Especially for MS students who study management

1. Provincial Health Services Academy, KPK
Management
Evolution of Management Theories:
Dr. Amin Ullah, PhD
1–1

2. Dr. Amin Ullah, PhD 1–2
1. Understand the major influences on the
development of management thought.
2. Identify the five major perspectives of management
thought that have evolved over the years.
3. Know the different subfields that exist in the classical
perspective of management and discuss the central
focus of each.
4. Know the theories of the major contributors to the
behavioral perspective of management.
5. Know the characteristics of the quantitative
perspective of management.
LEARNING OBJECTIVES
After completion of this session, the learners should
be able to:

3. 1–3
LEARNING OBJECTIVES (cont’d)
6. Know the systems perspective building blocks and
their interactions.
7. Understand the nature of the contingency
perspective of management.
8. Know the future issues that will affect the further
development of management thought.
When you have finished studying this chapter, you
should be able to:
Dr. Amin ullah, PhD

4. 1–4
Environmental Factors Influencing
Management Thought
• Economic Influences
 The availability, production, and distribution of
resources within a society.
• Social Influences
 The aspects of a culture that influence interpersonal
relationships.
• Political Influences
 The impact of political institutions on individuals and
organizations.
Dr. Aminullah, PhD

5. 1–5
Environmental Factors Influencing
Management Thought (cont’d)
• Technological Influences
 The advances and refinements in any of the devices
that are used in conjunction with conducting business.
• Global Influences
 The pressures to improve quality, productivity, and
costs as organizations attempt to compete in the
worldwide marketplace.
Dr. Aminullah, PhD

6. 1–6
Figure 2.1 Chronological Development of Management Perspectives
Dr. Aminullah, PhD

7. 1. THE MANAGEMENT THEORIES:
A: Classical View Point.
A-1 Scientific Management.
A-2 Administrative Management.
A-3 Bureaucratic Management.
B: Behavioral View Point:
B-1 Mary Parker Follett:
B-2 Hawthorne studies— Elto Mayo.
B-3 Human Relation Movement: Douglas
McGregor.
C: Quantitative View Point:
C.1 Management Science or Operation Research:
C.2 Operations Management & MIS.
D: Contemporary View Point:
D.1 Systems Perspective.
D.2 The Contingency Perspective.
. 1–7

8. 1–8
Adam Smith (1723-1790)
Realized that job specialization
resulted in much higher efficiency and
productivity
Breaking down the total job allowed for
the division of labor in which workers
became very skilled at their specific tasks.
Job Specialization

9. 1–9
Figure 2.2 Subfields of the Classical Perspective on Management
Focuses on the
individual worker’s
productivity
Focuses on the
functions of
management
Focuses on
the overall
organizational
system
Dr. Aminullah, PhD

10. 1–10
A-1 Scientific Management:Fredarick Taylor
• Frederick W. Taylor (1856-1915)
 Father of “Scientific Management.
 attempted to define “the one best way” to perform every task
through systematic study and other scientific methods.
 believed that improved management practices lead to
improved productivity.
 Three areas of focus:
 Task Performance
 Supervision
 Motivation
Dr. Aminullah, PhD

11. 1–11
Task Performance
• Scientific management incorporates basic
expectations of management, including:
 Development of work standards
 Selection of workers
 Training of workers
 Support of workers
Dr. Aminullah, PhD

12. 1–12
Supervision
• Taylor felt that a single supervisor could not be
an expert at all tasks.
 As a result, each first-level supervisor should be
responsible only workers who perform a common
function familiar to the supervisor.
 This became known as “Functional Foremanship.”
Dr. Aminullah, PhD

13. 1–13
Motivation
• Taylor believed money was the way to motivate
workers to their fullest capabilities.
 He advocated a piecework system in which worker’s
pay was tied to their output.
Workers who met a standard level of production
were paid a standard wage rate.
Workers whose production exceeded the standard
were paid at a higher rate for all of their production
output.
Dr. Aminullah, PhD

14. 1–14
Scientific Management: The Gilbreths
• Frank Gilbreth (1878-1922)
 Specialized in time and motion studies to determine
the most efficient way to perform tasks.
 Used motion pictures of bricklayers to identified work
elements (therbligs) such as lifting and grasping.
• Lillian Gilbreth
 A strong proponent of better working conditions as a
means of improving efficiency and productivity.
Favored standard days with scheduled lunch
breaks and rest periods for workers.
Strived for removal of unsafe working conditions
and the abolition of child labor.
Dr. Aminullah, PhD

15. Scientific Mgt: Henry Gantt: (1861-1919)
• Taylor’s close associate who developed “Gantt
Chart” –
- A graphical aid to Planning, Scheduling and
Controlling.
- Gantt emphasized on incentives for Workers
and Supervisors for extra production.
© 2007 Thomson/South-Western. All rights reserved. 2–15

16. 1–16
A-2 Administrative Management: Fayol
• Henri Fayol (1841–1925)
 First recognized that successful managers had to
understand the basic managerial functions.
 Developed a set of 14 general principles of
management.
 Fayol’s managerial functions of planning, leading,
organizing and controlling are routinely used in
modern organizations.
Dr. Aminullah, PhD

17. 1–17
Table 2.1 Fayol’s General Principles of Management
1. Division of work
2. Authority and
responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of
individual interest to the
common good
7. Remuneration of
personnel
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability
13. Initiative
14. Esprit de corps
.
Dr. Aminullah, PhD

18. 1–18
A-2 Administrative Mgt: Chester Barnard.
Developed Acceptance Theory of Authority.
• He argued that it is the employees to decide
whether or not accept Orders and directions
from above:
• Employees are more willing to accept direction
and orders if they understand the
communication, actions are in line with their
needs and that are physically and mentally able
to comply.
Dr. Aminullah, PhD

19. 1–19
A-3 Bureaucratic Management
• Focuses on the overall organizational system.
• Bureaucratic management is based upon:
 Formal rules and regulations
 Policies and procedures
 A well defined hierarchy
 A clear division of labor - Specialization of Labour.
 Career advancement based on merit.
 Impersonality- Uniformly application of Rules.
Dr. Aminullah, PhD

20. 1–20
Bureaucratic Management: Weber
• Max Weber (1864–1920)
 A German sociologist and historian who envisioned a
system of management that would be based upon
impersonal and rational behavior—the approach to
management now referred to as “bureaucracy.”
 Division of labor
 Hierarchy of authority
 Rules and procedures
 Impersonality
 Employee selection and promotion
Dr. Aminullah, PhD

21. 1–21
Weber’s Forms of Authority
• Traditional authority
 Subordinate obedience based upon custom or
tradition (e.g., kings, queens, chiefs).
• Charismatic authority
 Subordinates voluntarily comply with a leader
because of his or her special personal qualities or
abilities (e.g., Martin Luther King, Gandhi).
• Rational-legal authority
 Subordinate obedience based upon the position held
by superiors within the organization (e.g., police
officers, executives, supervisors).
Dr. Aminullah, PhD

22. 1–22
Table 2.2 Weber’s Three Types of Authority
Type Description
Traditional Subordinate obedience based upon
custom or tradition
Charismatic Subordinate obedience based upon
special personal qualities associated
with certain social reformers, political
leaders, religious leaders, or
organizational leaders
Rational–legal Subordinate obedience based upon
the position held by superiors
within the organization
Dr. Aminullah, PhD

23. 1–23
Figure 2.3 Bureaucratic Hierarchical Power Structure
Dr. Aminullah, PhD

24. 1–24
Classical versus Behavioral Perspective
Focused on
rational behavior
Classical
Perspective
Acknowledged the
importance of human
behavior
Behavioral
Perspective
vs.
Dr. Aminullah, PhD

25. 1–25
B: Behavioral View Point / Perspective
• Followed the classical perspective in the
development of management thought.
 Acknowledged the importance of human behavior in
shaping management style
 Is associated with:
 Mary Parker Follett
 Elton Mayo
 Douglas McGregor
Dr. Aminullah, PhD

26. 1–26
B-1 Mary Parker Follett (1868-1933)
• Focused on Group dynamic, conflict Resolution
& Integration of Organization systems.
• Concluded that a key to effective management
was coordination.
• Felt that managers needed to coordinate and
harmonize group effort rather than force and
coerce people.
• Believed that management is a continuous,
dynamic process.
• Felt that the best decisions would be made by
people who were closest to the situation.
Dr. Aminullah, PhD

27. 1–27
Follett on Effective Work Groups
• Four principles of coordination to promote
effective work groups:
1. Coordination requires that people be in direct
contact with one another.
2. Coordination is essential during the initial stages of
any endeavor.
3. Coordination must address all factors and phases of
any endeavor.
4. Coordination is a continuous, ongoing process.
Dr. Aminullah, PhD

28. 1–28
B-2 Elton Mayo
• Conducted the famous Hawthorne Experiments.
 “Hawthorne Effect”
 Productivity increased because attention was paid to the
workers in the experiment.
 Phenomenon whereby individual or group performance is
influenced by human behavior factors.
• His work represents the transition from scientific
management to the early human relations
movement.
• Impact of social aspect of the job on productivity:
– Attention from the supervisor and Relationship
among employees.
Dr. Aminullah, PhD

29. 1–29
B-3 Douglas McGregor
• Developed concept of Theory X and Theory Y ,
a dichotomy dealing with possible assumptions
of managers about workers.
 Theory X managers perceive that their subordinates
have an inherent dislike of work and will avoid it if at
all possible.
 Theory Y managers perceive that their subordinates
enjoy work and that they will gain satisfaction from
performing their jobs.
Dr. Aminullah, PhD

30. 1–30
Table 2.3 Comparison of Theory X and Theory Y Assumptions
Factor Theory X Assumptions Theory Y Assumptions
Employee attitude Employees dislike work and. Employees enjoy work and
toward work will avoid it if at all possible. will actively seek it.
Management view Employees must be directed, Employees are self-motivated
of direction coerced, controlled, or threatened and self-directed toward achieving
to get them to put forth adequate effort. organizational goals.
Employee view Employees wish to avoid responsibility; Employees seek responsibility;
of direction they prefer to be directed and told what they wish to use their creativity,
to do and how to do it. imagination, and ingenuity in
performing their jobs.
Management style Authoritarian style of management Participatory style of management
Dr. Aminullah, PhD

31. 1–31
C. The Quantitative Perspective
• Characterized by its use of mathematics,
statistics, and other quantitative techniques for
management decision making and problem
solving.
• This approach has four basic characteristics:
1. A decision-making focus
2. Development of measurable criteria
3. Formulation of a quantitative model
4. The use of computers
Dr. Aminullah, PhD

32. 1–32
The Quantitative Perspective (cont’d)
• Decision-Making Focus
 The primary focus of the quantitative approach is on
problems or situations that require direct action, or a
decision, on the part of management.
• Measurable Criteria
 The decision-making process requires that the
decision maker select some alternative course of
action.
 The alternatives must be compared on the basis of
measurable criteria.
Dr. Aminullah, PhD

33. 1–33
The Quantitative Perspective (cont’d)
• Quantitative Model
 To assess the likely impact of each alternative on the
stated criteria, a quantitative model of the decision
situation must be formulated.
• Use of Computers:
 Computers are quite useful in the problem-solving
and decisions making process.
 MIS: Management Information System.
 Computer simulation.
Dr. Aminullah, PhD

34. 1–34
D. Contemporary View Point:
1. Systems Perspective:
• An approach to problem solving based on an
understanding of the basic structure of systems.
 Environmental interaction
 Open systems must interact with the external environment to
survive. Organization is an open system and should be
Dynamic.
 Closed systems do not interact with the environment.
 Synergy: when all subsystems work together making
the whole greater than the sum of its parts.
 Entropy: the tendency for systems to decay over time.
Dr. Amin ullah, PhD

35. 1–35
Figure 2.4 Basic Structure of Systems
Dr. Aminullah, PhD

36. 1–36
2. The Contingency Perspective
• A view that proposes that there is no one best
approach to management for all situations.
 Asserts that managers are responsible for
determining which managerial approach is likely to be
most effective in a given situation.
 This requires managers to identify the key
contingencies in a given situation.
Dr. Aminullah, PhD

37. 1–37
Figure 2.5 Blending Components into a Contingency Perspective
Dr. Amin ullah, PhD

38. 1–38
An Example of the Contingency Perspective
• Joan Woodward’s Research
 Discovered that a particular management style is
affected by the organization’s technology.
 Identified and described three different types of
technology:
 Small-batch technology
 Mass-production technology
 Continuous-process technology
Dr. Aminullah, PhD

39. 1–39
Table 2.4 Production Technology Examples
Production Technology Examples
Small-batch Custom fabrication machine shop,
technology manufacturer of neon advertising signs,
print shop specializing in personal business
cards, trophy-engraving shop
Mass-production Manufacturer of automobiles, manufacturer
technology of refrigerators, manufacturer of hair dryers,
manufacturer of pencils
Continuous-process Oil refinery, flour mill, soft drink bottler,
technology chemical processor
Dr. Aminullah, PhD

40. 1–40
Information Technology and Management
Style
• Information technology can facilitate the use of a
particular management style.
Facilitated by
advanced computers
Quantitative/
Systems
Perspectives
Classical
Perspective
Facilitated by
communications
equipment
Dr. Aminullah, PhD

41. 1–41
Future Issues: Diversity, Globalization, and
Quality
• Heightened concern for diversity initiatives within
the workplace and within management
• Adoption of the concept of workers as decision
makers, problem solvers, and team players
• Creation of a focus on and commitment to the
concept of quality.
Dr. Aminullah, PhD

42. 1–42
Management in the 21st Century
• William Ouchi’s Theory Z
 Japanese-style approach to management developed
by William Ouchi
Advocates trusting employees and making them
feel like an integral part of the organization.
Based on the assumption that once a trusting
relationship with workers is established, production
will increase.
Dr. Aminullah, PhD

43. 1–43
Future Leaders Must:
• Be thoroughly schooled in the different management
perspectives.
• Understand the various influences that will have a
continuing effect on management thinking
• Be aware of how key business environment variables
relate to their organization.
• Know which elements to select from the various
management perspectives that are appropriate for their
situation.
• Be adaptable to change such that future conditions and
developments do not quickly render their chosen
approaches obsolete.
Dr. Aminullah, PhD