Evolution of Management Thought

Evolution of Management Thought
Organizational Behavior/ Session 1/ Evolution of Management Thought

Evolution Of Management Thought
Classical Approaches Contemporary Approaches
1890 1900 1910 1920 1930 1940 1950 1960 1970- till date
Systematic
management
Administrative
management
Quantitative
management
Systems
theory
Current and
future
revolutions
Scientific
management
Human
relations
Bureaucracy
Contingency
theory
Schools of Management
Thought
Modern Approach
Quantitative Approach
Classical Approach
1900s
1940s
1970s
Behavioural Approach
Scientific Management
Bureaucratic Management
Administrative Management
Group Influences,
Hawthorne Studies,
Maslows Needs Theory,
Theory X & Y
Management Science
Operations Management
MIS
Systems Theory
Contingency Theory

Early Management Concepts &
Influences
Industrial revolution
minor improvements in mgmt tactics led to
improvement in production.
economies of scale
intense and systematic thought about
management problems and issues
Efficiency
production processes
cost savings
THE CLASSICAL APPROACH
Three Schools-
o Scientific Management
o Administrative Theory
o Bureaucratic Management
Formulated principles for setting up & managing
organizations.
Form foundation for the field of management.
Scientific Management
Contributors:
Frederick W. Taylor- Father of scientific mgmt
Frank & Lillian Gilbreth
Henry Gantt

Kind of management which conducts a business or affairs
by standards established, by facts or truths gained through
systematic observation, experiment, or reasoning.
Scientific Management Contd
Fredrick Taylor
Focused on the measurement and structure of work itself.
Identified Soldiering to have a major impact on
productivity.
By understanding the nature of the job, the process of
work could be made more effective.
Time-&-Motion study to determine the best way to
perform each task.
Advocated use of piece rate incentive system,
scientifically defining a full and fair days standard.
Suggested functional foremanship.
4 Basic Tenets
The one best way, replace rule of thumb.
Scientific selection & Training of personnel.
Supervise to ensure that work be carried out in
prescribed fashion.
Divide work efforts among employees so that
activities such as planning, organizing, and
controlling are the prime responsibilities of
managers rather than individual workers.
Frank and Lillian Gilbreths
time and motion studies
Based on the principles of economy of motion.
Measured the body motions to discover the best
sequence & minimum number of motions needed to
carry out a particular task.
Henry L. Gantt
Was interested in production efficiency.
Focused on devising remuneration procedures that
would provide fair pay for correctly doing a task.
Bonus for completing task in a timely fashion.
Introduced Gantt Chart
Scientific Management contd
Contributions
Improved factory productivity and efficiency
Introduced scientific analysis to the workplace
Piecerate system equated worker rewards and
performance
Limitations
Workers viewed as parts of a machine
Operational focus not managerial
Overemphasized economic & physical needs
Overlooked social needs
Rational worker model used became ineffective

Scientific Management contd
Administrative Management
principles to coordinate the internal activities of
organizations.
Contributor: Henri Fayol
with scientific forecasting & proper methods of mgmt,
satisfactory results were inevitable.
Administrative Management Contd
Business
Operations
Accounting
Activities
Commercial
Activities
Financial
Activities
Technical
Activities
Managerial
Activities
Planning
Organizing
Commanding
Coordinating
Controlling
Security
Activities
1. Division of work
2. Authority & responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of individual to general interest
7. Remuneration
14 Principles of Management
Centralization
Scalar Chain
Order
Equity
Stability of tenure of personnel
Initiative
Espirit de Corps
14 Principles of Management Contd
Administrative Management contd
Contributions
Viewed management as a profession that can
be trained and developed
Emphasized the broad policy aspects of top-
level managers
Offered universal managerial prescriptions
Limitations

Universal prescriptions need qualifications for
environmental, technological, and personnel
factors.

Administrative Management contd
Bureaucratic Management
Max Weber and the Bureaucracy
Bureaucracy defined as a highly structured,
formalized, & impersonal organization.
Help remove ambiguities & inefficiency of
organizations.
A well-defined hierarchy of authority
A clear division of work, differentiation between
organizational functions
A system of rules covering the rights and duties of
position incumbents
A system of procedures for dealing with the work
situation
Bureaucracy Contd
Impersonality of interpersonal relationships
Selection for employment, and promotion based on
technical competence
Ownership and administration of an organization
are separate.

Bureaucracy Contd
Bureaucracy contd
Contributions
Promotes efficient performance of routine operations
Eliminates subjective judgment by employees and
management
Emphasizes position rather than the person
Limitations
Limited organizational flexibility and slowed
decision making
Ignores the importance of people and interpersonal
relationships
Rules may become ends in themselves
Bureaucracy contd
Hawthorne Studies (1924-1932)
Hawthorne Plant of Western Electric in Cicero, IL
Relationship between working conditions and
productivity
Responsiveness to group norms
Contributors:
o Elton Mayo, (Father of Human Relations Approach)
o Fritz Roethlisberger, T N Whitehead, William
Dickson
The Hawthorne Studies
Hawthorne Studies Contd
Four Phases of experiments:
Illumination experiments
Relay Assembly Test Room Experiments
Interview Phase
Bank Wiring Observation room experiments
Underlying Factors for groups high morale:
Workers perception of themselves as special
Women developed good interpersonal relationships
Group- Key factor in performance
Perceived meaning & importance of work
Workplace Culture
Hawthorne Studies Contd
Douglas McGregor: Theory X
Most people dislike work and responsibility and
prefer to be directed.
They are motivated not by the desire to do a good
job, but simply by financial incentives.
Most people must be closely supervised, controlled,
and coerced into achieving organizational
objectives.
Douglas McGregor: Theory Y
People could enjoy work like rest or play.
People could exercise substantial self-control.
Managers could trust employees if managers
treated them right.
People become committed to organizational
objectives if rewarded.
Contributions
Psychological and social processes influence
performance
Maslows hierarchy of need
Limitation
Ignored workers rational side and the formal
organizations contributions to productivity
Behavioral School of Thought
THE QUANTITATIVE APPROACH
Emerged during World War II.
Used mathematical approaches to mgmt to solve
logistical problems.
Focus on achieving organizational effectiveness
through application of mathematical & statistical
concepts.
Three branches:
Management Science
Management Information Systems

Management Science Approach
Also known as operations research.
Seeks optimal solutions to management problems
through research and the use of scientific analysis
and tools.
Application of quantitative analysis to management
decision making.
Visualizes mgmt as a logical entity, the action of
which can be expressed in terms of mathematical
symbols, relationships & measurement data.
Criticized for overemphasis of mathematical tools.
Mgmt Science Approach Contd..
Applied form of Management science
Deals with effective management of the production
process & timely delivery of products & services.
Concerned with:
Inventory Management
Work Scheduling
Production planning
Facilities Location & Design
Quality Assurance
Management Information Systems
Focused on designing & implementing computer
based information systems for business
organizations.
Converts raw data into information & providing it to
managers as & when required.
Quantitative Management
Contribution
Developed specific mathematical methods of
problem analysis
Helped managers select the best alternative
among a set
Limitations
Models neglect non-quantifiable factors
Managers not trained in these techniques
may not trust or understand the techniques
outcomes
Not suited for non-routine or unpredictable
management decisions
Quantitative Management
MODERN APPROACHES
Two significant theories
The Systems Theory
Contingency Theory
Systems Theory
Viewing Organization as a whole & as a part of the
larger external environment.
Organization as a set of interrelated subsystems
that contribute internally to organizations purpose
and success while interacting with its external
environment.
Two types of systems: Open & Closed
Systems Theory Contd
Inputs
Labor
Materials
Capital
Machinery
Information
Process
Planning
Organizing
Staffing
Leading
Controlling
Technology
Outputs
Goods
Services
Profits &
losses
Employee
Satisfaction
Feedback
Systems Theory Contd
Contribution
Recognized the importance of the relationship
between the organization and the environment

Limitation
Does not provide specific guidance on the
functions of managers
The Contingency Theory
Also Known as Situational Theory
No one best way to manage all situations
The organization and how its managers should
manage it are contingent on the companys
environment and on technology.
Contingency Theory Contd
different situations and conditions require different
management approaches.
The task of managers is to identify which technique
will, in a particular situation, under particular
circumstances, & at a particular time, best
contribute to the attainment of mgmt. goals.
Contingency Theory Contd
Contributions
Identified major contingencies
Argued against universal principles of
management
Limitations
Not all important contingencies have been
identified
Theory may not be applicable to all managerial
issues

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Organizational Behavior/ Session 1/ Evolution of Management Thought

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