Pre Historic Era
• The practice of management has existed since
the earliest time.
Mesopotamia, Greece, and Rome
• Management practice in business, government
and the church remained quite stable through
the centuries until the mid 18th century.
• Substitution of machine power for man power.
• Mass production
• Improved transportation and communication
• Centralization of production activities.
• Establishment of new employer employee
• Short supply of skilled labor.
• Losses, Wastage
• Difficult to maintain efficiency and
SCIENCETIFIC MANAGEMENT THEORY
• Focuses on worker and machine relationships.
• increasing the efficiency of production processes.
• concerned with creating jobs that economize on
time, human energy, and other productive
• F.W.Taylor (father of scientific management)
• Frank and Lillian Gilbreth
• Henry L. Gantt
FREDERICK TAYLOR (1856-1915)
• He was finding more efficient methods and procedures
for coordination and controlling work.
• Principles of Scientific Management in which he
proposed work methods designed to increase worker
• Taylor broke the job down into its smallest constituent
movements, timing each one with a stopwatch. The
job was redesigned with a reduced number of motions
as well as effort and the risk of error
Four basic principles for increasing
1. The development of a true science for each
2. The scientific selection, training, and
development of workers
3. Intimate friendly cooperation with the
workers to ensure work is carried out in a
4. The division of work and responsibility
between mgt. and the workers.
He believed that
• There is a best machine for each work.
• It is a best working method by which the workers should undertake
• All work process should be analyzed into separate tasks by scientific
• Each job was broken into component parts, each part timed and part
rearranged into most efficient method of working.
• Then it was possible to find the one best method to perform each
• Employees can be motivated by highest possible wages through
working in the most efficient and productive way.
• Emphasis on fair day work.(differential rate systems).
• He was a believer in the rational economic needs component of
• Emphasis on optimizing the level of worker
• Workers require little skills. So they were found boring
• Workers retained unfriendly.
• Workers were regarded as machines and from a
engineering point of view.
• One best method is not always the best method for
• Reduction of some physical movements is not always
beneficial and some wasteful movements are essential
to maintaing the overall rhythm of the work.
• Operation managers gave a dangerous high
level of power.
• Workers were regarded as rational economic
being motivated only by monitory incentives.
• They were viewed as isolated individuals
handled almost in the same way as machines.
• He did not so much concern complexity of
individuals and human behavior, importance
of individuals own feelings, group working.
FRANK (1868-1924) AND LILLIAN
• Fatigue and motion studies to finding the
ways of promoting the individual workers
• Using motions cameras found the most
economical motions and then upgrade
performance and reduce fatigue.
• Raise worker moral
HENRY L GANTT (1861-1919)
• Reconsider the Taylors incentive system
• Worker who finished the day’s assignment
would win a 50% bonus.
• Supervisor would earn a bonus for each
worker who reach the daily standard, and
extra bonus if all the workers reached it.
• Workers progress was rated publicly.
• Recorded and displayed in charts.
CLASSICAL ORGANIZATION THEORY
• Scientific mgt. deals with the job of the individual
workers classical organizational theory focuses on
managing the total organization as a whole.
• Henry Fayol
• Max Webber.
• Chester I Bernard.
HENRI FAYOL (1841--1925),
• Father of Modern Management, a French industrialist
who developed a framework for studying
• Wrote the book General and Industrial Management.
1. Technical – producing and manufacturing
2. Commercial – buying and selling
3. Financial – acquiring using capital
4. Security – protecting employees and property
5. Accounting – recording transactions
• Division of labour
The more people specialize the more efficiently they can perform their
Managers have the right and the authority to give orders to get things
Members of an organization need to respect the rules and regulations
that governed by the organization.
• Unity of commands
Each employee should receive instructions from only one supervisor.
• Unity of direction
Operations with similar objectives should be directed by one manager
using one plan.
• Subordination of individual interests to common goal.
Individual interests should not be placed before the organizational
Should be fair to both employees and the organization
Power and authority should be centralized to the upper level to the possible
• Scalar Chain.
The chain of authority should extent from top to bottom.
Human and materials should be placed at the required place at required
Managers should be fair and kind to subordinate.
Employees should be given to enough freedom for initiative
• Espirit De Corps
Teamwork, team spirit and sense of unity and togetherness should be
fostered and maintained.
BUREAUCRATIC MANAGEMENT -
MAX WEBBER (1864-1920)
• 1. Division of labour
• 2. Authority and responsibility are clearly defined
• 3. Rules and regulations.
• 4. Procedures to deal with various situations.
• 5. Selections are based purely on qualifications.
• 6. Promotions are based on seniority and merits.
• 7. Separation of official work from personal work.
• 8. Extensive record keeping.
CHESTER BARNARD (1886-1961)
• He developed the concepts of strategic
planning and the acceptance theory of
• Three top functions of the executive
(l) establish and maintain an effective
(2) hire and retain effective personnel, and
(3) motivate those personnel.
Acceptance Theory of Authority
• Managers only have as much authority as
employees allow them to have.
• Barnard believed that each person has a zone
of indifference or a range within each
individual in which he or she would willingly
accept orders without consciously questioning
HUMAN RELATION APPROACH /
• Elton Mayo
• Abraham Maslow
• Douglas McGregor
ELTON MAYO 1924 AND 1927
• Experiment in illumination.
• Relay Assembly test room Experiment.
Wage, rest periods, work day and work week,
Hawthorne effect-possibility that workers who receive
special attention will perform better.
• Mass Interviewing.
to determine worker attitudes and sentiments
on supervision and general conditions of
found that the work group as a whole
determine the production output of individual
group members by enforcing an informal
• Bank Wiring Room Experiment.
This phase was to determine and analysis of
social organizations at work.
concluded that the work group set their fair
rates for each of its members.
wage incentive plan was less important in
determining individual workers output, than
the group acceptance and security.
• After the hawthorn experiments theorists
tried to identify the way to enhance
effectiveness and efficiency by satisfying the
human needs and motivating them for higher
level of efficiency and effectiveness.
• Maslow’s Hierarchy of Needs
• McGregor’s Theory X and theory Y
• Hertzberg’s two factor theory
Management Science Approach
• After the World war II
• Approaching management problems through
the use of mathematical techniques
• To recognize organizations as a;
• Complex, integrated system of inter-related
• The systems theory looks at the organization
as a whole, examining all relevant
organizational variables simultaneously.
• Different and changing situations require
managers to use different approaches and
techniques. Because organizations are
different, they face different circumstances
(contingencies) and, thus may require
different ways of managing.
TOTAL QUALITY MANANGEMENT
• Total Quality Management (TQM) is an
organization wide strategy that focuses on
achieving or exceeding customer expectations.
• An organizational cultural commitment to
satisfy customers through the use of an
integrated system of tools, techniques and
Deming’s 14 Points for Managers
• Create constancy of purpose
• Adopt a new philosophy
• Cease dependence on inspection to achieve
• End the practice of awarding business on the
basis of price tag.
• Improve constantly and forever the system of
• Institute training on the job.
• Institute supervision
• Drive out fear
• Break down the barriers between
• Eliminate slogans, targets for the work force
• Eliminate work standards that prescribe
• Remove barriers to pride of workmanship
• Institute a vigorous program of education and
• Put everybody in the company to work to
accomplish the transformation
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