What’s The Theory Of Management?

New ideas and imagination Creativity and inspiration Technological innovation. Hand holding brain digital network and abstract science light bulb inside on networking connection on sky background.

After World War II American business returned to the peacetime production of consumer products, for which there was unparalleled need and no competition. Untouched by war, the industrial heartland produced automobiles, washing machines, vacuum cleaners, mixers, lawnmowers, refrigerators, furniture, carpeting, and all the products to the growing postwar suburbs occupied by a production of prosperous Americans.

Scientific management

The American company had fulfilled the promise of ‘scientific management,’ devised by an influential industrial engineer named Frederick Winslow Taylor over three decades earlier. Taylor had held that human performance could be defined and controlled through work criteria and principles. He advocated using time and motion studies to break down jobs into simple, separate measures to be performed repeatedly without deviation by different employees.

Minimizing complexity would optimize efficiency, even though it was bad to overperform because it had been to underperform on a Taylor-style system. Scientific management evolved during a period of mass immigration, once the office was being bombarded with unskilled, researchers, and it was an efficient way to use them in massive numbers. This was a period of labour strife, and Taylor believed that his system would decrease conflict and remove arbitrary uses of electricity because so little discretion could be left to either employees or managers. Hence the growth of the rule-bound, top-heavy American company management structure.

About quality

Quality in those postwar years took a backseat to manufacturing. Quality control came to imply end-of-the-line inspection. If there were flaws and rework, there could be gain enough to pay for them. Although some quality management lingered for a moment, especially in defense industries, for the most part the techniques taught by Dr. Deming were considered as time consuming and unnecessary, and they faded out of use. By 1949, Dr. Deming says mournfully, “there was nothing not even smoke.” This setback only served to strengthen Dr. Deming’s conviction, as he believed what had gone awry.

As a statistician, Dr. Deming’s lifelong mission was to seek sources of improvement. World War II had hastened the pace of excellent technology, but as World War II ended, advancement in quality management started to wane. Many companies saw it as a wartime effort and felt it was no longer needed in a thriving industry. Given the collapse of statistical procedures for quality control to survive, he figured out what could have caused the failure and how to avoid it in the future.

Philosophy of management

He slowly concluded that what was needed was a bedrock philosophy of management, with which statistical methods were consistent. He was prepared with new principles to teach when the Japanese called him 1950 to help in the reconstruction of the nation. The objective of the new paradigm transformation would be to’unleash the power of human resource inside intrinsic motivation,’ and to cultivate an environment of complete cooperation between individuals, departments, businesses, governments, and nations to attain win-win situations through process improvement, team work, and innovation.

The system of profound knowledge is a fitting concept for leadership in any civilization or company. In certain circles people believe incorrectly of Total Quality Management with industrial connotations. For instance, in the healthcare arena the client is the individual, and manufacturing could be equated to the quality of patient care. Indeed a number of the concepts that are espoused by TQM relate to social interaction as far as they do to other more production oriented standards.

Therefore the crucial measurements of TQM can be identified as: staff development, statistical quality control, process management, evaluation of client’s requirements, fact-based decision making, continuous quality improvement, and benchmarking. Applying this management theory needs a focus into the new type of world of interdependence that we’re in now. Managers basing their direction in the aforementioned paradigms will be lost in the new economic era. Such leaders will need to open their minds and change to have the ability to learn the new paradigms of Total Quality Management (TQM).

Western-style management

Reward-punishment performance evaluation methods optimize components of the machine. E.g., Deming-style direction: A better method is to evaluate a single long-term virtue, to understand if they’re in the system or outside of the machine, and also to understand the performance issues as common or special cause. According to statistical analysis by Deming, Ishikawa, and Juran over 80 percent of problems are linked to common cause or system issues of the organization.


E.g., Western-style direction: Internal contest to recognize the top 10% sales people within an organization makes a system where 90 percent of the populace is tagged substandard performers or worse losers for those on the bottom half.

E.g., Deming-style direction: In any distribution curve, 50 percent of the populace will be below average, and only 10 percent will be top performers. It doesn’t make sense to cultivate an organization of malcontents because nobody wants to branded a loser. If the system is stable and has great hiring policies in place, a better way to handle is to get a goal to change the supply curve to the right by constant improvement and eliminating common causes of variation.

E.g., Western-style direction: Asking to sell 30 percent more (by a MBO target ) without understanding the process that allows that aim to be achieved, or providing a procedure for goal attainment, creates a neglect syndrome (demanding unreasonable greater results has the opposite effect that contradict the Pygmalion effect).

E.g., Deming-style direction: A better method is to examine historical performance using data. 3 standard deviations from the mean, where 99 percent of the sample population is predicted to achieve the target, and shifting the curve to the right by improving the sales process. If a secure system is pushed beyond its limits, the machine typically breaks down.

E.g., Western-style direction: Recognizing individuals exclusively through extrinsic motivation by providing plaques, letters of commendation, bonuses, and pats from the trunk to inspire employees.

E.g., Deming-style direction: A better method is for management to unite extrinsic and intrinsic motivation to improve pride and quality in the job. Intrinsic motivation is the excitement and positive stimulation an individual experiences from the sheer joy of an endeavor.

Keep in mind

Management can discharge intrinsic motivation by developing a culture that promotes employee participation in using process improvement tools like the Deming wheel (SDSA and PDSA) to innovate and enhance quality. Each of these assumptions are directly connected with the interrelationships between individuals. They all revolve around an integral idea, receptivity of their management style by people that aren’t just handling but people who are being handled.

The execution of management philosophies clearly revolves around worker motivation, and not all workers are easily motivated or receptive to management styles that differ from those to which they’ve been accustomed. What motivates an individual, therefore, is in the middle of Total Quality Management philosophy. Motivational concept in itself has a long history of both indirect and direct applicability to a lot of areas of management in general and also to Total Quality Management particularly. Indeed, the value of teamwork in the organizational setting cannot be underestimated. Before workers can efficiently interact as a team, however, they need to have the ability to operate independently in an efficient and effective way.


Such liberty revolves around numerous factors, some of which have been discovered in childhood and some of that may be instilled in the professional environment. A significant part of this liberty is having the ability to relate to one’s peers and to turn resistance and criticism, which exists from several peers, into a positive element in influencing team performance. Leaders using the Deming-style management have to be experts at molding independent employees and teams. A high performing team is to a degree the product of the individual participant’s characters, personalities that had origins as far back as childhood. Deming’s teachings recognize that a person’s qualities or lack of them could be refined in the office. Lastly, Deming has influenced my thinking in various ways. What stands out is the wisdom behind the value of teamwork, process improvement, person versus systemic problems, and the pervading power of continuous improvement.


Vorig artikelWhy Is Laughter Important To Your Health?
Volgend artikelShould Your Children Know You Had An Abortion?