EVOUTION OF MANAGEMENT

THOUGHT: FROM PRE CLASSICAL

TO MODERN APPROACH
 EARLEY APPROACHES TO MANAGEMENT

• Realized the significance of

human resources
Robert Owen (1771-1858) • Proposed legislative reform
that would limit number of
working hours and restrict
the use of child labor.

• Advocated the concept of

‘division of labor’
Charles Babbage (1792-1871)
• Devised the profit sharing
plan
 EARLEY APPROACHES TO MANAGEMENT (Cont.)

Emphasized the
Andrew Ure (1778-
various principles and
1887) and Charles
concept of
Duplin (1784-1873)
manufacturing

•Considered the management

as a separate field of
systematic study.
Henry R. Towne (1844-1924)
•Realized the importance of
business skills to run the
business.
 APPROACHES OF MANAGEMENT

Classical Behavioral Quantitative Modern

 MAJOR CLASSIFICATION OF MANAGEMENT APPROACHES

Scientific Management

Classical Approaches Administrative Management

Bureaucratic management
MAJOR CLASSIFICATION OF MANAGEMENT APPROACHES (Cont)

Group Influence

Hawthorne Studies

Maslow’s Need Theory

Behavioral Approach

Theory of X and Theory of Y

Model I Versus Model II Values

MAJOR CLASSIFICATION OF MANAGEMENT APPROACHES

Management Science

Operations Management
Quantitative Approach

Management Information
System
MAJOR CLASSIFICATION OF MANAGEMENT APPROACHES (Cont)

The System Theory

Modern Approaches Contingency Theory

Emerging Approaches: Theory

of Z and Quality Management
 CLASSICAL APPROACH

Scientific Management

Identified the problem of

Contribution of Frederick ‘Soldiering’- practice of
Winslow Taylor (1856- employees deliberately work in
1915) slow pace than their capacities.

Major Reasons of soldiering:

• Workers feared that if production is increased, other

workers would loss their jobs.

• Faulty wages system leads towards slow work pace.

• Use of outdated method leads towards loss of efforts.

 CLASSICAL APPROACH (Cont.)

Basic elements of scientific management by Taylor:

• Need for developing scientific way of performing each job.

• Training and preparing workers to perform that particular

job.
• Establishing harmonious relations between management
and workers.
 CLASSICAL APPROACH (Cont.)

Two major managerial practice that emerged from Taylor’s approach

Price rate incentive system: Taylor felt that wage system one of
the major reasons of soldiering. To solve this problem he
introduced price rate incentive system. The aim of the system to
reward the worker who produce maximum output.

Time motion study: Jobs are broken down into various task or
motions and unnecessary motions are removed to find out the
best way of doing a job.
 CLASSICAL APPROACH (Cont.)

Mainly involved in exploring

Contribution of Frank and
new ways for eliminating
Lillian Gilbreth
unnecessary motions and
reducing work fatigue.

Remembered for his work on the

task and bonus system and
Gantt chart.
Main principles of Gantt chart:
Contribution of Henry L. Gantt
• If the worker completed the
work fast, received bonus.
• Foremen would be paid bonus
for every worker who reached
the daily standard.
• If all the workers under
foreman reached the daily
standard, he would receive extra
bonus.
 CLASSICAL APPROACH (Cont.)

Limitations of Scientific Management

• Over emphasis on problem solving from engineering point of view.

• Over emphasis on economic and physical needs, overlooked the

social needs of workers

• Ignored the human desire for job satisfaction

 CLASSICAL APPROACH (Cont.)

Administrative Theory

Focused on principles that could be used by manager to

coordinate the internal activities of organizations

He divided the business operations into six

Contribution of Henri Fayol:
activities:
Technical, Commercial, Financial, Security,
Accounting and Managerial.
Also introduced fourteen principles of
Management:
Division of work, Authority and
responsibility, Discipline, Unity of
command, Unity of direction, Subordinate
the individual interest to general interest,
Remuneration, Centralization, Scalar chain,
Order, Equity, Initiative & Espirit de corps
(Sense of unity).
 CLASSICAL APPROACH (Cont.)

Bureaucratic Management

“Bureaucracy” referred to organizations that operate on a ration basis.

Bureaucratic organization should be

highly structured, formal and impersonal
in nature.
Four major characteristics of bureaucracy:
Contribution of Weber
• Work Specialization and division of Labor
• Abstract rules and regulations
• Impersonality of managers
• Hierarchy of organization structure
 CLASSICAL APPROACH (Cont.)

Limitation of Administrative and Bureaucratic Approach

• Lack of Human Approach

• Contradictory principles (e.g. specialization and unity of

command)
• Emphasis on rules and regulations, lack of individual creativity
and flexibility.
• Ignored important aspect of organizational behavior ( e.g.
Leadership, motivation, group dynamics)
 BHAVIORAL APPROACH

Emphasized the individual attitude, behaviors & group process and

recognized the significance of behavioral process in the work place.

Emphasized group influence and

Mary Parker Follet (1868-1933)
advocated the concept of power
sharing

Recognized the group and work place culture on job

performance.
Conducted famous experiment on Hawthorne Plant on
illumination, relay assembly, interview, bank wiring.

Elton Mayo (1880-1949) His findings contradicted with pre-conceived notions:

• Group is the key factor of job performance (not
individual)
• Perceived meaning and importance of work
determined the output of the job (not fatigue).
• Work place culture sets production (not management)
 BHAVIORAL APPROACH (Cont.)
Abraham Maslow (1908-1970)
Proposed need hierarchy model
According to this model human needs
occur in the following hierarchical
manner:
1. Physiological needs
2. Safety or security needs
3. Belongingness or social need
4. Self esteem or status need
5. Self actualization need.
 BHAVIORAL APPROACH (Cont.)

According to him there are two extreme

Douglas McGregor (1906-64)
sets of belief that different managers have
about their workers. One is Theory X and
other is Theory Y.
Theory X belief incorporates the workers
are lazy, little ambitious, dislike work,
want to avoid responsibilities.
Theory Y belief incorporates the workers
are creative, innovative, willing to take
responsibilities.

Classified the organization into Model I and

Model II based on the employees’ set of value.
Chris Argyris Employees of Model I organization are
manipulative and not wiling to take the risks.
Workers in Model II organization are open to
learning and less manipulative.
 QUANTITATIVE APPROACHES

This approach focuses on achieving organizational

effectiveness through the application of mathematical and
statistical concepts

Stresses the use of mathematical statistical

Management Science
methods for decision making

Deals with effective ways of production

Operation Management
and timely delivery of products and
services

Focuses on designing and

Management Information System implementing computer based
information system for business
organization
 MODERN APPROACHES TO MANAGEMENT

Provides managers a new way of looking at an

organization as a whole and as a part of
System Theory external environment. According to this theory
Organization has four major components:
inputs, transformation process, outputs and
feedback.

This theory is known as situational theory.

According to this theory there is no best
Contingency Theory way to manage all the situations. This
theory suggests the managers to use their
practice according to the situation
 EMERGING APPROACHES

Z Theory:
• Providing job security to ensure loyalty
and long term association.
• Job rotation to develop cross-functional
William Ouchi skills.
• Participation of employees in the
decision making process.
• Use of informal control in the
organization along with explicit
performance measure.