Development of Management Thoughts

2. SCHOOL OF MANAGEMENT
THOUGHT
• Scientific Management
• Administrative Management
• Bureaucratic Organization
• Human Relations School
• Behavioural Schools
• Systems Theory
• Contingency Theory
• Organizational Humanism
• Management Science

3. THEORY IN MANAGEMENT
• Management is an applied science.
• Management theory has evolved in a symbiotic relationship to its related and
supporting disciplines like mathematics, statistics and behavioural sciences,
depriving the motivation to devise its own conceptual framework
independent of related disciplines. Moreover, management research has been
kept psychologically and philosophically closer to practice than to theory.
• To become a theory, an experience or practice needs to undergo several
modifications, syntheses and tests.

4. Introduction
• The purpose of studying various schools of management thought is to enable you
to recognize and appreciate how developments in the field of management could
contribute to current practices.
• An examination of these past and present approaches can help to discover the
strengths and weaknesses of current managerial practices and finally enable you, as
a potential manager of an information centre, to choose appropriate management
styles.
• Today’s management is both a reflection of and a reaction to past management
theories.

5. CLASSIFICATION OF
MANAGEMENT
THEORIES
• i) Classical management theory
• ii) Neoclassical management theory
• iii) Modern management theory
• Under each group a few schools of thought areidentified.

6. CLASSICAL MANAGEMENT
THEORY
• Classical management theory consists of a group of similar ideas on the
management of Organizations. it generally concerns ways to manage work and
organizations more efficiently.
• Scientific Management
• Administrative Management
• Bureaucratic Organization
• The predominant and common characteristic to all three branches is the emphasis
on the economic rationality of management and organization.

7. • The economic rationality of the individual employee at work assumes that
people choose the course of action that maximizes their economicreward.

8. Scientific
Management
• Scientific management was introduced in an attempt to create a
mental revolution in the workplace.
• It canbe defined as the systematic study of work methods
in order to improve efficiency
• In the late 19th century, management decisions were often arbitrary and
workers often worked at an intentionally slow pace. There was little in the
way of systematic management and workers and management were often
in conflict.

9. Administrative Management
• Focuses on the management process and principles of
management.
• In contrast to scientific management, which deals largely
with jobs and work at the individual level of analysis,
administrative management provides a more general theory
of management.
• Henri Fayol is the major contributor to this school of
management thought and according to him this school
basically deals with people in system.

10. • Although administrative management has been criticized as
being rigid and inflexible and the validity of the functional
approach to management has been questioned, this school
of thought still influences management theory and practice
• The functional approach to management is still the
dominant way of organizing management knowledge, and
many of Fayol's principles of management, when applied
with the flexibility that he advocated, are still considered
relevant.

11. Bureaucratic
Management
• It focuses on ideal form of organization and follows thesame.
• Max Weber was the major contributor. Weber's theory of bureaucratic
management also has two essential elements. First, it entails structuring
an organization into a hierarchy. Secondly, the organization and its members
are governed by clearly defined rational-legal decision-making rules.
• Based on observation, he concluded that many early organizations were
inefficiently managed, with decisions based on personal relationships and
loyalty.

12. NEO-CLASSICAL THEORY
• The Neo-classical theory, which is identified with the period from 1920s to
1950s, is concerned with the human oriented approach and emphasized the
needs, drives, behaviours and attitudes of people.
• Human Relations School
• Behavioural Schools

13. Human Relations School
• the manager should possess skills for diagnosing the causes of human behavior at work,
interpersonal communication, and motivating and leading workers, the focus became
satisfying worker needs. If worker needs were satisfied, wisdom held, the workers would in
turn be more productive.
• Thus, the human relations school focuses on issues of communication, leadership, motivation,
and group behavior.
• The human relations school of thought still influences management theory and practice, as
contemporary management focuses much attention on human resource management,
organizational behavior, and applied psychology in the workplace.

14. The Behavioral School
• developed, in part, because of perceived weaknesses in the assumptions
of the classicalschool.
• The classical school emphasized efficiency, process, and principles.
Some felt that this emphasis disregarded important aspects of
organizational life, particularly as it related to human behavior.
• Thus, the behavioral school focused on trying to understand the factors
that affect human behavior at work.

15. MODERN MANAGEMENT
THEORY
• Modern management theory highlights the complexity of the organization as
well as individuals and the diversity of their needs, motives, aspirations and
potentials.
• Systems Theory
• Contingency Theory
• Organizational Humanism
• Management Science

16. Systems
Theory
• This has emerged as a way of looking at the organization as a whole not as
people or some task.
• A system is an entity made up of two or more interdependent parts that
interact to form a functioning organism.

17. Contingency
Theory
• The contingency approach stresses the absence of a single best way to
manage and emphasizes the need for managerial strategies based on all
relevant facts.
• This theory says that organization must be designed to fit its situation,
particularly the organizations environment and the technology it uses.

18. Organizational
Humanism
• This school of thought is an extension of behavioural schools of
neoclassical theory and hence has much in common with behavioural
schools.
• The underlying philosophy of this school is that individuals need to use all
of their capacities and creative skills at work as well as at home.

19. Management
Science
• the management science approach also known as quantitative approach is
evolved from the early application of some of the scientific management
techniques of classicaltheorists.
• This approach facilitated disciplined thinking, achieving precision and
perfection by expressing relationships among variables and facts in
quantitative terms.

20. PROBLEMS AND CONFLICTS IN
MANAGEMENT THEORIES:
• It also appears that unification of different schools of thought, of the
theories in management is unlikely and each will maintain its viewpoint
• Management theories have to be dynamic and embrace a number of
upcoming subjects and concepts.
• The recent trend is to play greater attention to comparative management
theory, which emphasizes cross-cultural ‘study as well as variations within a
given culture.

21. SUMMARY
• There are many more names of schools of management thoughts in the
literature of management, but most of them substantially overlap one
another. There are also problems in synthesizing a unified theory of
management for all possible environment as management methods vary with
the requirement in the situation.