This document discusses the rise of classical organizational theory from 1910-1935 and the human relations movement from 1935-1950. The classical theorists like Taylor, Fayol, Gulick, and Weber focused on structure and efficiency. Taylor pioneered time and motion studies while Fayol identified management functions. The Hawthorne Studies from 1924-1932 shifted the focus to social and psychological factors, finding that relationships and participation increased satisfaction and performance more than formal structure. This led to the human relations movement and theorists like Mayo who emphasized the individual.

1. ORGANIZATIONAL
THOUGHT AND THEORY
Reported by: Jerralyn Cortez – Alva
Masters in Educational Management
Polytechnic University of the Philippines
THE RISE OF CLASSICAL
ORGANIZATIONAL THEORY, 1910 –
1935
THE HUMAN RELATIONS
MOVEMENT, 1935 - 1950
16 Dec 2018

2. CLASSICAL ORGANIZATIONAL
THEORY
Deals with the anatomy of formal organizations
(job-unit / authority, accountability-
responsibility).

3. MAJOR CONTRIBUTORS TO THE
CLASSICAL ORGANIZATIONAL
THEORY
Scientific Management
 Frederick Taylor
Administrative Management
 Henri Fayol
 Luther Halsey Gulick
 Max Weber

4. FREDERICK W. TAYLOR
(Mar. 20, 1856 – Mar. 21, 1915)
 “Father of Scientific Management”, he
is best known for his “One best way
approach” in accomplishing task
 He pioneered the development of
TIME and MOTION STUDIES and
published the result of his studies in
1911 on the PRINCIPLES of
SCIENTIFIC MANAGEMENT
 Scientific Management – focusing
on the management of work and
workers.

5. TAYLOR’s
ACCOMPLISHMENTS
 Creates system to gain maximum efficiency
from workers and machines in the factory
 Focuses in time and motion studies to learn
how to complete a task in the least amount of
time
 Becomes consulting engineer for many other
companies

6. 4 Principles of Taylor’s Scientific
Management
1. Replace rule-of-thumb work methods with
methods based on a scientific study of the
tasks.
2. Scientifically select, train and develop each
employee rather than passively living them to
train themselves.
3. Provide “Detailed instruction and supervision
if each worker in the performance of that
worker’s discrete task”
4. Divide work nearly equally between
managers and workers.

7. HENRI FAYOL
(Jul. 29, 1841 – Nov. 19, 1925)
 Engineer and French Industrialist
 In France, he works as managing
director in coal-mining
organization
 Recognizes to the management
principles rather than personal
traits
 Fayol was the first to identify
management as a continuous
process of evaluation

8. Fayol’s 5 Management
Functions
 Fundamental roles performed by all managers:
Planning
Organizing
Commanding
Coordinating
Controlling

9. FAYOL’s 14 MANAGEMENT
PRINCIPLES
1. Division of Work
2. Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of Individual Interests to the
General Interest
7. Remuneration of Personnel

10. 8. Centralization
9. Scalar Chain (Line of Authority)
10. Order
11. Equity
12. Stability of Tenure of Personnel
13. Initiative
14. Esprit de Corps
FAYOL’s 14 MANAGEMENT
PRINCIPLES

11. LUTHER HALSEY GULICK
(May 4, 1865 – Aug. 13, 1918)
 A specialist in municipal finance
and administration
 Gulick works with the Institute of
Public Administration, professor
of municipal science and
administration at Columbia and
serves on Franklin D.
Roosevelt’s Committee of
Government Administration
 Expands Fayol’s 5 management
functions into 7 functions

12. GULICK’s 7 MANAGEMENT
FUNCTIONS
1. Planning
2. Organizing
3. Staffing
4. Directing
5. Coordinating
6. Reporting
7. Budgeting

13. MAXIMILIAN KARL EMIL WEBER
(Apr. 21, 1864 – Jun. 14, 1920)
 German Sociologist
 He first describes the concept of
Bureaucracy – an ideal form of
organizational structure
 He defines bureaucratic
administration as the exercise of
control on the basis of
knowledge
 “Power is principally exemplified
within organizations by the
process of control”

14. WEBER’s 3 BASIC CLASSIFICATIONS OF
ORGANIZATION ACCORDING TO THEIR POWER
AND USES
 Charismatic Authority – based on the sacred
or outstanding characteristic of the individual.
 Traditional Authority – essentially a respect
for customs.
 Rational Legal Authority – based on a code
or set of rules.

15. COMMON CRITICISMS OF
CLASSICAL ORGANIZATIONAL
THEORY
 Employees have minimal power over their jobs
and working conditions
 Subordination, passivity and dependence are
expected
 Work to a short term perspective
 Employees are lead to mediocrity
 Working conditions produce to psychological
failure as a result of the belief that they are
lower class employees performing menial
tasks

16. THE HUMAN RELATIONS
MOVEMENT
Management focuses on the person as an
individual and analyzes what motivates and
cultivates their achievement in a work setting.

17. THE HUMAN RELATIONSHIP MOVEMENT
(1935 – 1950)
 Application of behavioural sciences to
management theories
 Stemmed from Hawthorne Studies is based
on the idea that a manager’s concern for
workers will lead to their increased satisfaction
and improved performance.
 The movement includes the theories of
motivation, like Maslow Hierarchy of Needs
and McGregor Theory X and Theory Y.

18. PROF. GEORGE ELTON MAYO
(Dec. 26, 1880 – Sept. 7, 1949)
 Father and Founder of Human
Relations Movement
 Australian psychologist,
sociologist and Harvard
University Professor of
Business and Industrial
Research
 Known for his Hawthorne
Studies (1924-1932)

19. THE HAWTHORNE
EXPERIMENTS
 Carried out at Western Electric’s Hawthorne
Plant in Chicago in 1920 to 1930
 Hawthorne Experiments have 4 phases:
1. Hawthorne Illumination Test (Nov.1924)
2. Relay Assembly Test Room Study
(1927-1932)
3. Mass Interviewing Programme (1928-
1930)
4. Bank Wiring Observation Study
(Nov.1931-May 1932)

20. CONCLUSIONS OF HAWTHORNE
STUDIES
 The social and psychological factors are
responsible for worker’s productivity and job
satisfaction.
 The informal relations among workers
influence the worker’s behavior and
performance more than the formal relations in
the organization.
 Employees will perform better if they are
allowed to participate in decision-making
affecting their interests.