From 1890, there were massive changes in economic, technical, and cultural terms that affected the way

how people works. People have to familiarize with these changes in order to remain exist, particularly to those in industrial world that always faced the problem of efficient and effective allocation of scarce resources. Thus, more and more theory has been developed to facilitate these changes. Each theory came out with development of understanding, according to the needs of certain period. Adam Smith, Scottish economist, is among the first to develop theories of management. Through his book, The Wealth of Nation, he claims that with specialization of labor, efficiency in an organization can be achieved. Afterwards, Frederic Winslow Taylor, a mechanical engineer, introduced the theory of Scientific Management, followed by the founder of Ford Motor Company, Henri Ford who pioneers the mass production system. In addition, Henri Fayol came out with different theories, he believed that the practice of management was distinct from other organizational functions and classified management principles into 14 rules. Generally, the word management refers to the activities taken by a person or a group to achieve its goals. These activities included planning, organizing, leading, and controlling (Jones & George, 2003). Therefore, the basis of management theories were develops around this concept. From all of the existing theories, scientific management and general administrative management theory are the most common one. Taylor focused on organization and control of operation while Fayol focused on organization and control of general administration (Wood & Wood, 2002). Based on these theories, the most appropriate theory to be applied in the modern time is general administrative management one, because of its guidance principles that can be adjusted with the current management. Frederic Winslow Taylor was born in 1856 and known as the father of scientific management as he proposed more efficient production way at Midvale steel company. He categorized employees who contributed effort under their capability as soldiering. Furthermore, to seek the best way of settlement, he conducts the time study experiment using stopwatch which measure the time needed by the employees to finish a particular job. With his thought about scientific management, he started the period of the modern management. Under Taylors systems, companies are directed through scientific method rather than use the rule of thumb one. He believed that division of labor system can reduce the working time and effort of employees that lead to more efficiency in the company. Moreover, he designed this efficient way

through the optimizing the task and simplifying the jobs so that the employee can perform a better work. Based on his observation, Taylor developed four principles to increase efficiency; replace the rule of thumb with scientific method; select, train and develop the employees; cooperate with the employees and equally divide the work and responsibility between managements and employees. Using the time and motion study, Taylor measure the maximum output that workers can produce as a standard performance that leading to one best way method. Following this concept, he also train and develop workers with an incentive techniques rather than permit personal way involves in accomplishing the goals. He noticed that workers must be equipped with clear and consistent specification of task that can dismiss them from lose in efficiency. Next step is managing workers to ensure that they follow the previous method for performing their jobs. Taylor further believed that almost equally allocation of responsibility in the workplace will ensure that each group carries out the best suited condition of jobs which is in the earlier condition, responsibility largely chargeable to workers. General administrative management theory known in the Administration Industrielle et Generale journal that was published in 1916 by Henri Fayol and becomes the most generally recognized publication (Fayol, 1949). Fayol realized that economic activities could be described and classified into a set of guiding principles. Administrative seen as a process, consist of five processes: planning and forecasting, organizing, coordinating, commanding and controlling (Fayol, 1949). Planning involves designing goals and strategy for future action at once to be alert for the future event. Organizing is the second function of administrative and defined as the process of coordinating all elements to achieve goals. Fayol addressed coordinating as the activities to ensure the function of the organization. Commanding was the way to lead people and controlling is the last process of administration which to ensure that everything goes on according to the set plans. Under these beliefs, Fayol developed fourteen principles to accompany the fives management roles. According to Cole (2004), some of the Fayols principles were highlighted on the structural character of formal organization or known as bureaucracy, which has to do with the principles of specialization or division of labor, unity of command and direction, centralization and scalar chain. Specialization or division of labor giving workers more specific tasks, by then

it creates more efficiency in the production process. Unity of command is where employees can only accept instruction from one executive and the instruction itself must have the same intention with one another. Centralization involved in decision making process as the major decision itself is in the superiors hand and that is why there is a constant line of authority from the top to bottom which linked to the scalar chain principle. Principles such as subordination of individual interest to general interest, equity and remuneration were recognized from the employees personal demand. Subordination of individual interest to the general interest means that general interest must take priority over the personal interest in the workplace, so that they can give more effort to the organization. Organization also must provide a fair condition where all employees are treated equally as an action of equity principle. Furthermore, employees should be given salary that worth the effort they have been provided. Moreover, initiative and esprit de corps or known as team spirit principles designated to the need of human being as individuals and as a groups. As an individual, employees need a medium to express their creativity or initiative as self-motivated learning which organization should encourage this process, whereas esprit de corps represent the need of employees as groups to have a good relation within the organization. With the existence of both initiative and esprit de corps, employees are expected to contribute more to the organization. Another principle is discipline where employees need to obey the rule that control the organization in order to maintain the continuity of the company. The principle of authority which is the next is defined as the power to give instructions and closely linked to responsibility. However, authority must come along with responsibility. The success of the organization also depends on the proper placement for all resources or known as order principle. Then, the last principle is the stability of tenure of personnel which is relevant with the employees commitment. Retaining productive human resources that already exist is crucial for organization in order to minimize the cost of labor turn over. Frederic Taylor and Henri Fayols theories were built in the same period of time so that they both considered as classical management. The classical management approach is based on the setting of more efficient ways of work in order to increase productivity. Both theories are

also constructing some principles to guide the production system. Taylor

developed

four

principles called scientific management principles whereas Fayol developed fourteens administrative principles. Specialization or division of labor can be found in both Taylor and Fayols theories. Taylor applied the specialization through their employees to get the best outcomes or known as one best way method, while in Fayols theory, he used specialization as his principles to guide the management process. Taylorism and Fayolism both concern with remuneration system. They thought that fair wage is essential to motivate employees to perform better work. Taylors rate system of differential piece and Fayols remuneration principle emphasize this section. Regardless of the similarities, these two theories also have several different aspects. The most obvious ones are seen from the way organization considers their employees. Employees observed as component of a machine from the Taylors point of view, he restrict employees from improvements in works. In other hand, Fayol assumes that employees are part of the organization that must be developed towards the success of the organization itself. Moreover, Fayol also notice the importance of feelings of their employees such as esprit de corps which considered as disruption by Taylor. Esprit de corps also associated with the team work within the organization. In the Taylors theory, employees must perform their work as individual rather than the team according to standardized method. Besides, the main purpose of scientific management is to maximize outcomes through increase efficiency in production whereas the administrative management is through the good administrative process. Taylors system focused on the employees performance first then continues to the top level; Fayol, more inclined to the decision and responsibility of executive, followed the effects for the entire organization in descending order (Fayol, 1949). To sum up, Taylor was fighting to bring better interpretation for more effective utilization of human resources and pay attention to technical skill while Fayol was promoting the enhanced administration and efficient management system through command. Scientific management theory proposed the scientific selection system. Taylor argued that not every employees qualify for every jobs, thus he encourage the selection of labor. First rank men are believed to provide multiple results of a given job rather than average rank ones. Organization has to provide some several tests to ensure both mind and physical development of

each employee to avoid the risk of some displacement of work performance. On the other side, Fayol are not concerned about this selection system. Another issue related to employees is that scientific management scientifically not only selects but also educates and develops their employees whereas administrative management assume that employees carry out self-educated system or known as initiative principles. Management nowadays has a major distinct from the past due to the rapid changes in technological and social issues as well as global competition. Employees work not just solely because of money but also for another motive. They demanded for more humanize in the workplace, more consideration for their personal needs such as physiological need. It is increasingly visible that scientific management is no longer fit in the current management. However, Fayols theory experienced different circumstances. His five administrative processes; planning and forecasting, organizing, coordinating, commanding and controlling, still and continues to be still in use as essential form of effective administrative management. Either one of issue in 21th managerial work is the essential of relationship in organizations, the expressive ability that cannot be eliminated. Fayol really seize this issue by adjust the esprit de corps principles. The modern management recognized unity of direction as the vision and mission of an organization, emphasis the need of the whole organization. Another, initiative is important. Todays, employees need to be encouraged to donate their ideas of creative thinking for the progress of organization, because managers cannot covers all task due to its limitation. A slight improvement from each employee can bring organization to be more successful. In conclusion, there were some influential contributors of management theories such as Adam Smith, Frederic Winslow Taylor, Henri Ford and Henri Fayol that supports the development of management over time. Nevertheless, Taylor and Fayols theory is the most frequently used one on account of their management principles, yet in the modern time only Fayols theory of general administrative management can suit to be applied. Fayols theory idealized with the function of management that consist of planning and forecasting, organizing, coordinating, commanding and controlling processes which can be applied according to the current circumtances.

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