2 Evolution of Org and MGT Theories 2016 Printed

THE EVOLUTION OF
THE ORGANIZATION
AND MANAGEMENT
THEORIES
10-Jan-17 AHAB/EVOLUTION/1102 1
RELEVANT QUESTIONS
What are the theories that were
evolved during these period;
Why the theories evolved;
How the theories evolved;
What are the implication;
What can we learned from the
evolution
What are the contemporary
theory and why?
A 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. Stoner: pg. 28
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.
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
1900s 1940s 1970s
TRADITIONAL MODIFICATION CONTEMPORARY

THEORIES ERA ERA ERA
EVOLUTION OF ORGANISATION AND MANAGEMENT THEORIES
Traditional
/ Classical
Theories
Scientific
Management
Efficient Task
Performance
Administrative
Theory EVOLUTION
Universal Management Principles
Bureaucratic
Model
Authority & Structure
Scientific Management
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:
(i) The development of true science of management

best method for performing job.
(ii) Scientific Selection of workers skill and task
allocation.
(iii) Scientific education and development of worker.
(iv) Intimate, friendly cooperation between
management and labour.
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. Fostered a rational approach to solving problems
and laid groundwork for the professionalization
of management.
LIMITATION
Do not take into account the human and
social aspects.
Emphasis on Productivity/Profit only.
Treat men like machine
Administrative management Theory

by Henry Fayol (1804 1925)
1st to systematize organization.

Using scientific forecasting and proper
method of management.
Macro Concept (Total Organization)
Focus on formal organization structure that
separate basic process of general
management.
Management Process
planning, organising, command,
coordination and control.
Fayol divided Business into 6 areas:

Technical, Commercial, Financial, Security
Accounting and Management
Fayols 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 : orderly place in organisation.
11. Equity : equity and justice
12. Stability of tenure of personnel : adaptation
13. Initiative
14. Esprit de corps.
BUREAUCRATIC MODEL
BUREAUCRATIC MODEL
Max Weber (1864 1920) Theory of Bureaucratic

Management.
For large and more complex organization, Weber
stressed the need for a strictly defined hierarchy
governed by clearly defined regulations and lines
of authority.
BUREAUCRATIC MODEL
BUREAUCRATIC MODEL
RATIONAL-LEGAL AUTHORITY
The right to exercise authority based on position.

- position with power
- compensation : fixed salary
- hierarchy of authority
- technical competence
- governed by rules and regulations
- performance evaluation based on merit
BUREAUCRATIC MODEL
DIMENSIONS OF BUREAUCRACY
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 interpersonal relations.
6. A system of promotion and selection for
employment based on technical competence.
Contribution of Fayols and Weber Theories
(Classical Organisation Theories)
Much of their theories have been in use till today

e.g. - Concept of management skill
- Concept of identifiable principles for effective
managerial behaviour
- Made managers aware of the basic kinds of problems
in any organisation.
Limitation
- Appropriate for the past where environment was

relatively stable and predictable.
- Todays environments are more turbulent and
impredictable.
- Too general for todays highly complex organisation and
specialization.
Traditional
Modifications
/ Classical
Era
Theories
Scientific
Management Management
Science
Efficient Task
Performance Economic Technical Rationality
Bureaucratic
Model EVOLUTION
Authority & Structure Human Relation

People Oriented Theory
Administrative Behavourial
Theory Science
Universal Management Principles Psychology,
Sociology, etc.
Human Relations Movement
Mary Parker Follet - had considered workers as

human
Chester Bernard - social needs
- Psychological needs
Individual & Group
Manager and subordinate relation
Early attempt to discover the social and
psychological
factor that would create effective human relation.
THE HAWTHORNE EXPERIMENTS
Elton Mayo -Westerm Electrics Hawthorne

(1880 1949) Plant - Chicago
- To study relationship between level
of lighting in the work-place and
workers productivity.
- Hawthorne effect
The Hawthorne Effect:
The possibility that workers who receive special
attention will perform better simply because
they received that attention.
Mayo introduced the concept of Social man

motivated by social need, on-the-job relationships,
and responding more to work group pressure than
to management control was necessary to
compliment the old concept of rational man
motivated by personal economic needs.
Contribution of H.R.
- Improved classical approach by stressing

social needs.
- Focus on workers not on techniques.
Emphasized management skill rather than
technical skill.
- Focus on group dynamics rather than
individual.
Limitation
1. Assumming satisfied worker : to be more

productive workers.
2. Social environment only one of the several
factors that influence productivity
e.g. - salary level
- culture
- structure
- interest .
The Behavioral Science School
HR developed into BS
Introduced fields like:
Psychology
Sociology
Anthropology
HR: Social man motivated by desire for form

relationships with others.
BS: Argyris, Maslow, McGragor:-

Self-actualizing a more accurate concept
to explain Human Motivation.
Complex man
No two people are exactly alike.
MASLOWS HIERARCHY OF
NEEDS THEORY
SELF
ACTUALIZATION
ESTEEM
SOCIAL
SECURITY
PHYSIOLOGICAL
CONSTRIBUTION OF BEHAVIOURAL SCIENCE
- Enormous contributions to understanding of

individual motivation, group behaviour
interpersonel relationship at work and the
importance of work to human beings.
- Continue to contribute new insights in important
areas as leadership, conflict, power,
organizational change and communication.
LIMITATIONS
- Its potential not fully realized .

- managers resist suggestion.
- Model, theories and jargons are too complicated
and abstract to practicing manager.
- Difficult to interprete by practicing managers.
MANAGEMENT SCIENCE SCHOOL
- Quantitative
- Operation research
- Formed during World War II by British to solve a
number of new, complex problem in warfare.
- Application of OR in the industry after the war to
solve problems related to planning and controlling in
Management.
CONTRIBUTIONS
In planning and controlling activities in
development of product strategies, human resource
development programme, product schedule etc.
LIMITATIONS
Mathematical basis of management is too
complicated for practicing manager.
Inadequate in dealing with sociology, psychology at
work.
Traditional Contemporary
/ Classical Modifications Approaches
Theories
Management Science
Efficient Task Economic Technical System

Performance Rationality Approach
Subsystems & Environment
Bureaucratic
Model
Authority & Structure Human Relation
People Oriented Theory Contingency
Administrative
View
Theory Behavourial
Universal Management
Science No Best Method
-Situational Factors.
Principles Psychology,
Sociology, etc.
10-Jan-17 32
AHAB/EVOLUTION/1102
Environment
D
B
E
Sub-systems
System Approach
10-Jan-17 AHAB/EVOLUTION/1102
Environment 33
SYSTEM APPROACH
DEFINITION OF SYSTEM
A system is defined as an organised, unitary whole

composed of two or more interdependent parts,
components, or subsystems and delineated by
identifiable boundaries from its environmental
suprasystem.
- (Kast + Rosenweig, pg. 103)
SYSTEM APPROACH
THE SYSTEM APPROACH
Concepts:-
Subsystems
Synergy
Open and close systems
System Boundary
Flow
Feedback
KEY SYSTEMS CONCEPTS
Subsystems or Components
Holism, Synergism
Open Systems View
Input-Transformation-Output Model
System Boundaries
Negative Entropy
Steady State, Dynamic Equilibrium
Feedback
Hierarchy
Internal Elaboration
Multiple Goal Seeking
Equifinality of Open Systems
1/10/2017 AHAB/252/SYSTEM & 36
CONTINGENCY
THE CONTINGENCY APPROACH
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.
Traditional/ Contemporary
Modifications Era
Classical Approaches
Theories
Scientific
Management Management
Science
Efficient Task
Performance Economic Technical System Approach
Rationality
Subsystem &
Bureaucratic Environment
Model
Human Relation
Authority & Structure People Oriented Theory
Contingency View
Administrative Behavourial No Best Method
Theory Science -Situational Factors.
Universal Management Principles Psychology, Sociology, etc.
IN CONSTRUCTION
IN CONSTRUCTION
EVOLUTION OF PROCUMENT METHODS
NON
TRADITIONAL TRADITIONAL
PROCUREMENT PROCUREMENT
APPROACH APPROACHES
TRADITIONAL APPROACH
Client
Architect
contractor
Design team
Hand on Method Sub-contractors
PD Design Const. Occup.
t
tender
NON TRADITIONAL APPROACHES
Client
DESIGN AND
BUILT Contractor
Design Teams
PD D/B O
t t1
3. Turnkey Approach
PD D/B OC
t t2
4. BOOT (Build Operate and Transfer)
PD D/B OC
Project Management
Non-executive
Client
PM/Executives
Design team Contractor (Coordinator)
P.M. Executive
Client
PM
Design team Construction Team

Construction Management
Client
PM
Design team Management Contracting
Skill Construction/Trades
SCOPE COVERED
What are the theories that were
evolved during these period?
Why the theories evolved?
How the theories evolved?
What are the implication?
What can we learned from the
evolution?
What are the comtemporary theory
and why?
Some applications in Construction.
THE END
THANK YOU

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THE EVOLUTION OF

TRADITIONAL MODIFICATION CONTEMPORARY

EVOLUTION OF ORGANISATION AND MANAGEMENT THEORIES

Universal Management Principles

Authority & Structure

F.W. Taylor (1856 1917)

(i) The development of true science of management

Administrative management Theory

1st to systematize organization.

Fayol divided Business into 6 areas:

Max Weber (1864 1920) Theory of Bureaucratic

The right to exercise authority based on position.

1. Division of labour based on functional

Much of their theories have been in use till today

- Appropriate for the past where environment was

Authority & Structure Human Relation

Human Relations Movement

Mary Parker Follet - had considered workers as

THE HAWTHORNE EXPERIMENTS

Elton Mayo -Westerm Electrics Hawthorne

Mayo introduced the concept of Social man

- Improved classical approach by stressing

1. Assumming satisfied worker : to be more

The Behavioral Science School

HR: Social man motivated by desire for form

BS: Argyris, Maslow, McGragor:-

CONSTRIBUTION OF BEHAVIOURAL SCIENCE

- Enormous contributions to understanding of

- Its potential not fully realized .

MANAGEMENT SCIENCE SCHOOL

Efficient Task Economic Technical System

A system is defined as an organised, unitary whole

THE SYSTEM APPROACH

Universal Management Principles Psychology, Sociology, etc.

Hand on Method Sub-contractors

PD Design Const. Occup.

4. BOOT (Build Operate and Transfer)

Design team Construction Team

Design team Management Contracting

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