Different School of

Management Thoughts
 Evolution of Management Thoughts

Evolution of Mgmt Thoughts

Classical Theory Behavioral Theory Modern Approach

Scientific Administrative Management Science System

(Taylor) (Fayol) & approach Approach

Human Relation Behavioral Science

Approach approach
(Mayo & Others) (Maslow, Mc Gregor)
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 management
1. 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. entrepreneur
2. disturbance handler
3. 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 McGregor
Theory 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