History and Evolution

of Management
Thought
DR. M MANJUNATH SHET TIGAR
Classical Approach
Classical Management can be divided into three separate schools:
Scientific Management
Administrative Approach
Bureaucratic approach
Scientific Management

Some of the earliest advocates of scientific management were:

Fredrick Winslow Taylor
Frank and Lillian Gilbreth
Henry Gantt
Frederick Winslow Taylor

Known as father of scientific management

Soldiering Problem: An Insight

Workers indulge in soldiering for three

main reasons:
1. Fear of loss of job incase of increased
productivity
2. Faulty wage systems
3. Outdated methods of working
Cont..
Major Managerial practices that emerged from Taylors Approach:
Piece-rate system
Time-and-motion study
Frank and Lillian Gilbreth
Frank Gilbreth Father of motion
study
Lillian Gilbreth associated with
research pertaining to motion
study
Motion study:
The way of finding best
sequence and minimum no. of
motions.
- Classification Scheme
- Micro Motion Study
Henry Gantt (1861-1919)

Task-and-bonus system
Gantt Chart
Limitations

These principles focus on solutions of problems

from engineering point of view
Motivated primarily by desire for material gains
Ignore human desire for job satisfaction
Administrative
Theory
FOCUS: COORDINATION OF INTERNAL
ACTIVITIES OF ORGANIZATIONS
Henry Fayol (1841-1925)

Developed general theory of

management.
Business Operations of an Organisation
According to Fayol, business operations of an organization could
be divided into 6 activities:

Technical Producing and manufacturing products

Commercial - Buying, selling , exchange
Financial Search for optimal use of capital
Security Activities - Protecting employees and property
Accounting Activities - Recording and taking stock of cost, profits
and liabilities
Managerial Activities - Planning, Organizing, Commanding,
Coordinating, Controlling
Managerial Activities/
Functions
Principles of management
Division of work Centralization
Authority Scalar chain
Discipline Order
Unity of command Equity
Unity of direction Stability of tenure
Subordination of individual Initiative
interest Esprit de corps
Remuneration
Bureaucratic Management
Emphasized the need for
organizations to function on a
rational basis
Observed practice of nepotism
and condemned it.
Identified characteristics of
Bureaucracy.
Bureaucracy derived from German
word buro, meaning office.
A highly structured, formulized
and impersonal organization.
Characteristics of Webers Bureaucracy
Work specialization
Abstract rules and regulations
Impersonality of Managers
Hierarchy of organization structure
Advantages of Bureaucratic Management
Help remove ambiguities and inefficiencies that characterize many
organizations.
Undermine the culture of patronage that he saw in conflict with the
principle of unity if control
Limitations of Bureaucratic Management and
Administrative theory
Principles inapplicable to today's complex organizations.
Fayols principle of specialization in conflict with principle of
unity of control.
Principle characteristics of bureaucracy destroy creativity
and flexibility to respond to complex changes in global
environment.
Classical Theorists ignored important aspects of
organizational behavior.
Failed to consider impact of external and internal
environment upon employee behavior in organizations.
Human Relations
Approach
EMPHASIS ON HUMAN ELEMENT
Mary Parker Follet: Focus on Group
Influences

Human Element
Groups
Power Sharing
Integrity
Elton Mayo: Focus on Human Relations

Hawthorne Experiment: four

phases
Illumination Experiments
Relay Assembly Test Room
Experiment
Interview Phase
Bank wiring observation room
experiment
Contributions of the Experiment
Prejudgments
Job performance depends on the
individual worker
Fatigue is the main factor affecting
output
Management sets production
standards
Findings
The group is the key factor
in job performance
Perceived meaning and
importance of the work
determine output
Workplace culture sets its
own production standard
Criticisms
Analysis supported by little evidence
Relationship between satisfaction and productivity- too simplistic
Failed to focus attention on the attitudes of employees
Limitations

The approach says very little about positive motivation

It does not provide enough focus on work
It tends to be very vague
Behavioral Science
Approach
EMPHASIS ON HUMAN ELEMENT
Abraham Maslow
Three assumptions:
Needs are never completely
fulfilled
Through over actions we satisfy
our unsatisfied needs
Hierarchical of needs
1. Physiological Needs
2. Safety or security needs
3. Social Needs
4. Self Fulfillment Needs
Maslows Hierarchy of Needs
Douglas McGregor

Challenging Traditional
Assumptions about
Employees
Theory X and Theory Y
Chris Argyris: Matching Human and
Organizational Development

Three major
contributions:
Maturity-Immaturity
Theory
Integration and
Organizational Goals
Model I and Model II
QUANTITATIVE APPROACH
Quantitative Approach
Emerged during World War II
Includes:
Application of statistics
Optimization models
Information Models
Computer Simulations
 Branches of quantitative approach:
Management Science
Operations Management
Management Information System
Management Science
Need for management science???

Areas of usage:
Capital Budgeting and cash flow management
Production Scheduling
Development of product strategies
Planning for human resource development programs
Maintenance of optimal inventory levels
Aircraft Scheduling
Operations Management

Operations Management:
Applied form of management science.
Concerned with:
Inventory Management
Work Scheduling
Production Planning
Facilities, location and design
Quality assurance
Management Information System

FOCUS: DESIGNING AND IMPLEMENTING

COMPUTER BASED INFORMATION SYSTEM
MODERN APPROACHES TO
MANAGEMENT
Modern Approaches To Management
System Theory
This system approach gives manager a new way of
looking at an organization as a whole and as a part
of the larger, external environment
Two types of systems:
Open System- which interacts with its environment
Closed System which does not interact with its
environment
Contingency theory
Also known as situational theory.
According to this theory, there is no one best way manage all situations
Developed by managers, consultants and researchers who tried to apply
the concepts of the major schools of management thought to real life
situation.
Emerging Approaches in Management
Thought

William Ouchi, conducted

research on both American and
Japanese management
approaches and outlined a new
theory called theory Z.
Theory Z
Involves providing job security to employees.
Ensures job rotation of employees to develop their
cross-rotational skills.
Advocates participation of employees in the decision
making process
Emphasizes on use of informal control in organization.
Shows concern for employees wellbeing
Lays emphasis on their training and development
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