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Evolution of

management
thought

1
Module 08 – Evolution of Management Thought
Management

The process of
planning, organizing,
leading, and controlling
the work of organization
members and of using
available organizational
resources to reach
stated organizational
goals.

Module 08-Evolution of management thought 2


Theory

Coherent group of
assumptions put forth to
explain the relationship
between two or more
observable facts and to
provide sound basis for
predicting future events.

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Why study management theory

Theories enable people to


Theories communicate efficiently
provide a about what they consider to
stable focus be relevant aspects of
for management and
understanding organizations
people’s
experience
Theories challenge people to
keep learning about the world

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Key management theories
• Scientific management school
• Classical organization theory school
• Behavioral school
• Management science school
• Systems approach
• Contingency approach
• Dynamic engagement approach
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Scientific management theory
A management
approach that
sought to determine
scientifically the
best methods for
performing any task,
and for selecting,
training, and
motivating workers.
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Frederick Taylor
• “Father of scientific
management”
• Midvale and Bethlehem Steel
experiments in Pennsylvania
• Incentive wage plans
(differential rate system)
• Used scientific method to
define the “one best way” for a
job to be done.
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Henry L. Gantt
• Proposed wage system that
rewarded workers who
reached the daily standard;
and supervisors for every
worker who reached the
standard
• Workers’ progress rated
publicly and recorded on
individual bar charts

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Gantt chart
• Charting system for production scheduling
• Used to monitor the progress of activities
Project Gantt Chart
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6
Activity A
Activity B
Activity C
Activity D
Activity E
Activity F

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Individual bar charts
Daily output of workers
Names of workers

Quota
Raymund
Wed
Mike
Tue
Jose
Mon
Donald
Bong

0 20 40 60 80
Number of units produced
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Frank B. & Lillian M. Gilbreth
• Fatigue and motion studies -
upgrade performance, reduce
fatigue, raise worker morale
• Management concern for
workers
• Aim of scientific
management: to help workers
reach full potential as human
beings
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Classical organization theory
An early attempt,
pioneered by Henri
Fayol, to identify
the principles and
skills that underlie
effective
management.

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Henri Fayol
• Principles that constitute good
management practice
• Five management functions:
plan, organize, command,
coordinate, and control
• Management: distinct from
accounting, finance,
production, distribution, and
other typical business
functions; common to all
human undertakings
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Fayol’s 14 principles
of management
1. Division of work
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of
individual interests
to the general
interests
7. Remuneration
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Fayol’s 14 principles
of management
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure
of personnel
13. Initiative
14. Esprit de Corps

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• Theory of
Max Weber bureaucratic
management -
stressed need for
strictly defined
hierarchy governed by
clearly defined
regulations and lines
of authority
• Bureaucracy = ideal
organization
• Theory became
design prototype for
large organizations
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Weber’s ideal bureaucracy
• Job specialization
• Authority hierarchy
• Formal selection
• Formal rules and
regulations
• Impersonality
• Career orientation

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Mary Parker Follett
• Human beings grew through
their relationships with
others in organizations
• Manager’s job: harmonize and coordinate
group efforts
• Group ethic rather than individualism
• Managers and workers as partners
• Called management as “the art of getting
things done through other people
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Chester Barnard
• Organizations as social systems
• Managerial role: communicate and
stimulate subordinates to high levels
of effort

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Chester Barnard
• Success depends on maintaining
good relations with people and
institutions outside the
organization
• Managers must
examine environment
and then adjust
organization to
maintain a state
of equilibrium
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Behavioral school
A group of management
scholars trained in
sociology, psychology,
and related fields, who
use their diverse
knowledge to propose
more effective ways to
manage people in
organizations.

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Hawthorne experiments
• Western Electric Company experiments
conducted partly by Elton Mayo, Fritz J.
Roethlisberger,and William J. Dickson

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Hawthorne experiments
• Conclusion: employees would work
harder if they believed management was
concerned about their welfare and
supervisors paid special attention to
them
• Conclusion: informal work groups have
a positive influence on productivity

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Management science school
Approaching
management
problems through
the use of
mathematical
techniques for their
modeling, analysis,
and solution

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Systems approach
• View of the organization
as a unified, directed
system of interrelated
parts
• Approach gives managers
a way of looking at the
organization as a whole
and as a part of the larger,
external environment

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Key concepts of systems theory
• Subsystems - those parts
making up the whole system
• Synergy - the situation in which
the whole is greater than its
parts; in organizational terms, it
means that departments that
interact cooperatively are more
productive than they would be if
they operated in isolation

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Key concepts of systems theory
• Open system - a system that
interacts with its environment
• Closed system - a system that
does not interact with its
environment
• System boundary - that boundary
that separates each system from
its environment; it is rigid in
closed system, flexible in an
open system
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Key concepts of systems theory
• Flow - components such as
information, material, and energy
that enter and leave a system
• Feedback - the part of system
control in which the results are
returned to the individual,
allowing work procedures to be
analyzed and corrected

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Flows and feedback in an open
system External
Environment

INPUT
(Resources) Transform- OUTPUT
• Human ation or • Goods
• Capital conversion • Services
• Technology process • Others
• Information

Feedback

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Contingency/situational approach
• Management technique that best
contributes to the attainment of
organizational goals might vary in different
types of situations or circumstances
• Manager’s task is to identify which
technique will, in a particular situation,
under particular circumstances, and at a
particular time, best contribute to the
attainment of management goals

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Dynamic engagement approach
• The view that time
and human
relationships are
forcing management
to rethink traditional
approaches in the
face of constant,
rapid change

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Dynamic engagement approach
• An unfolding set of
challenges to the
way we think about
management and
organizations on the
eve of the 21st
century

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Dynamic engagement
• Dynamic--the opposite
of static--implies
continuous change,
growth, and activity
• Engagement--the
opposite of
detachment--implies
intense involvement
with others

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Six different themes
• New organizational environments
• Ethics and social responsibility
• Globalization and management
• Inventing and reinventing organizations
• Cultures and multiculturalism
• Quality

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