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Introduction to Management
Lecture # 2
The Evolution of Management
History

Learning Outline
1.
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3.
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8.

9.

The Importance Of History Of Management

What Is Scientific Management And How It Emerged.
Describe Scientific Management
Explain Time Motion Studies By The Gilberths
The Advantages And Disadvantages Of Scientific
Management.
Describe Administrative Management Theory :
Bereucratic
Explain 14 Principles Of Management
The Pros And Cons Of Administration Management
Theory
Comparison Of Scientific Management And Henry
Fayols

The evolution of Management theory

For the purpose of this subject, we

will focus on these Management
theory. These are classical
management theories

The importance of History of Management

1. To search for better ways to utilize organizational
resources.
2. Management theory doesn't just teach someone
how inspire employees to be more productive, it
also shows managers how to be good bosses
3. Theories lead to great achievements. Without
theories, scientific experiments wouldn't exist
because there would not be anything that we are
trying to prove.

What is Scientific Management and how it emerged

Starts during the closing decades of 19th century
after the industrial revolution swept through
Europe and America
Due to this reason, managers of all types trying to
find a better way of managing the industry.
Adam Smith, has study about management the effect
of industrial revolution and came out with job
specialization and division of labor.
What is Job specialization? Is it same as Division of
labor?

F.W. Taylor and Scientific Management

Frederick Taylor (1856-1915)

Was a manufacturing manager
Introduced Scientific Management
Is the study about the relationships between
people an tasks for the purpose of redesigning the
work process to increase efficiency.
This can be done through Job specialization and
division of labor.
Thus he develop 4 principles to increase efficiency
of employees.

4 principles of Scientific Management

1. Develop a science for each element of an individuals
work, which will replace the old rule-of-thumb method.
2. Scientifically select and then train, teach, and develop the
worker.
3. Heartily cooperate with the workers so as to ensure that
all work is done in accordance with the principles of the
science that has been developed.
4. Divide work and responsibility almost equally between
management and workers. Management takes over all
work for which it is better fitted than the workers.

Scientific Management

The Gilbert Time Motion Study

Frank Bunker Gilbreth was born on July 7,
1868 in Fairfield, Maine. He was a bricklayer, a
building contractor, and a management engineer.

Lillian Evelyn Moller was born on May

24, 1878 in Oakland, California. She
graduated from the University of California
with a B.A. and M.A. and went on to earn a
Ph.D. from Brown University.

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Time Motion Study

Method for establishing employee
productivity standards in which
1. a complex task is broken into small,
simple steps,
2. the sequence of movements taken by
the employee in performing those
steps is carefully observed to detect
and eliminate redundant or wasteful
motion,
3. precise time taken for each correct
movement is measured.
From these measurements production and
delivery times and prices can be computed
and incentive schemes can be devised.

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Administrative Management Theory

The study on how to create an organizational
structure that leads to high efficiency and
effectiveness.
Two most influential are : Max Weber :Henry Fayol
German sociologist,
philosopher, and
political economist
who profoundly
influenced social
theory, social
research, and the
discipline of
sociology itself.

was a French
mining engineer
and director of
mines who
developed a general
theory of business
administration

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Theory of Bureaucracy Max Waber

2007 Prentice Hall, Inc. All rights reserved.

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Henri Fayol (18411925)

1. Division of work
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interests to the general interests
7. Remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure of personnel
13. Initiative
14. Esprit de corps

Henri
Fayol-14
Principles
1. Division of
Work should be divided among individuals and group to
Elements

Definition

Work

ensure that the effort and attention are focused on special

task.

2. Authority

The right to give orders and the power to exact obedience

3. Discipline

Every employees should have discipline in order to achieve

success.

4. Unity of
Command

Employees should received orders from only one manager.

5. Unity of
Direction

The entire organization should moving toward a common

objective in common direction.

Henri
Fayol-14
Principles
6. Subordination The interest of one person should not take priority over the
Elements

Definition

of Individual
interest of the organization as a whole.
interest to
general Interests
7. Remuneration Every organization should determine and gives
remuneration to employees.
8. Centralization The decision making process which focuses on top
management
9. Scalar Chain

Clearly defined and limited chain of command from the top

to the bottom levels

10. Order

The positions of material and people within organizations

Elements

11. Equity

Henri
Fayol-14
Principles
All employees should be treated equally
Definition

12. Stability of
Tenure
Personnel

Organization should focus and be responsible to maintain

the stability of organization.

13. Initiative

Management should encourage worker initiative.

14. Esprit de
corps

Management should encourage workers team spirit and

harmony working environment.

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Comparison
Basis

Taylor

Fayol

Human aspect

Taylor disregards human

elements and there is more
stress on improving men,
materials and methods

Fayol pays due regards on

human element. E.g. Principle
of initiative, Espirit De Corps
and Equity recognizes a need
for human relations

Status

Father of scientific
management

Father of management
principles

Efficiency & administration

Stressed on efficiency

Stressed on general
administration

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Comparison
Basis

Taylor

Fayol

Approach

It has micro-approach because

it is restricted to factory only

It has macro-approach and

discuses general principles of
management which are
applicable in every field of
management.

Scope of principles

These principles are restricted

to production activities

These are applicable in all

kinds of organization regarding
their management affairs

Achievement

Scientific management

Administrative management

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Organization environment:- Contingency Theory

Contingency Theory
The idea that the organizational structures and
control systems manager choose are
contingent on characteristics of the external
environment in which the organization
operates.
There is no one best way to organize

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Organization environment:Contingency Theory