The document discusses the evolution of management thought from early contributions up until the 1970s. It covers several approaches in 3 sentences: The early approaches included scientific management from 1900-1930 which emphasized productivity through scientific study of work, and administrative/operational management from 1916-1940 which viewed management from a higher level. Neoclassical approaches from the 1930s-1950s focused on human relations, social systems, and decision theory. Modern approaches from the 1960s onward included systems approaches which viewed the organization holistically and contingency approaches which emphasized there is no universal way to manage.

1. Evolution of management
thoughts: early
contributions
Management thought Period
Early contributions Upto 19th century
Scientific management 1900-1930
Administrative/operation
al management
1916-1940
Human relations
approach
1930-1950
Social systems approach 1940-1950
Decision theory approach 1945-1965
Management science
approach
1950-1960
Human behaviour
approach
1950-1970
Systems approach 1960s onwards
Contingency approach 1970s onwards
The increasingly severe
competition has come form
such factors
 Increasing size of business
organisations
 High degree of division of labour
and specialisation
 Technological innovations
 Pressure of various conflicting
interest groups to meet their
demands from the organisation
etc.
.

2. • Classical approach (scientific management and administrative/operational
management
• Neoclassical approach (human relations approach, social systems approach, decision
theory approach)
• Modern approach (system approach, contingency approach)

3. Scientific Management
• Scientific Management: emphasized the scientific
study of work methods to improve the productivity of
individual workers.
• Scientific Management is concerned with
knowing exactly what you want to do and then
see in that they do it in the best & cheapest way.
.

4. • Defined by Frederick Winslow Taylor in
USA in the beginning of the 20th century
to replace informal rule of thumb
knowledge.
• Father of scientific management
• Joined Midvale Steel Company in USA as a
worker and later become an supervisor
then joined Bethlehem Steel Company.
• Published Book, ‘ Scientific Management’.
.

5. Elements and Tools of Scientific
Management
1. Separation of planning and doing (gang boss)
2. Functional foremanship(8 persons, 4 person –planning
incharge (route clerk, instruction card clerk, time and cost
clerk, disciplinarian), 4 persons- doing aspect of the work
(production incharge)(speed boss, inspector, maintenance
foreman, gang boss) (against the unit of command)
3. Job analysis (Time study, Motion study, fatigue study)
4. Standardization (instruments and tools, period of work,
amount of work).
5. Scientific selection & training of workers (education
experience etc)
6. Financial incentives (concept of differential piece rate system,
individual performance (knowledge) and not on the position)
7. Economy (eliminating the wastages)
8. Mental revolution (mutual cooperation between management
and workers)
.

6. Principles of Scientific Management
1. Replacing the rule of thumb
with science (organised
knowledge should be applied)
2. Harmony in group action
(mutual give and take situation)
3. Co-operation (mutual
confidence, cooperation,
goodwill)
4. Maximum output (larger size of
the cake)
5. Development of workers
(training)
Followers of scientific
management
• Carl George Berth, Henry
Gantt, Frank and Lillian
Gilbreth
Critical Analysis of Scientific
Management
• Father of industrial
engineering rather than the
father of scientific
management
• Mehanisation and
automation
• Problems at operating levels
• Opposed by trade unions
.

7. Fayol’s Administrative Management
•Real father of modern operational management theory is the
French industrialist Henry Fayol.
•Administration Industrielle at Generale-French language, in
1916, English version was published in 1949 in USA
•From top management point of view.
•The study of how to create an organizational structure that
leads to high efficiency and effectiveness.
•Developed 14 principles of management (flexible in
nature) that applied to all organizational situations
.

8. Fayol found that activities of an
industrial organization could be
divided into six groups:
1. Technical (relating to
production)
2. Commercial (buying, selling)
3. Financial (capital, use of
resources)
4. Security (protection of property
and person)
5. Accounting (statistics),and
6. Managerial (planning,
organizing, command,
coordination and control)
Fayol has divided his approach
(managerial activity) of studying
management into three parts:
 Managerial qualities and
training
 General principles of
management
 Elements of management
.

9. Managerial Qualities and
training
1. Physical (health)
2. Mental (ability to
understand and learn)
3. Moral (energy, loyalty)
4. Educational
5. Technical
6. Experience
Elements of Management
(functions of
management)
1. Planning
2. Organisation
3. Commanding
4. Coordination
5. Controlling
.

10. Henry Fayol’s 14 Principles of Management (truth, cause-effect
relationship, flexible)
1. Division of Work
2. Authority and responsibility(official and personal authority, responsibility-assignment of
activity)
3. Discipline (self imposed discipline and command discipline)
4. Unity of command (instructions from only one superior, reporting relationship)
5. Unity of direction (activities with same objective must have one head and one plan,
functioning of organisation)
6. Subordination of individual interest
7. Remuneration (satisfaction)
8. Centralization
9. Scalar chain (gang plank)
10. Order (place for everything and everything should be in its place)
11. Equity (justice and kindness)
12. Stability of tenure (security of jobs)
13. Initiative (thinking out and execution of plan)
14. Esprit de corps (union is strength)
.

11. Similarity (Taylor Vs Fayol)
– Solve managerial
problems in a systematic
way
– Sound principles
– Managerial quality are
acquirable
– Harmonious relationship
– Management actions can
be effective if these are
based on sound principles
Taylor Vs Fayol (Dissimilarity
GLA
Basis Taylor Fayol
Perspective Shop-floor level Higher management
level
Focus Efficiency through
work simplification &
standardization
Overall efficiency
Orientation Production &
engineering
Managerial functions
Results Scientific observation
& management
Personal experiences
translated into
universal truths
Overall contributions Basis for
accomplishment on
the production line
Systematic theory of
management
.

12. Bureaucracy
Bureaucracy
•Bureaucracy is an administrative
system designed to accomplish large
scale administrative tasks by
systematically coordinating the work
of many individuals.
•Max Weber
GLA
Features of Bureaucracy
1. Administrative class (paid,
tenure, rules & regulations)
2. Hierarchy
3. Division of work-
Specialisation
4. Official rules
5. Impersonal relationships
6. Official record
7. Trained personnel
.

13. .
Problems in Bureaucracy??
1. Invalidity of Bureaucratic assumptions
2. Goal Displacement
3. Unintended consequences
4. Inhuman Organisation
5. Closed system perspectives

14. Hawthorne Experiments and Human Relations
• Human relations approach of management
• For the first time, an intensive and systematic analysis of human
factor in organisation was made in the form of Hawthorne
experiments.
• The Hawthorne plant of the General Electric company, Chicago,
was manufacturing telephone system bell. It employed about
30,000 employees at the time of experiments.
• With pension and sickness and other benefits but here was
dissatisfaction
• In 1924, assistance from the National Academy of Sciences, Elton
Mayo (psychologist), Whitehead and Roethlisberger (socialist), and
company representative William Dickson.
• To study the relationship between productivity and physical
working conditions
.

15. 4-Phases of Hawthorne
experiments
1. Experiment to determine the effects of changes in
illumination on productivity, illumination experiment,
1924-27 (two separate groups, physical factor affects
productivity)
2. Experiment to determine the effects of changes in hours
and other working conditions on productivity, relay
assembly test room experiment, 1927-28 (two girls choose
four girls as co-workers, duration 4 to 12 weeks, output
depends on speed and continuity, changes were consulted
and express their views (incentive system, rest intervals,
rest period frequency was increased, coffee or soup with
sandwich, changes in working hours), revert back to
original position, (feeling of stability, girl’s attitude change,
sense of belongingness)
.

16. 3. Conducting plant wide interviews to determine worker
attitudes and sentiments, mass interviewing programme,
1928-30 (about 20, 000 interviews to determine employees
attitude towards company, supervision, plans etc, workers
behaviour influenced by group behaviour)
Determination and analysis of social organization at work,
bank wiring observation room experiments, 1931-32.( 14
male workers,-9 wiremen, 3 soldermen, and two inspectors,
(hourly wage rate-average output of each worker, bonus-
average group output), produce target lower than company’s
target- fear of unemployment, fear of raising standards,
protection of slower workers, satisfaction on the part of
management
.

17. .

18. Chester Barnard and Social
System Approach
• This approach of management has extended the
implications of human relations approach.
• Introduced by Vifredo Pareto, later developed
Chester Barnard
• According to this approach “an organization is
essentially a cultural system composed of people
who work in cooperation, for achieving
organizational goals, a cooperative system can be
developed by understanding the behavior of
.

19. Contributions of Barnard
1. Concept of Organization
• There are persons able to communicate with each other
• They are willing to contribute to the action
• They attempt to accomplish a common purpose
2. Formal & Informal Organization
3. Elements of Organization
– Departmentalization
– Effective & efficient incentives
– System of power
– System of logical decision making
4. Authority
– Acceptance theory of authority or bottom up authority
5. Functions of the executive
– Maintenance of organizational communication
through a system of organization
– Securing of essential services
– Formulation and definition of organizational
purpose
6. Motivation
• Nonfinancial techniques for motivating people
• Pleasant organization, participation
7. Executive effectiveness
• Requires a high order of responsible leadership
• Executive leadership demands high calibre,
technological competence, and technical and
social skills
8. Organizational equilibrium
• Matching of individual efforts and organizational
efforts to satisfy individuals
.

20. Decision theory approach
 Major contributor- Herbert Simon
 Decision- the selection of a suitable course of action out of
the given alternatives.
 The major emphasis of this approach is that decision
making is the job of every manager.
 The manager is the decision maker & organization is
decision-making unit
 The basic problem in managing is to take rational decision
 Quality of decision affects the organisational effectiveness
 Management is essentially decision making
 Organization can be treated as a combination of various
decision making centers
.

21. Contributions of Herbert Simon (Nobel prizewinner in Economics)
• Concept of organization
 Simon has described an organisation as a complex network of
decisional processes
• Decision making
 Intelligent activity, Design activity , Choice activity
• Bounded rationality
 Simon is of view that man is not completely rational
• Administrative man
 Simon has given the concept of administrative man as the model
of decision-making.
• Organizational communication
 Three stage : initiation, transmittal, and receipt of information
.

22. Contributions of Peter Drucker
• Nature of Management (creative and innovative characteristics)
• Management Functions (specific purpose, work productive and social impacts)
• Organisation Structure (enterprise should be organised for performance, least
possible number of managerial levels, training and testing of tomorrow’s top
manager: activity analysis, decision analysis, and relation analysis
• Federalism (centralised control in decentralised structure)
• Management by Objectives (1954, method of planning, setting standards,
performance appraisal, and motivation
• Organizational Changes (rapid changes in the society because of rapid technological
development)
.