Historical Background of

Management/ Major
Approaches To
Management

Classical Approaches

Scientific

General
Administrati
ve

Panel 1: The Historical Perspective

Classical Viewpoint
Emphasis on ways to manage
work more efficiently

Scientific Management
Emphasized scientific study of work
methods to improve productivity of
individual workers
Proponents: Frederick W. Taylor
Frank & Lillian Gilbreth

Administrative
Management
Concerned with managing the
entire organization
Proponents: Henry Taylor
Max Weber

Behavioral Viewpoint
Emphasis on importance of
understanding human behavior &
motivating & encouraging
employees toward achievement

Quantitative Viewpoint
Applies quantitative
techniques to management

Early Behaviorists

Management Science

Proponents: Hugo Munsterberg,

Elton Mayo

Focuses on using
mathematics to aid in
problem solving and
decision making

Human Relations Movement

Proposed better human relations
could increase worker productivity
Proponents: Abraham Maslow
Douglas McGregor

Behavioral science approach

Relies on scientific research for
developments theory to provide
practical manager tools

Operations Management
Focuses on managing the
production and delivery of an
organizations products or
services more effectively

Scientific Management
Scientific Management:
emphasized the scientific study of
work methods to improve the
productivity of individual workers

Two of its chief proponents were

Frederick W. Taylor, & Frank and Lillian Gilbreth
4

Scientific Management
Credit for Scientific Management goes to
Frederick Taylor who was hired by Midvale
Steel company in the US in 1878.
Taylor discovered that production and pay
were poor ,inefficiency and waste were
prevalent ,and most companies had unused
potential .
He concluded that management decisions
were unsystematic and no efforts were made
to determine the best means of production

Scientific Management
The Taylor introduced Scientific
Management (he is called the Father
of Scientific Management ). He
recommended the application of
scientific methods to analyze work
and to determine the methods to
complete the tasks efficiently

Principles of Scientific
Management
Workers are essentially economic
beings
Workers should be developed to their
maximum potential
Competitive pay system
Cooperation between managers and
workers
Organizational and individual goals
should be compatible

Scientific management

udy jobs systematically with a view to improving

he way tasks are performed
elect the best employees for the various jobs.
ain the employees in the most efficient methods
ffer incentives (higher wages) to the most able
mployees and use piece-rate system of payment to
ncourage greater effort.
se rest pauses to combat fatigue
ntrust to supervisor the task of ensuring that
mployees are using the prescribed methods
8

Scientific Management

The ideas of scientific

Management dramatically
increased productivity across
all industries ,and they are
still important today.

Major managerial practices that

emerged from Taylors approach
Piece-rate incentive system
Time and motion study

FRANK and LILLIAN

GILBRETH
Frank Gilbreth is considered as the
father of motion study
Lillian Gilbreth was associated with the
research pertaining to motion study
Motion study involves finding out the
best sequence and minimum number of
motions needed to complete a task

HENRY LAURENCE GANTT

Was a close associate of Taylor
Developed the Gantt chart

Gantt Chart
AGantt chartis a horizontal barchart developed as
a production control tool in 1917 by Henry L.Gantt,
an American engineer and social scientist. Frequently
used in project management, aGantt chartprovides
a graphical illustration of a schedule that helps to
plan, coordinate, and track specific tasks in a project.

LIMITATIONS OF SCIENTIFIC
MANAGEMENT
It revolves round problems at the
operational level
The proponents were of the opinion that
people were motivated primarily by the
desire for material gain
Scientific management theorists ignored
the human desire for job satisfaction

Administrative Management
Administrative
Management: concerned
with managing the total
organization

Among the pioneering theorists were

Henry Fayol & Max Weber
15

Henry Fayol and the Functions

of Management
Henry Fayol was the first to systematize management
management behavior he was the first to identify the major
functions of management: planning, organizing, leading,
controlling, as well as coordinating
Planning

Organizing

You set goals and

decide how to
achieve them

You arrange tasks,

people, & other
resources to
accomplish the work

Controlling

Leading

You monitor performance,

compare it with goals and
take corrective action as
needed

You motivate, direct &

otherwise influence people
to work hard to achieve
the organizations goals
16

Fayol's 14 Principles of
Management
1. Division of labor-Divide work into
specialized tasks and assign
responsibilities to specific individuals.
2. Authority -Delegate authority along
with responsibility
3. Discipline Make expectations clear
and punish violators
17

Fayol's 14 Principles of
Management
4-Unity of commandEach employee
has one and only one boss
5-Unity of Direction- Employees
efforts should be focused on
achieving organizations
direction.
6-Subordination of Individual
interest to the general interest
When at work, only work things
should be pursued or thought

Fayol's 14 Principles of
Management
RemunerationEmployees receive fair
payment for services,
Centralization- Decisions are made from
the top.
Scalar Chain(line of authority). Formal
chain of command running from top to
bottom of the organization, like military
Order-All materials and personnel have a
prescribed place, and they must remain
there.

Fayol's 14 Principles of
Management
Equity-Equality of treatment
Stability and tenure of
personnel-Promote employee
loyalty and longevity
Initiative-Thinking out a plan and do
what it takes to make it happen.

Fayol's 14 Principles of
Management
Esprit de corps-Promote a unity of
interest between employees and
management

Max Weber & the Rationality

of Bureaucracy
: Weber, a bureaucracy(Successful
To
implement the actions of an organization of
any size in achieving its purpose.) was a
rational, efficient ideal organization based
on principles of logiche felt good
organizations should have five bureaucratic
features

22

Bureaucratic Principles
Written rules

System of taskA Bureaucracy Hierarchy of

authority
relationships should have

Fair evaluation
and reward

Max Weber & the Rationality

of Bureaucracy

Labor is divided with clear definitions of

authority and responsibility.
Positions are organized in a hierarchy of
authority ,with each position under the
authority of a higher one

Max Weber & the Rationality

of Bureaucracy

Rules and regulations determine and

standardize behavior
Administrative acts and decisions are
recorded in writing
Management is separate from ownership
in any organization.

Classical bureaucracy
Max Weber, 1947
Hierarchy of authority
Rights and duties are attached to the
various positions
Division of labour
Rules and procedures
Documentation in which info is recorded
in written form
Technical competence
Separation of ownership from control

26

The Problem with the Classical Viewpoint

The classical viewpoint
tends to be too
mechanistic: it tends
to view humans as
cogs within a
machine, not taking
into account the
importance of human
needs
27

Behavioral Management Theory

Thhe

Human
Relations
Manageme
nt

Human
Resource
Perspectiv
e

Behavioral
Science
Approach

Human Relations Management

Hawthorne Studies

Hawthorne studies was conducted at

the western Electric Company in the
US between 1924-1932
Elton Mayo was a professor of
Industrial Research at the Harvard
School of Business Administration
He is called the Father of human
relations movement .
29

Elton Mayo & the Supposed Hawthorne Effect

Elton Mayo and his colleagues conducted

studies at Western Electrics Hawthorne
Plant and began with an investigation to
see if different lighting affected workers
productivity

Hawthorne studies
The Hawthorne project involved three
sets of studies

Illuminatio
n Studies

The Relay
Assembly Room
Study

The Bank
Wiring
Room

Illumination Studies
Illumination studies constituted the
first set of experiments and took
place between 1924 and 1927
Experiment -Lighting was decreased
Result-The researches concluded
that factors other than lighting were
at work

Experiment
The first study was conducted by a
group of engineers seeking to
determine the relationship of lighting
levels to worker productivity.
Surprisingly enough, they discovered
that worker productivity increased as
the lighting levels decreased

The Relay Assembly Room

study
A few years later, a second group of
experiments began. Harvard researchers
Mayo and F. J. Roethlisberger supervised a
group of five women in a bank wiring room.
They gave the women special privileges, such
as the right to leave their workstations
without permission, take rest periods, enjoy
free lunches, and have variations in pay
levels and workdays. This experiment also
resulted in significantly increased rates of
productivity.

The Bank Wiring Room

Study
For this study a group of 14men who
wired telephone banks was observed in
a standard shop condition
An observer was stationed in the room
with instructions to take continuous
notes on the workers actions .
The observer were not allowed to give
orders or to get involved in
conversations with the workers .

The Bank wiring Room

Study
The researches concluded that the
behavioral norms set by the work
group had a powerful influence over
the productivity of the group.
The power of the peer group and the
importance of group influence on
individual behavior and productivity
were confirmed in the bank wiring
room.

Human Resource
Approach
The Human relations approach
highlighted the impact of behavior on
performance .Interpersonal behavior
has its impact on satisfaction which
in turn may lead to improved
performance .
Abraham Maslow and Douglas Ac
Greg or .Their contribution form the
human resource approach

Maslow Hierarchy Of Needs

Self-Actualization
Esteem Needs
Social Needs
Safety Needs
Physiological Needs

Behavioral Science
Approach
Psychologist ,sociologists and others
began studying people at work .The
behavioral science approach believes
that an individual is motivated to
work for many reasons in addition to
making money and forming
interpersonal relationships.

Behavioral Science
Approach
The principals of behavioral science
approach are being practiced in
every organization and behavioral
science as a course more popularly
known as Organization Behavior.

Panel 2.2: The contemporary perspective:

Three Viewpoints
The System Viewpoint

The Contingency Viewpoint

Regards the organization as a

system of interrelated parts that
operate together to achieve a
common purpose

Emphasizes that a managers approach

should vary according toI.e. be
contingent onthe individual and
environmental situation

The Quality Management

Viewpoints
Three approaches

Quality Control

Quality Assurance

Total Quality Management

Strategy for minimizing errors by

managing each state of
production

Focuses on the performance of

workers urging employees to
strive for zero defects

Comprehensive approach
dedicated to continuous quality
improvement, training, and
customer satisfaction

Proponent: Walter Stewart

Proponents: W. Edward Deming

Joseph M. Juran
41

Systems Approach (6070s)

A system is set of interrelated and
interdependent parts arranged in a
manner that produces a unified whole

42

Open and Closed Systems

Open System
continually interacts
with its environment

Closed System has

little interaction with its
environment; it receives
very little feedback from
the outside

43

The Systems Viewpoint

The Systems Viewpoint
regards the organization as a
system of interrelated parts
By adopting this perspective
you can look at your
organization in two ways
1. A collection of subsystems
parts making up the whole
system
2. A part of the larger environment

44

The Four Parts of a System

Inputs
The people, money,
information, equipment,
and materials required
to produce and
organizations goods or
services

Transformational
Processes

The organizations capabilities

in management and technology
that are applied to converting
inputs to outputs

Outputs
The products, services,
profits, losses, employee
satisfaction or
discontent, and the like
that are produced by the
organization

Feedback
Information about the
reaction of the
environment to the
outputs that affect the
inputs
45

Contingency approach
The contingency
approach sometimes
called the situational
approach says that
organizations are
different ,face different
situations ,and require
46

Contingency approach
A good way to describe contingency
If this is the way my situation is then
this is the best way for me to
manage in this situation
This approach is intuitively logical
because organizations and even
units within the same organization
differ-in terms of size ,goals , work
activities.
47

The Contemporary Perspective: The

Contingency Viewpoint
The Contingency
Viewpoint

emphasizes that a
managers approach
should vary according
tothat is, be
contingent onthe
individual and the
environmental situation

48

Contingency approach
The Primary value of the contingency
approach is that it stresses that there
are no simplistic or universal rules for
managers to follow

Quantitative Approach
The Quantitative approach evolved
from mathematical and statistical
solutions developed for military
problems during word war II.
After the war was over , many of
these techniques used for military
problems were applied to business

Quantitative Approach
One group of military
officers ,nicknamed the
whiz kids joined Ford Motor
Company in the mid
-1940s and immediately
began using statistical
methods and Quantitative

The Contemporary Perspective:

The Quality Management Viewpoint

The Quality
Management
Viewpoint includes
quality control, quality
assurance, and total
quality management

52

Total Quality Management:

Creating an Organization
Dedicated to Continuous Improvement

53

 Total Quality Management is a

comprehensive approachled by top
managers and supported throughout the
organizationdedicated to continuous
quality improvement, training and
customer satisfaction

Four Components of TQM:

1. Make Continuous Improvement a Priority
2. Get Every Employee Involved
3. Listen to and Learn from Customers and
Employees
4. Use Accurate Standards to Identify and
Eliminate Problems