1

 THEORY

IS A COHERENT GROUP OF ASSUMPTION PUT

FORTH TO EXPLAIN THE RELATIONSHIP
BETWEEN TWO OR MORE OBSERVABLE FACTS
AND TO PROVIDE A SOUND BASIS FOR
PREDICTING FUTURE EVENTS.

WHY:

1.GUIDE MANAGEMENT DECISION.

2.SHAPE OUR VIEW OF ORGANISATION.

3.MAKE US AWARE OF THE BUSINESS

ENVIRONMENT.

4.A SOURCE OF NEW IDEA.

MANAGEMENT THOUGHT
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MANAGEMENT THOUGHT
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THE EMERGENCE
OF M & O THEORIES
The Neo-Human
Relation Movement
The Contingency
Approach
The System Approach

The Quantitative
School
The Behavioral Sc
School
Classical Management
Theories

1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990
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MANAGEMENT THOUGHT
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1900s 1940s 1970s

TRADITIONAL
THEO RIES MO DIFICATIO N CO NTEMP ORARY

EVO LUTIO N O F O RGANIS ATIO N AND MANAGEM ENT THEO RIES

Traditional/ Contemporary
Modifications Approaches
Classical
The ories

Scientific
Management
Management
Science
Efficient Task System Appr oach
Performance Economic Technical
Rationality
Subsystem &
Bureaucratic
En vironment
Model
Human Relation
Authority & S tructure
Contingency View
Administrati ve Behavourial
Theory Science
Psychology, No Best M ethod
Universal Management S ociology, etc. -Situational Factors.
Principles

MANAGEMENT THOUGHT
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F.W. TAYLOR (1856 – 1917)

USING TIME STUDY, BROKE JOB INTO

COMPONENTS, DESIGN BEST AND QUICKEST
METHOD OF PERFORMING EACH COMPONENT.
USING DIFFERENTIAL RATE SYSTEM.

4 BASIC PRINCIPLES:

THE DEVELOPMENT OF TRUE SCIENCE OF

MANAGEMENT – BEST METHOD FOR
PERFORMING JOB.

SCIENTIFIC SELECTION OF WORKERS – SKILL

AND TASK ALLOCATION.

SCIENTIFIC EDUCATION AND DEVELOPMENT OF

WORKER.

INTIMATE, FRIENDLY COOPERATION BETWEEN

MANAGEMENT AND LABOUR.

MANAGEMENT THOUGHT
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CONTRIBUTION OF SCIENTIFIC
MANAGEMENT
1.MODERN ASSEMBLY LINE
2.HIS EFFICIENCY TECHNIQUE BEING
ADOPTED BY MANY ORGANISATION.
3.ESTABLISHED JOB DESIGN, SCIENTIFIC
SELECTION AND DEVELOPMENT OF
WORKERS.
4.RATIONAL APPROACH TO SOLVING
PROBLEMS AND LAID GROUNDWORK
FOR THE PROFESSIONALIZATION OF
MANAGEMENT.

LIMITATIONS
• DO NOT TAKE INTO ACCOUNT THE
HUMAN AND SOCIAL ASPECTS.

• EMPHASIS ON PRODUCTIVITY/PROFIT
ONLY.

• TREAT MEN LIKE MACHINE

MANAGEMENT THOUGHT
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FRANK AND LILLIAN GILBRETH

STUDIED FATIGUE CAUSED BY LIGHTING,

HEATING, AND THE DESIGN OF TOOLS AND
MACHINES.

TIME AND MOTION STUDIES

BREAKING UP EACH JOB ACTION INTO
ITS COMPONENTS.
FINDING BETTER WAYS TO PERFORM
THE ACTION.
REORGANIZING EACH JOB ACTION TO
BE MORE EFFICIENT.

HENRY GANTT

DEVELOPED OTHER TECHNIQUES,

INCLUDING THE GANTT CHART, TO
IMPROVE WORKING EFFICIENCY
THROUGH PLANNING/SCHEDULING

MANAGEMENT THOUGHT
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“MOTIVATING BY TREATING INDIVIDUALS AS

PERSONS”
ADMINISTRATIVE MANAGEMENT THEORY
BY HENRY FAYOL (1804 – 1925)

1ST TO SYSTEMATIZE ORGANISATION.

USING SCIENTIFIC FORECASTING AND

PROPER METHOD OF MANAGEMENT
MACRO CONCEPT

FOCUS ON FORMAL ORGANISATION

STRUCTURE THAT SEPARATE BASIC
PROCESS OF GENERAL MANAGEMENT.

MANAGEMENT PROCESS
PLANNING, ORGANISING, COMMAND,
COORDINATION AND CONTROL.

FOCUSSES ON MANAGING THE

ORGANIZATION

MANAGEMENT THOUGHT
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FELT THE NEED OF IMPARTING TEACHING

RELATED TO ORGANIZATION
14 PRINCIPLES
1.DIVISION OF WORK
2.AUTHORITY AND RESPONSIBILITY
3.DISCIPLINE
4.UNITY OF COMMAND
5.UNITY OF DIRECTION
6.SUBORDINATION OF INDIVIDUAL
INTEREST TO GENERAL INTEREST.
7.REMUNERATION OF PERSONNEL.
8.CENTRALIZATION.
9.SCALAR OF CHAIN : AUTHORITY.
10.ORDER
11.EQUITY : EQUITY AND JUSTICE
12.STABILITY

MANAGEMENT THOUGHT
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13.INITIATIVE
14.ESPRIT DE CORPS
BUREAUCRATIC MODEL MAX WEBER
(1864 – 1920)
STRESSED THE NEED FOR A STRICTLY
DEFINED HIERARCHY GOVERNED BY
CLEARLY DEFINED REGULATIONS AND
LINES OF AUTHORITY.

1.DIVISION OF LABOUR BASED ON

FUNCTIONAL SPECIALIZATION
2. A WELL-DEFINED HIERARCHY OF

AUTHORITY
3.A SYSTEM OF RULES COVERING THE
RIGHTS AND DUTIES OF POSITION
4.A SYSTEM OF PROCEDURES FOR DEALING
WITH WORK SITUATIONS;
5. AN IMPERSONALITY IN OR AMONG

INTERPERSONAL RELATIONS.

MANAGEMENT THOUGHT
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6.A SYSTEM OF PROMOTION AND

SELECTION FOR EMPLOYMENT BASED ON
TECHNICAL COMPETENCE.

MARY PARKER FOLLET

CONSIDERED WORKERS AS HUMAN ,

CONCERNED THAT TAYLOR IGNORED
THE HUMAN SIDE OF THE
ORGANIZATION
GROUP FORMATION
COMMUNICATION/MOTIVATION/
LEADERSHIP
 AFFECT OF BIOLOGICAL, ECONOMICAL
& EXTERNAL INFLUENCERS ON HUMAN
ELEMENTS

CHESTER BERNARD

SOCIAL NEED

MANAGEMENT THOUGHT
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PSYCHOLOGICAL NEED
THUS IDENTIFIED AND GAVE THE CONCEPT
OF ZONE OF TOLERANCE BY WHICH THE
WORKERS AND MANAGERS WILL BE IN
PARITY

CONTRIBUTIONS
LAID THE FOUNDATION FOR LATER
DEVELOPMENTS
IDENTIFIED IMPORTANT MANAGEMENT
PROCESSES, FUNCTIONS, SKILLS
FOCUSED ATTENTION ON MANAGEMENT
AS A VALID SUBJECT OF SCIENTIFIC
INQUIRY

LIMITATIONS
MORE APPROPRIATE FOR TRADITIONAL,
STABLE, SIMPLE ORGANIZATIONS

MANAGEMENT THOUGHT
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PRESCRIBED UNIVERSAL PROCEDURES

NOT APPROPRIATE IN SOME SETTINGS
IN SOME CASES, VIEWED EMPLOYEES AS
TOOLS RATHER THAN RESOURCES

BEHAVIORAL MANAGEMENT PERSPECTIVE

THE HAWTHORNE STUDIES

CONDUCTED BY ELTON MAYO & ASSOCIATES

AT WESTERN ELECTRIC (1927–1935)

ILLUMINATION STUDY

 GROUP STUDY— THE EFFECTS OF A

PIECEWORK INCENTIVE PLAN ON
PRODUCTION WORKERS. WORKERS
ESTABLISHED INFORMAL LEVELS OF
ACCEPTABLE INDIVIDUAL OUTPUT.

MANAGEMENT THOUGHT
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OVER-PRODUCING WORKERS WERE LABELED

“RATE BUSTERS” AND UNDER-PRODUCING
WORKERS WERE CONSIDERED “CHISELERS.”

INTERVIEW PROGRAM
CONFIRMED THE IMPORTANCE OF HUMAN
BEHAVIOR IN THE WORKPLACE.

HUMAN RELATIONS MOVEMENT

PERSPECTIVE THAT WORKERS RESPOND

PRIMARILY TO THE SOCIAL CONTEXT OF WORK

 ABRAHAM MASLOW : - COINED A

HIERARCHY OF NEEDS IN THE ORDER
STARTING FROM PHYSIOLOGICAL, SAFETY,
SOCIAL, SELF ESTEEM & SELF
ACTUALIZATION NEEDS

MANAGEMENT THOUGHT
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 DOUGLAS McGREGOR : - PROPOSED THEORY

X AND THEORY Y CONCEPTS OF
MANAGERIAL BELIEFS
THEORY X:
PEOPLE DO NOT LIKE WORK AND TRY TO
AVOID IT.
THEORY Y:
WORK IS A NATURAL PART OF PEOPLE’S
LIVES.
• 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 FURTHERED
THE BELIEF THAT EMPLOYEES ARE
VALUABLE RESOURCES.
• LIMITATIONS
– COMPLEXITY OF INDIVIDUALS MAKES
BEHAVIOR DIFFICULT TO PREDICT.

MANAGEMENT THOUGHT
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– MANY CONCEPTS NOT PUT TO USE

BECAUSE MANAGERS ARE RELUCTANT TO
ADOPT THEM.
– CONTEMPORARY RESEARCH FINDINGS
ARE NOT OFTEN COMMUNICATED TO
PRACTICING MANAGERS IN AN
UNDERSTANDABLE FORM.

QUANTITATIVE MANAGEMENT
PERSPECTIVE

•MANAGEMENT SCIENCE
FOCUSES ON THE DEVELOPMENT OF
MATHEMATICAL MODELS TO ASSIST WITH
DECISIONS

•OPERATIONS MANAGEMENT
PRACTICAL APPLICATION OF MANAGEMENT
SCIENCE TO EFFICIENTLY MANAGE THE
PRODUCTION AND DISTRIBUTION OF
PRODUCTS AND SERVICES

• TOTAL QUALITY MANAGEMENT (TQM)

MANAGEMENT THOUGHT
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FOCUSES ON ANALYZING INPUT,

CONVERSION, AND OUTPUT ACTIVITIES TO
INCREASE PRODUCT QUALITY.

•MANAGEMENT INFORMATION SYSTEMS

PROVIDES INFORMATION VITAL FOR
EFFECTIVE DECISION MAKING.

• 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.

MANAGEMENT THOUGHT
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– MATHEMATICAL SOPHISTICATION MAY

COME AT THE EXPENSE OF OTHER SKILLS.

– MODELS MAY REQUIRE UNREALISTIC OR

UNFOUNDED ASSUMPTIONS.

SYSTEMS APPROACH

MANAGEMENT THOUGHT
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Environment

D
B
E

Sub-systems

System Approach Environment

A SYSTEM IS DEFINED AS AN ORGANISED,

UNITARY WHOLE COMPOSED OF TWO OR MORE
INTERDEPENDENT PARTS, COMPONENTS, OR

MANAGEMENT THOUGHT
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SUBSYSTEMS AND DELINEATED BY

IDENTIFIABLE BOUNDARIES FROM ITS
ENVIRONMENTAL SUPRASYSTEM.”

• SUBSYSTEMS

• SYNERGY

• OPEN AND CLOSE SYSTEMS

• SYSTEM BOUNDARY

• FLOW

• FEEDBACK

THE CONTINGENCY APPROACH

•
MANAGEMENT THOUGHT
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SITUATIONAL APPROACH

•
IT DEPENDS UPON WHAT – IN WHAT WAY

•
TO IDENTIFY WHICH TECHNIQUE WILL, IN
PARTICULAR SITUATION, UNDER
PARTICULAR CIRCUMSTANCES AND AT A
PARTICULAR TIME BEST CONTRIBUTE TO
THE ATTAINMENT OF GOALS.

•
FOR EXAMPLES:
UNSKILLED WORKERS – WORK
SIMPLIFICATION
SKILLED WORKERS – JOB ENRICHMENT
MIGHT BE EFFECTIVE.

MANAGEMENT THOUGHT