evolution of Management thought

1. EVOLUTION OF MANAGEMENT
THOUGHT

2. INTRODUCTION
Evolution of management began in the late 19th
century after the industrial revolution.
Inventions during industrial revolution such as rise
of factory system led to different school of
management thought

3. APPROACHESTO MANAGEMENT
Scientific management
Administrative Management approach
Human relation approach
Behaviourial Science approach
Management ScienceApproach
SystemsApproach
Contigency Approach

4. SCIENTIFIC MANAGEMENT

5. SCIENTIFIC MANAGEMENT APPROACH
 The early pioneer of Scientific ManagementTheory was Frederick Taylor - Principles of Scientific
Management. His work envisioned One BestWay to do a job. He proposed the following method for
addressing any managerial task:
 Develop science for the elements of work to replace rule of thumb
 Select, train, teach workers
 Cooperate with Workers to ensure work is done
 Divide work suitably between workers and managers
 Another major contribution to Scientific Management theory was by Frank Gilbreth and Lillian Moller
Gilbreth. They studied task process and efficient body motions.They focused on the efficiency of
effort furthering the understanding of the best way to carry out a process.

6. MANAGEMENT PROCESS OR ADMINISTRATIVE
MANAGEMENT APPROACH
While scientific approach focuses on the duties of individual workers, administration management
function focuses on all organization management.
The most important contributors to the field of administrative management are Henry Fayol and Luther
Gullick
Fayol expect the things from mangers thatTaylor expect from workers
Fayol is the first person to define management as a process
Fayol examines business operations in terms of major departments and collect them in six organizationa
action group in the form of commercial, technical, financial, security , accounting and managerial
activities.

7. ADMINISTRATIVE MANAGEMENT
APPROACH
 Technical actions: Associated with production
 Commercial actions: includes action such as selling , buying and exchanging.
 Financial actions: Actions related to the best use of main fund and to conduct research in this
direction
 Security Actions: actions to take necessary measures to protect human and material resources
against various threat
 Accounting Actions: Data Collection Activities related to the economic situation of the
organization
 Managerial Actions: Planning ,organizing, commanding, Controlling

9. HUMAN RELATIONS APPROACH
 It is concerned with recognition of importance of human element in the organization.
 Elton Mayo and his associates conduct Hawthorne experiments and investigated myriad of
informal relationships, social cliques, pattern of communication, pattern of informal leadership
 “Being Nice to people”
 it gave importance to Social and psychological factors in determining workers productivity and
satisfaction

10. BEHAVIORAL SCIENCE APPROACH
 Extension modification and refinement of human relations approach
 It recommends a study of Behaviourial science (like psychology, industrial psychology, sociology)
 For understanding the human behaviour at work and applying theories for moulding human
behaviour in desired manner.
 The advocates of this school concentrated on motivation , individual drivers, group relations.
 Difference between Human relations
 Human needs human relation only social needs, behavioural dynamic needs
 Org is only social system whereas organisation as a socio technical systems which are required to
achieve a set of individual social and corporate goals
 Employee satisfaction – money whereas self actualisation

11. QUANTITATIVE OR MANAGEMENT
SCIENCE APPROACH
 Post world war II, British use of Mathematics, operations research in military operations find
applications in US post war industrial development.
 Quantitative Management: use of Mathematic models, linear programming, simulation systems
and chaos theory to solve management problems.
 Operations Management:Techniques used to analyze all aspects of the production system.

12. SYSTEMS APPROACH
 By a systems approach to management is meant the study of a firm in
its totality so that the men and material resources of the firm can be organized to
realize the firm's overall objectives as efficiently as possible.This approach is now
becoming essential because of the growth of complexity of firms and the
increasing potential of automatic computers.
 The systems approach to management implies that every manager should be
much more precise about decision-making and information flow. For this to be
effective, a company should have an overall system of corporate objectives.

13. CONTINGENCY APPROACH/ SITUATIONAL
APPROACH
 Idea is that internal functioning of the organization must be consistent with the demands of
technology and External environment and the needs of its members if the organisationnis to be
effective.
 “There is no best way to handle any management problems.”
 The application of management principles will be based on existing circumstances.
 Three Major parts:
Environment
Management Concepts, principles and techniques
Contingency relationship between two

14. OPERATIONAL APPROACH
 Koontz andO’Donnel have advocated operational.
 This approach recognizes that there is a central core of knowledge about managing which exists in
management such as Line and Staff, span of control, pattern of departmentation.
 It regards management as universally applicable body of Knowledge that can be bought to bear at
all levels of managing and in all type of enterprises.
 Mgmt is regarded as a process for getting things done through process of planning, organizing,
staffing, leading and controlling
 This approach also give importance to differences in actual problems and environments in which
firms operates.

15. EMPIRICAL APPROACH
 According to this approach, management is the study of the experiences of managers. The
knowledge based on experiences of successful managers can be applied by other managers in
solving problems in future and in making decisions. Thus, the empirical school is based on
analysis of past experience and uses the case method of study and research.
 Managers can get an idea of what to do and how by studying management situations of the
past. They can develop analytical and problem-solving skills. They can understand and learn
to apply effective techniques in comparable situations.
 But management, unlike law, is not a science based on precedent, and future situations
exactly resembling those of the past are unlikely to occur. Indeed, there is a positive danger
in relying too much on past experience…….. for the simple reason that a technique found
“right” in the past may be far from an exact fit for a somewhat similar situation of the future.

17. CLASSICALTHEORY

18. CLASSICALTHEORY OF MANAGEMENT
 It is a branch of management theory which evolved around 19th century. It was developed during
Industrial Revolution when problems related to factory systems began, to recognize the role that
management play in any organization focusing on efficiency of workers.
 It professes the body of management thought based on the belief that employees have only
economical and physical needs and that social needs and needs for job satisfaction either does not
exist or are unimportant

21. CONSTITUENTTHEORIES
Scientific ManagementTheory: it was propounded by FrederickWTaylor.Taylor believed that
by (1864-19)analysing work in scientific manner, it was possible to find the one best way to
perform a task. He felt by organizing work in the most efficient way , the organizations
productivity will increase, allowing to reward employees with additional remuneration.
Bureaucratic ManagementTheory: It was developed by MaxWeber( 1864-1920).
According to him , bureaucracy is the most efficient form of organization .The organization
has a well defined line of authority. It has clear rules and regulations which are strictly
followed.
Administrative ManagementTheory: the first expert of management theory was Henri
Fayol(1841-1925). Fayol is called father of modern Management” according to administrartive
theory/ management is the process of getting things done through people. Here importance is
given to groups not individuals

22. Contributio
ns of
Classical
theory
Formal
Organisation. It
laid emphasis on
division of labour,
specialization,
structure, scaler
chain and span of
Control. organizational
structure for
coordination of
various activities.
Integration of
organization is
achieved through
authority and
control of central
mechanism.
If conflict arises
between
organizational
interest and
individual interest
than
organizational
interest should
Efficiency of
organization can
be increased by
making each
individual efficient
employees are
motivated
through economic
gains and other
incentives
Management is the
study of
managerial
experiences. If the
experiences are
studied certain
generalization are
therefrom can help
practicing
mangers.

23. Criticism of Classical
Theory
It ignored the human
relations aspects and
undermined the role
of human factor.
it main focus was on f
structure,
hierarchical structure
unity of command
Non – Monetary
rewards were not
given importance
Viewed organisation
as a closed system
Strict adherence to
rules and regulations
Universality of
management
principles.They need
t0 be modified to suit
situations

24. NEO –CLASSICAL/HUMAN RELATIONS
APPROACH
 They Focussed on “Human Aspect” of on Industry.
 Organisation is a “Social system”.
 They Conducted “Hawthorne Experiments” and investigated informal groups, informal
relationships, pattern of communication.
https://www.youtube.com/watch?v=JPIgh7feCpM

25. Criticism of
Neo- classical
Theory
Invalid
Assumption
Solution to every
problems which
satisfies
everyone in the
org.
Lack of
Scientific
Validity
Limited
Application
Limited
Focus on
Work
Over-
concern
With
Happiness
Fragmented
Approach

26. BEHAVIORAL SCIENCE APPROACH
 Behavioural sciences approach to management which started after 1940 is an extension,
modification and refinement of human relations approach.
 Behavioural sciences approach recommends a study of behavioural sciences (like,
psychology, industrial psychology, sociology, anthropology etc.) for understanding human
behaviour at work; and applying the basic concepts, theories and models of these sciences for
moulding human behaviour in the desired manner.
 Some important sociologists and psychologists who have contributed to this
approach are:
 A.I I. Maslow, Douglas McGregor, Frederick Herzberg, Kurt Lewin, Keith Davis, Chris
Argyris, George Homans etc.

28. Study of
human
behavior most
critical for
managerial
success
Contribution
to
Management
Basis of
organisational
behavior
MERITS

29. LIMITATIONS
Over-
emphasis
on
behaviour
al aspect
Unpredict
ability of
human
behavior
Findings
not
universally
applicable

30. SYSTEMS APPROACH
 In the 1960, an approach to management appeared which try to unify the prior schools of thought.
This approach is commonly known as ‘Systems Approach’.
 Its early contributors include Ludwing Von Bertalanfty, Lawrence J. Henderson, W.G. Scott, Deniel
Katz, Robert L. Kahn, W. Buckley and J.D. Thompson.
 They viewed organisation as an organic and open system, which is composed of interacting and
interdependent parts, called subsystems.
 The system approach is top took upon management as a system or as “an organised whole” made up
of sub- systems integrated into a unity or orderly totality.
 For example, the world can be considered-to be a system in which various national economies are
sub-systems.
 In turn, each national economy is composed of its various industries, each industry is composed of
firms’ and of course a firm can be considered a system composed of sub-systems sudi as production,
marketing, finance, accounting and so on.

33. FEATURES OF A SYSTEM
 A System is a combination of Parts and Sub System
 Parts and sub parts are mutually related to each other
 Prevalence of a boundary
 Systems transforms input into outputs

35. Contributions
of Systems
approach
Open system
View
Adaptive
System
Interdependent
Sub- Systems
Whole
Organisation
Synergy

36. LIMITATIONS
Fail to take a comprehensive study to analyze the organization from different angles
Failed to specify nature of interactions and interdependencies between Org and
External env.
Failed to specify precise relationship between Various subsystems
Does not offer any tool or techniques for analysis and synthesis of the system and
environment

37. CONTINGENCY APPROACH TO
MANAGEMENT
 The ‘Contingency Approach to Management’ is relatively a new approach to management.
 It is an extension of the system approach. The basic idea of the contingency approach is that
the organisation has to come up with different situations in different ways.
 There is no single best way of managing applicable to all situations.
 In order to be effective, the internal functioning of an organisation must be consistent with
the demands of the external environment.
 The managers must keep the functioning of an organisation in harmony with the needs of its
members and the external forces.
 The contingency approach is the outcome mainly of the research studies conducted by Tom
Burns and G. W. Stalker, Joan Woodward, Paul Lawrence and Jay Lorsch, James Thomson
and others.

38. Features of Contigency approach

39. WhatYou “Do Depends on Situation”.
Internal Contigency Factors
External Contigency Factors

40. INTERNAL CONTINGENCY FACTORS
Technology
Purpose
Task
Structure
People

41. External
Contingenc
y Factors
Socio
Cultural
factors
Econom
ic
Factors
Technol
ogical
factors
Legal
/Political
Factors

42. DIFFERENCE BETWEEN SYSTEMS APPROACH
AND CONTINGENCY APPROACH
 Example of a Shoe manufacturing Company
 A Shoe Manufacturing Company Faced with problems of Decreasing Profits
 Soution(Systems Approach)
 May establish a committee of sales and Production personnel to coordinate the production and
Distribution of Goods under the Assumption that large Inventories are responsible for decline in
profits.
 By Application of ContingencyTheory
 Would unable to examine the situation and to determine the case of decreased profits before a
new procedure or program is implemented