Evolving Management Theories and Practice

Author : Ami Fitri Utami, SE., MSM

Reference: Daniel A. Wren (2005) ; “The History of Management Thought”, Ch.19, 5th Edition

This chapter is considering about the evolving management theory from time to time. It also describe us about the forming of general management theory. This chapter started with the evaluation on what is Fayol’s intelectual heirs which emphasizing on the forming of the process of management, it was Koontz, Terry and Newman’s arguments are being evaluate in this part. The management education also questioned by Gordon and Howell in the Gordon and Howell report, it questioned about the teaching process, curricullum and other things that might help the students to prepare careers in a changing environment. This lead into the finding of management theory jungle by Koontz who founds about the six different schools for management. As Koontz found the diversity of management, others opinion and statements also proliferated. There are Porter and McKibbin who criticized the academias expereience. Also Drucker, the Guru of Management Practice who was emphasized about the need to improve the practice of management.

In this chapter, it was also contended about the needs for economists to think like managers . This part of the chapter described about the function of strategic management which is not only as the task of top management. It talks about the markets and hierarchy where the efficiency of the market will be influenced by how the management worked in a firm. However, the efficiency of a firm hierarchy wont be simillar from one to another, thus in some cases it will create a varied issues in management. There are many theories about the governance and agency issues itself, there are Barnard who contended about the willingness to cooperate theory, in the other hands we saw Williamson who define a theory which contended that even a less opportunistic person will has price to cooperate. Furthermore, management also need to be seen as an integrating yet innovating task as it evolved to strategic management. The main point is, the theory of general management and strategic leadership lead the firm to survive in the changing environment condition.