The development of management theory exists on a continuum where each new insight leads to either an updated theory or a new theory. Yet as society changes we often falsely assume that older theory has no bearing in modern life. We seem to forget that these theories are based in basic human needs that don’t change. What does change is the expression of those needs and how we go about fulfilling them.
Reviewing old management theory is important because these older theories often are simpler and cut to the problem more quickly. They don’t jumble up all the relevant information with educated ramblings. They prefer to get to the root of the matter so that great understanding can happen. The more understanding we have the better ability we have to achieve our business goals.
Let us take Adam Smith as one example. Adam Smith, around 1776, observed that human beings tended to conserve energy and in so conserving energy they had to have a challenge or motivating force. In his work entitled An Inquiry into the Nature and Causes of the Wealth of Nations he wrote, “In every profession, the exertion of the greater part of those who exercise it is always in proportion to the necessity they are under in making the exertion.”
What does that mean? It means that we don’t like to exert energy fulfilling a need. However, we will exert energy based on the necessity of fulfilling a need. For example, if we really want something bad enough we will be willing to exert enough energy to achieve it. Have you ever met someone who was motivated in life? It is probably from a need to be recognized and appreciated.
As this need becomes stronger we are more likely to exert additional energy. Let us say that you were a tribesman from some African village. If you aren’t that hungry you probably won’t work that hard. Yet as you get closer to starvation you will exert more energy hunting, fishing, and getting more food. The same principals can be applied to housing (big houses), money, dating and more.
Nearly a hundred years later Henry George, around 1898, states this disposition of men to seek the satisfaction of their desires with the minimum of exertion is so universal and unfailing that it constitutes one of those invariable sequences that we denominate the laws of nature.”
George is proposing a law of nature that energy exertion is dependent upon the intensity of the need or desire. Apply this concept to your business. Employees aren’t likely to work very hard if the majority of their needs are fulfilled. For example, if they don’t have drive to achieve more than an average employee they aren’t likely to work that hard. Some employees have no desire to achieve (need) and are not going to work hard to maintain the status quo. Recruit people who want to succeed in life and you will get more work out of them.
By: Murad Ali