You are on page 1of 17

EVOLUTION OF MANAGEMENT THOUGHTS

Evolution of Management Thought
Management has been progressively evaluated through the following three stages.

The Classification theory of management
It has three streams:1.

Bureaucracy : 1900

2.

Scientific management: 1900-1930

3.

Administrative / Operational management: 1916-1940

The Neo-classical Theory of management
It has two streams:1.
2.

Human Relations: 1930-1950
Behavioral Approach: 1940-1950

Modern Theory of management
It has three streams:1.
2.
3.

Quantitative Approach: 1950-1960
Systems Approach: 1960s on words
Contingency Approach: 1970s on words

Evolution of Management Thought Frederick Winslow Taylor - Theory of Scientific Management
F.W.Tylor is considered as the "Father of scientific management" and his
contributions mark a new era in Modern Management Thought. The concepts
propounded by him have an impact on management service practice as well as
on management thought up to the present day.. Taylor formalized the principles
of scientific management,and the fact-finding approach put forward and largely
adopted was a replacement for what had been the old rule of thumb.

greatly contributed to the analysis of work design and gave rise to method study. A piece rate system on production management in shop management. and later. and his studies on the handling of pig iron. unlike the early activities of Perronet and others. . which has been largely accepted by subsequent Management Philosophers F. By experimenting with different designs of shovel for use with different material (from 'rice' coal to ore) he was able to design shovels that would permit the worker to shovel for the whole day. However. and the standards developed are equitable. in 1909. In his own words he explained: "The old fashioned dictator does not exist under Scientific Management.W. Principles of Scientific Management. A feature of Taylor's work was stop-watch timing as the basis of observations. Taylor's uncompromising attitude in developing and installing his ideas caused him much criticism. he published the book for which he is best known. To follow. could be applied to all problems and applied just as much to managers as workers. he advocated. This work. Later he turned his attention to shoveling coal. The man at the head of the business under Scientific Management is governed by rules and laws which have been developed through hundreds of experiments just as much as the workman is. Scientific method. Taylor's Contributions to Scientific Management By 1881 Taylor had published a paper that turned the cutting of metal into a science. were papers on incentive schemes. he started to break the timings down into elements and it was he who coined the term 'time study'." Objectives of Scientific Management The four objectives of management under scientific management were as follows:  The development of a science for each element of a man's work to replace the old rule-of-thumb methods.He also developed a theory of organizations . in 1895. In so doing. he reduced the number of people shoveling at the Bethlehem Steel Works from 500 to 140.

 The scientific selection. was also widely criticised on three grounds. each group taking over the work for which it is best fitted instead of the former condition in which responsibility largely rested with the workers. Taylor's Contribution to Organizational Theory This required an organization theory similar for all practical purposes to that advocated by those organizational theorists who followed. Self-evident in this philosophy are organizations arranged in a hierarchy. These theorists developed principles of management which included much of Taylor's philosophy His framework for organization was:  clear delineation of authority  responsibility  separation of planning from operations  incentive schemes for workers  management by exception  task specialization Criticism Of Theories Expounded by Taylor Taylor's Philosophy though gained immense popularity. Scientific management ignored human side of organization. Taylor viewed on average worker as a machine that could be motivated to work hard . systems of abstract rules and impersonal relationships between staff. training and development of workers instead of allowing them to choose their own tasks and train themselves as best they could. 1..W. F.  The development of a spirit of hearty cooperation between workers and management to ensure that work would be carried out in accordance with scientifically devised procedures  The division of work between workers and the management in almost equal shares.

Taylor's theory and principles have exercised considerable influence on modern management thought. Taylor and his disciples were called "Efficiency Experts" because they concentrated attention on improving efficiency of workers and machines. rather than a general theory of management. Scientific management is therefore restricted in scope as a theory of Industrial Engineering or Industrial Management. Taylor) . "Scientific Management focuses on job-productivity at the shop floor. such departments as work-study. that completely changed the nature of industry. Taylor advocated excessive use of specialisation and separation of planning from doing. maintenance and quality control did not exist. Scientific management principles continue to be widely applied today. and bureaucratic principles of organization being used in the office areas". personnel. In a typical manufacturing orgnization one will see scientific managment ideas and techniques being applied to the shop floor.W. Huczynski in "Management Gurus . Nevertheless. Excessive division of labour had disastrous consequences in the form repetitive and monotonous jobs and discontent among workers. 3. in particular upon techniques that could be used on manual workers.(Contribution of F. Quantitative approach or management science approach is based largely on Taylor's philosophy. Taylor's theory is narrow in scope having direct application to factory jobs at the Shop Floor Level.What makes them and how to become one" (p. What was more his methods proved to be very successful. production control and other functions. His emphasis on use of scientific methods in solving work-related problems is widely accepted by modern experts on management. Workers and Trade Unions opposed his views strongly on the plea that it was exploitative. Before scientific management. Taylor's impact has been so great because he developed a concept of work-measurement. 2.* * Andrzej A.12) Scientific Management.through economic incentives.

because it creates the mutual understanding. In this. “scientific management means knowing exactly what you want men to do and seeing that they do it in the best and cheapest way. Management is not responsible for execution of work but they are responsible for how the work is done. According to Taylor. And job accomplished by analyzing. trust and confidence between the management and workers for achieving goal (higher production). management role is to determine the kind of work for which an employee suited and hire and assign workers accordingly.W.” Scientific management is based on the analysis.Scientific Management (Contribution of F. Taylor) Frederick Winslow Taylor was first person who gave Scientific Management in 1911. He also called the father of scientific management. planning and control functions. Co-operation between management and workers can enhance the work and achieve the maximum output. Scientific Management was concerned to improving the operational efficiency at the shop-floor level. . Taylor called it as “Mental Revolution”. and works can selected and trained scientifically.

Principles of scientific Management Under scientific management. Taylor developed the following parameters for organization. .

 Scientific work study  Task planning  Tools and materials  Selection and Training  Standardization  Worker management interrelationships  Differential piece wage system Objective of Scientific Management .

He was a mining engineer in. material etc. with reduce costs and maximum efficiency. Henri Fayol is the French industrialist in 1841-1925.  To achieve higher production. and equipment. French cool and iron combine of commentary .  Less wastage.  To develop a good rapport between management and workers.  To provide trained and efficient work force. Scientific utilization of various resources like human power.  To provide extra wages to the worker for higher production. Henri Fayol spent his entire working career in French industry.  To provide a scientific base for selecting material.  To provide standardize methods of work. (Contribution of Henri Fayol) Henri Fayol was real father of modern Management.  Replace old rule of thumbs to new scientific methods.

Henri Fayol was concerned the principles of organization and the function of management. Financial : Use of capital 5. According to Fayol. Security : Protection of goods and Person Fayol’s fourteen Principles of management Fayol derived the following fourteen principles. profits 6. He always insisted that if scientific forecasting and proper methods are used in management than company can get satisfactory results. Managerial : Planning.- . Accounting : Asset. controlling. Henri Fayol developed a general theory of Business Administration. They are1. cost.fourchambault. it is a knowledge base skill. Henri Fayol’s Administrative Management is based on six admin activities. Commercial : Purchasing and selling 4. management was not personal talent. Liabilities. co-ordination 3. Technical : Production and manufacture 2. Fayol laid the foundation of management as a separate body of knowledge.

 Centralization: There should be one central point in organization which exercises overall direction and control of all the parts. application. Fayol stated discipline in terms of obedience. and respect to superiors.  Unity of command: A subordinate should receive order from only one boss.  Authority and responsibility: Authority means right to give order and command while responsibility means to accomplish objective.  Scalar Chain: Scalar chain is the chain or line of command from superior to subordinates. . Equity: Equity creates loyalty and devotion among the employees.  Unity of direction: It means that all the works of an organization must work together to accomplish a common objective in under one plan and head. It includes both types of incentives financial as well as non financial.  Remuneration: Remuneration should be fair and adequate.  Discipline: Discipline is required at every level in every organization.  Subordination of individual interest to common interest: Worker follows the common interest of organization rather than individual. Division of work: Division of work means specialization. Each job and work should be divided into small task and should be assigned to specialist of it.   Order: Only proper order can give an efficient management.

BUREAUCRACY MANAGEMENT (Max Weber-1900) Bureaucracy management is a stream of classical theory of management. Fayol said that in union there is strength. There are four major characteristics of organizational structure. Max Weber was the first of management theorists who were concerned the management structure with the sets of rule and regulations. Stability of tenure personnel: Security of job for an employee in an organization is very important and pre-requisite condition. Whole organization should work as a team. Max Weber presents the ideal organization structure.  Initiative: Manager should be encouraged the employees Initiative for creative working.  Esprit de corps: Management should encourage harmony and proper understandings between workers. Retaining productive employee should always a higher priority of management. Bureaucracy management depends upon administration devices. Hierarchical positions  Rules of system  Division of labour for specialization  Impersonal relationship Advantage of bureaucracy management: .

Disadvantage of bureaucracy management: resources are not tackled. researchers and supervisors (Roethlisberger and Dickson. Records are kept for future references.  Neoclassical theorists recognized the importance of individual or group behaviour and emphasized human relations.  Organization becomes static and change is not anticipated.  Human  Inter personal relations are discarded.  It is a “closed system”.  Difficult to keep co-ordination and communication between employees. Hierarchy of authority.  Eliminate managerial inconsistencies. 1943). the neoclassical approach emphasized social or human relationships among the operators.    Rules and regulation of the duties are followed by the employees.  Employment is based on the technical efficiency. It was argued that these considerations were more consequential in determining productivity than mere changes in working conditions.  Maintain the consistency of working. People are given authority according to their position in organization. Productivity increases were achieved as a result of . Based on the Hawthorne experiments.  It does not allow for personal growth and development.  It does not possess adequate.  A well understood system.

Note the difference between Taylor's 'scientific management' which focuses on work . Individuals differ from each other in pursuing these desires.which focuses on workers. In contrast. with aspirations beyond mere fulfilment of a few economic and security works.and the neoclassical approach . an individual should be recognized as interacting with social and economic factors. It was mechanistic and ignored major aspects of human nature. the neoclassical approach introduced an informal organization structure and emphasized the following principles:  The individual An individual is not a mechanical tool but a distinct social being. DEFINITION Hawthorne effect the Business terms glossary: inShare Email  Part of Comment RSS Print A AA AAA  The Hawthorne effect is a psychological phenomenon that produces an improvement in human behavior or . Principles of the neoclassical approach The classical approach stressed the formal organization.      high morale. The concept of 'group' and its synergistic benefits were considered important. This was a new form of management to ensure increases in productivity. personal and intimate attention workers received.  Participative management Participative management or decision making permits workers to participate in the decision making process. which was influenced by the amount of individual. Thus.  The work group The neoclassical approach highlighted the social facets of work groups or informal organizations that operate within a formal organization.

These experiments are often referred to as the Hawthorne experiments or Hawthorne studies as they took place at The Hawthorne Works of the Western Electric Company in Chicago. Hawthorne Experiment Details Over the course of five years. Unexpectedly the workers morale and productivity rose to levels higher than before and during the experiments. lighting. Introduction Elton Mayo’s team conducted a number of experiments involving six female workers. Hawthorne Experiment Results At the end of the five year period. The changes were explained to the workers prior to implementation. reverted back to the conditions before the experiment began. and temperature. . The combination of results during and after the experiment (ie the increase in the workers productivity when they were returned to their original working conditions) led Mayo to conclude that workers were motivated by psychological conditions more than physical working condition. rest brakes. clients or colleagues. The changes in working conditions included changes in working hours. Mayo’s team altered the female worker’s working conditions and monitored how the change in working conditions affected the workers morale and productivity. the female worker’s working conditions. humidity.performance as a result of increased attention from superiors.

Mayo classified studying the workers (through the experiments) as showing an interest in the workers. . Mayo called this the psychological contract.Hawthorne Experiment Conclusions After analysing the results from the Hawthorne experiments Mayo concluded that workers were motivated by more than self interest and the following had an impact too: Psychological Contract There is an unwritten understanding between the worker and employer regarding what is expected from them. Interest in Workers A worker’s motivation can be increased by showing an interest in them.

Conclusion The traditional view of how to motivate employees is that you offer monetary rewards (pay increases. Workers are motivated through a good working relationship with management. Social Aspect of Work Workers are motivated by the social aspect of work. security and a sense of belonging. as demonstrated by the female workers socialising during and outside work and the subsequent increase in motivation. Mary Praker Follett: He referred group influence. Major contributors of Neo-classical theory are: Chris Argyris. Work groups are created formally by the employer but also occur informally. team work can increase a worker’s motivation as it allows people to form strong working relationships and increases trust between the workers. bonuses etc) for work completion.He recommended that worker should be given freedom to make their own judgments. Advocates of the "Hawthorne Effect" will state that the Hawthorne experiment results show that motivation can be improved through improving working relationships and social interraction. Communication The communication between workers and management influences workers’ morale and productivity.Work is a Group Activity Work is a group activity. Recognise Workers Workers are motivated by recognition. However the Hawthorne experiments may suggest that motivation is more complicated than that. Both informal and formal groups should be used to increase productivity as informal groups influence the worker’s habits and attitudes. .

.it is based on classical theory and Y-theory.Dougals Me Gorgor: he referred two views.it is based on neo-classical theory. X-theory. Abraham Maslow: He referred individual needs.