The document discusses the development of management thought from classical to modern approaches. It describes the classical approach which included scientific management by Taylor, administrative theory by Fayol, and bureaucratic management by Weber. The modern approach included behavioral, quantitative, systems, and contingency theories. The key aspects of each theory are defined, including Taylor's principles of scientific management, Fayol's 14 principles of administration, and Weber's characteristics of bureaucracy. The document provides an overview of the historical evolution of management theories.

2. MARY PARKER FOLLET
F.W. TAYLOR
HENRY FAYOL
MAX WEBER

3. UNIT II
DEVELOPMENT OF MANAGEMENT THOUGHT
I. CLASSICAL APPROACH
A classical approach to management can be divided into three
separate schools; scientific management, administrative theory
and bureaucratic management. This approach dates back to the
industrial revolution, placing reliance on the management
principles as a unity of command. The achievement of a balance
between authority and responsibility, division of labor, and
delegation to establish relationships between management and
their subordinates.
1. Bureaucratic
2. Scientific
3. Administrative
4. Human relations approach (NEO-CLASSICAL APPAROACH)
II. MODERN APPROACH
1. Behavioural
2. Quantitative
3. Systems
4. Contingency approach

4. CLASSICAL
approach
(Theories )
Bureaucratic
Approach
Scientific
Approach
Administrative
Approach
Human relations
approach (NEO-
CLASSICAL
APPAROACH)
MODERN
(Theories)
Behavioural
Approach
Quantitative
Approach
Systems
Approach
Contingency
Approach

5. Development of management
thought
Classical Approach to management
thought:
 From 1880, a set of principles and
concepts about organisation and
management began to developed
extensively.
 Now known as classical approach or
traditional approach.
 Principles of management got
developed in this phase.
 Major highlights of this approach is
universal nature of management.
 It also provides a scientific basis for
management practice.

6. Development of management
thought
1. Max Weber’s Bureaucratic Approach to
Management thought (1880-1920):
He observed that bureaucracy is the most
efficient form for a complex
organisation. He believed in strictly
following rules which would make
bureaucracy highly efficient form of
organisation founded on principles of
logic, orders and legitimate authority .
Weber maintained 3 types of power in an
organisation viz. traditional ,
charismatic and Bureaucratic or
rational –legal.

7. Development of management
thought
1. FEATURES OF BUREAUCRATIC
ORGANISATION
 Clear act of division of labour based on
competence and functional specialization.
 A well-defined hierarchy of authority.
 A bureaucrat seeks rationality, objectivity and
consistency for his organisation.
 Interpersonal relations are based on positions
and not on personalities.
 A system of rules covering the duties and rights
of employees.
 A system of procedures based upon technical
competence.
 Bureaucracy recognises only legal power and
authority given to each position in the
organization.

8.  Table 1.3 Characteristics of Bureaucratic Theory ( Characteristics)
Description
1. Specialization of labour
 Jobs are broken down into routine, well-defined tasks so that members of
the organization know what is expected from them and they can become
competent enough to do a particular subset of tasks.
2. Formal rules and procedures
 Written rules and procedures should specify the desired behaviours from
members of the organization, facilitate coordination, and ensure
uniformity.
3. Impersonality
 Rules, procedures, and sanctions should be applied uniformly regardless
of individuals.

9.  Table 1.3 Characteristics of Bureaucratic Theory
 Characteristics
Description
4. Well-defined hierarchy
Multiple levels of positions must be designed carefully keeping in mind the
reporting relationships among levels. This should provide for supervision,
handling of exceptions, and ability to establish accountability of actions.
5.. Career advancement based on merit
 Selection and promotions should be based on the qualifications and
performance of members.

10.  EVALUATION OF BUREACRATIC ORGANISATION
 It does not recognise the importance of human relations
in an organisation.
 Preferred in government – static organisation
 It is not considered ideal in dynamic business
organisation because of
1. Rigidity
2. Higher cost of controls
3. Difficulty of coordination and communication.
4. Resistance to change
5. Limited scope to develop HR
6. Blind faith in rules and regulations

11. 2. Scientific Approach to Management thought
3. Frederick Winslow Taylor
 Mechanical engineer
 · Frederick Winslow Taylor was an American mechanical
engineer who sought to improve industrial efficiency. He is
regarded as the father of scientific management and was one
of the first management consultants.
 Born: March 20, 1856, Philadelphia, Pennsylvania, United
States
 Died: March 21, 1915, Philadelphia, Pennsylvania, United
States
 Spouse: Louise Spooner (m. 1884–1915)
 Education: Stevens Institute of Technology, Phillips Exeter
Academy, University of Pennsylvania
 Awards: Elliott Cresson Medal

12. Development of management
thought
2. Scientific Approach to Management thought (1900-1930)
 More contribution by Frederick Winslow Taylor known as
Father of Scientific Management – Management as a
science.
 According to F. W. Taylor , “ Scientific management means
knowing exactly what you want men to do and seeing that
they do it in the best and the cheapest way.”
 About F. W. Taylor
 - born in 1856-
 -left college studies- worked as an apprentice pattern maker
and machinist in 1875.
 -1878, joined Midvale Steel works in Philadelphia
(USA)machinist – chief engineer(1884) –engineer –evening
study.
 Career of 26 years- 3 companies- Midvale steel, Simonds
Rolling Machine and Bethlehem Steel- conducted various
experiments to study the problems and attitude of workers .

13. F.W. Taylors Principles of Management
 One best way
 Scientific selection of workers
 Development and training of workers
 Harmony in group action.
 Maximum output
 Cordial relations between managers
and workers.

14. F.W. Taylors Principles of Management
 One best way: According to him work standards and practices could
be established through experimentation and observation.
 Scientific selection of workers: Management duty to determine the
kind of work for which employee was suitable.
 Development and training of workers: He supported internal
promotion of employees. Development and training should be in
keeping with the promotion policy of the organisation.
 Harmony in group action: Proper understanding among group
members brings about best performance without loss of time.
 Maximum output: He supported efficiency and improved production.
Eventually both Employers and Employees stand to gain due to
maximum output.
 Cordial relations between managers and workers. To ensure
smooth implementation work, cordial relations between managers
an d workers is of great importance.

15. F.W. Taylors contributions/techniques of scientific Management
 Soldiering – workers put less efforts resulting into limited output and low
productivity.
 Time Study and Motion study: TS is the art of observing and recording time
required to do each detailed element of an industrial operator.
 Motion study: refers to the study and analysis of the movements of an operator
performing job so that attempts can be made to remove irrelevant movements
from the process.
 Fatigue study: Fatigue means tiredness caused by continuously performing one
or more activities. “negative appetite for work”. – psychological, emotional and
behavioural aspects of fatigue.
 Mental revolution: It involves a complete revolution on the part of workers relating
to their work, fellow workers and towards employer.
 Differential payments: introduced differential piece wage plan. High wage for
production and above standard and low wage plan below the standard.
 Standardization: It is maintained in respect of instruments and tools , period and
amount of work , working conditions , cost of production etc.
 Separation of planning and doing/Functional foremanship-introduced 2 new
concepts. The work should be planned by a foreman and not the workers.
 Four , six and eight specialist foremen who would give orders to an individual
workers.

16. BENEFITS OF SCIENTIFIC MANAGEMENT
1. Application and use of scientific methods /
replacement of traditional rule of thumb method.
2. Planning and control
3. Appointing specialist
4. Standardization
5. No arbitrary rule
6. Increased outputs and profits
7. Benefits to workers and society
8. Encourage research
9. Cooperation and understanding

17. LIMITATIONS OF SCIENTIFIC
MANAGEMENT
1. Workers did not enjoy freedom of choice.
2. Too much emphasis on division of work
resulted into breaking the work into smaller
parts.
3. Payment based on performance brought
about ill-feeling among workers.
4. Every job was measured and rated
scientifically.
5. Planning and control was given exclusively
in the hands of managers.

18. Administrative Approach to Management thought:
(1916-1940):
 Contribtion of Henry Fayol
 Mary parker follet
Henri Fayol was a French mining engineer and director of mines who
developed a general theory of business administration. He and his
colleagues developed this theory independently of scientific
management but roughly contemporaneously.
Born: July 29, 1841, Constantinople, Turkey
Died: November 19, 1925, Paris, France
Education: Ecole nationale supérieure des mines de Saint-Étienne

19. Administrative Approach to Management thought:
(1916-1940):
 Contribtion of Mary Parker Follet
 · Mary Parker Follett
 Social Worker
 · Mary Parker Follett was an American social worker,
management consultant and pioneer in the fields of
organizational theory and organizational behavior.
 Born: September 3, 1868, Quincy, Massachusetts, United
States
 Died: December 18, 1933, United Kingdom
 Education: University of Cambridge, Thayer Academy,
Radcliffe College

20. Administrative Approach to Management thought:
(1916-1940):
 Contribution of Henry Fayol 14 principles.
 One more contributor Mary Parker Follet.
 She proposed four principles as guide to management
thinking.
 Coordination by direct contact of responsible people.
 Coordination in the early stages
 Coordination as the reciprocal relating to all factors in the
situation.
 Coordination as a continuing process.

21. Administrative Theory:
 While the proponents of scientific management developed
principles that could help workers perform their tasks more
efficiently, another classical theory – the administrative
management theory – focused on principles that could be used
by managers to coordinate the internal activities of
organizations. The most prominent of the administrative
theorists was Henri Fayol.
 Henri Fayol (1841-1925)
 It focused on principles that could be used by managers to
coordinate the internal activities of organizations.

22.  Henri Fayol (1841-1925) is considered as the father of
the administrative management theory, with a focus on
the development of broad administrative principles
applicable to general and higher managerial levels.
 Fayol was a French mining engineer-turned-leading
industrialist and successful manager.
 In 1916, he authored a book in French titled General and
Industrialist Administration.

23. Fayol opined that all actions of business enterprises could be
divided into six groups:
1. Technical
2. Commercial
3. Financial
4. Security
5. Accounting
6. Managerial

25.  Fayol’s primary focus was on this last
managerial activity because he felt that
managerial skills had been the most
neglected aspect of business operations. He
explained management in terms of five
functions: planning, organising, commanding,
coordinating and controlling.


26. Henri Fayol (1841-1925)
Fourteen principles:
 Division of work
 Authority and responsibility
 Discipline
 Unity of command
 Unity of direction
 Subordination of the
individual interest to the
general interest
 Remuneration
 Centralization:
 Scalar chain
 Order
 Equity
 Stability
 Initiative
 Espirit de corps
(team spirit)

27.  CONTRIBUTION OF THIS APPROACH TO MANAGEMENT
THOUGHT.
 Fayol gave definition of management
 He provided basic terminology and
concepts in the form of division of
labour, unity of command, scalar chain
and centralization.
 His principles have become point of
reference to today’s business
organization.
 According to Follet in a good
organisation people develop themselves
by contributing to the development of the
organisation.

28.  ·
 G. Elton Mayo
 Psychologist
 · George Elton Mayo was an Australian psychologist, sociologist and
organization theorist. He lectured at the University of Queensland from 1911
to 1923 before moving to the University of Pennsylvania, ...
 Born: December 26, 1880, Adelaide, Australia
 Died: September 7, 1949, Guildford, United Kingdom
 Education: University of Adelaide
 Books: The human problems of an industrial civilization

29. Contributions of Behavioral Thinkers to
Management Thought
Name Period Contribution
Mary Parker
Follet
1868-
1933
Advocated the concept of ‘power
sharing’ and integration
Elton Mayo 1868-
1933
foundation for the Human Relations
Movement;
Abraham
Maslow
1908 –
1970
motivated by a hierarchy of needs
Douglas
McGregor
1906-
1964
Theory X and Theory Y personalities
Chris Argyris - Classified organizations based on
the employees’ set of values

30. Development of management
thought
4. Human Relations Approach to
management thought (1930-1950):
 They Are called neo-classical.
 More stress on human and social factors
in organization.
 Elton Mayo and Hawthorne experiments
is the contribution of this approach.
 Elton Mayo conducted Hawthorne
studies at Hawthorne plant of Western
Electric Company in 1927 to 1932.
 Some of the findings are as follows.

31. PHASES OF HAWTHORNE EXPERIMENTS
1. Illumination experiments- 1924-1927
2. Conclusion: Other factors than light were important.
2. Relay assembly Test Room Experiment (1927-1929)
2 groups of female – each group in a separate room –
changes in breaks , working hours etc. output increased in
both control rooms . Conclusion: social relationship among
workers had greater effect on productivity rather than
working conditions.
3. Mass Interviewing Programme(1928-1930)
21000 employees interviwed- 3 years
Conlusion: Productivity can be increased if workers are
allowed to talk freely about the matters that are important
to them.
4. Bank Wiring Observation Room Experiment(1932)
14 male workers – 6 months
Conclusion: Group has established their own standards of
output and these standards were implemented through
social pressure.

32. Development of management
thought
1. Employee’s behaviour is influenced by mental
attitudes and emotions including prejudices.
2. The workers in a group develop a common
psychological bond uniting them as a group in
the form of informal organization.
3. In managing and motivating employee groups,
human and social motivation plays greater role
than financial incentives.
4. Management must understand that a typical
group behaviour can dominate individual
preferences.
5. When workers are given special attention by
management, the productivity is likely to
increase irrespective of actual changes in the
working conditions.

33. MODERN APPROACH TO MANAGEMENT
THOUGHT
1. Behavioural approach to management
thought (1950-70)
 More mature version of human relations approach
 Study of Attitudes, behaviour, performance of
individuals and groups organisations.
 Assumptions:
 An organisation is a socio-technical system.
 It is important to recognise individual differences in
the needs, attitudes, perceptions and values of
people who work in organisation.
 Work and interpersonal behaviour of people in
organisation is influenced by various factors.

34.  This approach is an enhanced and more developed version
of the human relations approach to management.
Douglas McGregor, Abraham Maslow,
Kurt Lewin, Chester Barnard, Mary Parker
Follett, George Romans, Rensis Likert,
Chris Argyris and Warren Bennis are some
of the foremost behavioural scientists who
made significant contributions to the development of the
behavioural approach to management. These scientists
were more rigorously trained in various social sciences
(such as psychology, sociology and anthropology). They
use more sophisticated research methods.


35. Behavioural approach to
management thought (1950-70)
 Human needs and organizational goods should
be joined together.
 Conflicts in organisation are unavoidable.
 Contribution:
 Behavioural scientists have contributed to our
understanding of individual motivation , group
behaviour , interpersonal relationship and the
importance of work to human beings.
 Managers are made more sensitive towards the
needs of subordinates.
 New findings are noted in the areas of
leadership, communication, conflict resolution
and organizational change.

36. MODERN APPROACH TO MANAGEMENT
THOUGHT
2. Quantitative approach to management
thought (1955 onwards)
 It includes the application of statistics, optimization
models, information models and computer
simulations. More specifically, this approach
focuses on achieving organizational effectiveness.
 Three main branches:
 Management Science
 Operations Management and
 Management Information Systems.

37. 1. Management Science
◦ The management science approach visualizes management as a logical entity,
expressing management in terms of mathematical symbols, relationships, and
measurement data.
◦ Also known as the operations research approach, it is applied in areas like
capital budgeting and cash-flow management, production scheduling, product
strategy development, human resource planning, and inventory management.
◦ Various mathematical tools like queuing theory, linear programming,
PERT, CPM, decision theory, simulation, replacement, probability theory and
sampling, time-series analysis, and index numbers are used to minimize the
error in management decisions.
 It stresses the use of mathematical models and statistical methods for decision-
making.

38. 2. Operations Management
◦ The operations management approach is primarily concerned with
production management and its related areas. In fact, it is difficult to
draw a line between management science and operations management.
Most of the mathematical tools mentioned earlier are used in operations
management. Moreover, this approach also helps in decision making in
other functional areas like finance, marketing, and human resource
management.
 It deals with the effective management of the production process and the
timely delivery of an organization’s products and services.

39. 3. Management Information Systems
◦ The management information systems approach focuses on designing and
implementing computer-based information systems for use by management.
◦ It converts raw data into information inputs, which are subsequently used by
management for decision making.
◦ Modern management information systems help in enterprise-wide decision
making, integrating all functions of management.
◦ Enterprise-wide decision support systems (such as human resource
information systems) are used for critical or strategically important decisions,
as these provide valuable information inputs.
 Management information systems focuses on designing and implementing
computer-based information systems for business organizations.

40. MODERN APPROACH TO MANAGEMENT
THOUGHT
2. Quantitative approach to management
thought (1955 onwards)
 STEPS IN Q APPROACH
 1 model is constructed
 2. standards are established
 3. data collection
 4 mathematical calculations – take decision based on
results

41. MODERN APPROACH TO MANAGEMENT
THOUGHT
2. Quantitative approach to management
thought (1955 onwards)
 CONTRIBUTIONS OF QUANTITATIVE APPROACH
 1. Quantitative Approach has contributed to decision
making in planning and control.
 2. It has enabled large organisations to effectively
solve problems.
 3. It is useful in capital budgeting, inventory control,
production scheduling etc
 4. It uses various computerised techniques for data
processing.

42. System approach to management thought (1970
onwards)
 A common drawback of the classical, behavioural
and quantitative schools is that they weigh down one
characteristic of the organisation at the expense of
others. While the classical approach emphasises
the ‘task’ and ‘structure’, the behavioural
approach emphasises ‘people’ and the quantitative
approach emphasises ‘mathematical' decision-
making’
 An extension of the quantitative school of thought is
the systems theory approach.

43. MODERN APPROACH TO MANAGEMENT THOUGHT
3. System approach to management thought (1970 onwards)
 This approach considers the organization as a whole
because of the interdependent nature of activities,
requiring the organization to interact with external
environmental factors.
 In this competitive scenario, organizations cannot
function in isolation. It has to operate in open
systems, interacting with the environment. Whether it
is new-product development or employee selection,
the organization has to consider them as open
systems, as its decisions are interrelated and
interdependent with the environmental situation.

44. Systems Theory
Resources
 Labor
 Materials
 Capital
 Machinery
 Information
Managerial and
Technological
Abilities
 Planning
 Organizing
 Staffing
 Leading
 Controlling
 Technology
 Goods
 Services
 Profits and
losses
 Employee
 satisfaction
Inputs
Transformation process Outputs
Feedback

45.  FEATURES OF SYSTEMS APPROACH
 1. An organisation comprises of many sub-systems.
 2. All the sub-systems are inter- related.
 3. The sub-parts should be studied in their inter-
relationships rather than in isolation.
 4. The organisation provides a demarcating line that
separates it from other systems. It determines the internal
and external parts.
 5. The organisation is responsive to environmental effect. It
is vulnerable is the changes in environment.
 6. An organisation is a system consisting of many
interrelated and interdependent parts or sub-systems. These
elements are then arranged in an orderly fashion.


46.  FEATURES OF SYSTEMS APPROACH
 1. 7. As a system, an organisation draws inputs
(energy. Information, materials, etc) from its
environment. It transforms these inputs and returns
the output into the environment in the form of
goods and services.
 8. Every system is a part of a super system.
 9. Organisation is an open system and it interacts
with its environment. It is also a dynamic system as
the equilibrium in it is always changing.
 10. Management is expected to regulate and
adjust the system to secure better
performance.
 11. Management is multidisciplinary as it draws and

47. MODERN APPROACH TO MANAGEMENT THOUGHT
3. System approach to management thought (1960
onwards)
 Synergy is the phenomenon of open systems of management by which
the total system is more than a simple sum of its parts. It means that if a
manager effectively coordinates the efforts of related sub-systems, the
result will be greater than the sum total of such independent efforts, that
is, 2 + 2 will be greater than 4.
 The systems approach to management is also important because it
helps in avoiding entropy. Entropy is a syndrome wherein systems and
processes eventually decay. By relating the organization to the
environment, following a systems approach, such a situation can be
averted.

48. MODERN APPROACH TO MANAGEMENT THOUGHT
4. Contingency / situational approach to management
thought (1970 onwards)
 According to this approach, management values and concepts of
various schools have no universal applications. In other words, there
is no optimal or single best way of doing things under all conditions.
 Methods and techniques, which are highly effective in one situation,
may not work in other situations. Results differ because
situations differ.
 Accordingly, the contingency approach suggests that the task of
managers is to try to identify which technique will best contribute to
the attainment of management goals in a particular situation. Thus,
managers have to employ a sort of situational sensitivity and
practical selectivity.

49. Origin & Development of Contingency Theory
 The Contingency approach is the
outcome of research studies
conducted by Tom Burns, G. W.
Stalker, John Woodward, Lawrence,
Lorsch and others. Through their
analysis they co-related the structure
of an organization to the surrounding
environmental conditions. In the Fifties
of the last century Burns and Stalker
(both from UK) analysed the
environments and structures of
several British and Scottish firms.

50. Contingency Theory
Systems Viewpoint
How the parts fits
together
•Individual
•Group
•Organization
•environment
Behavioral Viewpoint
How managers influence
others
•Interpersonal Roles
•Informational Roles
•Decisional Roles
Traditional
viewpoint
What managers
do
•Plan
•Organize
•Lead
• Control
Contingency
Viewpoint
Managers’
use of other
view points to
solve
problems
•External
environment
•Technology
•Individuals

51. MODERN APPROACH TO MANAGEMENT THOUGHT
4. Contingency / situational approach to management
thought (1970 onwards)
 FEATURES OF CONTINGENCY APPROACH
 1. Management is externally situational: the conditions of the
situation will determine which techniques and control system should be
designed to fit the particular situation.
 2. Management is entirely situational.
 3. There is no best way of doing anything.
 4. One needs to adapt himself to the circumstances.
 5. It is a kind of “if” “then” approach.
 6. It is practically suited.
 7. Management policies and procedures should respond to
environment.
 8. Managers should understand that there is no best way of
managing. It dispels the universal validity of principles.

52. MODERN APPROACH TO MANAGEMENT THOUGHT
4. Contingency / situational approach to management
thought (1970 onwards)
 Merits of contingency approach
1. It is open minded. Universal validity of principles.
2. It gives the importance to the judgement of the situation and not the use
of specific principles.
3. It has wide ranging applicability and practical utility in organisation and
management.
4. It focus attention on situational factors that affects the management
strategy.
Demerits of contingency approach
1. Literature available in this approach is inadequate.
2. Difficult to use in practical due to many reasons.
3. It lacks theoretical base.