Assignment # 01

The History of Management Theories

Submitted By
Name: Md. Shafiqul Islam

ID: 801518006

Submitted To
Dr Chowdhury Saima Ferdous

Associate Professor

Department of International Business

Faculty of Business Studies

University of Dhaka
Contents
Introduction ..................................................................................................................................... 2
Classical Management .................................................................................................................... 3
How to change Management ...................................................................................................... 4

Contribution towards Management............................................................................................. 4

Criticism...................................................................................................................................... 5

Behavioral Management ................................................................................................................. 6

How to change Management ...................................................................................................... 6

Contribution towards Management............................................................................................. 7

Criticism...................................................................................................................................... 7

Quantitative Management ............................................................................................................... 8

How to change Management ...................................................................................................... 8

Contribution towards Management............................................................................................. 8

Criticism...................................................................................................................................... 9

Integrative (Integrated) Management ............................................................................................. 9

How to change management ....................................................................................................... 9

Contribution towards management ........................................................................................... 10

Criticism.................................................................................................................................... 10

Conclusion .................................................................................................................................... 10
Bibliography ................................................................................................................................. 11
Introduction
Management was first start arise in 18th century during the industrial revolution in America and
Europe. Earlier the economies of both America and Europe depend more in primary sectors
which started agriculture, mining activities and forestry. The growth of these primary sectors
leads raises the awareness of entrepreneurs to invest in new factories since the market or trade
expands together with development in technology. These enhance the beginning industrial
revolution as the need to improve methods of work, productivity, quality of product and
efficiently. The researchers in management field was the then born that time and various theories
developed. The nature of the word theory have different in opinions but many business
professionals, social scientists and other academic have very similar beliefs on definition of
theory. According to, define theory as a “supposition or system of ideas explaining something”.
On other hand by considering its applications the definition of Management has wide range and
many authors including well known such as Ernest Dale, Gerald A Cole and Lurrie J. Mullins
who explained that there is no main perfect or accepted definition of management by considering
the different in theoretical approaches which management developed in. The approach to
management in organization should consider the nature of the organizations so as to meet as suit
the organization. As narrated by stoner, freeman and denial, that each organization adopt the
approach to management by considering its purpose, structure and culture since there are various
and different approaches to management of the organizations. Management is the key part of any
organization to continue operational. According to stoner, freeman and denial, management
involves very important stages which can lead any organization run well these includes planning,
organizing and leading Moreover said that the important features organizations results of various
school to have their thought on clarifying management in setting of organization. Generally
among of the management theories which well-developed and they have been subjected in talk
more than two decades these are classical approaches and human relation approaches in which
sometime is known as the neo- classical. According to Hannagan, refer that there are various
theories of management however most of the research accepted most on two approaches which
are classical management theory and human relation management theory. Furthermore Cole,
explain that the two approaches to management classical and human relations management
theory gives different view on how the management should be considered. As one approach
focuses on use the goals and objectives of an organization by using employee as machine.
Classical Management
Classical organization theory evolved during the first half of this century. It represents the
merger of scientific management, bureaucratic theory, and administrative theory.

Frederick Taylor (1917) developed scientific management theory at the beginning of this
century. His theory had four basic principles:

1) Find the one "best way" to perform each task,

2) Carefully match each worker to each task,

3) Closely supervise workers, and use reward and punishment as motivators, and 4) the task of
management is planning and control.

Initially, Taylor was very successful at improving production. His methods involved getting the
best equipment and people, and then carefully scrutinizing each component of the production
process. By analyzing each task individually, Taylor was able to find the right combinations of
factors that yielded large increases in production.

While Taylor's scientific management theory proved successful in the simple industrialized
companies at the turn of the century, it has not fared well in modern companies. The philosophy
of "production first, people second" has left a legacy of declining production and quality,
dissatisfaction with work, loss of pride in workmanship, and a near complete loss of
organizational pride.

Max Weber (1947) expanded on Taylor's theories, and stressed the need to reduce diversity and
ambiguity in organizations. The focus was on establishing clear lines of authority and control.
Weber's bureaucratic theory emphasized the need for a hierarchical structure of power. It
recognized the importance of division of labor and specialization. A formal set of rules was
bound into the hierarchy structure to insure stability and uniformity. Weber also put forth the
notion that organizational behavior is a network of human interactions, where all behavior could
be understood by looking at cause and effect.
Administrative theory (i.e., principles of management) was formalized in the 1930's by Mooney
and Reiley (1931). The emphasis was on establishing a universal set of management principles
that could be applied to all organizations.

Classical management theory was rigid and mechanistic. The shortcomings of classical
organization theory quickly became apparent. Its major deficiency was that it attempted to
explain peoples' motivation to work strictly as a function of economic reward.

How to change Management

Many managers deal with Cost, Time and Quality, Wilfred Kruger argued that like an Iceberg,
true change management addresses the issues below the surface, perceptions and beliefs and
power and politics. There are actors below the surface such as: Opponents, Promoters, Hidden
Opponents, and Potential Promoters. Wilfred concludes that the essence of change management
in organizations is dealing with barriers or issues below the surface.

Classical Management theory expanded throughout the first half of the 20th century as managers
continued to look for ways to deal with issues surrounding industrial management. During this
time, three separate branches emerged - bureaucratic management, classical scientific
management and classical administrative management - each unique in its approach towards
finding the best possible way. These three branches will be explained in more detail in the
following lessons. Even though several management theories have emerged since the
development of classical management theory, many contemporary organizations rely on the
classical management approach today with great success.

Contribution towards Management

Management, as we know it today, exists in all forms of organizations, from private to public
and even non-profit. Through the years the size and complexity of all types of organizations have
grown, and as a result a defined and professional approach to the method of management has
become a necessity. As devised by Byars & Rue “Management is a process or form of work that
involves the guidance or direction of a group of people toward organizational goals or
objectives.”

The theories in which this guidance and direction are achieved are many, however the foundation
stones to modern day theory and management as a whole were laid in the years between the turn
of the century and the great depression, 1900 to the 1920’s. This era of management thinking has
since been named the Classical School of thought. Its developers focused on efficiency,
including the subdivisions of administrative, bureaucratic and scientific management.
Administrative management emphasized the flow of information within an organization.
Bureaucratic management relied on a rational set of structuring guidelines; rules and procedures,
hierarchy, and clear divisions of labor. Scientific management however focused on the ‘one best
way’ to do a job. The inventors of these trains of thought are forged in history as the
‘Universalists’ of management, and their ideas are still evident today.

By far, the most influential person of the classical era was Fredrick Winslow Taylor an American
engineer. Taylor wrote in a time when factories were creating problems for management who
needed new methods to deal with the management challenges bought on by the influence of the
Industrial revolution on organizations.

Taylor set out to develop and formalize the principals of scientific management. Taylor believed
that by increasing specialization and the division of labor, the production process would become
more efficient. He introduced the development of a science for each unit of a task of a person’s
work, replacing the old ‘rule-of-thumb’ methods previously used in industry. He achieved this by
studying each task in the organization and breaking it down into its smallest unit and then timed
and studied it to determine the best way to perform each unit. A feature of Taylor’s work was
‘stop-watch timing’ a process that was the basis of his observations, and it was Taylor who
coined the term ‘time study’. Once the most efficient motions for each individual unit were
discovered the supervisor in the organization would then codify the developed techniques and
teach it to the worker to make sure the worker only did those actions essential to the task.

Criticism
The principles have not stood the rest of rigorous empirical research using scientific methods.
Moreover, it is not clear whether principles are action recommendations, or definitions. A
principle establishes cause and effect relationship of a function that is observed to be present in
an organization. From this point of view, it becomes necessary to define some independent
specifications of what is meant by an organization so that the principles do not become simply a
part of the definition of an organization. Since, this has not been done with any consistency,
these principles become empirically vacuous.
This suggests that the same principles can be applied in: (I) different organizations, (ii) different
management level of the same organization and (iii) different functions of the same organization.
Empirical researches, however, suggest that there is not even a single principle which is
applicable in all these circumstances. Further many of the principles actually are internally
contradictory. For example, principle of specialization is frequently in conflict with the principle
of unity of command.

Classical theory takes a rigid and static view of the organization, although it is a dynamic
phenomenon which suggests that organizational patterns dare determined through constant
adjustments. The adjustments are necessary keeping in view the requirements of organizational
environment and its various internal parts. Thus, the best organizational pattern is one which
meets its external and internal requirements, and these requirements are dynamic, ever-changing.

Behavioral Management
Behavioral management theory is normally called the human relations movement because it
addresses the human dimensions of work. Behavioral theorists believed that your better
understanding of human behavior at work, such as motivation, struggle, expectations, and group
character, improved productivity. Management principles developed in the classical period were
simply not useful when controlling many management situations and may even not explain the
conduct of individual employees.

How to change Management

Managers must have a positive attitude, express fairness in order to retain employees, and an
open mind. Remember, Grameen Phone will be bringing in new staff from EnviroTech, so
retention will be very important. Employees performing their jobs effectively should be
rewarded. There should be good working relations between employees and managers; and
Grameenphone needs to maintain a healthy and safe work environment. There can be many
factors which affect productivity, quality of materials, people skills, procedures, equipment and
management skills, just to name a few, but the most important factor would be the attitude of a
superior. Appropriate leadership creates a satisfying working environment encouraging higher
productivity. Destructive behavior of a manager will turn a well-liked job into a disliked one.
Rude behavior for managers creates and environment of mistrust and fear, and a consequence of
that will have a negative impact on productivity and increases the operational cost.

Contribution towards Management

Behavioral management theory relies on the notion that managers will better understand the
human aspect to workers and treat employees as important assets to achieve goals. Management
taking a special interest in workers makes them feel like part of a special group. As time went on,
thinking shifted, and management started looking at employee satisfaction and working
conditions as a way to increase productivity. Theorists like Elton Mayo and others studied
employee productivity under different conditions to determine a connection. Mayo’s Hawthorne
experiment provides a good example of this. In the Hawthorne experiment, a group of telephone
line workers were separated and observed working in a private room. During their workday, the
group members were given special privileges, like freedom to leave their workstations, changes
in pay rates, and even company-sponsored lunch. What they discovered was the control group
produced more than the other employees. The rationale for this increased production was that the
group felt that management was interested in their well-being.

Criticism
1. It is believed that procedures, analysis of the findings, and conclusions drawn from there are
not linked to each other rationally. In fact, the conclusions are not supported by adequate
evidence.

2. The relationship between satisfaction/happiness of the workers and productivity was

established through simplistic assumptions, while in reality the situation is more complex due to
behavioral phenomena.

3. Furthermore, all these studies failed to focus on the attitudes of the workers, which played a
crucial role in influencing their performance and productivity.

Abraham Maslow, Douglas McGregor, Chris Argyris, and other contributors made significant
contributions to the behavioral school of thought. Maslow and McGregor’s contributions are in
the shape of theories of motivation. While Maslow focused on the importance of human needs,
which are the major driving forces for human motivation, McGregor made certain assumptions
about people, categorizing them under theory X or theory Y.

Theory X essentially represents a negative view about people—that people are lazy have little
ambition, dislike work, avoid responsibility, and require directions to work. Theory Y on the
contrary, assumes, that people are more positive, capable of self-control, are innovative and
creative, and do not inherently dislike work. Here, we have not discussed these theories in detail.
We are only acknowledging their contributions to the behavioral school of thought.

Quantitative Management
The quantitative approach to management incorporates many analytical and numeric techniques
into management methods. The goal is to have specific formulas that information can be plugged
into to provide the best answer to common management questions.

How to change Management

The theory came into focus during and after World War II. The critical exigencies of War
necessitating the building of optimal solutions to militant and logistics problems, was sought
Tobe solved through mathematical model building by inter-disciplinary scientists. They applied
scientific research in their bid to find most suitable answers to problems of strategic and tactical
military operations and optimal decisions about the deployment of military resources. Extensive
application of Operations Research brought forth new techniques like Linear Programming,
Queueing theory, Probability theory, Sampling theory, critical path, Programed evaluation and
review technique, etc.

Contribution towards Management

The Modern Period from 1960 to present. After, 1960 management thought has been turning
somewhat away from the extreme human relations ideas particularly regarding the direct relation
between morale and productivity. Present management thinking wishes equal emphasis on man
and machine. The modern business ideologists have recognized the social responsibilities of
business activities and thinking on similar lines. During the period, the principles of management
reached a stage of refinement and perfection. The formation of big companies resulted in the
separation of ownership and management. This change in ownership pattern inevitably brought
in ‘salaried and professional managers’ in place of ‘owner managers’. The giving of control to
the hired management resulted in the wider use of scientific methods of management. But at the
same time the professional management has become socially responsible to various sections of
society such as customers, shareholders, suppliers, employees, trade unions and other
Government agencies.

Criticism
Quantitative Methods in Management offer a systematic approach for the analysis of phenomena
in business economics and economics in general. In the modern world of increasing development
in information technology, the amount of numerical data has increased enormously, and at the
same time the acquisition of knowledge has become easier. Quantitative methods provide
techniques to tame this growing accumulation of data as support for economic decision-making.
The application targets for these methods cover many fields of business, such as economics,
finance, risk management, quality management and logistics. Many business and general
economic theories are based on quantitative analysis, which emphasizes the importance of these
techniques also from the theoretical perspective.

Integrative (Integrated) Management

The application of management processes that integrate some or all fundamental components of
scope, schedule, cost, risk, quality and resources

How to change management

Management can be an individual, as well as a collective activity, and is generally viewed as an
organizational phenomenon. Integrated management promotes equilibrium between different
interconnected spheres: the organization, society and the environment. Integrated management
uses new and existing managerial concepts and tools, while putting emphasis on the systemic
processes, stakeholder culture, real-world leadership and emotional intelligence at play within an
organization. In contemporary organizations, this approach to management is valued as a
strategy to reconciling complex cross-functional challenges. Integrated practices, as opposed to
unilateral, specialized practices, are proven to foster open-mindedness and flexibility in
individuals and communities. Integrated management promotes a flattening of traditional
organizational silos while encouraging a context-sensitive approach to understanding individuals,
systems and organizations.

Contribution towards management

An integrated management system combines all related components of a business into one
system for easier management and operations. Quality, Environmental, and Safety management
systems are often combined and managed as an IMS. These systems are not separate systems that
are later joined together, rather they are integrated with linkages so that similar processes are
seamlessly managed and executed without duplication.

Criticism
The extent of integration could be defined by the different stakeholder needs that must be
managed. A multinational company with suppliers and customers placed globally has to count
with being constantly monitored by watchdogs. There are several examples of companies
suffering criticism when socially unacceptable suppliers have been used. Examples are such as
IKEA buying rugs, some of which proved to be manufactured by child labor. Companies could
be taken to task for the errors committed by some distant supplier. This puts pressure on
companies to monitor process in the upstream part of the supply chain. Fair trade organizations
bring hitherto unknown stakeholders into the limelight. Examples of requirements, on
monitoring where products end, in what condition and to what price also exist.

Conclusion
Successful management requires an understanding of the fundamental concepts of effective
management techniques and principles. In order to gain such insight, and manage effectively and
efficiently, managers must develop an awareness of past management principles, models and
theories. From the turn of the 19th Century, the need for a formal management theory was
growing evidence that organizations required a system to guide managers in an attempt to
improve productivity and efficiency of workers. The classical approach to management school is
of the opinion that within any level in an organization, employees are required to go about their
duties in accordance with set procedures designed to increase productivity.
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