Professional Documents
Culture Documents
OBJECTS OF STUDY
AN INTRODUCTION
Table 1
Five Major Schools of Management Thought
1
http://www.businessdictionary.com/definition/management.html
2
http://www.businessdictionary.com/definition/management.html
3
http://www.businessdictionary.com/definition/management.html
1
MANAGEMENT Beginning
Emphasis
SCHOOLS Dates
Managing workers and organizations more
CLASSICAL SCHOOL
efficiently.
Scientific Management 1880s
Administrative
1940s
Management
Bureaucratic
1920s
Management
BEHAVIORAL
Understanding human behavior in the organization.
SCHOOL
Human Relations 1930s
Behavioral Science 1950s
QUANTITATIVE Increasing quality of managerial decision-making
SCHOOL through the application of mathematical and
Management Science 1940s statistical methods.
Operations
1940s
Management
Management 1950s—
Information Systems 1970s
SYSTEMS SCHOOL 1950s Understanding the organization as a system that
transforms inputs into outputs while in constant
interaction with its' environment.
CONTINGENCY 1960s Applying management principles and processes as
SCHOOL dictated by the unique characteristics of each
situation.
2
ways to organize and classify the voluminous information about management that has been
collected and disseminated. These attempts at classification have resulted in the identification
of management schools.
Each of the schools of management thought is based on somewhat different assumptions about
human beings and the organizations for which they work.
Early Theories of Organizations emerged mainly for military and Catholic Church. The
metaphor of the machine was dominant, where organizations are viewed as machines. Therefore,
the organizational application was, since workers behave predictably (as machines do rarely
deviate from the norm), management knows what to expect, and workers operating outside
expectations are replaced.
4
http://www.referenceforbusiness.com/management/Log-Mar/Management-Thought.html
3
CLASSICAL MANAGEMENT THEORIES
Major Contributors - this school of management derives from the sociology of Weber,
the scientific management findings of Taylor, Gantt and Gilbreth, and the administration
perspective findings of Fayol, Urwick and Brech.
Ambit - This school of thought is made up of two branches: classical scientific and
classical administrative and there are three well-established theories of classical
management:
5
http://www.businessdictionary.com/definition/classical-school-of-management.html
6
http://www.managementheaven.com/classical-school-of-management/
4
Theory of Classical Scientific Management
Meaning - In its simplest form the theory is the belief that there is “one best way” to do a job and
scientific methods can be used to determine that “one best way”.
Distinctive nature - scientific management focused on the productivity of individuals & the
emphasis is on the development work methods.
Origin of Scientific Management Theory - Developed in the United States, mainly since about
1905 the theory of scientific management is the “brainchild” of Frederick Winslow Taylor.
Major Contributors of Classical scientific school - The classical scientific school owes its
roots to several major contributors, including Frederick Taylor, Henry Gantt, and Frank and
Lillian Gilbretth.
5
workers more money for meeting the new standard. Productivity at Bethlehem
Steel shot up overnight. As a result, many theorists followed Taylor's
philosophy when developing their own principles of management.
2. Henry Gantt, an associate of Taylor's, developed the Gantt chart, a bar graph
that measures planned and completed work along each stage of production.
Based on time instead of quantity, volume, or weight, this visual display chart
has been a widely used planning and control tool since its development in
1910.
Need of Scientific Management Theory - The classical scientific branch arose from the need to
increase productivity and efficiency in the U.S.A. especially, where skilled labor was in short
supply at the beginning of the twentieth century and the only way to expand productivity was to
raise the efficiency of workers. The emphasis was on trying to find the best way to get the
most work done by examining how the work process was actually accomplished and by
scrutinizing the skills of the workforce. Taylor developed his theory through
6
observations and experience as a mechanical engineer. As a mechanical engineer
Taylor noticed that the environment lacked work standards, bred inefficient workers
and jobs were allocated to people without matching the job to the worker’s skill and
ability. In addition to this the relationship of the workers with the managers included
many confrontations.
Principal premise - The theory underlying Scientific Management is briefly that “there is one
best way of doing every act that has to be performed in a workshop, and that it is the duty of the
management to discover that one best way ” and to make such arrangements as will ensure that
it is always carried out.
Extent of Acceptance & Applicability - Though applicable to most of the problems of industrial
administration, they have in fact been worked out mainly in connection with the control of
workshop processes. Taylor's system was widely adopted in the United States and the world.
Although the Taylor system originated in the factory production departments, the concept of
separating planning from execution was universal in nature and, hence, had potential application
to other areas: production support services offices operations service industries.
Major questions -
The method of procedure may be indicated by propounding the following three questions:
I. What are the factors which limit the speed of a particular workshop process or machine?
II. Why is it that the volume of output from a particular process is always less at the end of
the week than the product of the speed of the process or of the machine, multiplied by
the working hours in the week, would lead one to expect?
III. Why do some workers produce so much more than others working under the same
conditions?
7
1. Principles of Scientific Management Theory - Taylor devised four principles for scientific
management theory, which were:
7
Scientific Management, pg 139
8
Theory of Classical Administrative Management or Functional Management Theory and
Classical organization theory
4. Chester I. Barnard.
Lyndall Urwick (a British company manager) was also among contributors to this school of
thought.
These theorists studied the flow of information within an organization and emphasized the
importance of understanding how an organization operated.
1. In the late 1800s, Max Weber disliked that many European organizations were
managed on a “personal” family-like basis and that employees were loyal to
individual supervisors rather than to the organization. He believed that
organizations should be managed impersonally and that a formal organizational
structure, where specific rules were followed, was important. In other words, he
didn't think that authority should be based on a person's personality. He thought
authority should be something that was part of a person's job and passed from
individual to individual as one person left and another took over. This
nonpersonal, objective form of organization was called a bureaucracy.
9
Weber believed that all bureaucracies have the following characteristics:
• Competence. Competence, not “who you know,” should be the basis for all
decisions made in hiring, job assignments, and promotions in order to foster ability
and merit as the primary characteristics of a bureaucratic organization.
• Records. A bureaucracy needs to maintain complete files regarding all its activities.
Classical organization theory is the “B” in bureaucracy. Weber defined the organization elements
which comprised the “ideal bureaucracy.” These included:
10
• Individual advancement based on merit. Promotions should go to those
who deserve who perform well on the job.
• Professional managers. The person (or other entity) who owns the
company doesn’t necessarily possess the expertise needed to keep it running
smoothly on a day-to-day basis.
As you can see, many aspects of Weber’s “ideal bureaucracy” are simply measures that ensure
fairness and objectivity. But critics of classical organization theory charged that it placed too
much faith in the infallibility of rules and procedures, while ignoring important aspects of
individual motivation.
This developed from the work of Henri Fayol (1841 - 1925) and his book
Administration Industrielle et Genrale. He advocates the following principles of
business organization: (1) Division of work, (2) Clear allocation of authority, (3)
Discipline stemming from close supervision of work, (4) Unity of command - that is,
everyone should know who his supervisor is. Other principles are introduced to
develop in detail these ideas, which in essence compare business organization to a
military organization.8
• Division of work: Division of work and specialization produces more and better
work with the same effort.
• Authority and responsibility: Authority is the right to give orders and the power to
exact obedience. A manager has official authority because of her position, as well as
8
http://www.blacksacademy.com/rel/objectdownload_rel.php?usr=0&entity=2094&sesN=0
11
personal authority based on individual personality, intelligence, and experience.
Authority creates responsibility.
• Unity of command: An employee should receive orders from only one superior.
• Unity of direction: Organizational activities must have one central authority and one
plan of action.
• Scalar chain: A chain of authority exists from the highest organizational authority to
the lowest ranks.
• Order: Organizational order for materials and personnel is essential. The right
materials and the right employees are necessary for each organizational function and
activity.
• Initiative: Thinking out a plan and ensuring its success is an extremely strong
motivator. Zeal, energy, and initiative are desired at all levels of the organizational
ladder.
12
• Esprit de corps: Teamwork is fundamentally important to an organization. Work
teams and extensive face-to-face verbal communication encourages teamwork.
4. Chester Barnard, who was president of New Jersey Bell Telephone Company,
introduced the idea of the informal organization — cliques (exclusive groups of
people) that naturally form within a company. He felt that these informal
organizations provided necessary and vital communication functions for the
overall organization and that they could help the organization accomplish its
goals.
Barnard felt that it was particularly important for managers to develop a sense of
common purpose where a willingness to cooperate is strongly encouraged. He is
credited with developing the acceptance theory of management, which
emphasizes the willingness of employees to accept that managers have legitimate
authority to act. Barnard felt that four factors affected the willingness of
employees to accept authority:
13
• The employees accept the communication as being consistent with the organization's
purposes.
• The employees feel that their actions will be consistent with the needs and desires of
the other employees.
• The employees feel that they are mentally and physically able to carry out the order.
Barnard's sympathy for and understanding of employee needs positioned him as a bridge to
the behavioral school of management, the next school of thought to emerge.
• Behavioral school of management - Body of management thought based on the belief that
use of psychological techniques in motivating employees works better than rules and
regulations proposed by classical school of management. 9
9
http://www.businessdictionary.com/definition/behavioral-school-of-management.html
10
http://www.businessdictionary.com/definition/contingency-school-of-management.html
11
http://www.businessdictionary.com/definition/quantitative-school-of-management.html
14
15