explain the evolution and revolution theories in strategic management

Since then to the present era, the development of HRM may be classified as […] Personnel management was an administrative oriented function basing itself of Taylors scientific management approach. The evolution of strategic management research: the dual pendulum . The latter decades of the 20th century witnessed the evolution of human resource management, as distinct from personnel management. Every person in an organization has what I’ll call “political capital.” This capital is the ability to get people to pay attention to you, follow you, and/or support your decisions. Management, he continued, explains why “for the first time in human history, we can employ large numbers of knowledgeable, skilled people in productive work”. The Behavioral Approach 3. The application of management is also evident in the Egyptian civilization as early as 4000-3000 B.C. Whilst revolutionary change is often required in an organization, it can be a sign of poor management that has been unable to instill a culture of evolutionary change in the first place. The Evolution of Management Theory. The Classical Approach 2. Strategic resources at this time were capital and resources companies controlled. For example, the evolutionary management style in Phase 3 is delegation, which grows out of and becomes the solution to demands for greater autonomy in the preceding Phase 2 revolution. For organisations, the choice of revolutionary or evolutionary change is generally thrust upon them by powerful internal or external factors. A powerful internal factor encountered on a surprisingly frequent basis is the dysfunctional management team. For increasing production efficiency the management and engineers emphasized the appointment of cost accountants. incremental and evolutionary and incremental change lies in experiencing strategic drift, as organizations are based and bounded by the existing paradigm and routines of the organization Revolution is change which require rapid and major strategic and paradigm change, or where strategic Strategy in the perspective of organizational theory (18) 8.1. At the same time, human motivation theories including Herzberg’s Two Factor Theory and Deci and Ryan’s Self-Determination Theory, began to transform the workplace. The history of the evolution of strategic management can be traced back to 400 BC when the term ‘strategia’ was used in the Greek army to imply science, art, and quality of being efficient army general. The division of labor, manual systems and paper based documentation and control being used to manage the business processes can be seen in the times following the industrialization. The Organizational theories centered around span of control, hierarchical structure and departmentalization of activities. Introduction The first know management idea were recorded in 500B.C When Sumerian traders develop written records for government and commercial use. During the Industrial Revolution, it became obvious that the ways companies operated their businesses had to drastically change. Strategic management can help companies reach their goals. Alternative organizational forms 8.5. ADVERTISEMENTS: Evolution and Development of Human Resource Management (HRM)! The Evolution of Management Theory. Within the context of the organization, the challenge is learning to handle change effectively – to manage change with evolution as an end goal. 1. Father of Scientific Management F. W. Taylor emphasized efficiency increase in the field of production. Let’s examine the advantages and disadvantages of revolutionary change vs. evolutionary change. It traces the evolution of management theories from the pre-industrial revolution through the two world wars to the era of rapid economic growth of the 1960s to the 1980s. This entails discovering why certain firms are successful while others are not; in other words, identifying the factors of success. KEYWORDS: Human Resource Management (HRM), evolution, history INTRODUCTION Defining Human Resource Management (HRM) According to Armstrong (2006) Human Resource Management (HRM) is defined as a strategic and coherent approach to the management of an organization’s most valued assets – the people working there who individually and collectively contribute to the achievement of its … In other words, conventional rules of thumb are substituted by accurate procedures developed after careful study of an individual at work. Evolutionary Theory Evolutionary theory is a broad based view that certain types of sexual behavior are genetic and passed down from one generation to another through the process of evolution, natural sex, and survival. While the next section will get into the nitty-gritty behind the history of different types of management theory, it is important to have a basic understanding as to why management theory was such an important and ground-breaking idea. This kind of Organizational structure tended to be based on individual ownership and … Scientific Management: Scientific management which is also referred to Taylorism or the Taylor system is a theory of management that evaluates and synthesizes workflows, with the aim of improving labour productivity. Production orientation is the view that the route to corporate success lies in production efficiency, getting production costs as low as possible (usually by manufacturing in very large volume) in order to reduce costs and prices. Douglas McGregor’s “Theory Y” is representative of the genre. Academics and business owners periodically come up with theories for increasing worker output while keeping the same number of workers through modern management theories. Subsequently, this term was taken as a synonym of the present-day term ‘strategy. Scientific Management theory Evolution of Scientific Management Began in the industrial revolution in the late 19th century as: Managers of organizations began seeking ways to better satisfy customer needs. Peace and conflict studies is a social science field that identifies and analyzes violent and nonviolent behaviours as well as the structural mechanisms attending conflicts (including social conflicts), with a view towards understanding those processes which lead to a more desirable human condition. The approaches are: 1. In ‘Classical Strategic Management’, the important characteristics is the ‘unity of direction’ linking the strategic goals determined at the ‘head’ of the organisation with the actions to be carried out by all the lower divisions and departments. Introduction to Role of Taylor and Fayol in Management Evolution: Before we proceed to describe the evolution of management in the neo-classical period, i.e., 1930-1960, let us describe the role of Taylor and Fayol in management evolution. In fact, the seed of HRM were sown during the industrial revolution 1850s in Western Europe and USA. Industrial revolution of late 19 th century caused a tremendous amount of exchange of goods between people and nations all over the world. Phase I: Budgetary Planning (1950-1960) One of the first individuals credited with developing and implementing strategy in the business landscape is Alfred Sloan, head of General Motors from 1923 to 1955. The industrial revolution brought about radical changes in the methods and techniques of production and distribution. This theory separates into two types to explain violent crime and sexual pleasure. A review of the seven phases of business strategy evolution and the two approaches to business strategy can provide a foundation for creating sound strategy in the future. 4 The Evolution in SM thinking “Strategic management is an ongoing process that assesses the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. The evolution of marketing theory starts with production orientation. Hierarchy: The basic organizational design 8.4. Thus, new theories of management arose that put far more emphasis on motivation and engagement of workers. The evolution of corporate organizations 8.2. Modern management is the era of management that began in the 1880s and 1890s … I. In recent years, management theories had become more multi-faceted where emphasis has shifted from behavioural science to organisational structures and quality assurance. From this perspective, there are basically two ways to understand change: Evolutionary or incremental change and Revolutionary or transformational change. While many people were in agreement that change was inevitable, pioneers in management theory differed in how they believed things should change and operate. The strategic need to align specialization, coordination and cooperation 8.3. The Industrial Revolution is at the center of management theory. Before the industrial revolution depreciation and costing, concepts were not considered very much important. regularly] to determine how it has been implemented” - Lamb 1984 Development of managementthought Management thought refers to the theories that guide management of people in the organisations Initially, these theories developed out of practical experience of managers in the industrial enterprises. Although this core motivation is shared by all the … ADVERTISEMENTS: This article throws light upon the three approaches to the evolution of management. The evolution of selling had several distinct phases of development during the course of late 19 th and 20 th centuries. However, the origins of human resource management dates to the industrial revolution when factory owners established a department to look … It was distinguished by its emphasis on finding way to […] Evolution of Human Resource Management In early stages, employees working in factories were treated harsh condition with minimum wages or without wages in poor working condition. Fundamental characteristics of industrial dynamics (26) 9.1. Evolution of Management 1. Evolution of Human Resource Management – Brief Outline of Development of Human Resource Management HRM evolved over a period of years from the era of industrial revolution. Strategic management ensures the steps necessary to reach a business goal are implemented company-wide. Strategic management theorists and practitioners need new scientific theories. This orientation had its beginnings at the start of the Industrial Revolution. 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