qualifications, duties and responsibilities of employees, how to determine employee rewards
and welfare, and others. All that is in order to increase employee productivity. Scientific
management introduced the principles of the division of labor. The work is broken down into
various specialized parts of work, so specialization will improve the skills of the workers
themselves. In terms of employee welfare, a method of wages (salary) is prescribed that is
associated with productivity rather than the employee himself. Some business practitioners
and academics who were later referred to as pioneering figures in the birth of scientific
management contributed a lot of thoughts and practical instructions on how to build and
manage companies in order to achieve a high level of efficiency or productivity. Figures who
contribute to scientific management include the following:

Robert Owen (1771-1858)

Robert Owen has been the manager of several cotton mills in New Lanark, Scotland since the
1800s. In his theory, Owen emphasized the role of human resources as the key to the success
of a company. Owen, as a pioneer rather than a scientific manager, saw at that time that the
working and living conditions of workers in his factories were very poor, where many minors
were already employed, as well as working hours that exceeded the ability of workers to do
so. Owen then implemented a policy to limit the working age of a person who worked in his
household to more than 10 years old and refused workers under 10 years old. In addition,
Owen also established a work procedure that can increase work productivity and then set an
incentive policy so that employee welfare would increase.

Babbage, Charles (1792-1871)

Charles Babbage was a professor of mathematics who often paid attention to various ways of
working in factories. He thinks that the application of various scientific principles to a series
of work processes will be able to increase work productivity and be more efficient. Babbage
advocates that each job can be divided into a wide variety of skills, so that workers can be
trained with specific, specific skills. The worker is only required to be responsible for his job
duties. Work tasks performed repeatedly can improve their skills, so that productivity and
efficiency can be achieved by the company.

Frederick Wilson Taylor (1856-1915)

Taylor is a factory manager in the United States who conducts research on time and motion
studies in production. With the study of time as a basis, Taylor was able to break down each
job into various components and design the best and fastest way of working for each of those
jobs. In the study, it was determined how much the workers' ability to complete their work
using materials and tools available in the company. Taylor emphasizes that the time of
completion of work can be related to the wages or salaries that workers receive, because the
faster or higher the worker's performance in completing their work, the higher the wages or
salary that will be received by

such workers. This method is known as the differentiation wage system (differential rate
system) According to Taylor, management has the following four principles:

'1) The real development of scientific management

From this principle, the best method of carrying out each task can be determined. Develop a
science for each element of one's work that will replace the old thumb rule method.

Scientific selection of workers

In this case, each worker is accounted for the tasks that are judged to be most appropriate for
him. Those workers need to be scientifically selected to then be trained and develop their
potential and skills.

3) Education and scientific research.

Management needs to work closely with workers in order to ensure that every job is carried
out in accordance with the principles of previously developed science.
4) Personal friendship between management and labor.

Work and its responsibilities need to be divided equally among leaders and subordinates. The
manager needs to take over various jobs that are assessed more appropriately for him than for
his subordinates.

Henry L. Gantt (1886–1919)

Henry L. Gantt worked closely with Taylor on several projects. When independent, however,
as an industrial engineer consultant, Gantt began to consider Taylor's incentive system. The
starting point of Gantt's theory is that productivity and work effectiveness and efficiency can
be increased with stimulus in the form of wages or salaries or incentives. The essence of the
theory is:

1) Mutually beneficial collaboration between managers and their employees

2). Scientific selection methods are applied to select and place the right employees.

3) Frank B. Gilberth's (1968-1924) and Lillian M. Gilberth's (1878-1972) bonus system and
instruction in working rulesFrank and Lillian were a married couple who contributed to the
scientific management movement. They work together in studying fatigue and movement,
and they focus on ways to promote people's well-being. For Frank and Lillian, scientific
management is aimed at assisting employees in achieving their full potential as human
beings. Frank argues that movement and fatigue are two interrelated things. In addition, every
movement that is eliminated will also cause fatigue. Meanwhile, Lillian states that effective
movement can reduce fatigue. In other words, the results of his research concluded that an
effective movement will encourage the work of employees. The idea of an employee
development program is more focused on the employee himself in order to develop himself
through a series of preparations for receiving a higher post.

Herrington Emerson (1853–1931)

According to Emerson, waste is a disease that hinders management. Therefore, Emerson

formulated the following principles:

1) Establishment of specific objectives

Logical implementation of activities

3) Provide skilled personnel

4) Establishment of work discipline

5) Provision of reasonable returns

6) Timely, accurate, dependable, and continuous reporting

7) Instruction and work sequence planning

8) Each activity has standards, methods, schedules, and time constraints.

9) The presence of uniform conditions

10) The availability of standard operations

The existence of standard practical instructions in writing

There are efficiency returns and incentive plans.

Scientific management has been recognized as being able to contribute well to work
efficiency and increased productivity. The increase in productivity is supported by a system
of division of labor consisting of a series of work processes that give rise to the presence of
certain specialties. Meanwhile, various scientific management efficiency techniques, as
shown by the study of time and motion, are proven to be able to improve work efficiency as
the selection system and scientific development of workers are able to increase work
effectiveness and efficiency. However, scientific management flows that seek to increase
productivity can actually, in practice, create various unfavorable influences on the
management system itself. For example, technology-based productivity tends to reduce the
number of employees. Another weakness is that the workforce receives less attention for its
various social needs and personalities, so labor satisfaction is less considered.

2.2.2 Traditional Management Stream

1. Henry Fayol (1841-1925)

Fayol mentioned that various activities carried out by management in an industrial enterprise
can be grouped into the following tasks:

1) technical, which is the activity of producing products, which includes planning and
organizing.

2) commercial, which is the activity of buying various necessary materials and selling the
products of these materials.

3) financial, which is the activity of acquiring and deploying capital.

4) Security is an activity that ensures the security and safety of employees and company
assets.

5) Accounting, which is the activity of recording, calculating costs and profits, and presenting
financial statements.

6) Managerial responsibilities, namely the execution of various management functions

1. Mary Parker Follet (1868-1933)

Follet expressed an understanding of the group and the high commitment to human
cooperation. According to Follet, grouping is a mechanism by which various individuals can
combine their talents to achieve something good. According to him, the organization is a
community where managers and employees work in harmony without any domination from
one party to the other and can resolve various differences and conflicts that arise through
discussions. Follet thinks that managers are tasked with helping employees work together in
order to achieve a variety of integrated interests. According to Follet, collective responsibility
can be imposed by efforts to make employees feel ownership of the company.

1. Chester I. Barnard (1886-1961)

According to Chaster, organization is a system of activities directed towards a goal. Chaster

posits that management has two main functions, namely formulating goals and holding the
various resources needed to achieve them. Barnard sees the importance of communication in
achieving common goals. Based on the theory of acceptance of the authority he put forward,
subordinates will only receive orders if they are able to understand and desire to obey their
leadership.

2.2.3 Human Relationship Flow

Further developments in management began again in 1930 and have been popular since the
1950s, namely in the form of management that pays attention to its employees. This view
arises from various weaknesses of classic management that are task-oriented and cause stress,
as well as a slowdown and a decrease in productivity due to the monotony of work.

1. Hawthorne Studies

The study was conducted by an Elton Mayo-led group. This study conducted further research
on the effects of burnout on employee output. Testing was carried out on six employees at the
Relay Assembly who were intensively researched in a room with daily and weekly work time
as well as varied rest periods to obtain regular work results. Based on the results of this study,
there was no direct relationship between changes in physical working conditions and output
due to fixed productivity.

The price has increased regardless of whether or not the change is present. Mayo concluded
that the social conditions created for workers in the test room played a big role in increasing
productivity. In this case, there are two factors that have significance, namely the group
atmosphere and more participatory supervision. Regarding the group atmosphere, the workers
create good social relationships, support each other and want to work well. While regarding
more participatory supervision, workers in the test room felt it was considered important,
were given a lot of information and often asked for opinions. Another real result of this study
that is the key to productivity is the shift in the attention of managers and management
researchers from technical and structural matters to classical approaches to social and
humanitarian matters. These results prove the importance of the role of emotional attitudes
and relationships between employees in management as well as working groups. The study
also identified the Hawthorne effect, which is the tendency of a person selected in the
framework of a particular study to do what is desired in the study because of the conditions
that require it.

1. Contributions and Limitations of the Flow of Human Relations

The emphasis of various social needs on the flow of human relationships complements the
classical approach in an effort to increase productivity. This flow suggests that attention to
employees will benefit the company. Mayo also stressed the importance of manager style, so
every organization needs to make changes to its management training. Managers are also
reminded of the importance of paying attention to group processes in order to complement
the attention to each individual employee. This theory inspired human behavior scientists
such as Agryris, Maslow, and McGregor to examine motivation more deeply. The limitations
of the theory of human relationships include the concept of social beings that do not fully
describe the individual in his workplace. In addition, improving the conditions and job
satisfaction of employees does not increase productivity as expected. In addition to the social
environment in the workplace, wages, the attractiveness of work, organizational structures,
and labor relations also play a role in influencing productivity.

2.2.4 Streams of Modern Management

This flow is based on the assumption that humans have various needs and undergo rapid
changes, so there is no approach that can be used in these conditions. However, this approach
still recognizes the idea of classical management theory and human resources. Basically,
modern management is built on two main concepts, namely the theory of organizational
behavior and quantitative management.

1. Behavioral Theory

The world view in this theory is characterized by two groups of behaviors, namely behavior
per individual and behavior between social groups. The view was later developed by

1) Douglas McGregor's X and Y theories.

2) Abraham Maslow's theory of the hierarchy of needs.

3) Frederich Herzberg's two-factor theory.

4) Robert Blake and Jane Mouton with managerial conditions that explain leadership styles.

5) Chris Argyris, who sees organization as a social system or a system of cultural

connections.

6) Edgar Schein, who examines group dynamics in organizations.

7) Rensis Likert, who researched four management systems,

8) Fred Fiedler with a contingency approach to leadership studies. The points of thought
expressed by the adherents of the theory of behavior above are summarized in the following
points.

1) The organization is a whole, and the manager's approach to conducting supervision must
be adapted to existing conditions.
2) A motivational approach is needed to build workers' commitment to the goals of the
organization.

3) Systematic management with an approach that is based on various relevant considerations

is required.

4) Engineering management can be assessed as an engineering process regarding the role of

procedures and principles that are strictly carried out.

The results of behavioral research also state the following points:

1) Managers must be trained so that they can understand various management principles and
concepts.

2) Organizations need to build a climate that gives employees the opportunity to satisfy their
needs.

3) Human beings are the determining factor in an organization's success or failure to achieve
its objectives.

4). Commitment can be developed by involving employees to participate.

5) It is necessary to implement thorough positive supervision and management of employees,

one of which is to test the employee's reaction to work.

6) Each employee's work should be structured so that he can be satisfied with his job.

1. Quantitative Theory (Management Science)

In a problem-solving process, the subject matter needs to be identified with scientific and
operational research as well as other scientific techniques such as program planning, capital
budgeting, human resource development, and so on. The approach is called the management
science approach, which is an approach with the following procedures:

Formulation of the problem

2) Development of mathematical models

3) Finishing the model

4) Model analysis and modeling results

5) Results monitoring

6) Activity implementation

Using a quantitative approach to problem solving and management decision-making should

underlie a rational approach for managers.
2.3. Management Systems Approach

Management is an open system that interacts with its environment in relation to the process of
transforming inputs (resources) into outputs (goods or services). In this system, the input
environment is the most important aspect because it is the place of origin of the resource
concerned and it receives feedback from customers, which has a certain impact on the output
of the organization. The feedback will provide input on the organization's ability to meet the
needs of the wider community. The organization will find it difficult to operate in the long
term in its field of business if there is no desire from consumers to use its products.

2.4. Contingency Planning

In fact, there is no management theory that can be applied in all situations because each
organization has different characteristics. In order to be able to adjust the response

In order to deal with problems and opportunities that exist in various conditions, it is
necessary to apply a contingency approach. This approach will assist the manager in
understanding the various situational differences and responding to them appropriately. The
contingency approach is widely used in various areas and functions of the organization,
ranging from marketing, strategy, leadership, and motivation to decision-making. Based on
this, the contingency approach looks at various problems by including environmental
elements. Rapid environmental changes will make it difficult to make it difficult to make the
right decision.

Dynamic Engagement (2.5)

The world has changed dramatically over the decades, and organizations are trying out a
variety of new methods of management that are likely to be better able to respond to today's
environmental and consumer demands. Dynamic engagement is a new approach that looks at
changing global circumstances with a new spirit of thought. This approach began to be
introduced by Stoner at a time when the theory was undergoing changes. Dynamics reflect
change, growth, and sustainability, while engagement reflects intensive engagement with
others. Based on this, dynamic engagement illustrates the managers' passionate efforts in
focusing on humane relationships and adapting to changing conditions quickly. Based on this
approach, the organizational environment is not a fixed group of forces that are not humane
because they are complex with dynamic networks formed from interactions between people.
The manager must understand what is important to him and to other managers. Interaction
with other managers is aimed at creating combined conditions that will create prosperity and
high fighting power.