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OMBC 101:
PRINCIPLES & PRACTICES OF MANAGEMENT

Unit 13:
Evolutions of management thoughts

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EVOLUTION OF
MANAGEMENT
THOUGHTS

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 ENVIRONMENT FACTORS

• The aspects of culture that influence norms

SOCIAL and values
INFLUENCE

• The concept to availability, production, and

distribution of resources within a society
ECONOMIC
INFLUENCE

• The impact of political institutions on

individuals and organisations
POLITICAL
INFLUENCE

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EVOLUTION OF MANAGEMENT THOUGHT

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 DIFFERENT APPROACHES

• SCIENTIFIC
Classical • ADMINISTRATIVE
• BUREAUCRATIC

• GROUP INFLUENCES
• MASLOW’S NEED THEORY
Behavioral • THEORY X AND THEORY Y
• HAWTHORNE STUDIES

• SYSTEM
Modern • CONTINGENCY
• THEORY Z AND QUALITY MANAGEMENT

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 CLASSICAL APPROACH

Focuses on the
individual worker’s
Focuses on the
productivity
overall
organizational
system

Focuses on the
functions of
management

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 SCIENTIFIC MANAGEMENT: Taylor

• develop a scientific approach for each element of one’s work

FOUR • scientifically select, train, teach and develop each worker
• cooperate with workers to ensure that jobs match plans and
PRINCIPLES principles
• ensure appropriate division of labor

• Task Performance
THREE AREAS OF • Supervision
FOCUS • Motivation

TWO MANAGERIAL • Piece-rate-incentive system

• Time and motion study
PRACTICES

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 SCIENTIFIC MANAGEMENT

Henry Gantt and The Gilberths

HENRY FRANK LILLIAN

GANTT GILBERTH GILBERTH

• Most famous for • Specialized in time and A strong proponent

developing the motion studies to of better working
Gantt chart in the determine the most conditions as a
1910s. efficient way to perform means of improving
tasks.
• Implemented a • efficiency and
wage incentive • Used motion pictures of productivity.
programme bricklayers to identified
work elements (therbligs)
such as lifting and grasping

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 BUREAUCRATIC MANAGEMENT

Focuses on the overall organizational system.

Need for organization's to function on a rational basis

Bureaucratic management is based upon:

• Firm rules
• Policies and procedures
• A fixed hierarchy
• A clear division of labor

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 BUREAUCRATIC MANAGEMENT: Weber

MAX WEBER
• A German sociologist and historian who envisioned a system of
management
• “a bureaucracy is a highly structured, formalized and impersonal
organization.”

FIVE PRINCIPLES
• Division of labor
• Hierarchy of authority
• Rules and procedures
• Impersonality
• Employee selection and promotion

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 ADMINISTRATIVE MANAGEMENT

Five management functions

Focused on principles
that could be used by • Planning
managers to coordinate • Organizing
the internal activities of • Commanding
organizations • Coordinating
• Controlling

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 FAYOL’s PRINCIPLE OF MANAGEMENT

1. Division of work 8. Centralization

2. Authority and responsibility 9. Scalar chain

3. Discipline 10. Order

4. Unity of command 11. Equity

5. Unity of direction 12. Stability

6. Subordination of individual interest

13. Initiative
to the common good

7. Remuneration of personnel 14. Esprit de corps

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 BEHAVIOURAL APPROACH

The behavioural school of

management emphasized
what the classical theorists Personalities
ignored.
• Mary Parker Follett
• Douglas McGregor
• Chester Barnard
Acknowledged the importance • Elton Mayo
of human behavior in shaping
management style.

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HIERARCHY’s HUMAN NEEDS

SELF ACTUALIZATI ON

NEED FOR SELF ESTEEM

NEED FOR SOCIAL RELATIONS

NEED FOR SECURITY

PHYSIOLOGICAL NEEDS

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 FOLLETT ON EFFECTIVE WORK GROUPS

FOUR PRINCIPLES OF COORDINATION

Coordination
Coordination
requires that Coordination is
must address all Coordination is a
people be in essential during
factors and continuous,
direct contact the initial stages
phases of any ongoing process.
with one of any endeavor.
endeavor.
another.

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 McGregor's PROPOSED STYLES

THEORY X THEORY Y
• Most people dislike work and • Work is a natural activity
they avoid it when they can. like play or rest.
• Coerced and threatened with • Capable of self direction
punishment before they work. and self control.
• Avoid responsibility and have little • Committed to organizational
ambition. objectives.

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 ELTON MAYO’s VIEW

Aimed to understand how psychological and social processes interact with the work
situation to influence performance

Work represents the transition from scientific management to the early human
relations movement.

Emphasized on workers themselves and needs to belong to a group

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 HAWTHORNE EXPERIMENTS (1924-1932)

“HAWTHORNE EFFECT”

• Workers perform and react differently when researchers observe them.

• Productivity increased because attention was paid to the workers in the experiment.
• Phenomenon whereby individual or group performance is influenced by human
behavior factors

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 CONTINGENCY THEORY

• There is no “One Best Way” to manage all the situations.

• Also known as “Situational Theory”.
• Developed by managers, consultants, and researchers who tried to apply
the concepts depending on various Internal and External factors

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 MERGER
COMPONENTS
INTO
CONTINGENCY
PERSPECTIVE

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THANK YOU
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