EVOLUTION OF
MANAGEMENT THOUGHTS
Pre-Classical
Classica
Behavioural
modern
PRE-CLASSICAL THEORY OF
MANAGEMENT
 In Pre-classical theory the structure of the organization is mechanical.
 Its main focus is on work.
 It emphasizes on order, rules & regulations.
 The practice of leadership is authoritarian.
 It focuses on 5Ps: Power, Position, Production, Profit & Punishment.
 It results workers’ dis satisfaction.
 As a result Industrial Revolution got its root
TYPES OF CLASSICAL APPROACHES
 Classical Theory emphasizes on both orders & rationality. It consists of basic rules
& regulations for smooth running of the organizations.
Classical approaches can be explained in the following manner.
 Scientific Management by F.W. Tayler, Frank & Gilbreth & Henry Gantt.
 Administrative Management by Henri Fayol.
 Bureaucratic Management by Max Weber
SCIENTIFIC MANAGEMENT THEORY
 Frederick Winslow Taylor was an American engineer who is known as the Father of
“Scientific Management” which studies the application of science in management.
 According to Taylor there is “One Best Way” to do each thing.
 He stressed on involvement of science for each element of man’s work to replace
the old rule-of-thumb method.
 Scientific training & development helped workers to perform in a better manner
than allowing them to choose their own task & perform.
 There was the development of spirit of hearty cooperation between workers &
management.
 Each group was assigned the task for which it was best fitted.
OBJECTIVES OF SCIENTIFIC MANAGEMENT
 His studies helped to improve the working conditions of industrial workers & were
instrumental in enhancing the productivity of the organization.
 He propounded sound management practices by stressing on division of labor,
scientific selection, placement & training of workers.
 Taylor was also instrumental in introducing the differential piece rate system in
organization.
 His studies helped to improve the working conditions of industrial workers & were
instrumental in enhancing the productivity of the organization.
 He propounded sound management practices by stressing on division of labor,
scientific selection, placement & training of workers.
 Taylor was also instrumental in introducing the differential piece rate system in
organization.
MANAGERIAL PRACTICES OF TAYLOR
 Piece Rate-Incentive System: Incentives are being received according to the
maximum pieces produced.
 Time-&-Motion Study: Jobs are broken down into various small tasks or motions &
unnecessary motions are removed to find out the best way of doing a job.
 Scientifically performing the job with proper selection & training.
 Harmony between management & employees to perform the task.
 Mental revolution towards the thought of workers who are not the mere wage
earners. They are the assets.
CONTRIBUTION OF FRANK & GILBRETH
 The father of “Motion Study” are Frank & Gilbreth which involves finding the best
sequence & minimum number of motions needed to complete a task.
 Both were mainly involved in exploring new ways for eliminating unnecessary
motions & reducing work fatigue.
 They introduced the concept of “Therbligs” which consists of different basic
motions like: Search, Select, Position & Hold.
 Both are very famous for their experiment of reducing the number of motions in
“Bricklaying”, by analyzing brick layers jobs & reducing the number of motions in
bricklaying from 18.5-4.
CONTRIBUTION OF HENRY LAURENCE
GANTT
 Henry Laurence Gantt was a mechanical engineer & management consultant who is the
most famous personality for developing “Gantt Chart” in 1910.
 He is one of the associate of F.W. Taylor & his contribution is very helpful in project
management task.
 Gantt Chart is used for scheduling multiple overlapping tasks over a time period.
 He focused on leadership qualities along with motivational schemes & emphasized the
greater effectiveness of rewards for good work rather than penalties for poor
performance.
 He developed a “Pay Incentive System” with a guaranteed minimum wage & bonus for
workers. If the workers completed their task before the standard time they would
receive bonus definitely.
THE GANTT CHART
 The Gantt Chart is accepted as the most important project management tool until
today. The chart is used as Program Evaluation & Review Technique (PERT).
 It is a popular type of bar chart that illustrates a project schedule which consists of
start & finish dates of the terminal elements & summary elements.
 Terminal & summary elements comprise the work breakdown structure of the
project.
 It provides a graphical mechanism of planning, controlling work & recording the
progress of workers towards the task standard.
CONT…
 The chart compares actual & planned performance.
 It indicates the production in terms of time rather than quantity.
 The horizontal axis consists of time, work schedule & work completed.
 The vertical axis consists of individuals & machines assigned.
LIMITATIONS OF SCIENTIFIC
MANAGEMENT
 The scientific management focuses problems at the operational level only.
 Taylor & his followers overlooked the social needs of workers & overemphasised
their economic & physical needs.
 It ignored the human desire for job satisfaction.
ADMINISTRATIVE MANAGEMENT
 Henry Fayol is known as the Father of “Administrative Management”. He
contributed fourteen management principles on the basis of his experience.
 According to Fayol, the business operations of an organization can be divided into
six activities: Technical, Commercial, Financial, Security, Accounting & Managerial.
 These fourteen principles are: Specialisation of Labour, Authority, Discipline, Unity
of Command, Unity of Direction, Subordination of Individual Interests,
Remuneration, Centralization, Scalar Chain, Order, Equity, Personal Tenure, Initiative
& Esprit de corps (SADUSRCSOEPIE).
1: SPECIALIZATION OF LABOUR
 Specialization allows the individual to build up experience, & continuous
improvement in skill, thereby the person can be more productive.
 This principle is best for both the managerial as well as a technical work level.
 Henri believes that segregating work in the workforce amongst the worker will
enhance the quality of the product.
 Achieving the maximum efficiency from labour through specialization across all
aspects of organization: production, finance, accounting, human resource etc. is the
main aim of specialization.
 Fayol has concluded that the division of work improves the productivity, efficiency,
accuracy & speed of the workers.

2: AUTHORITY & RESPONSIBILITY
 Authority facilitates the management to work efficiently & Responsibility makes
them accountable for the work done.
 Authority is the right to issue commands, along with which must go the balanced
responsibility for its function.
 Authority is the right to give order & the power to exact obedience.
 According to Fayol without authority managers can not manage the organization &
workers.
3: DISCIPLINE
 The workers should be obedient & respectful for the organization, but this is two
sided: employees will obey orders if management play their part by providing
good relationship.
 Discipline involves the idea of no bending of rules. Rules are in place for a good
reason and deviation from them leads weak organizational structure.
 In practice discipline involves standards, consistency of action, adherence to rules
& values.
 Without discipline nothing can be accomplished. It is the core value for any project
or any management.
 Good performance and sensible interrelation make the management job easy &
comprehensive which is possible with proper discipline.
4: UNITY OF COMMAND
 Unity of command means an employee should have only one boss & follow his/her
command.
 Order from many creates confusion & leads to conflict.
 The tension & dilemma arises where report to two or more bosses. Matrix structure
faces such type of problems.
5: UNITY OF DIRECTION
 Unity of direction follows the principle of single plan. People engaged in the same
activity must have the same objective and single plan.
 This refers to all the persons working in a company should have one goal & they
are united to achieve the goal.
 It important that an united group of activities are essential to obtain unity of
action, coordination of strength & focusing on efforts.
6: SUBORDINATION OF INDIVIDUAL
INTEREST
 Subordination of individual interest indicates a company should unitedly work
towards the interest of a company rather than personal interest.
 Management must see that the goals of the firm is always important & the goal of
a single employee should not prevail over the organization aswhole.
7: REMUNERATION
 Remuneration states that employees should receive a fair payment for their
services which is also a motivational tool for workers.
 Remuneration whether it is monetary or non-monetary enhances morale of
employees.
8: CENTRALIZATION
 Centralization deepens upon the size of the organization.
 According to Fayol there should be a balance between hierarchy & division of
power. The level of centralization is a matter of proportion as is the division of
labour.
 Large organization having proper coordination & competent employees opt for
decentralization rather than centralization.
 Decentralization refers to distribution of power.
9: SCALAR CHAIN
 Scalar chain means the line of authority or levels of hierarchy. In hierarchy the steps
should be from top to bottom. Or from highest to lowest.
 This is necessary as an employee should be able to know his/her immediate senior.
 It also focuses on lateral communication.
10: ORDER
 Order focuses that a company should maintain a well-defined work order to have a
favourable work culture.
 The positive atmosphere in the workplace will boost more positive productivity.
 Both material & social order are necessary for the smooth functioning of the
organization.
 The proper order of materials minimises time loss while handling materials & the
proper social order can be achieved through proper selection process.
 At the same time the policies, rules, instructions & actions should be
understandable & understood.
 Orderliness implies steady evolutionary movement rather than wild, anxiety
provoking & unpredictable movement.
11: EQUITY
 Equity focuses on kindness & justice which is the foundation of any business.
Treating employees equally is very important for the smooth running of the
organization.
 All employees of the organization should be treated equally & respectfully. It is the
responsibility of the manager to avoid the chances of discrimination.
12: STABILITY/PERSONNEL TENURE
 Employees work better if job security & career progress are assured to them.
 An insecure tenure creates high labour turnover which adversely affect the
organization.
 Both staff & management require suitable induction programs to familiarise
themselves with new work habits & situations. Fayol also focuses on effective
personnel planning & management development programs to reduce employee
turn over.
13: INITIATIVE
 The management should support & encourage the employees to take initiatives in
an organization. It will help them to increase their interest & make them worthy.
 Allowing personnel to show their initiative in some way is a source of strength for
the organization.
 Therefore workers should be encouraged to contribute to the organization in terms
of development & new ideas.
14: ESPRIT DE CORPS
 Esprit de Corps signifies harmony, cohesion among personnel & team work i which
is a great source of strength of the organization.
 It is the responsibility of the management to motivate their employees & be
supportive of each other regularly.
 Developing trust & mutual understanding will lead to a positive outcome & work
environment.
BUREAUCRATIC MANAGEMENT
 Weber believed that bureaucracy was the most efficient way to set up & manage
an organization, and absolutely necessary for larger companies to achieve
maximum productivity with many employees & tasks.
 The idea of Bureaucracy Favors efficiency, uniformity & a clear distribution of
power.
 Weber argued that bureaucracy constitutes the most efficient & rational way in
which human activity can be organised.
 Hierarchies are necessary to maintain order, to maximise efficiency & to eliminate
favouritism.
CHARACTERISTICS
 Major characteristics of Weber’s Ideal Bureaucracy can be explained in the
following manner.
 Work specialization & division of labour
 Abstract rules & regulations
 Impersonality of managers
 Hierarchy of organization structure
LIMITATIONS OF BUREAUCRATIC &
ADMINISTRATIVE MANAGEMENT
 Weber’s theory destroyed individual creativity & flexibility to respond to complex
changes in the global environment.
 The classical theory ignored important aspects of organizational behaviour.
 They did not deal with problems of leadership, motivation, power and informal
relations.
 Classical theories failed to consider impact of external environment upon employee
behaviour in organizations.

EVOLUTION OF MANAGEMENT THOUGHTS.pptx

  • 1.
  • 2.
    PRE-CLASSICAL THEORY OF MANAGEMENT In Pre-classical theory the structure of the organization is mechanical.  Its main focus is on work.  It emphasizes on order, rules & regulations.  The practice of leadership is authoritarian.  It focuses on 5Ps: Power, Position, Production, Profit & Punishment.  It results workers’ dis satisfaction.  As a result Industrial Revolution got its root
  • 3.
    TYPES OF CLASSICALAPPROACHES  Classical Theory emphasizes on both orders & rationality. It consists of basic rules & regulations for smooth running of the organizations. Classical approaches can be explained in the following manner.  Scientific Management by F.W. Tayler, Frank & Gilbreth & Henry Gantt.  Administrative Management by Henri Fayol.  Bureaucratic Management by Max Weber
  • 4.
    SCIENTIFIC MANAGEMENT THEORY Frederick Winslow Taylor was an American engineer who is known as the Father of “Scientific Management” which studies the application of science in management.  According to Taylor there is “One Best Way” to do each thing.  He stressed on involvement of science for each element of man’s work to replace the old rule-of-thumb method.  Scientific training & development helped workers to perform in a better manner than allowing them to choose their own task & perform.  There was the development of spirit of hearty cooperation between workers & management.  Each group was assigned the task for which it was best fitted.
  • 5.
    OBJECTIVES OF SCIENTIFICMANAGEMENT  His studies helped to improve the working conditions of industrial workers & were instrumental in enhancing the productivity of the organization.  He propounded sound management practices by stressing on division of labor, scientific selection, placement & training of workers.  Taylor was also instrumental in introducing the differential piece rate system in organization.  His studies helped to improve the working conditions of industrial workers & were instrumental in enhancing the productivity of the organization.  He propounded sound management practices by stressing on division of labor, scientific selection, placement & training of workers.  Taylor was also instrumental in introducing the differential piece rate system in organization.
  • 6.
    MANAGERIAL PRACTICES OFTAYLOR  Piece Rate-Incentive System: Incentives are being received according to the maximum pieces produced.  Time-&-Motion Study: Jobs are broken down into various small tasks or motions & unnecessary motions are removed to find out the best way of doing a job.  Scientifically performing the job with proper selection & training.  Harmony between management & employees to perform the task.  Mental revolution towards the thought of workers who are not the mere wage earners. They are the assets.
  • 7.
    CONTRIBUTION OF FRANK& GILBRETH  The father of “Motion Study” are Frank & Gilbreth which involves finding the best sequence & minimum number of motions needed to complete a task.  Both were mainly involved in exploring new ways for eliminating unnecessary motions & reducing work fatigue.  They introduced the concept of “Therbligs” which consists of different basic motions like: Search, Select, Position & Hold.  Both are very famous for their experiment of reducing the number of motions in “Bricklaying”, by analyzing brick layers jobs & reducing the number of motions in bricklaying from 18.5-4.
  • 8.
    CONTRIBUTION OF HENRYLAURENCE GANTT  Henry Laurence Gantt was a mechanical engineer & management consultant who is the most famous personality for developing “Gantt Chart” in 1910.  He is one of the associate of F.W. Taylor & his contribution is very helpful in project management task.  Gantt Chart is used for scheduling multiple overlapping tasks over a time period.  He focused on leadership qualities along with motivational schemes & emphasized the greater effectiveness of rewards for good work rather than penalties for poor performance.  He developed a “Pay Incentive System” with a guaranteed minimum wage & bonus for workers. If the workers completed their task before the standard time they would receive bonus definitely.
  • 9.
    THE GANTT CHART The Gantt Chart is accepted as the most important project management tool until today. The chart is used as Program Evaluation & Review Technique (PERT).  It is a popular type of bar chart that illustrates a project schedule which consists of start & finish dates of the terminal elements & summary elements.  Terminal & summary elements comprise the work breakdown structure of the project.  It provides a graphical mechanism of planning, controlling work & recording the progress of workers towards the task standard.
  • 10.
    CONT…  The chartcompares actual & planned performance.  It indicates the production in terms of time rather than quantity.  The horizontal axis consists of time, work schedule & work completed.  The vertical axis consists of individuals & machines assigned.
  • 11.
    LIMITATIONS OF SCIENTIFIC MANAGEMENT The scientific management focuses problems at the operational level only.  Taylor & his followers overlooked the social needs of workers & overemphasised their economic & physical needs.  It ignored the human desire for job satisfaction.
  • 12.
    ADMINISTRATIVE MANAGEMENT  HenryFayol is known as the Father of “Administrative Management”. He contributed fourteen management principles on the basis of his experience.  According to Fayol, the business operations of an organization can be divided into six activities: Technical, Commercial, Financial, Security, Accounting & Managerial.  These fourteen principles are: Specialisation of Labour, Authority, Discipline, Unity of Command, Unity of Direction, Subordination of Individual Interests, Remuneration, Centralization, Scalar Chain, Order, Equity, Personal Tenure, Initiative & Esprit de corps (SADUSRCSOEPIE).
  • 13.
    1: SPECIALIZATION OFLABOUR  Specialization allows the individual to build up experience, & continuous improvement in skill, thereby the person can be more productive.  This principle is best for both the managerial as well as a technical work level.  Henri believes that segregating work in the workforce amongst the worker will enhance the quality of the product.  Achieving the maximum efficiency from labour through specialization across all aspects of organization: production, finance, accounting, human resource etc. is the main aim of specialization.  Fayol has concluded that the division of work improves the productivity, efficiency, accuracy & speed of the workers. 
  • 14.
    2: AUTHORITY &RESPONSIBILITY  Authority facilitates the management to work efficiently & Responsibility makes them accountable for the work done.  Authority is the right to issue commands, along with which must go the balanced responsibility for its function.  Authority is the right to give order & the power to exact obedience.  According to Fayol without authority managers can not manage the organization & workers.
  • 15.
    3: DISCIPLINE  Theworkers should be obedient & respectful for the organization, but this is two sided: employees will obey orders if management play their part by providing good relationship.  Discipline involves the idea of no bending of rules. Rules are in place for a good reason and deviation from them leads weak organizational structure.  In practice discipline involves standards, consistency of action, adherence to rules & values.  Without discipline nothing can be accomplished. It is the core value for any project or any management.  Good performance and sensible interrelation make the management job easy & comprehensive which is possible with proper discipline.
  • 16.
    4: UNITY OFCOMMAND  Unity of command means an employee should have only one boss & follow his/her command.  Order from many creates confusion & leads to conflict.  The tension & dilemma arises where report to two or more bosses. Matrix structure faces such type of problems.
  • 17.
    5: UNITY OFDIRECTION  Unity of direction follows the principle of single plan. People engaged in the same activity must have the same objective and single plan.  This refers to all the persons working in a company should have one goal & they are united to achieve the goal.  It important that an united group of activities are essential to obtain unity of action, coordination of strength & focusing on efforts.
  • 18.
    6: SUBORDINATION OFINDIVIDUAL INTEREST  Subordination of individual interest indicates a company should unitedly work towards the interest of a company rather than personal interest.  Management must see that the goals of the firm is always important & the goal of a single employee should not prevail over the organization aswhole.
  • 19.
    7: REMUNERATION  Remunerationstates that employees should receive a fair payment for their services which is also a motivational tool for workers.  Remuneration whether it is monetary or non-monetary enhances morale of employees.
  • 20.
    8: CENTRALIZATION  Centralizationdeepens upon the size of the organization.  According to Fayol there should be a balance between hierarchy & division of power. The level of centralization is a matter of proportion as is the division of labour.  Large organization having proper coordination & competent employees opt for decentralization rather than centralization.  Decentralization refers to distribution of power.
  • 21.
    9: SCALAR CHAIN Scalar chain means the line of authority or levels of hierarchy. In hierarchy the steps should be from top to bottom. Or from highest to lowest.  This is necessary as an employee should be able to know his/her immediate senior.  It also focuses on lateral communication.
  • 22.
    10: ORDER  Orderfocuses that a company should maintain a well-defined work order to have a favourable work culture.  The positive atmosphere in the workplace will boost more positive productivity.  Both material & social order are necessary for the smooth functioning of the organization.  The proper order of materials minimises time loss while handling materials & the proper social order can be achieved through proper selection process.  At the same time the policies, rules, instructions & actions should be understandable & understood.  Orderliness implies steady evolutionary movement rather than wild, anxiety provoking & unpredictable movement.
  • 23.
    11: EQUITY  Equityfocuses on kindness & justice which is the foundation of any business. Treating employees equally is very important for the smooth running of the organization.  All employees of the organization should be treated equally & respectfully. It is the responsibility of the manager to avoid the chances of discrimination.
  • 24.
    12: STABILITY/PERSONNEL TENURE Employees work better if job security & career progress are assured to them.  An insecure tenure creates high labour turnover which adversely affect the organization.  Both staff & management require suitable induction programs to familiarise themselves with new work habits & situations. Fayol also focuses on effective personnel planning & management development programs to reduce employee turn over.
  • 25.
    13: INITIATIVE  Themanagement should support & encourage the employees to take initiatives in an organization. It will help them to increase their interest & make them worthy.  Allowing personnel to show their initiative in some way is a source of strength for the organization.  Therefore workers should be encouraged to contribute to the organization in terms of development & new ideas.
  • 26.
    14: ESPRIT DECORPS  Esprit de Corps signifies harmony, cohesion among personnel & team work i which is a great source of strength of the organization.  It is the responsibility of the management to motivate their employees & be supportive of each other regularly.  Developing trust & mutual understanding will lead to a positive outcome & work environment.
  • 27.
    BUREAUCRATIC MANAGEMENT  Weberbelieved that bureaucracy was the most efficient way to set up & manage an organization, and absolutely necessary for larger companies to achieve maximum productivity with many employees & tasks.  The idea of Bureaucracy Favors efficiency, uniformity & a clear distribution of power.  Weber argued that bureaucracy constitutes the most efficient & rational way in which human activity can be organised.  Hierarchies are necessary to maintain order, to maximise efficiency & to eliminate favouritism.
  • 28.
    CHARACTERISTICS  Major characteristicsof Weber’s Ideal Bureaucracy can be explained in the following manner.  Work specialization & division of labour  Abstract rules & regulations  Impersonality of managers  Hierarchy of organization structure
  • 29.
    LIMITATIONS OF BUREAUCRATIC& ADMINISTRATIVE MANAGEMENT  Weber’s theory destroyed individual creativity & flexibility to respond to complex changes in the global environment.  The classical theory ignored important aspects of organizational behaviour.  They did not deal with problems of leadership, motivation, power and informal relations.  Classical theories failed to consider impact of external environment upon employee behaviour in organizations.