History and Evolution Of

Management Thought
CHAPTER-2
Objetives of The Cha!ter
To "nderstand

Early Approaches to management

Classical Approach

Behavioral Approach

Quantitative Approach

Modern Approaches to management

Emerging approaches in management thought.

Introduction
Both theory and history are indispensable
tools for managing contemporary
organizations.
A theory is a conceptual framewor for
organizing nowledge that provides a
blueprint for various courses of action.
Early A!!roahes to Management
#ame Period Contribution
!obert "wen $%%$-$&'& Pro!osed legislative reforms to
im!rove (or)ing onditions of labor
Charles
Babbage
$%*2-$&%$ Advoated the one!t or +division
of labor,
Andrew #re $%%&-$&'% Advoated the study of
management
Charles $upin $%&--$&%.
%enry !.&owne $&---$*2- Em!hasi/ed the need to onsider
management as se!arated field of
study and the im!ortane of
business s)ills for running a
business0
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Classial A!!roah

*orms the foundation for the field of

management

&he schools for management thoughts are3

)cientific Management

Administrative &heory

Bureaucratic Management
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-iece rate incentive system
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&ime and motion study
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,antt scheduling chart5%enry (aurence ,antt
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&echnical
6
Commercial
6
*inancial
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)ecurity
6
Accounting
6
managerial
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/or specialization and division of labor
6
Abstract rules and regulations
6
Impersonality of managers
6
%ierarchy of organization structure
1ientifi Management
Early $*22s

It is defined as 9that ind of management

which conducts a business or affairs by
standards established: by facts or truths
gained through systematic observation:
e;periment: or reasoning.<

Major ontributors3

*rederic /inslow &aylor

*ran and (illian ,illbreth

%enry (.,antt
4rederi) 5inslo( Taylor

9*ather of scientific management<=4>?>@

&wo maAor managerial practices3

-iece5rate incentive system

&ime5and5motion study
4ran) and 6illian 7illbreth

4>B>54C7D

Motion study involves finding out the

best seEuence and minimum
number of motions needed to
complete a tas.

E;plore new ways for eliminating

unnecessary motions and reducing
wor fatigue.
HE#R8 607A#TT9$&:$-$*$*;

/ell nown for &as F and 5 bonus

system 5&he ,antt chart

If the worer completed the wor

fast: i.e.: in less than the standard
time: he received a bonus.

It is a )imple chart that compares

actual and planned performances.
6imitations of
1ientifi Management

$o not focus on the management of an

organization from a manager0s point of
view.

people were 9rational< and were motivated

primarily by the desire for material gain.

It also ignored the human desire for Aob

satisfaction.
Administrative Theory3

It focused on principles that could be

used by managers to coordinate the
internal activities of organizations.

%enri *ayol =4>D454C7G@

Henri 4ayol 9$&-$-$*2';
*ourteen principles3

$ivision of wor

Authority and responsibility

$iscipline

#nity of command

#nity of direction

)ubordination of the
individual interest to the
general interest

!emuneration

Centralization3

)calar chain

"rder

EEuity

)tability

Initiative

Espirit de corps
=team spirit@
<ureaurati Management
5eber 9$&:--$*22;
Characteristics of /eber0s ideal Bureaucracy3

/or specification and division of labor

Abstract rules and regulations3

Impersonality of managers3

%ierarchy of organization structure3

6imitations of <ureaurati
Management and Administrative
Theory

+ot universally applicable to today0s comple;

organizations.

*ayol0s principles lie that of specialization

were freEuently in conflict with the principle
of unity of command.

-rinciple characteristic of bureaucracy

changes in the global environment.

Classical theorists ignored the problems of

leadership: motivation: power or information
relations.
<ehavioral A!!roah

&he behavioral approach to management

emphasized individual attitudes and
behaviors and group processes: and
recognized the significance of behavioral
process in the worplace.
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6
Illumination studies
6
!elay assembly room study
6
Ban wiring room study
Contributions of <ehavioral Thin)ers to
Management Thought
#ame Period Contribution
Mary -arer
*ollet
4>B>5
4C88
Advocated the concept of Hpower
sharing0 and integration
Elton Mayo 4>B>5
4C88
foundation for the %uman !elations
MovementI
Abraham
Maslow
4CJ> F
4C?J
motivated by a hierarchy of needs
$ouglas
Mc,regor
4CJB5
4CBD
&heory 2 and &heory 1 personalities
Chris Argyris 5 Classified organizations based on
the employees0 set of values
Mary Par)er 4ollet 9$&:&-$*..;

-ower: according to *ollet: was the ability

to influence and bring about a change.

Concept of integration: which involves

finding a solution acceptable to all group
members
Elton Mayo 9$&:&-$*..;
-re5Audgment *indings
'ob performance
depends on the
individual worer
&he group is the ey factors
in Aob performance
*atigue is the main
factor affecting
output.
-erceived meaning and
importance of the wor
determining output.
Management sets
production standards
/orplace culture sets its
own production standards.
Abraham Maslo(
%is theory rested on these assumptions.

-hysiological needsI

)afety or security needs

Belongingness or social needsI

Esteem or status needs

)elf actualization or self5fulfillment needs.

Maslow0s +eed %ierarchy
)elf actualization needs
Esteem needs
)ocial needs
)afety needs
-hysiological needs
=ouglas Mgregor
Theory > Theory 8
Most -eople dislie
wor
/or is a natural activity
lie play.
Most -eople must be
coerced and threatened
before they wor.
-eople are capable of self
direction and self control
Most people prefer to
be directed. &hey avoid
responsibility and have
little ambition.
-eople become committed
to organizational
obAectives if they are
rewarded in doing so.
Chris Argyris

Maturity F immaturity theory

6
-eople progress from a stage of immaturity
and dependence to a state of maturity and
independence.
6
Model I and Model II organization analysis.
4. Model I organization are manipulative
7. Model II organization are open to learning
?uantitative A!!roah

It includes the application of statistics:

optimization models: information models
and computer simulations. More
specifically: this approach focuses on
achieving organizational effectiveness.

&hree main branches3

Management )cience

"perations Management and

Management Information )ystems.

Management 1iene

It stresses the use of mathematical

models and statistical methods for
decision5maing.

Another name is the "perations

!esearch.
O!erations Management

It deals with the effective management

of the production process and the
timely delivery of an organization0s
products and services.
Management
@nformation 1ystems

Management information systems

focuses on designing and
implementing computer5based
information systems for business
organizations.
Modern A!!roahes
to Management

)ystems &heory

Contingency &heory
1ystems Theory
Resoures

(abor

Materials

Capital

Machinery

Information
Managerial and
Tehnologial
Abilities

-lanning

"rganizing

)taffing

(eading

Controlling

&echnology

,oods

)ervices

-rofits and
losses

Employee

satisfaction
Inputs
&ransformation process
"utputs
*eedbac
Contingeny Theory
1ystems Aie(!oint
%ow the parts fits
together
6Individual
6,roup
6"rganization
6environment
<ehavioral Aie(!oint
Ho( managers influene
others
6Interpersonal !oles
6Informational !oles
6$ecisional !oles
Traditional
vie(!oint
5hat managers
do
6-lan
6"rganize
6(ead
6 Control
Contingeny
Aie(!oint
Managers0
use of other
view points to
solve
problems
6E;ternal
environment
6&echnology
6Individuals
Emerging A!!roahes @n
Management Thought

/illiam "uchi: outlined new theory called

&heory K.

It is the blend of positive aspects of both

American and 'apanese management styles.

Quality Management is a management

approach that directs the efforts of
management towards bringing about
continuous improvement in product and
service Euality to achieve higher levels of
customer satisfaction and build customer
loyalty.
+ow you are familiar with
6
$ifferent classification of management
approaches
6
A few theorists and theories
6
Early Approaches to Management
6
Classical Approach
6
Behavioral Approach
6
Quantitative Approach
6
Modern Approaches to management
6
Emerging approaches in management
thought.
&han youLLL