CHAPTER 2: HISTORY OF

MANAGEMENT THOUGHT

Principles of Management
|

Learning Outcomes
2.1 Understand management as a science and as an
art.
2.2 Describe the three classical viewpoints of
management: scientific management, administrative
management, and bureaucratic management.
2.3 Explain the behavioral science perspective of
management.
2.4 Discuss the two contemporary views of
management: systems view and contingency view.
2.5 Describe the challenges in contemporary
Principles of Management
|

Management: A Science Or An Art?

Manageme
nt is a
Science

Believes in specific best practices for

management
Uses objective, universal solutions to
problems based on fact and evidence

Manageme
nt is an
Art

Believes in importance of social and

political contexts of managerial issues
Uses managers knowledge and
experience to solve problems

Good management is a balance of both science and art! Science

establishes general principles that guide organizations, while the art
of human skill puts those principles to their best use.
Principles of Management
|

Classical Management
The oldest formal school of management thought.
Discusses methods to make organizations more efficient.

I. Scientific Management
. Focuses on maximizing worker productivity.
. Taylors Principles of Scientific Management:
Developed standard method for performing each job.
Selected workers with appropriate abilities for each job.
Trained workers in standard method.
Supported workers by planning work and eliminating interruptions.
Provided wage incentives to workers for increased output.
Adapted from: Bateman, T.S. and Snell, S.A. (2014), Management: Leading & Collaborating in a Competitive World. 11th ed.
Principles of Management
McGraw Hill

Classical Management (Contd)

II. Administrative Management
Concerns the management of the whole organization instead of individual
employees.
Henri
Fayols
Centralization
Division
of work14 Principles of Management:
Authority and responsibility

Scalar chair

Discipline

Order

Unity of command

Equity

Unity of direction

Stability of tenure of personnel

Subordination of individual interest to general

interest

Initiative

Remuneration of personnel

Esprit de corps
Principles of Management
|

Classical Management (Contd)

III. Bureaucratic Management
Concerns the ideal structure of organizations.
Max Webers elements of an ideal bureaucracy:

A formal set of rules and procedures

A clear chain of command
Division of labor according to expertise
Selection and promotion of individuals based on ability and merit
Professionalism among managers

Principles of Management
|

Behavioral Management
Emphasizes the significance of individual personalities and
behaviors in determining behavioral outcomes in the working
environment.
Posits that a superior understanding of human behavior such
as motivation, expectation, or conflict would enhance
productivity in the workplace.
Is concerned with the social and mental facets of human
behavior in organizations.
Principles of Management
|

Behavioral Management (Contd)

I. Mayos Hawthorne Studies
. Revealed that workers productivity depends intensely upon their
satisfaction with their working environment.
. Mayo proposed the following arguments about management as a
result of the Hawthorne experiments:

Social system
Social environment
Informal organization
Group dynamics
Informal leader
Non-economic reward

Principles of Management
|

Behavioral Management (Contd)

II. Human Relations Movement
. Workers essentially react to the social context of their work environment.
. Managers concern for employees prompts higher satisfaction, which then
leads to enhanced performance.
. Maslows Hierarchy of Needs
People are motivated by a hierarchical set of needs, and will satisfy lower
level needs before attempting to satisfy higher level ones.
These needs are (from low to high):

Physiological

Safety

Social

Ego/Estee
m

SelfActualizatio
n

Principles of Management
|

Behavioral Management (Contd)

II. Human Relations Movement (Contd)
. McGregors Theory X and Theory Y
Theory X and Theory Y reflect two belief sets that managers hold about
their employees.
Managers should change their attitude about Theory X and encourage
Theory
X assumes
an employee
Y assumes
an employee
workers
with that
Theory
Y assumptions inTheory
mind to
improvethat
performance.
Dislikes work and endeavours to avoid it

Perceives work to be as natural as rest and play

Has no aspiration and wants no responsibility

Seeks and accepts responsibility

Does not concern himself with company goals

Is motivated to meet his company goals

Opposes change

Can be creative in solving organizational issues

Is nave and not very smart

Is intelligent and has potential

Principles of Management
|

10

Contemporary Management Perspectives

I. Systems View
The most acceptable approach in modern management.
This view sees organizations as an integrated system of combined parts.
The primary idea of the system approach is the holistic perspective when facing
an issue - no part of the system can be evaluated without taking the entire
system into account, and no system can be considered without comprehending
each of its individual parts.
There four fundamental components in a system: inputs, transformation
processes, outputs, and feedback.
Principles of Management
|

11

Contemporary Management Perspectives (Contd)

Ad apted

from :

B at eman,

T. S.

and

S nell,

S. A.

(2014),

Manage ment :

Leading

&

C ol laborati ng

in

C omp et it iv e

World .

11th

ed.

M c Graw

H ill

Principles of Management
|

12

Contemporary Management Perspectives (Contd)

I. Systems View (Contd)
Open systems communicate with their environment, whereas closed
systems do not.
Subsystems are systems within a larger system, and can affect other
subsystems.
Synergy posits that subsystems are more effective when they work
together.
Entropy is a natural process that results in the decline of a system.
Principles of Management
|

13

Contemporary Management Perspectives (Contd)

II. Contingency View
General theories cannot be practiced in organizations as each organization is distinct
from another.
There is no ideal approach to handle all situations.
Suitable managerial action in a situation relies on the unique details of that situation.
The major determinants of a contingency are based on the internal and external factors
surrounding an organization.
It is the managers task to ascertain the strategy or decision that best contributes to
management objectives under a particular situation.
Principles of Management
|

14