The Evolution of Management

Theory
 Learning Objectives
Explain what a management theory is.
Understand the evolution of management
theories and their major contributions.

2
EVOLUTION OF MANAGEMENT
THEORY
Evolution of Management Theory

Modern
Management
1920-1950
School
Neo-Classical
Management Systems
School Contingency
1880 - 1930 Organizational
Human Relations
Classical Humanism
Behavioral
Management Management
School Science

Scientific
Administrative
Bureaucratic
 Summary
Three distinct Schools of Management
Classical Process
Neo-Classical People
Modern Integrative - People, Process,
Environment
 1900 - 1930

THE CLASSICAL SCHOOL OF

MANAGEMENT
 Core Ideas
1. Application of science to the practice
of management.
2. Development of basic management functions.
3. Articulation and application of specific
principles of management.

 Evolved in response to the shift from handicraft to

industrial production.
 Emphasis is on economic rationality of people and
organizations; motivated by economic incentives, they make
choices that yield the greatest monetary benefits.
 Max Webber
1905
“The Theory of Social and Economic Organization”
The Bureaucratic School of Management

A major contribution is his “bureaucracy”

theory, a formalized and idealized view of
organizations, comprising 6 major principles.
1. A formal hierarchical structure.
2. Management by rules.
3. Organization by task competency.
4. Impersonal relationships.
5. A focused mission.
6. Employment based on technical qualifications.
Frederick Taylor
1911
“Principles of Scientific Management”
The Scientific School of Management

Proposed an objective and systematic

method to identify “the one best way” to
do a job using scientific selection and
training methods; co-operation and clear
division of responsibility between
managers and workers; pay for
performance.
Frank & Lillian Gilbreth
1912 - 1924
Time and Motion Studies

Disciples of Frederick Taylor, their

time and motion studies helped lay the
foundations for Scientific Management
– the best possible way for a worker to
complete a job.
The expected results are employee satisfaction,
productivity and efficiency.
Henry Gantt
1910 - 1915
Project Scheduling – The Gantt Chart

A protégé and associate of Frederick Taylor,

he designed a project scheduling model for
increasing the efficiency of project
execution and completion.
 Henri Fayol
1916
Administration Industrielle et Generale
The Administrative School of Management

Managers need specific roles in order to

manage work and workers.
He enumerated 6 functions / roles of management.
1. Forecasting 4. Commanding
2. Planning 5. Coordinating
3. Organizing 6. Controlling

These roles evolved into 14 principles of management.

Division of work, Authority, Discipline, Unity of Command, Unity of
Direction, Subordination of Interests, Remuneration, Centralization,
Scalar Chain, Equity, Order, Stability of Tenure of Personnel, Initiative,
Esprit de Corp.
Ford and Frederick Taylor’s
Scientific Management

http://www.youtube.com/watch?v=8PdmNbqtDdI
Summary: The Classical School of
Management

Scientific Bureaucratic Administrativ

e
Concern for Development of
Impersonal view
precise work managerial
methods of organizations principles

Formal structure,
legitimate Best way to
Best way for
authority and organize all jobs in
jobs competence of a business
to be done management
 Criticisms of The Classical School of
Management
No one is entirely driven by economic motivations.
People’s choices and behavior are dictated by other
factors such as social needs, security and self-
esteem.
There is no such thing as “the best way” to do a job.
Extreme division of labor tends to produce
monotony and reduce overall skill levels.
People are managed like machines. Introduction of
newer machines led to job elimination.

Mala Sarat Chandra 15

Mala Sarat Chandra 16