Evolution of management thought

Evolution of Management Thought

The Pre-Classical Period
• Robert Owen (1771-1858) was a flourishing Scottish and a socialist who
showed concern for the workers.
• He was disgusted by the poor working conditions and ill treatment of the
workers in the factories across Scotland. Also he used moral persuasion
rather than physical punishment in his factories.
• At his own factories, he introduced a standard working day of 10½ hours
and refused to employ children under the age of ten. He became a
reformer by eliminating the use of child labor in factories.
• In 1813 he proposed a factory bill to prohibit employment of children
under the age of ten and to limit hours for all children to 10½ hours per
day with no night work.
• Owen suggested the use of a “silent monitor” to truthfully rate an
employee’s work on a daily basis.
 2. Charles Babbage (1792-1871)

• Charles Babbage was a British professor of Mathematics and is acclaimed

as the “father of modern computing.”
• His key contributions to the field of computing were the world’s first
mechanical calculator and an “analytical engine”.
• Babbage advocated division of labor because he was impressed by the
idea of work specialization. He believed that worker could then be trained
in one specific skill and made responsible only for that part of the
operation after understanding each factory operation thoroughly and
isolating each operation.
• He formulated a profit-sharing plan under which bonuses were given for
useful suggestions contributed by employees and wages were based on
the profits generated by the factory.
3. Andrew Ure (1778-1857) and Charles Dupin (1784-
1873)

• Andrew Ure was a British academician and Charles Dupin was

a French engineer. The duo were the first to advocate for the
study of management.
• Ure published “The Philosophy of Manufacturing” in which he
explained the various principles and concepts of
manufacturing.
• Dupin published his book “Discours sur le Sort Des
Ouvriers”, translated Discourse on the Condition of the
Workers, in 1831. This manuscript incorporated concepts such
as time study and importance of balancing workloads after
the introduction of division of labor.
 4. Henry Robinson Towne (1844-1924)

• Henry R. Towne, a mechanical engineer and

the President of the Yale and Towne
manufacturing company recognized the
importance of good business skills in running
a business.
• He emphasized on the need to consider
management as a separate field of systematic
study on the same level as engineering.
Name Period Contribution
Robert Owen 1771-1858 Proposed legislative reforms to
improve working conditions of labor
Charles 1792-1871 Advocated the concept or ‘division
Babbage of labor’
Andrew Ure 1778-1857 Advocated the study of
management
Charles Dupin 1784-1873
Henry R.Towne 1844-1924 Emphasized the need to consider
management as separated field of
study and the importance of
business skills for running a
business.
MAJOR CLASSIFICATION OF MANAGEMENT
APPROACHES
CLASSICAL SCIENTIFIC BUREAUCRATIC ADMINISTRATIV
APPROACH MANAGEMENT MANAGEMENT E
MANAGEMENT

BEHAVIORAL HAWTHORNE MASLOW’S THEORY X AND

APPROACH STUDIES NEED THEORY Y
HIERARCHY

QUANTITATIVE MANAGEMENT OPERATIONS MANAGEMENT

APPROACH SCIENCE MANAGEMENT INFORMATION
SYSTEM

MODERN THE SYSTEMS CONTINGENCY EMERGING

APPROACH THEORY THEORY APPROACHES
 Classical Approach

 Forms the foundation for the field of

management
 The schools for management thoughts are:
 Scientific Management
 Administrative Theory
 Bureaucratic Management
 Classical Period

• 1. Scientific Management
Scientific management was defined as “that kind
of management which conducts a business or
affairs by standards established, by facts or
truths gained through systematic observation,
experiment, or reasoning.”
 1. Frederick Winslow Taylor
• He is considered “the father of scientific management”.
• An engineer and inventor, Taylor first began to experiment with new
managerial concepts in 1878 while he was employed at the Midvale Steel
Co. Frederick W. Taylor rose from the rank of an apprentice to that of a
Chief Engineer in a short span of six years.
• Taylor’s approach to efficiency was similar to that of a scientist as he
observed, measured and recorded the most trifling tasks.
• He believed that no matter how easy a task seems, one needs to study it
analytically to find the “one best way” to do that task.
• ‘Soldiering’ referred to the practice of employees intentionally working at
a pace slower than their capabilities. According to Taylor, workers indulged
in soldiering for three main reasons.
• First, the workers feared that if they increased their productivity, other
workers would lose their jobs.
• Secondly, faulty wage systems employed by the organization encouraged
them to work at a slow pace.
• And third outdated methods of working handed down from generation to
generation led to a great deal of wasted efforts.
• Taylor felt that the wage system was one of the major reasons for
soldiering. To resolve this problem, he advocated the use of a piece-rate
incentive system.
 Frank and Lillian Gillbreth
 1868-1924
 Motion study involves finding out the
best sequence and minimum number of
motions needed to complete a task.
 Explore new ways for eliminating
unnecessary motions and reducing work
fatigue.
 HENRY L.GANTT(1861-1919)
 Well known for Task – and - bonus
system -The Gantt chart
 If the worker completed the work fast,
i.e., in less than the standard time, he
received a bonus.
 It is a Simple chart that compares
actual and planned performances.
 Limitations of
Scientific Management

 Do not focus on the management of an

organization from a manager’s point of
view.
 people were “rational” and were
motivated primarily by the desire for
material gain.
 It also ignored the human desire for job
satisfaction.
 Administrative Theory:

 It focused on principles that could be

used by managers to coordinate the
internal activities of organizations.
 Henri Fayol (1841-1925)
 Henri Fayol (1841-1925)
Fourteen principles:
 Division of work  Remuneration
 Centralization:
 Authority and responsibility
 Scalar chain
 Discipline  Order
 Unity of command  Equity
 Unity of direction  Stability
 Subordination of the  Initiative
individual interest to the  Espirit de corps
(team spirit)
general interest
 Bureaucratic Management

Weber (1864-1920)
Characteristics of Weber’s ideal Bureaucracy:
 Work specification and division of labor
 Abstract rules and regulations:
 Impersonality of managers:
 Hierarchy of organization structure:
Limitations of Bureaucratic Management
and Administrative Theory

 Not universally applicable to today’s

complex organizations.
 Fayol’s principles like that of specialization
were frequently in conflict with the
principle of unity of command.
 Principle characteristic of bureaucracy
changes in the global environment.
 Classical theorists ignored the problems of
leadership, motivation, power or
information relations.
 Behavioral Approach

 The behavioral approach to management

emphasized individual attitudes and
behaviors and group processes, and
recognized the significance of behavioral
process in the workplace.
 HAWTHORNE STUDIES
• Illumination studies
• Relay assembly room study
• Bank wiring room study
 Contributions of Behavioral Thinkers to
Management Thought
Name Period Contribution
Mary Parker 1868- Advocated the concept of ‘power
Follet 1933 sharing’ and integration
Elton Mayo 1868- foundation for the Human Relations
1933 Movement;
Abraham 1908 – motivated by a hierarchy of needs
Maslow 1970
Douglas 1906- Theory X and Theory Y personalities
McGregor 1964
Chris Argyris - Classified organizations based on
the employees’ set of values
 Mary Parker Follet (1868-1933)

 Power, according to Follet, 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 (1868-1933)
Pre-judgment Findings
Job performance The group is the key factors
depends on the in job performance
individual worker
Fatigue is the main Perceived meaning and
factor affecting importance of the work
output. determining output.
Management sets Workplace culture sets its
production standards own production standards.
 Abraham Maslow

His theory rested on these assumptions.

 Physiological needs;
 Safety or security needs
 Belongingness or social needs;
 Esteem or status needs
 Self actualization or self-fulfillment needs.
Maslow’s Need Hierarchy

Self actualization needs

Esteem needs

Social needs

Safety needs

Physiological needs
 Douglas Mcgregor
Theory X Theory Y
Most People dislike Work is a natural activity
work like play.
Most People must be People are capable of self
coerced and threatened direction and self control
before they work.
Most people prefer to People become committed
be directed. They avoid to organizational
responsibility and have objectives if they are
little ambition. rewarded in doing so.
 Chris Argyris

 Maturity – immaturity theory

• People progress from a stage of
immaturity and dependence to a state of
maturity and independence.
• Model I and Model II organization
analysis.
1. Model I organization are manipulative
2. Model II organization are open to learning
 Quantitative Approach
 It includes the application of statistics,
optimization models, information models
and computer simulations. More
specifically, this approach focuses on
achieving organizational effectiveness.
 Three main branches:
 Management Science
 Operations Management and
 Management Information Systems.
 Management Science

 It stresses the use of mathematical

models and statistical methods for
decision-making.

 Another name is the Operations

Research.
 Operations Management

 It deals with the effective management

of the production process and the
timely delivery of an organization’s
products and services.
 Management
Information Systems

 Management information systems

focuses on designing and
implementing computer-based
information systems for business
organizations.
Modern Approaches
to Management

 Systems Theory

 Contingency Theory
 Systems Theory
Inputs Transformation process Outputs

Managerial and
Resources  Goods
Technological
Abilities  Services
 Labor  Profits and
 Planning
 Materials losses
 Organizing
 Capital  Employee
 Staffing
 Machinery  satisfaction
 Leading
 Information
 Controlling
 Technology

Feedback
 Contingency Theory

Systems Viewpoint Contingency

How the parts fits Viewpoint
together
•Individual Managers’ use
•Group of other view
Traditional points to solve
•Organization
viewpoint problems
•environment
What managers
do •External
Behavioral Viewpoint •Plan environment
How managers influence •Organize •Technology
others •Lead
•Interpersonal Roles • Control •Individuals
•Informational Roles
•Decisional Roles
Emerging Approaches In Management
Thought
 William Ouchi, outlined new theory called
Theory Z.
 It is the blend of positive aspects of both
American and Japanese management styles.
 Quality Management is a management
approach that directs the efforts of
management towards bringing about
continuous improvement in product and service
quality to achieve higher levels of customer
satisfaction and build customer loyalty.