Major Management Perspectives

over time
Classical Management Perspective
Focuses on efficiency and includes:
• scientific,
• administrative, and
• bureaucratic management.
 Scientific Management
• focuses on the “Best way” to do a job.

Concerned with improving the

performance of individual workers
(i.e., efficiency).
 Scientific Management
 Frederick Taylor(1856-1915)
– Called as “Father of Scientific Management”
– Mechanical engineer by profession
– Believed in selecting, training, teaching and
developing workers.
– Used time study, standards planning,
rules, instruction cards, incentives, etc.
 Other Scientific Management
Pioneers
• Frank Gilbreth(1868-1924) and Lillian
Gilbreth (1878-1972)
– Reduced number of movements in bricklaying, resulting
in increased output of 200%
 Henry Gantt(1861-1919)
Developed other techniques, including the Gantt chart,
to improve working efficiency through
planning/scheduling
 Administrative Management

A theory that focuses on managing the

organization.
• Emphasizes the flow of information in the
operation of the organization.
 Contd….
– Henri Fayol (1841-1925).

• Wrote General and Industrial Management

• Helped to systematize the practice of management
• First to describe management as planning,
organizing, leading, and controlling
Fayol’s 14 Principles for Effective
Management Practices
 Division of labor  Remuneration
 Authority  Centralization
 Discipline  Scalar chain
 Unity of command  Order
 Unity of direction  Equity
 Subordination of  Stability
individuals to the  Initiative
common good  Esprit de corps
 Theory of Bureaucracy
Relies on a rational set of structuring guidelines
such as rules and procedures, hierarchy, and a
clear division of labour.

 Division of labor
 Reliance on rules and regulations
 Hierarchy of authority
 Unfriendly
 Inflexible
 Strict
 Contributions
& Limitations
 Contributions
– Laid the foundation for later developments
– Identified important management processes, functions, & skills
– Focused attention on management as a valid subject

Limitations
– Suitable mainly for traditional, stable, simple organizations

– Employees are viewed as tools rather than resources

 Behavioral Management
Perspective

Emphasizes individual attitudes and

behaviors
Recognizes the importance of Group
behavior in the workplace.
 Behavioral Management
Perspective
• The Hawthorne Studies
– Conducted by Elton Mayo (psychologist ) and associates
at Western Electric Co. (1927–1935)
• The aim of these studies was to determine the effect
of working conditions on productivity.
• The conclusion was that there was no cause-and-
effect relationship between working conditions and
productivity.
• Workers respond to the social context of the work
place.
 Behavioral Scientists
Major contributors and their theories:
• Maslow- Hierarchy of needs
• Alderfer- ERG
• Mc.Gregor- Theory X Theory Y
• Mary Parker Follett – empowerment ,
participative management, open systems
Their view: employees want meaningful work; they
want to contribute; they want to participate in
decision making and leadership functions.
 Maslow’s Hierarchy of Needs

Self-
Developing using abilities
Actualization
-
Status, Recognition
through promotions Esteem
-

Relationship with other

workers
Social
-
Job security, Better
working condition Safety
-

Food, Clothing Physiological

 Theory X
 People do not like work and
try to avoid it.
 People do not like work, so
managers have to control,
direct, coerce, and threaten
employees to get them to
meet organizational goals.
 People prefer to be directed,
to avoid responsibility, and
to want security; they have
little ambition.
Theory Y
 Work is a natural part of people’s
lives.
 People are internally motivated
by commitment.
 People are committed to goals to
the degree they receive rewards.
 People will seek and accept
responsibility.
 People have the capacity to be
innovative.
 People are bright, but mostly
under-utilized.
Mc Gregor’s Theory (XY theory)
 Contributions
& Limitations
• Contributions
– Provided important insights into motivation, group dynamics, and other
interpersonal processes.
– Focused managerial attention on these critical processes.
– Challenged the view that employees are tools and
– promote the belief that employees are valuable resources.

• Limitations
– Complexity of individuals makes behavior difficult to predict.
– Managers are reluctant to adopt many concepts.
 Quantitative Management
Perspective
Uses quantitative methods and models to
manage decisions

1. Management Science
– Focuses on the development of mathematical
models to assist with decisions
2. Operations Management
– Practical application of management science to
efficiently manage the production and
distribution of products and services
 Management science

Techniques used in this approach

Programme Evaluation and Review
Technique (PERT)

Critical Path Method (CPM),

Return on Investment (ROI),

Net Present Value (NPV)

 Operations Management

 Techniques used in the Quantitative Approach are:

Linear Programming:

Queuing Theory:

Inventory Modeling:

Simulation:

Preventive Control and Replacement Problem:

Competitive Problem and Game Theory:

 Contributions
& Limitations
• Contributions
– Developed quantitative techniques to assist in decision making.
– Application of models has increased awareness and understanding of
complex processes and situations.
– Has been useful in the planning and controlling processes.

• Limitations
– Cannot fully explain or predict behavior.
– Mathematical sophistication may come at the expense of other skills.
– Models may require unrealistic or unfounded assumptions.
 Integrating Perspectives For
Managers

 The Systems Perspective

 The Contingency Perspective
 Systems approach
• System: an interrelated set of elements
functioning as a whole .
• Consider organization as an open system
interacts with its environment.
• Uses systems concepts and quantitative
approaches from mathematics, statistics,
engineering, and other related fields to solve
problems.
• Managers find optimal solutions to management
problems by using scientific analysis which is
closely associated with the systems approach to
management.
 Contingency/Situational Perspective
• Emphasizes the fit between organization processes and
the characteristics of the situation.
• Appropriate managerial behaviour in a given situation
depends on a wide variety of elements & provides a
framework for integrating the knowledge of management
thought
• Suggests that the effectiveness of various management
practices, styles and techniques will vary according to
the particular situation