Comparison of Old and New Management Concepts - 813 Words | Research Paper Example (2024)

Introduction

Management today is hovering at the edge of the great divide between the old management concept, which is dying and new management concept, which is still being born. The old management concept comprises of classical theories of Henri Fayol, Mac Weber, and Frederick Taylor that was used in managing simple conditions during the industrial age (Drucker & Maciariello, 2008).

On the other hand, the new management concept comprises of human and social factors. Despite the fact that the new stream of management concept has appeared, bewilderment still lingers over what the concept will comprise of when it matures. It is widely accepted that the new concept of management should present individuals with the authority to control their lives, and must ensure that they are answerable for their performances. This article seeks to compare the old and new management concepts.

Old verses new management concepts

The organization structure of the old management concept was hierarchical in nature. Through this hierarchical model of organizations, the pyramids in Egypt, medieval churches, the great wall in China, and new industries during the industrial age were established (Halal, 2001).

It should be noted that the model dominated up to the industrial age because it was an appropriate management custom task performed by uneducated workers. Currently, the information age has resulted in numerous revolutionary forces that have rendered hierarchies outdated. Under the new management concept, corporations have disbanded hierarchy form of organization structures in favor of the internal markets form of organization structures.

Compared to the old model, the new model is more precise and flexible. Internal markets have enabled the growth of the power of free markets in the institutions by defining units as small internal enterprise working together within a supportive corporate infrastructure. Through this, ingenuity of small business ventures and the economic power of large corporation markets have been made possible.

Another difference between the two concepts of management is that the old management concept was profit-centered model, while the new concept of management is corporate-oriented model (Halal, 2001). During the industrial age, one party gained at the loss of the other. This was realized as management was geared towards making money.

In the zealous pursuit of money, managers were often encouraged to disregard social consequences. Although the new concept of management still emphasizes on the need for making profits, it is more geared towards serving the society compared to the old concept.

Currently, managers have become aware that all organizations are comprised of the investors, the public, and the customers. The success of these organizations depends on the managers’ ability to support and manage these groups. It is with no surprise that with the new concept of management the roles of businesses are expanding to form a corporate community with profit being critical but limited goal.

The old concept’s management system is mechanistic, while the new concept’s management system is organic (Halal, 2001). Mechanistic system is fixed, while the organic system is dynamic. The organic system comprises of growing and decaying components.

In the old management concept, when the system is created the managers are required to focus their attention on the individuals rather than on the system. Concerning the new concept, managers acknowledge that a greater percentage of the output emanates from the design of the system. This implies that under the new concept more emphasis is laid on the system to enable the employees to perform effectively.

Another difference between the two concepts of management is that the old management operated under old capitalism verses the old socialism environment, whereas the new concept operates under a democratic enterprise (Halal, 2001). In the old management concept, there has been little or no entrepreneurial freedom inside the corporations because they were traditionally managed as centrally planned hierarchies.

However, in the last few years, new vitalities have been introduced into the corporate world. As smaller business units emerge, entrepreneurial freedom and accountability for economic results are being embraced. Similarly, the new management concept emphasizes empowerment, participation, collaborative working relations, human values, and other democratic ideals compared to the old concept.

Conclusion

As noted above, management concepts have gone through some fundamental transformations over the last few decades. Notably, the organization structure of the old management concept was hierarchical in nature. Under the new management concept, corporations have disbanded hierarchy form of organization structures in favor of the internal markets form of organization structures. Evolving from old capitalistic and socialistic environment, the new management concept has produced bureaucrats who uphold democratic ideals.

Equally, the current management concept has evolved from the old profit-centered model to the new corporate-oriented model. It should be noted that although the new concept of management still emphasizes on the need for making profits, it is more geared towards serving the society compared to the old concept. In the future, managers should ensure that new concepts of management should present individuals with the authority to control their lives, and must ensure that they are answerable for their performances.

References

Drucker, P. F., & Maciariello, J. A. (2008). Management. New York, NY: Collins Publishers.

Halal, W. E. (2001). The new management: democracy and enterprise are transforming organizations. San Francisco: Berrett-Koehler Publishers.