EVOLUTION OF MANAGEMENT

Management's Connection to
other field
The practice of management has always
reflected the times and social conditions.

Information can be shared and exchanged

instantaneously anywhere on the planet

Organizations respond to technology and

web based operations
History of management refers to the
evolution and revolution of
implementing new ideas.
 Courses that directly affecting
management are

1. Anthropology – study of Society

2. Economics – allocation & distribution of

scares resources

3. 3. Political Science – studies the

behavior of individuals and groups within
the political environment
4. Psychology – Science that measure,
explain and sometimes change behaviour
of humans and other animals the

5. Sociology – study the people in relation

with other fellow human beings

6. Philosophy – examines the nature of

things (values and ethics)
Evolution Of Management Thought

Classical Approaches Contemporary Approaches

1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000

Systematic Administrative Systems

Quantitative Contingency
management management theory Current and
management theory future revolutions
Scientific
management Human
relations
Organizational
Bureaucracy behavior
 Early Management Concepts And
Influences


Growth of companies
 minor improvements in management tactics
produced impressive increases in production
quantity and quality
Economies of scale - reductions in the average
cost of a unit production as the total volume
produced increases

Opportunities for mass production created by the

industrial revolution spawned intense and
systematic thought about management problems
and issues
 Systematic Management


Key concepts
 systematised manufacturing operations

 coordination of procedures and

processes built into internal operations

 emphasis on economical operations,

and cost control

 Scientific Management


Contributions

improved factory productivity and
efficiency

piece-rate system equated worker rewards
and performance
 Scientific Management


Limitations

simplistic motivational assumptions

workers viewed as parts of a machine

potential for exploitation of labour
 Administrative Management


Key concepts

Fayol’s five functions and 14 principles of
management

executives formulate the organization’s
purpose, secure employees, and maintain
communications

managers must respond to changing
developments
 Administrative Management


Contributions

viewed management as a profession that
can be trained and developed

emphasized the broad policy aspects of
top-level managers

offered universal managerial prescriptions

Limitations

universal prescriptions need qualifications
for contingencies
 Human Relations

Key concepts

productivity and employee behaviour are
influenced by the informal work group

should stress - employee welfare,
motivation, and communication

social needs have precedence over
economic needs
 Human Relations

Contributions

psychological and social processes
influence performance

Maslow’s hierarchy of need

Limitations

ignored workers’ rational side and the
formal organization’s contributions to
productivity

research overturned the simplistic belief
that happy workers are more productive
 Bureaucracy


Key Concepts

structured network of relationships among
specialised positions

rules and regulations standardise
behaviour

jobs staffed by trained specialists who
follow rules
 Quantitative Management

Key concepts

application of quantitative analysis to
management

Contributions

developed specific mathematical methods of
problem analysis
• helped managers select the best alternative
among a set
 Quantitative Management
(Con't)

 Limitations
 models neglect non-quantitative factors

 managers not trained in these techniques

may not trust or understand the

technique's outcomes
 not suited for non-routine or

unpredictable management decisions

 Organizational Behaviour

Key concepts

promotes employee effectiveness through
understanding of individual, group, and
organisational processes

stresses relationships among
employees/managers

assumes employees want to work and can
control themselves
 Organizational Behavior

Contributions

increased participation, greater autonomy,
individual challenge and initiative, and
enriched jobs may increase participation

recognised the importance of developing
human resources

Limitations

some approaches ignored situational
factors, such as the environment and
technology
 Systems Theory


Key concepts

organization is viewed as a managed
system

management must interact with the
environment
 Systems Theory (Con't)
Limitations
 synergies enable the whole to be more than the

sum of the parts

 Organisational goals must address
effectiveness and efficiency
 organizations contain a series of subsystems

 there are many avenues to the same outcome

 Systems Theory (Con't)


Contributions

recognised the importance of the
relationship between the organisation and
the environment
 Contingency perspective


Key concepts

situational contingencies influence the
strategies, structures, and processes that
result in high performance

there is more than one way to reach a goal

managers may adapt their organizations to
the situation
 Contingency perspective
(Con't)

Contributions

identified major contingencies

argued against universal principles of
management

Limitations

not all important contingencies have been
identified

theory may not be applicable to all
managerial issues