This document discusses the evolution of management theories from the 18th century to present day. It covers early concepts like Adam Smith's division of labor and scientific management. Later theories emphasized human relations like Hawthorne Studies. Administrative and bureaucratic structures were proposed. Current approaches include systems thinking, contingency management and virtual organizations. The environment and flexibility are now key considerations in management.

2. A structured social system consisting of groups of
individuals working together to meet some agreed-on
objectives

3. •Scottish philosopher
•Wrote ‘Causes of Wealth of Nations’
•Proposed ‘Division of Labour’

4.  Adam Smith, 18th century economist, found firms
manufactured pins in two ways:
 Craft -- each worker did all steps.
 Factory -- each worker specialized in one step.
 Smith found that the factory method had much higher
productivity.
 Each worker became very skilled at one, specific task.
 Breaking down the total job allowed for the division of labor.

5. •British Mathematics professor
•Wrote ‘On the Economy of
Machinery and Manufactures’
•Proposed advantages of
division of labour:
•Reduces the time needed for
learning a job
•Reduces waste of material
•Attainment of high skill levels
•Matching skills and abilities
with jobs

6. Welsh entrepreneur
Recognised how factory work
was demeaning to employees

7. Scientific Management- Frederick Taylor
 Develop a science for each element of an
individual’s work
 Scientifically select, train, teach and develop
worker
 Cooperation with workers
 Divide work responsibility equally between
management and workers

8.  Frank and Lillian Gilbreth refined Taylor’s
methods.
 Made many improvements to time and motion studies.
 Time and motion studies:
1. Break down each action into components.
2. Find better ways to perform it.
3. Reorganize each action to be more efficient.
 Gilbreths also studied fatigue problems, lighting,
heating and other worker issues.

9. - Study conducted in Hawthorne plant of General
Electric Company, Chicago
- Mayo, Roethlisberger, Dickson, Whitehead
 Illumination experiment (1924-27)
 Relay room experiment (1927-28)
 Mass interviewing (1928-30)
 Bank wiring observation (1931-32)

10.  Social factors in output
 Group Influence
 Conflicts
 Leadership
 Supervision
 Communication

11. Administrative Theory
 French industrialist Henry Fayol
 Proposed that a manager plans, organises, directs,
controls and coordinates
 14 principles of management including division of
labour, authority, scalar chain, unity of command,
initiative

12. 1. Division of work
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interest to the general
interest
7. Remuneration

13. 8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability and tenure
13. Initiative
14. Esprit de corps

14. Proposed Structural Theory
Described bureaucratic
structure
• Division of labour
• clearly defined hierarchy,
• detailed rules and
regulations and
• impersonal relationships

15.  Formal rules regulations
 Division of labour
 Hierarchical structure
 Authority structure
 Lifelong commitment

16. Mary Parker Follett
Emphasised on group
ethics
Manager must
coordinate group
efforts

17. Social Systems
Theory
Organisations made up
of people who have
interacting social
relationship
They communicate
Success depends on
maintaining good
relations

18.  Described organisations as a complex network of
decisional process
 Decision process comprises: i) intelligent activity
ii) design activity iii) choice activity
 Bounded rationality
 Administrative man : simplification, satisficing
approach
 Orgaisational Communication

19.  Nature of management as innovative and creative
 Manager has to act as administrator, entrepreneur, set
objectives etc.
 Organisation structure to facilitate effective
functioning
 MBO

20. Structuring of an organization into departments or
units on the basis of type of work performed
A functional manager is a person who has
management authority over an organizational unit -
such as a department - within a business or company

21.  Authoritative
 Participative
 Free-rein
 Pseudo autocratic

22.  Leaner organisations
 Outsourcing
 Contingent workforce

23.  Virtual corporations
Highly flexible, temporary organisations formed by a
group of companies to exploit a specific opportunity

24.  Socio-technical approach
 Management science
 Human relations approach
 Systems approach
 Contingency approach

25.  Considers relationships inside and outside the
organization.
 The environment consists of forces, conditions, and
influences outside the organization.
 Systems theory considers the impact of stages:
Input: acquire external resources.
Conversion: inputs are processed into goods and
services.
Output: finished goods are released into the
environment.

26.  An open system interacts with the environment. A
closed system is self-contained.

27.  Uses rigorous quantitative techniques to maximize
resources.
Quantitative management: utilizes linear
programming, modeling, simulation systems.
Operations management: techniques to analyze all
aspects of the production system.
Total Quality Management (TQM): focuses on
improved quality.
Management Information Systems (MIS): provides
information about the organization.

28.  Assumes there is no one best way to manage
 The environment impacts the organization and
managers must be flexible to react to environmental
changes.
 The way the organization is designed, control
systems selected, depend on the environment.
 Technological environments change rapidly, so
must managers.