Evolution of Management Thoughts

Classical Approach
Efficiency and productivity became a critical concern of the managers at the turn of the 20th century. Scientific management concentrated on lower-level managers dealing with everyday problems of the workforce. Classical organization theory concentrated on top-level managers dealing with the everyday problems of managing the entire organization. Labor was in short supply at the turn of the century. Two solutions: Substitute capital for labor Use labor more efficiently Scientific management concentrated on the latter.

Classical Approach
Frederick Winslow Taylor Father of Scientific Management Systematic observation and measurement of worker activities. Specialization of labor master of specific tasks. Discover the one best way to do a job, determine the optimum work pace, train people to do the job properly, and reward successful performance by using an incentive pay system. Henry Fayol Divided an organizations activities into six categories technical, commercial, financial, security, accounting, and managerial. 14 principles of management division of work, authority, discipline, unity of command, unity of direction, subordination of individual interest to general interest, remuneration, centralization, scalar chain, order, equity, stability and tenure of personnel, initiative, esprit de corps.

Classical Approach
Max Weber Bureaucratic organization based on formal organizational structure with set rules and regulations that rely on specialization of labor, an authority hierarchy, and rigid promotion and selection criteria. Is classical approach still equally applicable to todays complex organizations?

Behavioral Approach
Elton Mayo Importance of groups in affecting individuals behavior at work. Group dynamics, conflict management and political processes in organizations. Hawthorne Studies Workers are motivated by more than economic factors. Workers attitudes are affected by their feelings about each other and a common purpose. Joan Woodward One best way is not practical depends on span of control, number of levels of authority etc.

Other Approaches
Decision Sciences Approach Systems Management Approach Contingency Management Approach Excellent Company Approach

Planning
Planning is a particular kind of decision making that addresses the specific future that managers desire for their organizations. The planning process is dynamic, involving many variables from the firms internal and external environments, as well as the firms central or core values and mission of the organization. Usually, the planning process is systematic and, in leading organizations, involves people at all levels. Usual output of planning is setting goals. It should be measurable with realistic and achievable deadlines. Mission Statement Strategic Plan Operational Plan Time horizon of plans Scope of plans Degree of details of plans Level of plan vs. level of management