7/28/2019 1-lect1-130122190751-phpapp01

1/36

History and Evolution OfManagement Thought

7/28/2019 1-lect1-130122190751-phpapp01

2/36

Objectives of The Chapter

To Understand

Early Approaches to management

Classical Approach

Behavioral Approach

Quantitative Approach

Modern Approaches to management

Emerging approaches in management thought.

7/28/2019 1-lect1-130122190751-phpapp01

3/36

IntroductionBoth theory and history are indispensable

tools for managing contemporaryorganizations.

A theory is a conceptual framework fororganizing knowledge that provides ablueprint for various courses of action.

7/28/2019 1-lect1-130122190751-phpapp01

4/36

Early Approaches to Management

Name Period Contribution

Robert Owen 1771-1858 Proposed legislative reforms toimprove working conditions of labor

CharlesBabbage

1792-1871 Advocated the concept or division oflabor

Andrew Ure 1778-1857 Advocated the study of management

Charles Dupin 1784-1873

HenryR.Towne

1844-1924 Emphasized the need to considermanagement as separated field ofstudy and the importance of businessskills for running a business.

7/28/2019 1-lect1-130122190751-phpapp01

5/36

MAJOR CLASSIFICATION OF

MANAGEMENT APPROACHESCLASSICALAPPROACH

SCIENTIFICMANAGEMENT

BUREAUCRATICMANAGEMENT

ADMINISTRATIVEMANAGEMENT

BEHAVIORALAPPROACH

HAWTHORNESTUDIES

MASLOWSNEED

HIERARCHY

THEORY X ANDTHEORY Y

QUANTITATIVEAPPROACH

MANAGEMENTSCIENCE

OPERATIONSMANAGEMENT

MANAGEMENTINFORMATIONSYSTEM

MODERNAPPROACH

THE SYSTEMSTHEORY

CONTINGENCYTHEORY

EMERGINGAPPROACHES

7/28/2019 1-lect1-130122190751-phpapp01

6/36

Classical Approach

Forms the foundation for the field ofmanagement

The schools for management

thoughts are:

Scientific Management

Administrative Theory Bureaucratic Management

7/28/2019 1-lect1-130122190751-phpapp01

7/36

CLASSICAL APPROACH1. SCIENTIFIC MANAGEMENT-F.W. TAYLOR

Piece rate incentive system Time and motion study

Gantt scheduling chart-Henry Laurence Gantt

2. ADMINISTRATIVE THEORY- HENRY FAYOL

Technical

Commercial

Financial

Security Accounting

managerial

7/28/2019 1-lect1-130122190751-phpapp01

8/36

CLASSICAL APPROACH3. BUREAUCRATIC MANAGEMENT- MAX

WEBER Work specialization and division of labor

Abstract rules and regulations

Impersonality of managers

Hierarchy of organization structure

7/28/2019 1-lect1-130122190751-phpapp01

9/36

Scientific Management

Early 1900s

It is defined as that kind of management which conducts abusiness or affairs by standards established, by facts or truthsgained through systematic observation, experiment, or

reasoning. Major contributors:

Frederick Winslow Taylor

Frank and Lillian Gillbreth

Henry L.Gantt

7/28/2019 1-lect1-130122190751-phpapp01

10/36

Frederick Winslow Taylor

Father of scientificmanagement(1878)

Two major managerial practices:

Piece-rate incentive system

Time-and-motion study

7/28/2019 1-lect1-130122190751-phpapp01

11/36

Frank and Lillian Gillbreth

1868-1924

Motion study involves finding out thebest sequence and minimum numberof motions needed to complete atask.

Explore new ways for eliminating

unnecessary motions and reducingwork fatigue.

7/28/2019 1-lect1-130122190751-phpapp01

12/36

HENRY L.GANTT(1861-1919)

Well known for Task and - bonus

system -The Gantt chart If the worker completed the work

fast, i.e., in less than the standard

time, he received a bonus.

It is a Simple chart that compares

actual and planned performances.

7/28/2019 1-lect1-130122190751-phpapp01

13/36

Limitations of

Scientific Management

Do not focus on the management ofan organization from a managerspoint of view.

people were rational and weremotivated primarily by the desire formaterial gain.

It also ignored the human desire forjob satisfaction.

7/28/2019 1-lect1-130122190751-phpapp01

14/36

Administrative Theory:

It focused on principles that could beused by managers to coordinate theinternal activities of organizations.

Henri Fayol (1841-1925)

7/28/2019 1-lect1-130122190751-phpapp01

15/36

Henri Fayol (1841-1925)

Fourteen principles:

Division of work Authority and responsibility

Discipline

Unity of command

Unity of direction

Subordination of theindividual interest to thegeneral interest

Remuneration Centralization:

Scalar chain

Order Equity

Stability

Initiative

Espirit de corps(team spirit)

7/28/2019 1-lect1-130122190751-phpapp01

16/36

Bureaucratic Management

Weber (1864-1920)

Characteristics of Webers idealBureaucracy:

Work specification and division oflabor

Abstract rules and regulations:

Impersonality of managers:

Hierarchy of organization structure:

7/28/2019 1-lect1-130122190751-phpapp01

17/36

Limitations of Bureaucratic

Management and AdministrativeTheory

Not universally applicable to todayscomplex organizations.

Fayols principles like that of

specialization were frequently in conflictwith the principle of unity of command.

Principle characteristic of bureaucracychanges in the global environment.

Classical theorists ignored the problems

of leadership, motivation, power orinformation relations.

7/28/2019 1-lect1-130122190751-phpapp01

18/36

Behavioral Approach

The behavioral approach to

management emphasized individual

attitudes and behaviors and group

processes, and recognized the

significance of behavioral process in

the workplace.

7/28/2019 1-lect1-130122190751-phpapp01

19/36

HAWTHORNE STUDIES Illumination studies

Relay assembly room study

Bank wiring room study

7/28/2019 1-lect1-130122190751-phpapp01

20/36

Contributions of Behavioral Thinkers to

Management Thought

Name Period Contribution

Mary ParkerFollet 1868-1933 Advocated the concept of powersharing and integration

Elton Mayo 1868-1933

foundation for the Human RelationsMovement;

Abraham

Maslow

1908

1970

motivated by a hierarchy of needs

Douglas

McGregor

1906-

1964

Theory X and Theory Y

personalities

Chris Argyris - Classified organizations based onthe employees set of values

7/28/2019 1-lect1-130122190751-phpapp01

21/36

Mary Parker Follet (1868-1933)

Power, according to Follet, was theability to influence and bring about achange.

Concept of integration, which involvesfinding a solution acceptable to all

group members

7/28/2019 1-lect1-130122190751-phpapp01

22/36

Elton Mayo (1868-1933)

Pre-judgment Findings

Job performancedepends on the

individual worker

The group is the key factorsin job performance

Fatigue is the main

factor affectingoutput.

Perceived meaning and

importance of the workdetermining output.

Management setsproduction standards

Workplace culture sets itsown production standards.

7/28/2019 1-lect1-130122190751-phpapp01

23/36

Abraham Maslow

His theory rested on these assumptions.

Physiological needs;

Safety or security needs

Belongingness or social needs;

Esteem or status needs

Self actualization or self-fulfillment needs.

7/28/2019 1-lect1-130122190751-phpapp01

24/36

Maslows Need Hierarchy

Self actualization needs

Esteem needs

Social needs

Safety needs

Physiological needs

7/28/2019 1-lect1-130122190751-phpapp01

25/36

Douglas Mcgregor

Theory X Theory Y

Most People dislikework

Work is a natural activitylike play.

Most People must be

coerced and threatenedbefore they work.

People are capable of self

direction and self control

Most people prefer to

be directed. They avoidresponsibility and have

little ambition.

People become committed

to organizationalobjectives if they are

rewarded in doing so.

7/28/2019 1-lect1-130122190751-phpapp01

26/36

Chris Argyris

Maturity immaturity theory

People progress from a stage of immaturity and dependenceto a state of maturity and independence.

Model I and Model II organization analysis.

1. Model I organization are manipulative

2. Model II organization are open to learning

7/28/2019 1-lect1-130122190751-phpapp01

27/36

Quantitative Approach It includes the application of statistics, optimization models,

information models and computer simulations. More

specifically, this approach focuses on achieving organizationaleffectiveness.

Three main branches:

Management Science

Operations Management and

Management Information Systems.

7/28/2019 1-lect1-130122190751-phpapp01

28/36

Management Science

It stresses the use of mathematicalmodels and statistical methods for

decision-making.

Another name is the Operations

Research.

7/28/2019 1-lect1-130122190751-phpapp01

29/36

Operations Management

It deals with the effective

management of the production

process and the timely delivery of an

organizations products and

services.

7/28/2019 1-lect1-130122190751-phpapp01

30/36

Management

Information Systems

Management information systemsfocuses on designing and

implementing computer-basedinformation systems for business

organizations.

7/28/2019 1-lect1-130122190751-phpapp01

31/36

Modern Approaches

to Management

Systems Theory

Contingency Theory

7/28/2019 1-lect1-130122190751-phpapp01

32/36

Systems Theory

Resources

Labor

Materials

Capital Machinery Information

Managerial andTechnologicalAbilities

Planning Organizing

Staffing

Leading Controlling Technology

Goods Services

Profits andlosses

Employee

satisfaction

InputsTransformation process Outputs

Feedback

7/28/2019 1-lect1-130122190751-phpapp01

33/36

Contingency Theory

Systems Viewpoint

How the parts fitstogether

IndividualGroupOrganizationenvironment

Behavioral ViewpointHow managers influence

othersInterpersonal RolesInformational Roles

Decisional Roles

Traditional

viewpointWhat managersdoPlanOrganize

Lead Control

Contingency

Viewpoint

Managersuse of otherview points to

solveproblems

Externalenvironment

Technology

Individuals

7/28/2019 1-lect1-130122190751-phpapp01

34/36

Emerging Approaches In

Management Thought William Ouchi, outlined new theory called

Theory Z. It is the blend of positive aspects of both

American and Japanese managementstyles.

Quality Management is a managementapproach that directs the efforts ofmanagement towards bringing about

continuous improvement in product andservice quality to achieve higher levels ofcustomer satisfaction and build customer

loyalty.

7/28/2019 1-lect1-130122190751-phpapp01

35/36

Now you are familiar with Different classification of management

approaches

A few theorists and theories

Early Approaches to Management

Classical Approach

Behavioral Approach

Quantitative Approach Modern Approaches to management

Emerging approaches in managementthou ht.

7/28/2019 1-lect1-130122190751-phpapp01

36/36

Thank you!!!