PIONEERING IDEAS IN

MANAGEMENT
Raya Anwari
THE BIRTH OF MANAGEMENT IDEAS
A. The Evolution of Management Theories
Management Theory:
a) Pre-classical Contributors
b) Classical Viewpoint
c) Behavioral Viewpoint
d) Quantitative Management Viewpoint
e) Contemporary Viewpoint
Pre-classical Contributors
Robert Owen: Advocated concern for the working and
living conditions of workers
Charles Babbage: Built the first practical mechanical
calculator and prototype of modern computers; predicted
the specialization of mental work; suggested profit sharing
Henry R. Towne: Outlined the importance of
management as a science and called for the development
of management principles
Classical Viewpoint
Classical Viewpoint is a perspective on management that
emphasizes finding ways to manage work and organizations
more efficiently.
A. Scientific Management
Scientific Management is an approach that emphasized the scientific
study of work methods in order to improve worker efficiency
Frederick Winslow Taylor is known as The Father of Scientific
Management
Soldiering is deliberately working at less than full capacity. Taylor
believed that workers engaged in soldiering for three main reasons :
1. They feared that increasing their productivity would cause them or other
workers to lose their jobs
2. Faulty wee systems set up by management encouraged workers to
operate at a slow pace
3. General methods of working and rules of thumb handed down from
generation to generation were often very inefficient


Classical Viewpoint
Taylors Four Principles of Scientific Management:
1. Scientifically study each part of a task and develop the best
method for performing the task
2. Carefully select workers and train them to perform the task by
using the scientifically developed method
3. Cooperate fully with workers to ensure that they use the proper
method
4. Divide work and responsibility so that management as
responsible for panning works methods
Classical Viewpoint
B. Bureaucratic Management
Bureaucratic Management an approach that emphasized the need for
organizations to operate in a rational manner rather than relying on the arbitrary
whims of owners and managers
The bureaucratic management approach is based mainly on the work of prominent
German sociologist Max Weber

Major Characteristics of Webers Ideal Bureaucracy:
1. Specialization of labor: Jobs are broken down into routine, well-defined tasks
so that members know what is expected of them and can become extremely
competent at their particular subset of tasks
2. Formal rules and procedures: Written rules and procedures specifying the
behaviors desired from members facilitate coordination and ensure uniformity
3. Impersonality: Rules, procedures, and sanctions are applied uniform regardless
of individual personalities and personal considerations
4. Well-defined hierarchy: Multiple levels of positions, with carefully determined
reporting relationship among levels, provide supervision of lower offices by higher
ones, a means of handling exceptions, and the ability to establish accountability
of actions
5. Career advancement based on merit: Selection and promotion is based on the
qualifications and performance of members
Classical Viewpoint
C. Administrative Management
Administrative Management approach that focuses on principles that can be
used by managers to coordinate the internal activities of organizations
Henri Fayol outlined a number of principles that he found useful in running his
large coal-and-iron concern. Fayols General Principles of Management:
1. Division of work: Work specialization can result in efficiencies and is applicable to
both managerial and technical functions. Yet there are limitations to how much that
work should be divide
2. Authority: Authority is the right to give orders and the power to exact obedience. It
derives from the formal authority of the office and from personal authority based on
factors like intelligence and experience. With authority comes responsibility
3. Discipline: Discipline is absolutely necessary for the smooth running of an
organization, but the state of discipline depends essentially on the worthiness of its
leaders
4. Unity of Command: An employee should receive orders from one superior only
5. Unity of Direction: Activities aimed at the same objective should be organized so
that there is one plan and one person in charge
6. Subordination of Individual Interest To General Interest: The interest of one
employee or group should not prevail over the interests and goals of the
organization
Classical Viewpoint
7. Remuneration: Compensation should be fair to both the employee and the
employer
8. Centralization: The proper amount of centralization or decentralization depends on
the situation. The objective is the optimum use of the capabilities of personnel
9. Scalar Chain: A scalar (hierarchical) chain of authority extends from the top to the
bottom of an organization and defines the communication path. However, horizontal
communication is also encouraged as long as the managers in the chain are kept
informed
10. Order: Materials should be kept in well-chosen places that facilitate activities.
Similarly, due to good organization and selection, the right person should be in the
right place
11. Equity: Employees should be treated with kindness and justice
12. Stability of Personnel Tenure: Because time is required to become effective in
new jobs, high turnover should be prevented
13. Initiative: Managers should encourage and develop subordinate initiative to the
fullest
14. Esprit de-corps: Since unions is strength, harmony and teamwork are essential

Chester Barnard best-known contributions is Acceptance Theory of
Authority: A theory that argues that authority does not depends as much on
persons of authority who give orders as on the willingness to comply of those
who receive the orders
Behavioral Viewpoint
Behavioral Viewpoint is a perspective on management that
emphasizes the importance of attempting to understand the various
factors that affect human behavior in organizations

a. Early Behaviorists
1. Hugo Munsterberg a German psychologist, pioneered in the field of industrial
psychology. He was especially interested in identifying the conditions that would
promote an individuals best work and in finding ways to influence workers to act in
accord with management interests
2. Mary Parker Follet, an early behaviorist, focused on group dynamics in her work
and writings. Her ideas on power sharing, conflict resolution, and the integration of
organizational systems were far in advance of their time
b. Hawthorne Studies.
1. Hawthorne Studies are a group of studies conducted at the Hawthorne plant of
the Western Electric Company during the late 1920s and early 1930s whose results
ultimately led to the human relations view of management
2. Hawthorne Effect is the possibility that individuals single d out for a study may
improve their performance simply because of the added attention they receive from
the researchers, rather than because of any specific factors being tested
Behavioral Viewpoint
c. Human Relations Movement
1. Abraham Maslow contributed to the human relations movement with
his theory of motivation. Maslow concluded that human needs go
beyond the most basic ones for food and shelter. The discovery of
the need for self-actualization (developing ones own potential) has
provided managers with new insights on how to motivate workers

2. Douglas McGregor influenced how managers think about and deal
with their employees. He maintained that managers who expect the
worst of their employees and treat them accordingly often find that
the employees respond in ways that reinforce these assumptions.
But managers who assume the best about their employees and give
them wide latitude to perform are generally rewarded with committed
and satisfied workers
Behavioral Viewpoint
McGregors Theory X and Theory Y:
Theory X Assumptions:
1. The average person dislikes work and will try to avoid it.
2. Most people need to be coerced, controlled, directed, and threatened with
punishment to get them to work toward organizational goals.
3. The average person wants to be directed, shuns responsibility, has little ambition,
and seeks security above all.
Theory Y Assumptions:
1. Most people do not in recently dislike work; the physical and mental effort
involved is as natural as play or rest.
2. People will exercise self-direction and self-control to reach goals to which they
are committed; external control and threat of punishment are not the only means
for ensuring effort toward goals.
3. Commitment to goals is a function of the rewards available, particularly rewards
that satisfy esteem and self-actualization needs.
4. When conditions are favorable, the average person learns not only to accept but
also to seek responsibility.
5. Many people have the capacity to exercise a high degree of creativity and
innovation in solving organizational problems.
6. The intellectual potential of most individuals is only partially utilized in most
organizations.
Behavioral Viewpoint
d. Behavioral Science Approach
Behavioral Science approach that emphasizes scientific research as the
basis for developing theories about human behavior in organizations that
can be use to establish practical guidelines for managers
4. Quantitative Management Viewpoint
a. Management Science
Management Science is an approach aimed at increasing decision
effectiveness through the use of sophisticated mathematical models and
statistical methods
b. Operations Management
Management Information System refers to the field of management that
focuses on designing and implementing computer-based information
systems for use by management
c. Management Information System
Management Information System refers to the field of management that
focuses on designing and implementing computer-based information
systems for use by management
Contemporary Viewpoint
a. Systems Theory
Systems Theory approach is based on the notion that
organizations can be visualized as systems
System is a set of interrelated parts that operate as a whole in
pursuit of common goals
In this section, we consider :
1. Major Components
Inputs are various human, material, financial, equipment, and
informational resources required to produce goods and services
Transformation Processes are the organizations managerial and
technological abilities that are applied to convert inputs
Outputs are the products, services and other outcomes produced by
the organization
Feedback is information about results and organizational status relative
to the environment
Contemporary Viewpoint
2. Open Versus Closed Systems
Open System is a system that operates in continual interaction with its
environment
Closed System is a system that does little or no interacting with its
environment and receives little feedback
3. Characteristics Of Open Systems
Negative Entropy is the ability of open systems to bring in new energy,
in the form of inputs and feedback from the environment, in order to
delay or arrest entropy
Synergy is the ability of the whole to equal more than the sum of its
parts
b. Contingency Theory
c. Emerging Views

Contemporary Viewpoint
PROMOTING INNOVATION: CONTRIBUTIONS OF THE MAJOR VIEWPOINTS

MAIN INNOVATIVE CONTRIBUTIONS OF MAJOR VIEWPOINTS
VIEWPOINT INNOVATIVE CONTRIBUTIONS
Classical
Highlights the need for a scientific approach to management.
Points out that work methods often can be improved through study.
Identifies a number of important principles that are useful in running organizations efficiently.
Emphasizes the potential importance of pay as a motivator.
Behavioral
Spotlights the managerial importance of such factors as communication, group dynamics, motivation, and
leadership.
Articulates practical applications of behavioral studies.
Draws on the findings of a number of disciplines such as management, psychology, sociology,
anthropology, and economics.
Highlights the importance of organization members as active human resources rather than as passive tools.
Quantitative
Provides quantitative aids to decision making.
Develops quantitative tools to assist in providing products and services.
Pioneers new computer-based information systems for management.
Contemporary
Emphasizes that organizations can be visualized as systems of interrelated parts.
Points out the potential importance of the environment and feedback to organizational success.
Argues that there into one best way to manage and identifies the circumstances or contingencies.
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