Different School of Management Thoughts

Evolution of Management Thoughts

Evolution of Mgmt Thoughts

Classical Theory Behavioral Theory Modern Approach

Scientific(Taylor)

Administrative (Fayol)

Human Relation Approach

(Mayo & Others)

Behavioral Scienceapproach

(Maslow, Mc Gregor)

Management Science& approach

System Approach

The Evolution of Management Theory

The Classical Management Perspective

• The Classical Perspective on management emerged during the nineteenth & and early twentieth centuries

The Classical Management Perspective

– Scientific Management

• Introduced by F.W. Taylor.(Father of Scientific Management)

• Concerned with improving the performance of individual workers (i.e. operational efficiency).

• Grew out of the industrial revolution’s labor shortage at the beginning of the twentieth century.

The Classical Management Perspective

Elements of Scientific Management

• Time and Motion Study.

• Piece Work Pay System./ Differential Rate System.

• Fatigue study.

The Classical Management Perspective

Principles of Scientific Management:

• Replacing Rule of Thumb with Science

• Harmony in Group Action

• Cooperation

• Maximum Output

• Development of workers

Steps in Scientific Management

The Classical Management Perspective (cont’d)

• Henry Gantt• Was an early associate of Fredrick Taylor.• Developed other techniques, including the Gantt

chart, to improve working efficiency through planning/scheduling

• This is a Basic Gantt chart example.   It shows tasks in a Security and Access Control project.  Tasks are outlined in two sections.  Each task uses a yellow triangle to indicate the start date of the task and a green down triangle to indicate the finish date of the task. Also shown on this schedule are the responsible sub-contractors for the project (in the column labeled R-E-S-P).

The Classical Management Perspective (cont’d)

• Frank & Lillian Gilberth

- Reduced the number of movements in bricklaying, resulting in increased output of 200%.

- Both collaborated fatigue and motion studies.

The Classical Management Perspective

– Administrative Management

• A theory that focuses on managing the total organization and not only on productivity of individual.

The Classical Management Perspective (Administrative

Mgmt)Max Weber

– developed a theory of authority structures and relations

– Bureaucracy - ideal type of organization• division of labor• clearly defined hierarchy• detailed rules and regulations• impersonal relationships

Weber’s Ideal bureaucracy

The Classical Management Perspective (Administrative Mgmt)

• Henry Fayol

Activities could be divided into six group:

1. Technical (related to product)

2. Commercial (buying, selling )

3. Financial (Search for capital & use)

4. Security (protection of property and person)

5. Accounting (including statistics)

6. Management (P,O C)

The Classical Management Perspective (Administrative Mgmt)

Henry Fayols 14 principles of management1. Division of Work.

2. Authority & responsibility.

3. Discipline.

4. Unity of Command.

5. Unity of Direction.

6. Subordination of individual interest to general interest.

7. Remuneration of personnel.

8. Centralization.

9. Scalar Chain.

10. Order.

11. Equity.

12. Stability of Tenure.

13. Initiative.

14. Espirit de corps.

The Classical Management Perspective (Administrative Mgmt)

• Chester Barnard– Viewed organizations as social systems.– Introduced the idea of CLIQUES (exclusive

group of people)– Proposed a theory of the acceptance of

authority (by subordinates) as the source of power and influence for managers.

The Classical Management Perspective (Administrative Mgmt)

• Mary Parker Follet (1863-1933)– Stressed the importance of

organizations establishing common goals to its employees.

– Her “Holistic” model of control took into account not just individuals and groups, but the effects of environmental factors also.

The Classical Management Perspective Today

• Contributions– Laid the foundation for later theoretical developments.– Identified management processes, functions, and

skills.– Focused attention on management as a valid subject

of scientific inquiry.• Limitations

– More appropriate approach for use in traditional, stable, simple organizations.

– Prescribed universal procedures that are not appropriate in some settings.

– Employees viewed as tools rather than as resources.

The Behavioral Management Perspective

• Behavioral Management– Emphasized individual attitudes and behaviors, and

group processes.

– Recognized the importance of behavioral processes in the workplace

• Hugo Munsterberg (1863–1916)– A German psychologist, considered the father of

industrial psychology, wrote “ Psychology and Industrial Efficiency,” a pioneering work in the practice of applying psychological concepts to industrial settings.

Management Challenge

• How are Munsterburg’s decisional roles for managers—

1. entrepreneur2. disturbance handler3. negotiator

—interrelated?

The Hawthorne Studies

• Conducted by Elton Mayo and associates at Western Electric (1927–1932)– Illumination study.– Relay Assembly Test room.– Mass Interview Program.– Bank Wiring observation Room Experiment.

The Behavioral Management Perspective (cont’d)

Behavioral Science Approach– Abraham Maslow

• Advanced a theory that employees are motivated by a hierarchy of needs that they seek to satisfy.

– Douglas McGregor• Proposed Theory X and Theory Y concepts of

managerial beliefs about people and work.

The Behavioral Management Perspective (cont’d)

• Maslaws hierarchy of needs

Douglas McGregorTheory X & Theory Y

• Theory X

– assumes that workers have little ambition, dislike work, want to avoid responsibility, and need to be closely controlled

• assumed that lower-order needs dominated

Theory Y

– Theory Y - assumes that workers can exercise self-direction, accept and actually seek out responsibility, and consider work to be a natural activity

• assumed that higher-order needs dominated

The Quantitative Management Perspective

• Quantitative Management– Helped the World War II Allied forces manage

logistical problems.– Focuses on decision making, economic effectiveness,

mathematical models, and the use of computers to solve quantitative problems.

• Management Science Approach– Focuses on the development of representative

mathematical models to assist with decisions.• Operations Management

– The practical application of management science to efficiently manage the production and distribution of products and services

The Quantitative Management Perspective Today

• Contributions– Developed sophisticated quantitative techniques to assist in

decision making.– Application of models has increased our awareness and

understanding of complex processes and situations.– Has been useful in the planning and controlling processes.

• Limitations– Quantitative management cannot fully explain or predict the

behavior of people in organizations.– Mathematical sophistication may come at the expense of other

managerial skills.– Quantitative models may require unrealistic or unfounded

assumptions, limiting their general applicability.

Integrating Perspectives for Managers

• Systems Perspective– A system is an interrelated set of elements functioning as a

whole.

• Open system– An organization that interacts with its external environment.

• Closed system– An organization that does not interact with its environment.

• Subsystems– The importance of subsystems is due to their interdependence

on each other within the organization.

The Systems Perspective of Organizations

The Contingency Perspective

• Universal Perspectives– Include the classical, behavioral, and quantitative

approaches.– Attempt to identify the “one best way” to manage

organizations.

• The Contingency Perspective– Suggests that each organization is unique.– The appropriate managerial behavior for managing an

organization depends (is contingent) on the current situation in the organization.

An Integrative Framework of Management Perspectives