This document summarizes the evolution of management thinking from classical to modern perspectives. It discusses early theories like scientific management and bureaucracy that focused on efficiency. Later humanistic approaches emphasized employee satisfaction and needs. Current trends apply systems theory, focus on quality, learning organizations, and technology in management. The document traces how management perspectives have shifted from viewing workers as machines to recognizing human and social factors.

1. “MANAGEMENT”
TOPIC: SUMMARY OF “EVOLUTION OF MANAGEMENT THINKING”
SUBMITTED TO:
MR. BABAR JAMIL
LECTURER IN MANAGEMENT
IM|SCIENCES PESHAWAR
SUBMITTED BY:
ASAD ASHFAQ
BBA (HONS) “2013-2017”
1st Semester GROUP “D”
DATE: 26/02/2014

2. MANAGNMENT AND ORGANIZATION
“Historysimplymeansdevelopinganunderstandingof the impactof some societal forcesonthe organization,
and itis the way toachieve strategicthinking”
SOCIAL FORCES referstothose aspectsof a culture that guide and influence relationshipsamongpeople
theirvalues,needs,andstandardsof behavior.
POLITICAL FORCES refersto the influence of political andlegal institutionsonpeople andorganization. The
political sectorof the environmentpresentsactual andpotential restrictiononthe wayan organization
operates.
ECONOMIC FORCES it affectthe availability,productionanddistributionamongcompetingusers.Every
societyrequiresresourcestoachieve theirgoals,andthe economicforcesinfluence the allocationof scare
resources.Economyisbasedonthe ideas,information,andknowledge asitison material resources.
CLASSICAL PERSPECTIVE
“A managementperspectivethatemergedduringthe nineteenthandearlytwentiethcenturiesthatemphasized
a rational,scientificapproachtostudyof managementandsoughttomake organizationsefficientoperating
machines.”
SCIENTIFIC MANAGEMENT
One of the earliestof these theoristswasFrederickWinslow Taylor.In1909, Taylorpublished"The Principlesof
ScientificManagement."Inthis,he proposedthatbyoptimizingandsimplifyingjobs,productivitywould
increase.He alsoadvancedthe ideathatworkersandmanagersneededtocooperate withone another.Taylor
believedthatall workerswere motivatedbymoney,sohe promotedthe ideaof "a fairday'spay for a fairday's
work.The fourprinciplesof scientificmanagementisgivenbelow:
 Developedstandardmethodforperformingeachjob.
 Selectedworkerswithappropriate abilitiesforeachjob.
 Trainedworkersinstandardmethod.
 Supportedworkersbyplanningworkandeliminatinginterruptions.
BUREAUCRATIC ORGANIZATIONS
Max Weber(1864–1920), a German theorist,introducedmostof the conceptsonbureaucraticorganizations.
“A subfieldof the classical management perspective thatemphasizedmanagementonanimpersonal,rational
basisthroughsuch elementsasclearlydefinedauthorityandresponsibility,formalrecordkeeping,and
separationof managementandownership”
The GENERAL APPROACH was to motivate the workerandusedthe inputof workerforthe greatoutput.
The CONTRIBUTION wasto initiate the careful studyof taskandjobs.
The CRITICISM was that theydidnot appreciate the social contextandneedsof workerandtheyalsoignored
theirsuggestions.

3. ADMINISTRATIVE PRINCIPLES
 Contributors to this approach, Henri Fayol,Mary Parker, and ChesterI. Barnard
A subfieldof the classical managementperspective thatfocusesonthe total organizationratherthanthe
individualworker,delineatingthe management functionsof planning,organizing,commanding,coordinating,
and controlling.
Henri Fayol 1841-1925
Henri Fayol wasa Frenchminingengineer.In Generaland IndustrialManagement,Fayol discussed
14 general principlesof management forexample,Unity of command,divisionof work,unityof direction,scalar
chain,centralization,equity, Remuneration.He alsodefines the five basicfunctionsof management.
Mary parker Follett (1868-1933) she applied herself inmanyfieldsalsoinmanagementshe wrote the
importance of superordinategoalsforreducingconflictin organization.She offeredthe pithyadmonition“don’t
hug yourblueprints”andanalyzesthe dynamicof management. Chester Barnard (1886-1961) the concept
of informal organization,freewill,andfollow managementorderwasgivenbyhim.
HUMAISTIC PERSPECTIVE
Emphasizedunderstandinghumanbehavior,needs,andattitudesinthe workplace
HUMAN RELATION MOVEMENT
Emphasizedsatisfactionof employees’basicneedsasthe keytoincreasedworker productivity
HAWTHRONE STUDIES
A seriesof experimentsonworkerproductivitybegunin1924 at the Hawthorne plantof westernelectric
companyinIllinoisattributedemployees,increasedoutputtomanagers,bettertreatmentof themduringthe
study.Most earlyinterpretation agreedonone thing“moneywasnotcause of increasingoutput”onlyHuman
relationscanincrease the output.
A movement in management thinking and practice that emphasize satisfaction of employee;
basic needs as the key to increased worker productivity this was the Human relation movement.
Human resource perspective
A managementperspective thatsuggestsjobsshouldbe designedtomeethigher-levelneedsbyallowing
workerstouse theirfull potential.
Abraham maslow (1908-1970) he suggestedthe hierarchyoneedsitstartedwithphysiological needsand
finallyself-actualizationneeds.
Douglas McGregor he hadchallengedboththe classical perspective andthe earlyhumanrelations
assumptionandformulatedhis THEORY X and THEORY Y. He believedthatthe classical perspective was
basedon TheoryXassumptionsaboutworkers.He alsofeltthata slightlymodifiedversionof TheoryXfitearly
humanrelationsideas.Inotherwords,humanrelationsideasdidnotgofar enough.McGregorproposedTheory
Y as a more realisticviewof workersforguidingmanagementthinking.
BEHAVIOUR SCIENCE APPROACH
A subfieldof the humanisticmanagementperspectivethatappliessocial science inanorganizationalcontext,
drawingfromeconomics,psychology,sociology, andotherdisciplines. Inthe 1970s, organization
development evolvedasa separate fieldthatappliedthe behavioral sciencestoimprove the organization’s

4. healthand effectivenessthroughitsabilitytocope withchange, improve internal relationships,andincrease
problem-solvingcapabilities.
MANAGEMENT SCIENCE PERSPECTIVE
“A managementperspectivethatemergedafterWorldWarIIand appliedmathematics,statistics,andother
quantitative techniquestomanagerial problems”.
Organizations management refersto the fieldof managementthatspecializesinthe physical production
of goodsandservice.Forexample inventorymodeling,linearandnon-linearprogramingetc.
Information technology isthe fieldof managementthatisoftenreflected inmanagementinformation
system.Thissystemprovidesinformationtothe managersinatimelyandcost-efficientmanner.
RECENT HISTORY TRENDS
SYSTEM THEORY
 System – A setof interrelatedpartsthatfunctionasa whole toachieve acommonpurpose.
SYSTEM THEORY -Anextensionthatdescribesorganizationsasopensystemsthatare characterizedby
entropy,synergyandsubsysteminterdependence.
 Opensystem a systemthatinteractswiththe external environment.
 Closedsystema systemthat doesnotinteract withthe external environment.
 Entropy The tendencyfora systemtorun downand die.
 Synergy The conceptthat the whole isgreaterthanthe sumof itsparts.
 SubsystemsParts of a systemthatdependsonone anotherfortheirfunctioning.
CONTINGENCY VIEW
An extensionof the humanisticperspectiveinwhichthe successful resolutionof organizational problemsis
thoughtto dependonmanagers‘identificationof keyvariationsinthe situation athand. The contingencyview
meansthat a manager’sresponse dependsonidentifyingkeycontingenciesinanorganizationalsituation.When
managerslearnto identifyimportantpatternsandcharacteristicsof theirorganizations,theycanthenfit
solutionstothose characteristics.
TOTAL QUALITY MANAGEMENT
W.Edwards Demingisknownas the “fatherof the qualitymovement”.
A conceptthat focusesonmanagingthe total organizationto deliverqualitytocustomers
 Employee involvement
 Focuson the customer
 Benchmarking
 Continuousimprovement
The major workof TQM companiesis tofindoutwhat the customerswantand try to meettheirneedsand
expectations.
THE LEARNING ORGANIZATION
“An organizationinwhicheveryone isengagedinidentifyingandsolvingproblems,enablingthe organizationto
continuouslyexperiment,improve andincreaseitscapability”
The essential ideaisproblemsolvinginaefficientmanner.Today’s managersolves problemsof customerand
satisfytheirneeds.Three importantadjustmentstopromote continuouslearningandshiftingto

5.  Team-Based structure- teamsare the basicblockof the structure.These teamsmade upof
employeewithdifferentskillswhoshare theirthoughtsanddoworkin a efficientmanner.
 Empowered employees- it meansthatunleashingthe powerandcreativityof employee bygiving
themthe freedom,resources,informationandskillstomake decisionandperformeffectively.
 Open information- an organizationisfloodedwithinformation.Toidentifyneedsandsolve problem
people have toknowwhat’sgoingon.The formal data of an organizationare available toeveryone.
Managers know that providingtoomuchinformationisbetterthanprovidinglessinformation.
TECHNOLOGY-DRIVEN WORKPLACE
THE SHIFTED WORLD TO E-BUSINESS
“Work an organizationdoesbyusingelectroniclinkages”iscalled E-Business.
“Businessexchangesortransactionsdone electronically”are called E-Commerce.
“Managing the sequence of suppliersandpurchasers, coveringall stagesof processingfromobtainingraw
materialstodistributingfinished goodstofinal customers”iscalledSupply chain management.
TECHNOLOGY
Enterprise resource planning (ERP) Systems that unite a company’s major business functions—order
processing, product design, purchasing, inventory, and so on.
Knowledge management The effortstosystematicallyfind,organize,andmake available acompany’s
intellectual capital andtofosteraculture of continuouslearning andknowledge sharing.
Customer relationship management (CRM) Systemsthathelpcompaniestrackcustomers‘interaction
withthe firmand allowemployeestocall upinformation onpasttransactions.
Outsourcing Contractingoutselectedfunctionsoractivitiesof anorganizationtootherorganizationsthat
can do the work more cost efficiently.
THANK YOU 