EVOLUTION OF

MANAGEMENT THOUGHTS

DR.DEEPA SAKTHI
EVOLUTION OF MANAGEMENT
THOUGHTS
The evolution of management has a long history.
Management thoughts were highlighted even in
ARDHA SASTRA, 321 BC.
Last 150 years management started evolving as a
separate scientific discipline with standardized
principles and Practices.
PHASES OF EVOLUTION OF
MANAGEMENT
NEO
CLASSICAL MODERN
CLASSICAL
APPROACH APPROACH
APPROACH
• Scientific • Human • Quantitative
Management Relations approach
• Administrative approach • Systems
Management • Behavioral approach
• Bureaucratic approach • Contingency
Management. approach
CLASSICAL APPROACH
SALIENT FEATURES
1. Emphasis on division of labor and specialization, structure, scalar and
functional processes and span of control.
2. Emphasis organization structure for co-ordination of various activities.
3. Treated organizations as closed systems.
4. The efficiency of the organization can be increased by making each
individual efficient.
5. More Emphasis on centralization of authority.
6. In case of any conflict, the interests of the organization should prevail.
7. The people at work could be motivated by the economic rewards.
Scientific Management
◦ F W TAYLOR (1856 – 1915) – FATHER OF SCIENTIFIC MANAGEMENT.

◦ 1. Time and Motion Study

◦ 2.Differentiated Payment - Piece Rate System
◦ 3.Drastic reorganization of supervision.
◦ 4. Scientific recruitment and Training.
◦ 5.Friendly co operation between management and workers.
LIMITATIONS OF SCIENTIFIC
MANAGEMENT
◦ 1.. It emphasized more on physical work rather than on
problem solving skills
◦ 2. It thinks only of financial benefits are more important to
motivate employees.
◦ 3.Separation of planning and doing is difficult.
◦ 4. Scientific management is production-centred.
◦ 5.Scientific Management ignores social and psychological
needs of workers as it treats them as extension of machines
devoid of any feelings and emotions.
◦ 6. Trade unionists regarded the principles of scientific
management as the means to exploit labor.
ADMINISTRATIVE MANAGEMENT
HENRY FAYOL (1841- 1925) -THE FATHER OF
ADMINISTRATIVE MANAGEMENT
All activities in an enterprise can be divided into six categories
◦ 1.Technical
◦ 2. Commercial
◦ 3. Financial
◦ 4.Accounting
◦ 5. Security & administrative
◦ 6. Managerial
◦ He focused more on managerial functions and identified
◦ IDENTIFIED 5 IMPORTANT MANAGERIAL FUNCTIONS.
PLANNING

ORGANIZING

STAFFING

DIRECTING

CONTROLLING
BUREAUCRATIC MANAGEMENT
MAXWEBBER IS THE FATHER OF BUREAUCRATIC
MANAGEMENT

◦ He identified three types of Leadership

◦ 1. Leader - oriented administration
◦ 2. Tradition oriented
◦ 3. Bureaucratic administration – Webber considered it as
the best one of all.
IMPORTANT FEATURES OF BUREAUCRATIC
ADMINISTRATION

1. Insisted to follow standard rules.

2.Systematic division of work.
3. Principles of hierarchy to be followed.
4.Importanceof knowledge of training was insisted.
5. Administrative acts, decisions &rules are recorded.
6. There is rational personnel administration.
 LIMITATIONS
1. Over conformity to rules led to poor morale. Only penalty threatened
them.
2.Buck passing attitude developed among employees.
3.Training given in only few areas.
4.Neglect of informal groups.
6. Unresponsive to changes in environment.
7.No scope for socializing.
8. Not completely rational.
NEO CLASSICAL APPROACH
 NEO CLASSICAL APPROACH
HUMAN RELATIONS
BEHAVIOURAL APPROACH
APPROACH
Mc GREGOR
◦ PROF ELTON MAYO MASLOW
◦ WESTERN ELECTRIC CHESTER BERNARD
COMPANY
MARY PARKER FOLLET
◦ (1927-1932)
HUMAN RELATIONS APPROACH
1. ILLUMINATION EXPERIMENT
FINDINGS: Illumination had LITTLE EFFECT ON PRODUCTIVITY.

2. RELAY ASSEMBLY TEST ROOM

AIM: To find the effect of long working hours, rest pause, their
frequency and duration and other physical conditions.
FINDINGS: There was no relationship between working
conditions & productivity.
3.INTERVIEWING PROGRAMME

AIM:
To know about workers views on type of supervision, working
conditions & living conditions.
FINDINGS:
◦ Workers social relations inside the working place had a influence
on the attitude &behavior.
◦ All groups had their own culture &production norms and
members forced to obey it.
BANK WIRING OBSERVATION ROOM
AIM:
◦ To study about the effect of informal group norms &formal economic
incentives on productivity.

FINDINGS: It is observed that the informal groups set their own hierarchy
and social system.
Created some nicknames for their co-workers such as
Rate busters – Those who try to produce more than their cohert.
Chisellers – Those who are very slow.
Squealers – Those who complained about co-workers to superiors.
CONTRIBUTIONS OF HUMAN
APPROACH

1. Helps to understand the social system in business

organizations.
2.It is important to give social satisfaction to the workers.
3.There is no co relation between working condition and
Productivity.
4.Worker’s production norms are set by his social group not the
time and motion study.
CONTRIBUTIONS OF HUMAN APPROACH
5.Employee who did not follow group norms were penalized by
co-workers.
6.Workers do not work for money alone. MAYO called it as
RABBLE HYPOTHESIS.
7. Employee centered democratic & Participative style of
supervisory leadership is more effective.
LIMITATIONS OF HUMAN RELATIONS APPROACH

1. Only human variables are considered.

2.Organization cannot be considered as a big family.
3.Material rewards areas important as symbolic rewards, but it
is underplayed in this approach.
4. This approach is based on a wrong assumption satisfied
workers are more productive workers.
BEHAVIOURAL APPROACH
This approach was put forth by behavioral scientist like
Mc GREGOR
HERZBERG
ABRAHAM MASLOW
CHESTER BERNARD
MARY PARKER FOLLET

 They studied more on human behavior

 Focused on OPTIMAL MOBILIZATION OF HUMAN RESOURCES.
TWO FACTOR THEORY OF MOTIVATION : PUT FOURTH BY HERZBERG

He pointed out INTRINSIC FACTORS( Achievement , growth &

recognition)
Are more important that EXTRINSIC FACTORS SUCH AS Company
Policy, Supervision, Salary Etc.,
 Mc GREGORS XY THEORY:

THEORY X: Assumes that employees dislike work and needs highly

authoritative leadership.
THEORY Y: Workers accepts responsibilities and work under rewarding
conditions. And no need of outside control to direct their behavior to
organizations goal.
Mc Gregor said Theory X is wrong & should be replaced by Theory Y.
Because of these findings it is called as HUMAN RESOURCES
APPROACH
CONTRIBUTIONS OF BEHAVIOURAL APPROACH:

1. Human Motivation is an important Strategic Variable.

2. Gives more importance to participative and group decision
making.
3.It did an extensive study on leadership.
4. Different people react differently to different situations.
5. It contributes to organization development.
MODERN APPROACHES
 MODERN APPROACHES

QUANTITATI CONTIGENC
SYSTEMS
VE Y
APPROACH
APPROACH APPROACH
• CHESTER • PETER DRUCKER
BERNARD
• GEORGE HOMAN
QUANTITATIVE APPROACH

More emphasis on scientific methods for problem solving.

Operations Research came to existence.
More importance is given to quantitative methods for
PROBLEM SOLVING.
 SYSTEMS APPROACH
Put fourth by CHESTER BERNARD,
◦ GEORGE HOMAN.
◦ Key concepts of Systems Approach
◦ 1. A system is a set of interdependent parts.