HISTORICAL ROOTS OF MANAGEMENT

1. THE HISTORICAL ROOTS OF
CONTEMPORARY MANAGEMENT
PRACTICES
CHAPTER 1
Dr. DEVIKA VASHISHT
ASSISTANT PROFESSOR
IBS GURGAON

2. ROLE OF THEORY AND HISTORY IN
MANAGEMENT
Why Theory: Conceptual framework for organizing
knowledge and providing a blueprint for action.
Why History: Awareness and understanding of
important historical developments – can help
managers avoid the mistakes of others.

3. EARLY APPROACHES TO
MANAGEMENT
NAMES PERIOD CONTRIBUTION
Robert Owen 1771-1858 Legislative reforms to improve
working conditions of labor
Charles Babbage 1792-1871 Concept of division of labor &
profit sharing plan
Andrew Ure 1778-1857
Advocated the study of
managementCharles Dupin 1784-1873
Henry R. Towne 1844-1924 Management as separate field of
study and importance of business
skills to run a business

4. MAJOR CLASSIFICATION OF
MANAGEMENT APPROACHES AND
THEIR CONTRIBUTORS

5. CLASSIFICATION OF MANAGEMENT APPROACHES MAJOR CONTRIBUTORS
CLASSICAL
APPROACH
Scientific Management Frederick W. Taylor, Frank Gilberth &
Lillian Gilberth and Henry Gantt
Bureaucratic Management Max Weber
Administrative Management Henri Fayol
BEHAVIORAL
APPROACH
Group Influences Mary Parker Follet
Hawthorne Studies Elton Mayo
Maslow’s Needs Theory Abraham Maslow
Theory X and Theory Y Douglas McGregor
Model I versus Model II Values Chris Argyris
QUANTITATIVE
APPROACH
Management Science -
Operations Management -
Management Information System -
MODERN
APPROACHES
The Systems Theory -
Contingency Theory -
Emerging Approaches: Theory Z and
Quality Management
William Ouchi

6. STEPS IN SCIENTIFIC MANAGEMENT

7. SCIENTIFIC MANAGEMENT
TAYLOR’ s WORK
 Scientific way of
doing work
 Training and
preparing
 Establishing
harmonious
relations
 Piece rate incentive
system
 Time and motion
study
FRANK GILBERTH & LILLIAN
GILBERTH’s WORK
 Gave Motion Study:
Sequence and
minimum no. of
motions needed to
complete a task
 Gave THERBLIGS
17 motions to
analyze the exact
elements of
worker’s hand
movements
Task and
bonus system
Gantt Chart
GANTT’ s
WORK

8. LIMITATIONS OF SCIENTIFIC
MANAGEMENT
 Do not focus on management from a manager’s point of view
 Overlooked social needs and overemphasized physical and
economic needs
 Ignored the human desire for job satisfaction

9. BUREAUCRATIC MANAGEMENT
 Bureaucracy: Highly structured, formalized and impersonal
organization
 Characteristics:
 Work specialization and division of labor
 Abstract rules and regulations
 Impersonality of managers
 Hierarchy of organization structure
 Limitations:
Destroy individual creativity
No flexibility
Do not deal with problems of leadership, motivation, power
or informal relations

10. ADMINISTRATIVE MANAGEMENT

11. 14 PRINCIPLES OF MANAGEMENT
1. Division of work : Work specialization
2. Authority and responsibility: Right to give orders and power of exact obedience
3. Discipline: Obedience to authority, adherence to rules and regulations
4. Unity of command: Only one superior
5. Unity of direction: One plan under one supervisor
6. Subordination of individual interest to general interest
7. Remuneration: Fair and based on criteria
8. Centralization: Based on authority distribution
9. Scalar chain: Communication path
10. Order: Sequence
11. Equity: Fair
12. Stability of tenure of personnel
13. Initiative: Give suggestions for better work practices
14. Espirit de corps: A sense of union

12. BEHAVIORAL APPROACH
NAMES CONTRIBUTION
MARY PARKER Group Influence (Power with group) , Power sharing and
integration ( Decentralization)
ELTON MAYO Influence of group and workplace culture on job
performance
ABRAHAM MASLOW Hierarchy of needs – Physical, Safety, Social, Self esteem
and Self centralization
DOUGLAS
McGREGOR
Theory X: Dislike work, coerced with punishment, close
direction, avoid responsibility, little ambition
Theory Y: Opposite of Theory X people
CHRIS AGRYRIS Divided organizations based on employees’ set of values

13. QUANTITATIVE
APPROACH
Management Science: Use of mathematical models and
statistical methods for decision making
Operations Management: Management of production
process
Management Information System: MIS converts raw
data into needed information
MODERN
APPROACHES
The Systems Theory: Inputs  Transformation
Process  Outputs
Contingency Theory: Situational Theory
Emerging Approaches: Theory Z (Combination of all
good American and Japanese management practices)
and Quality Management (Management of efforts that
bring out continuous improvement of quality)