3

Lectur
e

The Evolution of
Management
Theory
Chapter 2
Management by Stoner

1-1

Md. Shahriar Jahan Hossain,

Assistant Professor, Dept. of IPE,
BUET

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Scientific Management
School(1890-1940)
Frederick W. Taylor
Described scientific
management as a method
of scientifically finding the
one best way to do a job
Scientific selection of worker
scientific education and
development.
Intimate and friendly
cooperation between
management and labor.
Md. Shahriar Jahan Hossain,
Assistant Professor, Dept. of IPE,
BUET

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Scientific Management
School(1890-1940)
Limitations
Working harder and faster
would exhaust whatever
work available.
Pressure on employee to
work faster
More worker joined unions
and mistrust and suspicion
is reinforced.

Md. Shahriar Jahan Hossain,

Assistant Professor, Dept. of IPE,
BUET

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Scientific Management
School(1890-1940)
Henry L. Gantt
Introduced a second
motivation
Work progresses should
rated and recorded publicly.

The Gilbreths
Used motion picture camera
to find most economical
motion for each task to
upgrade performance and
reduce fatigue
Md. Shahriar Jahan Hossain,
Assistant Professor, Dept. of IPE,
BUET

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Classical Organization Theory

Henri Fayol
Believed that the practice of management was distinct
from accounting, finance, production, distribution and
other typical business functions
Developed principles of management that applied to
all organizational situations

Max Weber
Developed a theory of authority structures and
relations based on an ideal type of organization he
called a bureaucracy.
Emphasized rationality, predictability, impersonality,
technical competence, and authoritarianism

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Fayols 14 Principles of Management

1. Division of labor

7.

Remuneration

2. Authority

8.

Centralization

3. Discipline

9.

Hierarchy

4. Unity of command

10. Order

5. Unity of direction

11. Equity

6. Subordination of
individual interests
to the general
interest

12. Stability of staff

13. Initiative
14. Esprit de corps
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Webers Bureaucracy

28

Behavioral
Approaches(1920-1990)
Maslaws Need
Theory
Needs that people are
motivated to satisfy fall
into a hierarchy.
Lower level need must be
satisfied before higher
level need is met.

Md. Shahriar Jahan Hossain,

Assistant Professor, Dept. of IPE,
BUET

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Behavioral
Approaches(1920-1990)
McGregors Theory
Distinguished two basic assumption
about people and their approach to work.
Theory X managers assumed that people
must constantly be motivated to do their
work.
Theory Y managers assume that, people
are eagerly approach their work and
opportunity to develop their creative
capacity.
Md. Shahriar Jahan Hossain,
Assistant Professor, Dept. of IPE,
BUET

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Behavioral
Approaches(1920-1990)

The Hawthorne Studies

A series of productivity experiments conducted at Western Electric

from 1924 to 1932.

Experimental findings
Productivity increased with increasing light level, but
surprisingly output also increased with decreasing light level
until reduced to that of a moonlit night.
The effect of incentive plans was less than expected.

Research conclusion
Social norms, group standards and attitudes more strongly
influence individual output and work behavior than do
monetary incentives.
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Management Science
School
Quantitative techniques (Operations Research) were used
to improve decision making.
It was evolved from mathematical and statistical solutions
developed for military problems during World War II.
It gained popularity through two postwar phenomena.
First, the development of high-speed computers.
Second, Robert McNamara implemented this approach at
Ford Motor Company.
This approach contributes directly to management
decision making in the areas like budgeting, queuing,
scheduling, quality control, etc.

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Systems Approach
System Defined
A set of interrelated and interdependent parts
arranged in a manner that produces a unified
whole.

Basic Types of Systems

Closed systems
Are not influenced by and do not interact with their
environment (all system input and output is
internal).

Open systems
Dynamically interact to their environments by taking
in inputs and transforming them into outputs that
are distributed into their environments.
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The Organization as an Open System

214

Systems Approach
Organization is made up of independent
factors, including individuals, groups, attitudes,
motives, formal structure, interactions, goals,
status, and authority. This means that as
managers coordinate work activities.
Decisions and actions in one organizational
area will affect other areas.
Organizations are not self-contained. They rely
on their environment for essential inputs and
outlets to absorb their outputs.

215

Contingency Approach
Sometimes called the situational approach.
There is no one universally applicable set
of management principles (rules) by which
to manage organizations.
Organizations, employees and situations
are different and require different ways of
managing.

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Popular Contingency Variables

Organization size
As size increases, so do the problems of coordination.

Routineness of task technology

Routine technologies require organizational structures,
leadership styles and control systems that differ from
those required by customized technologies.

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Popular Contingency Variables

Environmental uncertainty
What works best in a stable and predictable
environment may be totally inappropriate in a
rapidly changing and unpredictable environment.

Individual differences
Individuals differ in terms of their desire for growth,
autonomy, tolerance of ambiguity and expectations.

218

Dynamic Engagement
Approach

New organizational environments

Ethics & social responsiveness
Globalization & management
Inventing & reinventing organizations
Cultures & multiculturalism
Quality

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