Topic 2

Chapter 2
Evolution of Fundamental
Management Theories

Learning Outcome
1. To differentiate between the
perspectives of classical,
behavioral and contemporary
viewpoints in the evolution of
management theories.
2. To apply the different perspectives
of management theories in
managing organizations today.

CLASSICAL
THEORY

EVOLUTION OF
MANAGEMENT
THOUGHT &
PRACTICES

BEHAVIOUR
AL THEORY

CONTEMPORA
RY THEORY

CONTINGEN
CY THEORY

Two Perspectives about

Management
Historical Perspective: includes

three viewpointsclassical,
behavioral, and quantitative.

Contemporary Perspective:

includes three viewpoints

systems, contingency, and
quality-management.

The Historical
Perspective
Classical
Viewpoint

Scientific
Management

Behavioral Viewpoint

Quantitative
Viewpoint

Early Behaviorists

Management
Science

Human Relations
Movement
Administrative
Management
Behavioral science
approach

Operations
Management

The Classical
Viewpoint

Classical Viewpoint: emphasized

finding ways to manage work more

efficiently, had two branches
scientific and administrative.
i) Scientific Management:
- Pioneered by Frederick Taylor
- emphasized the scientific study of
work methods to improve the
productivity of individual workers.

Scientific Management
4 Principles of Science
Pioneered by Frederick Taylor & Frank & Lillian
Gilbreth
Taylor believed: managers could eliminate

soldiering by applying these principles:

Evaluate a task by scientifically studying each part of

the task
Carefully select workers with the right abilities for the
task
Give workers the training and incentives to do the
task with the proper work methods
Use scientific principles to plan the work methods
and ease the way for workers do their jobs.

ii)

The Classical
Viewpoint

Administrative Management:

- approach of Henri Fayol and Max

Weber
- is concerned with managing with the
total organization.
- includes the ideas of the four
management functions (Fayol) and the
concept of bureaucracy (Weber)

The Rationality of Bureaucracy

Weber: a better-performing organization should

have five bureaucratic features:

A well-defined hierarchy of

authority
Formal rules and procedures
A clear division of labor
Impersonality
Careers based on merit

The Behavioral Viewpoint

Emphasized the
importance of
understanding human
behavior and of
motivating employees
toward achievement.

The Behavioral Viewpoint

1

Early Behaviorism: Approach of

Hugo Munsterburg, Mary Parker
Follet, Elton Mayo

- Hugo Munsterberg felt science

could contribute to industries in
three ways:
* Study jobs and determine which
people are best suited to specific
jobs
* Identify the psychological
conditions under which employees
did their best work
* Create management strategies to
influence employees to follow the
managements interests

The Behavioral Viewpoint

- Mary Parker Follett thought
organizations should become more
democratic, with managers and
employees working cooperatively
* Organizations should be operated
as communities
* Conflicts should be resolved and
find solutions that would satisfy
both parties
* The work process should be under
the control of workers with the
relevant knowledge

The Behavioral Viewpoint

Hawthorne effect
employees worked harder if

they received added

attention,
thought that managers cared
about their welfare and that
supervisors paid special
attention to them
by Elton Mayo

Human Relations
Movement:
-

Approach of Abraham Maslow,

Douglas McGregor
- Concern about better human
relations movement could improve
productivity

a) Abraham Maslow Proposed

the Hierarchy of Needs

Physiological, safety, social, esteem,

and self-actualization.

ABRAHAM
MASLOWS
HIERARCHY OF
NEEDS

Human Relations
Movement:
- Douglas McGregor proposed
Theory X and Y

* Theory X: pessimistic; negative

view of workers.
* Theory Y: optimistic; positive
view of workers.

Theory X Premises
A manager who views employees from a

Theory X (negative) perspective believes:

Employees inherently dislike work and,

whenever possible, will attempt to avoid it.

Because employees dislike work, they must

be coerced, controlled, or threatened with

punishment to achieve desired goals.

Employees will shirk responsibilities and

seek formal direction whenever possible.

Most workers place security above all

other factors associated with work and will

display little ambition.

A manager who views employees from a

Theory Y (positive) perspective believes:

Employees can view work as being as
natural as rest or play.
Men and women will exercise selfdirection and self-control if they are
committed to the objectives.
The average person can learn to
accept, even seek, responsibility.
The ability to make good decisions is
widely dispersed throughout the
population and is not necessarily the
sole province of managers.

The Behavioral Viewpoint

3

Behavioral Science:
*Relies on scientific research fo
developing theories about huma
behavior that can be used to pr
practical tools for managers.

Question?
John believes that individual
workers should be concerned
about productivity. He does
not allow them any input into
how to perform their job tasks.
What view does John have?
A. Scientific management
B. Administrative management
C. Behavioral science
D. Total Quality Management (TQM)

Veron manages a small coffee shop.

She believes it is important to
understand her employees behavior
and to help motivate them. Which
viewpoint does Veron have?
A. Scientific management
B. Administrative management
C. Behavioral
D.TQM

Anne has managed a Idas Club store for

many years. She believes her employees
are apathetic, irresponsible and must be
constantly supervised. What perspective
does Anne follow?
A. Theory X
B. Theory Y
C. Theory Z
D. Alphabet Theory

The Contemporary Viewpoint

System
Viewpoint

Quality Control

Contingency
Viewpoint

Quality
Assurance

Quality
Management
Viewpoint

Total Quality
Management

The Systems
System: is a set Viewpoint
of interrelated parts that operate
together to achieve a common purpose.
Looks at the organization as:

1) a collection of subsystems,
2) a part of a larger environment.

Subsystems: parts making up the

whole system.

The Four Parts of a System

Input

Transformational
Process

The people,
money,
information,
equipment and
materials required
to produce and
organizations
goods or services

The organizations
capabilities in
management and
technology that
are applied to
converting inputs
to outputs

Output
The products,
services, profits,
losses, employee
satisfaction or
discontent, and the
like that are produced
by the organization

Feedback
Information about the reaction of the environment to the
outputs that affect the inputs

Open and Closed

Systems

Open System: continually

interacts with its

environment; receives
sufficient feedback from
outside

Closed System: has

little interaction with its
environment; it receives
very little feedback
from the outside.

The Contingency Viewpoint

emphasizes that a managers
approach should vary
accordingly tothat is, be
contingent onthe individuals
and the environmental
situation.

Priya has many employees who have

spouses that are deployed in military
service. Even though there are
specific company rules regarding
attendance, she chooses to deal with
each employees issue on a case-bycase basis. This is an example of the
__________ viewpoint.
A.Operations
B.System
C.Project
D.Contingency

Reference
Chapter 2
Kinicki, A., & Williams,

B.K. (2013).
Management: A practical
introduction. (6th ed.).
New York: McGraw-Hill.