Evolution of Management Theory: A Galaxy Toys Case Study

Introduction

Management as a discipline is generally concerned with the art and science of getting a group of people to achieve a defined goal or objective (Griffin, 2008). The discipline has evolved significantly over the last century or so (Roth, 1998). In the first half of the 20th century, emphasis was largely placed on structure, authority, and production, with little or no attention to employees (Adetule, 2011). There has, however, been a tremendous shift of management focus from structure and authority to people—that is, employees—over the years (Griffin, 2008). The evolution of management theory over time depicts the ever-changing role of managers and leaders in organizations. Each management orientation or school of thought presents its own merits and demerits.

With reference to Galaxy Toys, Inc., an American toy manufacturing company, this case study provides an analysis of how the style of management in the organization evolved from the mid-20th century to the 21st century. The case study particularly identifies two management theories that depict the organization's style of management in the late 1960s as well as the late 1980s and early 1990s. Attention is also paid to the organization's style of management in the 21st century.

Background: Galaxy Toys, Inc.

Galaxy Toys, Inc. is a toy manufacturing company primarily serving the U.S. market. With more than five decades in operation, the organization produces a wide variety of toys for children, and its operations span various parts of the United States. This case study focuses on one branch, where the outgoing shipping manager has served since 1969. During that tenure, the orientation of management at the organization shifted from a production focus to a people focus against the backdrop of changes in both the internal and external environments. With the longtime manager set to retire in the near future, his position will be taken over by a successor whose style of management must resonate with 21st-century managerial thinking.

Scientific Management in the Late 1960s

The theory that best describes the organization's early style of management—when the shipping manager first joined Galaxy—is the scientific management theory, which was developed during the late 19th century and early 20th century. A seminal figure in the development of this theory was Frederick W. Taylor. Taylor asserted that production efficiency could be achieved by reducing the amount of time and effort each worker spent in producing a single unit of output (Griffin, 2008). He believed that division of labor and greater specialization could enhance efficiency, and that the most efficient way of dividing labor was through scientific techniques as opposed to intuitive or informal knowledge (Sheldrake, 2003).

Taylor's theory was particularly based on four principles: (1) examine how workers carry out their tasks; (2) devise new ways of performing tasks and codify those methods into written rules and procedures; (3) assign tasks to workers based on the task's requirements and the employee's skills and abilities, and train workers to carry out the task according to the written rules and procedures; and (4) define the acceptable performance level for any given task and establish a performance-based compensation system (Adetule, 2011). In essence, Taylor's theory advocated for increasing productivity by raising worker efficiency. The theory dominated management discourse and practice for virtually the first half of the 20th century.

The early management style at Galaxy mirrors this framework closely. The shipping manager's ability to plan daily work and provide detailed instructions to workers—thereby optimizing how tasks were performed—reflects the first and second principles of scientific management. These principles emphasize selecting the best method for performing a given task and matching tasks with workers' skills and abilities using scientific techniques. His attention to implementing processes for training employees to perform their specialized sequence of motions also embodies the third principle of Taylor's theory, which places emphasis on the scientific development and education of workers. This approach was instrumental in enhancing production operations and shipping processes at the organization.

Taylor's theory made an important contribution to the field of management and organizational theory. It particularly shifted the manager's role from an ordinary, unspecialized supervisor to a specialized foreman adequately capable of overseeing every step of the production process (Griffin, 2008). Today, it is not uncommon for managers to thoroughly evaluate tasks and develop work systems designed to guarantee maximum operational efficiency. Overall, Taylor's theory transformed managerial thinking and set the basis for the development of several other management approaches in subsequent decades.

Behavioral Management in the Late 1980s and Early 1990s

A major shift was observed in the organization's management style during the late 1980s and early 1990s, driven by factors such as increased competition, technological advancements, a shift in employee workplace values, and workers' increased preference for unionization, involvement in decision-making, and work-life balance. These shifts led to a greater focus on employees in terms of management approach. The theory that best describes this style of management is the behavioral theory, which places emphasis mainly on employees and human relations as opposed to productivity (Adetule, 2011). The theory surfaced in the early 1920s and shaped managerial thought for the next six decades.

Behaviorists particularly criticized Taylor's theory and other classical schools of thought for their disregard of the human dimension of organizations (Adetule, 2011). One of the prominent advocates of this school of thought was Elton Mayo. In his Hawthorne experiments, Mayo demonstrated the significance of working conditions and employee satisfaction in influencing organizational productivity (Cole, 2004). Mayo asserted that the behavior of both managers and employees at the workplace was equally important in determining performance levels. As such, managers must understand the informal elements of the organization—particularly the feelings, values, thoughts, and behaviors of employees. Understanding these elements is integral to worker motivation, which in turn positively influences individual and group productivity.

The shift in management focus at Galaxy from productivity to employees marks a transition from the scientific school of thought to the behavioral school of thought. This shift is embodied by increased willingness to listen to employee ideas and by meaningful changes in working conditions. In essence, management came to the realization that employees constitute a vital asset of the organization and should therefore be treated in a more humane manner. Shifting to the behavioral style of management was important in helping the organization overcome competitive pressure.