Evolution
of Management Theory:
Evolution of Management Theories
1.The Classical theory of management
a) Scientific
Management
b) Bureaucratic
Management
c)
Administrative Management
2.Neo-Classical Theory
a) Human
Relations
b) Behavioural
Science Approach
3.The Modern Management Theories
a) Quantitative
Approach
b) System
Approach
c) Contingency
Approach
d) Operational
Approach
Development
of Management Thought
• Impact of
Industrial Revolution.
F.W.Tayler’s Contribution(1856-1915)
• Father of Scientific Management
Principles of F.W.Tayler’s Management
1) Scientific task setting based on
time, motion and fatigue study.
2) Fitting the “right person for the
right job” by proper selection, training and placement of personnel.
3) Improvement in work by
i . Standardisation of tools and equipment
ii. Improvement
in work environment
4) Employers and employees should not
feel that they are exploiting each other (Mental revolution)
5) Differential piece rate wage system
to distinguish between efficient and inefficient workers ( Tayler’s
Differential Piece Rate Plan)
6) Intelligent investigation and
analysis of the different unit of the business.
7) Scientific study of each unit of the
business.
8) Separation of the planning and
execution based on specialisation.
Contributions
of Gilbreths
• Scientific study of management should include
both analysis and synthesis
• Analysis-Breaking
down a task into its essential elements
Synthesis–include
necessary element for efficient work and eliminate other elements.
• He concentrated on Motion Study and suggested
the first definition-“motion study as the science of eliminating wastefulness
resulting from unnecessary, ill directed and inefficient motions”
• He developed Process Chart-Over all
picture of all activities in a chart form.
Contributions
of Henry L.Gantt
• Worked with F.W.Tayler
• He Improved Taylor’s differential
piece rate system Task and Bonus Plan (Provide extra wages for extra work)
• He developed the daily balance chart (Gantt
chart) output in one axis and time on the other axis.
• Humanistic approach and industrial responsibility.
SCIENTIFIC
MANAGEMENT
• F.W.Tayler- Father of Scientific
Management
• Main contributors- F.W.Tayler, Frank
Gilbreths, Gantt
• Impact of Industrial Revolution
Principles of Scientific Management
1) Replacement
of old rule of thump method
2) Scientific
selection and training
3)
Labor-Management co-operation (mental revolution)
4) Maximum
output
5) Equal
division of responsibility
Techniques
of Scientific Management
1) Scientific
task setting-fair day’s work
2) Work study-method,
time, fatigue and motion study
3) Planning the
task
4)
Standardisation
5) Scientific
selection and training
6) Differential
piece-wage plan
7)
Specialisation
Criticism
of Scientific Management
Functional organization structure (An
operator is controlled by eight foremen) –In practice and violates unity of command.
It concentrated on production
management and ignores the area of Finance, Marketing, Accounting and Personnel.
Workers objected Tayler’s Differential
piece wage plan because wages of workers are not increased in direct proportion
to the increase in productivity.
It undermined the human factor in industry.
It resulted in monotony of job, loss of initiative, wage reductions, job in security
etc.
BUREAUCRATIC
MANAGEMENT
• Max Weber(1864-1920)
• Rules and regulations to eliminate
managerial inconsistencies Characteristics
1) Division of
work
2) Hierarchy of
position
3) Rules and
regulations
4) Impersonal
conduct
5) Staffing
6) Technical
competence
7) Official
records
ADMINISTRATIVE
MANAGEMENT
• Henri Fayol (1841-1925) Father of
modern management
• Introduced pyramidal form of
organisation. Management consist 6 types of activities
1) Technical
Activities (Production, Manufacturing)
2) Commercial
Activities (Purchasing, Selling and Exchange)
3) Financial
Activities (Optimum use of capital)
4) Security (Protection
of property and persons)
5) Accounting
(Stock taking, Balance sheet, costing, statistics)
6) Managerial
(Planning, organizing, coordinating and controlling)
PRINCIPLES OF MANAGEMENT (HENRI
FAYOL’S 14 PRINCIPLES)
It implies list of current management
practices
1) Division of
work(or Labor)
2) Authority
& Responsibility
3) Discipline
4) Unity of
command
5) Unity of
direction
6) Subordination
of individual to general interest
7) Remuneration
8)
Centralisation of authority
9) Scalar chain
or Line of authority
10) Order
11) Equity of
treatment
12) Stability of
workers
13) Initiative
14) Team spirit
(Espirit de crops)
NEO-CLASSICAL THEORY
1.Human
Relations
Elton Mayo- Founder of Human Relations.
He conducted on experiment on Hawtrone
plant of western electric company and concluded that production efficiency of
workers depends upon emotional factors.
Happy & satisfied employees trying
to increase production.
2.Behavioral
Science Approach
• Main contributors- Maslow, F.Herz berg
& D.Mc Gregor
• Application of behavioral science such
as psychology, sociology & anthropology to the study of human relationship.
1) Organisation is basically a social
system and not just techno-economical system.
2) Individuals may behave differently under
different situations.
3) Attempts should be made to connect organisational
goals& human needs.
4) Management must develop social skill sin
addition to technical skill. Man to man relationship, team spirit & group
harmony should be given top preference by management.
MODERN MANAGEMENT THEORIES
1.Quantitative
Approach
• Main contributors–Taylor, Gilbreths, Gantt,
Newman &Joel Dean.
1) Management is
concerned with problem solving and it must make use of mathematical tools and
techniques for the purpose.
2) The different
factors involved in management can be quantified and expressed in the form of
equations which can be solved with the help of mathematical tools.
3) Management
problems can be described in mathematical models.
4) Operation research,
mathematical tools, simulation and model building are the basic methodologies developed
by this approach.
2.System
Approach
• Main contributors – Johnson, Church
man, Kenneth, Boulding & Rosen Zweig
• Related to organisation system is
defined as –“An established arrangement of components which leads to accomplish
of particular objectives as per plan”
• All organisations
are open system.
3.
Contingency Approach
• Main contributors–John Woodward, Fiedler,
Lorsch & Lawrence.
• Management is situational & main objective
of management is to identify the important variables in the situations.
• 3 Major parts of overall conceptual frame
work for contingency management
1. Environment
2. Management concepts,
principles & techniques.
3. Contingent relationship
between(1)&(2)above.
4.
Operational Approach
• Main contributors-Koontz, O’Donnell
and Weihrich
• It regards management as a universally
applicable body of knowledge that can be brought to bear at all levels of
managing and in all types of enterprise.
• It recognizes that the actual problems
which managers face and the environment in which they operate may vary between different
enterprises and levels.
