THE EVOLUTION OF

MANAGEMENT THEORY
 THE SCIENTIFIC MANAGEMENT
SCHOOL

A management approach formulated by

Frederick Winslow Taylor and others
between 1890 and 1930, that sought to
determine scientifically the best methods
for performing any task,and for
selecting,training and motivating workers.
 FREDERICK WINSLOW
TAYLOR
Principles :-
1. The development of a true science of
management,so that the best method for
performing each task could be determined.
2. The scientific selection worker, so that each
worker would be given responsibility for the
task for which he or she was best suited.
3. The scientific education and development of
the worker.
4. Intimate,friendly cooperation between
management and labour.
 DIFFERENTIAL RATE SYSTEM

This system is called as compensation

system.

This system involving the payment of higher

wages to more efficient workers
 HENRY LAURENCE GANTT

He come up with the idea, every worker who

finished a day’s assigned work load would
win a 50 percent bonus. Then he added a
second motivation. The supervisor would
earn a bonus if all the workers reached it.
This, Gantt reasoned, would spur supervisors
to train their workers to do a better job.
 LILLIAN MOLLER GILBRETH

 Gilbreth focus on motion activity &

fatigue and ways of promoting the
individual worker’s welfare.

By this study worker’s morale would

increase.
CLASSICAL ORGANIZATION
THEORY SCHOOL
 FAYOL’S 14 PRINCIPLES OF
MANAGEMENT

 DIVISION OF LABOUR – The more people specialize ,the more

efficiently they can perform their work,
 AUTHORITY –Managers must give orders so that they can get things
done.
 DISCIPLINE – Members in an organization need to respect the rules &
agreements that govern the organization .
 UNITY OF C0MMAND – Each employee must receive instructions
from only one person, to avoid conflicts in instructions & confutation of
authority.
 UNITY OF DIRECTION –Each group of
activity with same objective and one plan
( provides better co-ordination in organization)
 SUBORDINATION OF INDIVIDUAL
INTEREST TO THE COMMON GOOD –In
any undertaking, the interest of employees
should not take importance over the interest of
the organization as whole.
 REMUNERATION – Compensation for work
done should be fair and satisfactory to both
employees and employers.
 CENTRALIZATION-Decreasing the role of
subordinates in decision making is
centralization.
 HIERARCHY – Authority should move from
higher to lower. communication must have flow.
 ORDER – Materials and people should be in the
right place and right time.
 EQUITY –Managers should be kind and fair to
their subordinates..
 STABILITY OF STAFF –A high employee
turnover rate undermines the efficient functioning
of an organization.
 INITIATIVE –Subordinates should be given the
freedom to conceive and carry out their plans ,even
though some mistake may result.
 ESPRIT DE CROPS – Promoting team spirit will
build harmony & unity within the organization.
 BUREAUCRACY

Max Weber developed a theory of

bureaucratic management (Formal
structure).

Organization with legalized formal and

hierarchical structure.
 MARY PARKER FOLLETT

 “the art of getting things done through people”

 Direct contact between employees and managers helps organization avoid conflict
and misunderstandings.

 Follett’s Holistic model of control took into account not just individuals and
groups,but the effects of such environmental factors as politics,economics and
biology.
 ZONE OF INDIFFERENCE
(AREA OF ACCEPTANCE)
 According to Chester Irving Barnard and Simon, respectively,
inclination conditioning individuals to accept orders that fall within
a familiar range of responsibility or activity.
 According to Chester Irving Barnard individual & organizational
purposes could be kept in balance if managers understood an
employee’s Zone of Indifference (What the employee would do
without questioning the manager’s authority).
 THE BEHAVIORAL SCHOOL

A group of management scholar trained in

sociology, psychology, & related fields, who
use their diverse knowledge to propose
more effective ways to manage people in
organizations.
 HUMAN RELATIONS

 How manager interact with other employees

or recruits.
 When“Employee management” stimulates
more and better work, the organization has
effective human relations.when morale and
efficiency deteriorate,its human relation are
said to be ineffective.
THE HAWTHORNE EXPERIMENT

The possibility that workers who receive

special attention will perform better
simply because they received that
attention.
Given by:- Elton Mayo
 MASLOW THEORY
According to Abraham maslow, the needs
that people are motivated to satisfy fall
into a hierarchy.
Physical and safety needs are at the
bottom of the hierarchy, and at the top are
ego and self-actualizing needs.
In general maslow said lower level needs
must be satisfied before higher level
needs can be met.
 McGREGOR’S THEORY X AND
THEORY Y

Theory X : A traditional view of

motivation that holds that work is
distasteful to employees, who must be
motivated by force, money or praise.

Theory Y :The assumption that people

are inherently motivated to work and do a
good job.
 THE MANAGEMENT SCIENCE
SCHOOL

Operation research: mathematical

techniques for the modeling, analysis, and
solution of management problems. Also
called management science.

Management science school: approaching

management problems through the use of
mathematical techniques for their
modeling, analysis and solution.
 THE SYSTEM APPROACH

View of the organization as a unified,

directed system of interrelated parts.
Two types of system – open and closed
System theory tells us that the activity of any
segment of an organization affects,in varying
degrees,the activityof every other segment.
 Subsystems: Those parts making of whole system.
 Synergy: In organizational terms, synergy means that
departments that interact cooperatively are more productive
than they would be if they operated in isolation.
 Open system: the system that interact with its environment.
 Closed system: the system that do not interact with its
environment.
 System boundry: The boundry that separates each system
from its environment.it is rigid in a closed system,flexible in
an open system.
 Flow: components such as information, material and energy
that enter and leave a system.
 Feedback: The part of system control in which the results of
actions are returned to the individual, allowing work
procedure to be analyzed and corrected .
THE FLOW AND FEEDBACK IN AN OPEN
SYSTEM
External
environment

Output
Input
Transformation or (Product)
(resources)
conversion process Goods
Raw material
service

feedback
THE CONTINGENCY APPROACH
 The view that the management technique that best
contributes to the attainment of organizational goals
might vary in different types of situations or
circumstances
 According to the contingency approach, the manager’s
task is to identify which technique will, in a particular
situation, under particular circumstances, and at a
particular time, best contribute to the attainment of
management goal.
 Take action as per the situation.
 DYNAMIC ENGAGEMENT

The view that time and human

relationships are forcing management to
rethink traditional approaches in the face of
constant, rapid change.
Dynamic – the opposite of static – implies
continuous change,growth,and activity.
Engagement – the opposite of detachment
– implies intense involvement with others.
 REENGINEERING

This occurs when an organization

conducts a significant reassessment of
what it is all about.
THANK YOU