The evolution of

management thought
Evolution:
The gradual development over many years
Theory:
A set of statements or principles devised to
explain a group of facts or phenomena,
especially one that has been repeatedly tested
or is widely accepted and can be used to make
predictions about natural phenomena.
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The evolution of
management thought
Why do we study Management
Theory?
Why do we study Management
History?

Forces that shaped

Management thoughts

Social forces

Economic forces

Political forces

Technological forces

The Practice of Management Can

Be Traced Back Thousands of
Years

The Egyptians used management

functions of planning, organizing,
and controlling when they
constructed the pyramids.

100,000 workers for 20

years for a single pyramid
who told each workers
what to do and make sure
they do it right?
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Great Wall of China:

Management in Ancient
Past

Early Management
Pioneers

Robert Owen (1771-1858)

Charles Babbage (1792-1871)

Andrew Ure

10

Major Approaches to
Management

Classical Management
Perspective

Behavioral Perspective

The Quantitative Perspective

Systems Perspective

The Contingency Perspective

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Major Approaches to
Management

12

Classical Management
Perspective
Emerged during the early years
of the twentieth century
Include two different
approaches
1.
2.

Scientific Management
Administrative Management
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Scientific Management

Concerned with improving the

performance of individual workers.

Fredrick W. Taylor
The father of scientific management
Principles of Scientific Management
(1911)

Frederick Taylor developed the system,

which he believed would lead to a more
efficient and productive work force.
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Figure 2.2: Steps in

Scientific Management

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Administrative
Management

Whereas scientific management deals

with the jobs of individual employees,
administrative management focuses
on managing the total organization.
Administrative management laid the
foundation for later development in
management theory.
It is more appropriate for stable and
simple organizations than for todays
dynamic and complex organizations.
16

Contributors to
Administrative
Management
Henri Fayol
Max Weber
Lyndall Uriwch
Chester Barnard

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Fayols 14 Principles of
Management
1. Division of work.

7.

Remuneration.

2. Authority.

8.

Centralization.

3. Discipline.

9.

Scalar chain.

4. Unity of command.

10. Order.

5. Unity of direction.

11. Equity.

6. Subordination of
individual interest to
the interests of the
organization.

12. Stability of tenure

of personnel.
13. Initiative.
14. Esprit de corps.

Exhibit 2.3

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19

The Behavioral
Management Perspective

Unlike the classical management

perspective, the behavioral
management perspective placed
more emphasis on individual
attitudes and behaviors and on
group processes and recognized
the importance of behavioral
processes in the work place.
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The Human Relations

Movement

Proposed that workers respond

primarily to the social context of
the workplace, including social
conditioning, group norms, and
interpersonal dynamics.
Managers Concern for workers
would lead to increased
satisfaction, which would in turn
result in improved performance

Maslows hierarchy theory

Gregors theory X and theory Y

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Theory X Assumptions:
Employees
dislike work.
Employees are
irresponsible.
Employees lack
ambition.
Employees
resist change.

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Theory Y Assumptions:
Employees are willing to
work.
Employees are self
directed.
They accept
responsibility.
Employees are creative.
They are self-controlled.

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Organizational Behavior

The study of the actions of people at

work; people are the most important
asset of an organization
Human behavior in organizations is
complex.
The field of organizational behavior
draws from a broad, interdisciplinary
base of psychology, sociology,
anthropology, economics, and
medicine.

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Organizational Behavior

Job satisfaction, stress,

motivation, leadership,
group dynamics,
organization politics,
interpersonal conflicts,
structure and design of
organization,
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The Quantitative
Management Perspective
Apply Quantitative technique to
management
Characterized by its use of
mathematics, statistics, and
other quantitative techniques
for management decision
making and problem solving.

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Two Branches of
Quantitative Management
Perspective

Management Science
Operations Management
Management Science focuses
specifically on the development of
mathematical models.
Operations Management
concerned with helping the
organization more effectively
produce its products and services.

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28

The Organization as an
Open System

Exhibit 2.6

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Understanding a System
System: an interrelated set of elements
functioning as a whole.
Types of Systems:
Open System: an organizational system
that interacts with its environment.
Closed System: an organizational system
that does not interact with its
environment.
Subsystem: a system within a broader
system.
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Implications of the
Systems Approach

Coordination of the organizations

parts is essential for proper functioning
of the entire organization.

Decisions and actions taken in one area

of the organization will have an effect
in other areas of the organization.

Organizations are not self-contained

and, therefore, must adapt to changes
in their external environment.
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The Contingency
Approach

Also sometimes called the

situational approach.

There is no one universally

applicable set of management
principles (rules) by which to
manage organizations.
Organizations are individually
different, face different situations
(contingency variables), and require
different ways of managing.

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Integrating Perspectives
for Managers

A complete understanding of
management requires an
appreciation of, classical,
behavioral, and quantitative
approaches.
The systems and contingency
perspectives can help managers
integrate the three approaches and
enlarge understanding of all three.

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Current Trends and Issues

Globalization
Ethics
Workforce Diversity
E-business
Knowledge Management
Learning Organizations
Quality Management

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Current Trends and Issues

(contd)

Globalization

Management in international organizations

Political and cultural challenges of
operating in a global market

Ethics

Increased emphasis on ethics education in

college curriculums
Increased creation and use of codes of
ethics by businesses
35

Current Trends and Issues

(contd)

Workforce Diversity

Increasing heterogeneity in the workforce

More gender, minority, ethnic, and other

forms of diversity in employees

Aging workforce

Older employees who work longer and do not

retire
The increased costs of public and private
benefits for older workers
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Current Trends and Issues

(contd)

E-Business (Electronic
Business)

The work preformed by an

organization using electronic
linkages to its key
constituencies
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Current Trends and Issues

(contd)

Knowledge Management

The cultivation of a learning culture

where organizational members
systematically gather and share
knowledge with others in order to
achieve better performance.

Learning Organization

An organization that has developed the

capacity to continuously learn, adapt,
and change.
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Current Trends and Issues

(contd)

Quality Management

A philosophy of management
driven by continual improvement
in the quality of work processes
and responding to customer
needs and expectations

Quality is not directly related to

cost
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