History

of Management theories Classical School Behavioral school Integration and Contingency school of Management Other Contemporary/ Modern theories of Management



Management is Predominantly a Twentieth century Phenomenon In the earlier years management could never get attention of researchers The field of Business in which Management concepts were applied were held extremely low & unworthy of study Indifferent attitude of other social scientists   



Post World War I & II - created a situation where people started of solution to problems ± where limited resources could be applied in a better way Problems/ Issues ± Growing Competition, Complexity of handling large Business Organizations 

Hence the need for Systematic Principles & concepts was felt

Increasing Competition  Technological Innovations & their dissemination in Businesses  Growing Technological Obsolescence  Increase in Capital investment  Freedom at national & international markets  Increasing buyers

Complexity of Managing Business ±  Increasing size of Business organizations  High degree of division of labour & specialization  Increased government regulations & control to make businesses more socially-oriented  Organized labour union activities to put pressure on the management  Pressure of various other conflicting interest groups .

Both growing Competition & complexity in Managing Business have demanded efficiency in the Management Process .

3. Classical Approach ± Scientific/ Administrative /Operational Management Neo Classical Approach ± Human relations/ Social Systems Approach/ Decision Theory Approach/ Management Science Approach/ Human Behaviour Approach Modern Approach ± Systems Approach/ Contingency Approach 2. .Emergence of a variety of Approaches & orientations in management 1.

Scientific Management Process Management F.W Taylor Henri Fayol Bureaucracy Max Weber .

 Frederick Winslow Taylor was an American mechanical engineer who sought to improve industrial efficiency Taylor was one of the first management consultants. He was one of the first to have immense impact on the early development of Management  .

± µThe Principles of Scientific . Rising from the lowest to a high rank (apprentice/trainee common labourer Foreman Mechanic Chief Engineer of a Steel Company) Master gave him a number of opportunities to understand the problems and attitudes of workers and see the great possibilities for improving the quality of Management  Famous Work Management¶.

 His primary concern was to increase productivity through greater efficiency in production and increased pay for workers He emphasized on using science. achieving the maximum output and training workers  . creating group harmony and cooperation.

1. 3. 4. Replacing the decisions based upon tradition and old rule-ofthumb with Science and organized procedures developed after careful study of an individual at work Obtaining harmony in group action and develop a standard method for performing each job Selection is based upon technical competence and experience Training and development of workers to the fullest extent possible for their own and the company¶s highest prosperity 2. .

5. Support workers by planning their work and eliminating interruptions Actions and decisions are recorded to allow continuity and memory. . to enable 6. 8. Labour is defined and authority/responsibility is legitimized Sprit of immense cooperation between workers and management to ensure that tasks are carried out in accordance with the scientifically devised procedures. Managers follow rules/procedures reliable/predictable behavior. 7.

Management is different from ownership of the organization. Positions placed in hierarchy and under authority of higher level Provide wage incentives to workers for increased output 10.9. .

  . Henri Fayol. He was one of the most influential contributors to modern concepts of management. a French management theorist is referred to as "the father of modern operational management theory". Fayol's work has stood the test of time and has been shown to be relevant and appropriate to contemporary management.

General and Industrial Management. he developed his concept of administration He derived 14 principles of management that were discussed in detail in his book . widely considered a foundational work in classical management theory  . Based largely on his own management experience.

The workers should be obedient and respectful of the organization. There should be no slacking. There should be a balanced responsibility for this function Specialization or Division of labour ± Specialization allows individuals to build up experience and the continuous improvement in skills. . bending of rules 2. The management should provide good leadership. It gives way to higher productivity and efficiency Discipline .The right to give orders/ issue commands and the power to extract obedience. Authority & Responsibility .1. 3.

When at work. Unity of command . There should not be any conflicting lines of command Unity of direction ± People engaged in the same kind of activities must have the same objectives in a single Plan. only things related to work should be pursued or thought about 5. This is essential to ensure unity and coordination in the enterprise Subordination of Individual Interests .4. . 6.Employees should receive orders from one superior.

not what the company can get away with Centralization .Employees receive fair payment for services. .A hierarchy is necessary for the unity of direction. Remuneration . Decisions are made from the top Chain of Superiors (line of authority) .7. 9. It refers to the formal chain of command running from top to bottom of the organization. But it should not be over-stretched or consist of too many levels 8.Consolidation of management functions.

Order ± Social as well as material order is necessary. . 12. Treating employees well is important to achieve equity Personnel Tenure ± Employees work better if job security and career progress are assured to them. Both should stand at their prescribed places Equity ± In a running business a combination of kindliness and justice is needed. An insecure tenure and a high rate of employee turnover will affect the organization adversely 11.10.

13. Initiative ± Allowing all personal to show their initiative in some way is a source of strength for the organization Esprit de corps ± There should be harmony and cohesion/ consistency/commonality among personnel It's a great source of strength in the organization. avoiding the dangers of divide and rule 14. the principle of unity of command should be observed along with teamwork.   . Fayol stated that for promoting esprit de corps.

but can be seen as being revolutionary in Fayol's time Until today. his principles remain important as they continue to have a significant impact on current managerial thinking Fayol's main contribution was the idea that management was not a talent related to genetic hereditary. (doesn¶t flow down from generations but can be learned) He created a system of ideas that could be applied to many areas of management and laid down basic rules for managing large organizations    . Some of these ideas may seem self-evident today. but a skill that could be taught.

   One of the most profoundly influential thinkers of the twentieth century Born in Germany. politician. became a lawyer. scholar. modern study of sociology  He is often regarded as one of the 'founding fathers' of sociology . organizational theory. political economist & sociologist He founded/ co-founded a number of academic disciplines  public administration.

 Max Weber disliked that many European organizations were managed on a ³personal´ family-like basis were loyal to individual supervisors rather than to the organization  Employees .

government. organizational theory/ behavior Analysis of bureaucracy in Economy & Society is still central to the modern study of organizations His most well-known contributions are often referred to as the 'Weber Thesis'.   . Rationalization in sociology of religion.

 Organizations should be managed impersonally and that authority should not be based on someone¶s personality  Important to have a formal organizational structure. objective form of organization was called a bureaucracy . where specific rules were followed  Should be something that was part of a person's job and passed from individual to individual as one person left and another took over (formal handover) This non-personal.

1. hierarchy. Represented by Rule-Following Standardized procedure that dictates the execution of most or all processes within the body. formal division of powers. and relationships 3. Application In practice the interpretation & execution of policy can lead to informal influence . Large organizations & government Structure & set of regulations in place to control activity 2.

 Bureaucratic structure is the most efficient form of organizational structure for all types of organizations Most Rational means of carrying out imperative control over human beings  Features ± Specialization. Authority Rules. Competence . Hierarchy. Impersonality & Trained Personnel.

1. uniformity & facilitate coordination . Official Rules & regulations  Standard operating procedures govern all organizational activities to provide certainty. Administrative Class      Coordination Whole-time employees Payment of salaries based on the positions/levels Tenure is determined by the rules & regulations of the organization Selection of employees based on their competence 2.

operating in different areas of competence Eg. Government organizations Hierarchy is the system of ranking various positions in descending scale from top to bottom of the organization . A well defined Hierarchy      Positions structured . with different kinds of functions.3.Permits the higher positions to supervise & control the lower positions Serves as lines of communication & Delegation of Authority Clear chain of command facilitates control & order throughout the organization Offices with same amount of authority.

Impersonal relationships between managers and employees  Managers should maintain an impersonal relationship with employees so that favoritism & personal prejudice do not influence decisions Decisions governed by rational factors  . Division of work & Specialization  All responsibilities in an organization are specialized so that each employee has the necessary expertise to do a particular task Sphere of obligation to perform functions Ensures that no work is left uncovered   5.4.

Official Record  A bureaucracy needs to maintain complete files regarding all its activities 7. Competence  Not ³who you know. & promotions in order to foster ability and merit as the primary characteristics of a bureaucratic organization consistent patterns of recruitment and stable linear careers formal and informal networks that connecting employees flows of information and cooperation    .´ should be the basis for all decisions made in hiring. job assignments.6.

Delay in change. Hit by inefficiency & Overspecialization Too many guidelines & rules led to their misuse/ contradiction Decision-making became very slow Closed System/Dogmatic . 4. 3. . evolution and adaptation of old procedures to new circumstances. Not aware of its own mistakes & limitations 2.1.

‡Armed forces. Inhuman ± Bureaucratic Structure works like a machine. as everything must be as is written by the law Examples of everyday bureaucracies ‡Governments. Human behiavour is neglected. 7. Hierarchy interfered with communication Not allowing people to use common sense. ‡non-governmental organizations (NGOs). No room for flexibility & innovation Superior-subordinate relationships turned against congenial organizational climate.5. hospitals. ‡Ministries ‡Schools & Colleges 6. ‡courts. . ‡corporations.

Human Relations ±   Organizational situation should be viewed in all social. economic & technical terms Analysis of the human factor in organizations Elton Mayo (psychologist) Roethlisberger (sociologist)  Behavioural Sciences Approach McGragor Maslow .

 A group of researchers undertook a series of experiments at the Hawthorne Plant for the General Electric Company in the 1920s. They set out to study the relationship between productivity & physical working The experiments were conducted on factory workers to study the effects of lighting/ illumination on worker productivity  Intensive & systematic Analysis of the Human factor through experiments  .

Over a period of time changes in illumination had no measurable effect The experiment was about to be declared as a failure when a second set of experiments began supervised by Harvard University professors. but later returned to normal levels. Fritz Roethlisberger & Elton Mayo  . It was found that productivity almost always increased initially after a change in illumination.

 They experimented on other types of changes in the working environment like ±  Morale  satisfactory interrelationships between members of a work group  a sense of belongingness  The researchers reported that they had accidentally found a way to increase productivity The effect was an important milestone in industrial and organizational psychology & organizational behavior  .

 It was found that Physical conditions or financial incentives had little motivational value Work satisfaction depended to a large extent on the informal social pattern of the work group The norms of cooperation and higher output were established due to a feeling of importance .

'logic of sentiment' & Managersµ efficiency' 'logic of cost & could lead to conflict within organizations . They concluded that people's work performance is dependent on both social issues & job content A tension/rift between ±  Workersµ .

 Effective Management ± Managing with the ability to understand human behavior. group behavior and interpersonal skills ± motivating. leading and communicating The phenomenon arising from the fact that µpeople are noticed¶ has been known as the µHawthorne Effect¶  . counseling.

Formation of informal groups.1. Group Influence .   Workers are social beings ± norms & behaviours Groups formed to overcome shortcomings of formal relationships . Social factors in Output    Organization is influenced by social norms Social characteristics determine the output & efficiency Work groups provide mutual support and effective resistance to management schemes to increase output 2.

4. Communication  Better understanding between management & workers 6. Conflicts ±    Between organization & groups. Leadership & Supervision   Means to direct a group behaviour Determining efficiency & output . due to incompatible objectives Maladjustment of workers Adjust of the individual in the organizational structure 5.

 These studies greatly added to our knowledge of human behavior in organizations and created pressure for management to change the traditional ways of managing human resources The Human Relations Movement pushed managers toward gaining participative support of lower levels of the organization in solving organization problems The Movement also fostered a more open and trusting environment and a greater emphasis on groups rather than just individuals (the value of teams)   .

etc. role of unions. . The Hawthorne researchers did not give much attention to attitudes of people at workplace. They assume acceptance of the management¶s goals & look on the worker as the one to be manipulated by the management 2.1. Looked upon the worker as a means to an end and not an end in himself. They did not recognize forces like Class consciousness.

6. 4.our behavior is often shaped by the social context Informal work group is a major factor in determining attitudes & performance of individual workers Management is only one factor affecting behavior. 2. Motivated by many needs Logical thinking not possible always Interdependent . People act in many different ways not covered by job descriptions . 5. 3. the informal group often has a stronger impact Job roles are more complex than job descriptions.1.

not just technical skills . 8. There is no automatic correlation between individual & organizational needs Communication channels cover both logical/economic aspects of an organization and feelings of people Teamwork is essential for cooperation and sound technical decisions Leadership should be modified to include concepts of human relations Job satisfaction will lead to higher job productivity Management requires effective social skills. 11.7. 12. 9. 10.