Development of Management Thought

Brig Gen M Mustafa Kamal

Honorable Vice-Chancellor
Bangladesh Army University of Engineering and Technology (BAUET)

Ms. Amanpreet Kaur

Michelangelo…

The lonely genius trapped between agony and

ecstacy, isolated on his back on a scaffold, single handedly
painting the ceiling of Sistine Chapel –

A Myth….!!!!!
Reality…
• Some 480 yrs ago, was running a mid-sized firm.

• 13 people helped him paint, 20 in carving and 200 helped in

building the library.

• He used to personally select, train, and assign them teams.

• Kept a detailed employment records of names, days worked

and wages of every employee, every week.

• He was just a trouble-shooting manager with us even before

Industrial revolution.
 Industrial Revolution..??

• The advent of machine power, mass production and

efficient transportation begun in the late 18th
century in Great Britain.
Classical Approach
The term is used to describe the hypotheses of the scientific
management theorists and the general administrative
theorists.
 Inter-related functions
 Based on experience of managers
 Based on basic truths and facts
 Managers were developed by formal education and training
 People are motivated by incentives and penalities.
 No conflict within individuals, if any, interest of orgn prevails
A) Bureaucracy
Max Weber (1864-1920)
A German Social Scientist

Principles Legitimate Authority

o Division of work
o Rules and Regulations
o Hierarchy of Authority Traditional

o Technical Competence
o Record Keeping Rational

o Impersonal Relations
Charismatic
+ves & -ves
Positives Negatives

Specialisation Rigid

Structure Goal Displacement

Rationality Impersonalisation

Predictability Paper Work

Democracy Empire Building

Red Tape
B) Scientific Management
Fredrick Winslow Taylor (1856-1915)
Father of Scientific Management

o Grew out to increase productivity

o In 20th century, skilled labour in US were short in supply, so
neccessary to increase efficiency.

Objectives
o Provide scientific basis for designing and performing jobs.

o Managers to follow scientific and systematic approach to

managerial problems in place of rule of thumb
 Principles
1. Science – No rule of thumb.
2. Harmony, not discord.
3. Co-operation not Individualism.
4. Maximum output not restricted.
5. Development of each man to his best capacity and ability.
6. Maximum prosperity of employees, coupled with
maximum prosperity of Orgn.
‘Mental Revolution’
Eyes off division of surplus, rather focus on increasing the size of
surplus
Techniques..
• Time Study (work Measurement)
• Motion Study
• Method Study
• Fatigue Study
• Differential wage rate system
• Scientific task planning
• Standardization + Simplification
• Functional Foremanship
 Route Clerk

Time & Cost Clerk

4 Planning in
office
Instruction Card Clerk

Disiplinarians
8
Supervisors
Gang Boss

Speed Boss
4 Executing at
Shop Floor
Repair Boss

Inspector
C) Administrative Theory
Henry Fayol (1841-1925)
Father of Adminstrative Management

His Contributions…
o 6 Business Activities
o 5 Management Functions
o 14 Principles
Business Activities
1. Technical
2. Commercial
3. Financial Operating activities of business
4. Accounting
5. Security
6. Managerial Activity Most Neglected
14 Principles
1. Division of Work
2. Authority and Responsibilty
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordiantion of Individual interest to general interest
7. Remuneration of personnel
8. Centralisation
9. Scalar Chain
10. Order (Material order + Social order)
11. Equity
12. Stability of tenure
13. Initiative
14. Espirit de corps (Unity of efforts through harmony of interests)
Neo-Classical Approach
• A classical approach led to efficient orgn, but failed to
recognize the overwhelming role of people in management.
• People began to resist formal and impersonal treatment.
• The resistance and the need to secure willing co-operation
of workers led to the development of neo-classical
approach.

 Hawthrone Experiments
 Human Relations Movement
 Behavioural Sciences Thinking
A) Hawthrone Experiments
George Elton Mayo (1880-1949)
Father of Neo-Classical Approach
Experiments conducted at a plant at Western Electric Company.
 Illumination Experiment
 Relay Assembly Test room studies
 Mass Interview
 Bank wiring observation room study
Conclusion-
1. A work group- not a techno economic unit but a social system
2. Workers not only rational economic beings motivated by money, but
also respond to work conditions
3. Social+Psychological factors exercise greater control on employee
behaviour.
B) Human Relations Approach

 Pertains to motivating people in orgn to develop team work

which effectively fulfills their needs and leads to achieving
organisational goals.
Contributions-
1. Moral Justification
2. Satisfy social and psychological needs to increase
productivity.
3. Highlights the people side of orgn.
4. A true concern for workers
5. Focuses attention on inter-personal relations + Dynamics
6. Stressed on training of people management skills and
managerial styles.
C) Behavioural Science Approach
Belief that human is more complex than the ‘economic man’
description of classical approach and the ‘Social man’
description of the Human relations approach.

 Concentrates on the nature of work itself and degree to

which it can fulfill the human need to use skills and abilities.
Contibutions-
More use of teams to accomplish goals, focus on training and
development and the use of innovative reward and incentive
systems.
Systems Approach
• Attempts to explain organisational behaviour by
analysing the structure of orgn.
• It was a result of those orgns that were trying to
adapt to the rapid change in business environment.
Features-
1. Unified and purposeful system
2. Each inter-related parts and subsystems.
3. Each system has a boundary- Internal or External
4. Open system Vs. Closed systems
5. A business enterprise as a open system
(Draws Inputs- convert into output- sends to environment)
 1.
Environment

3. 4.
2. Input Throughput Output

5. Feedback
 Contigency Approach
• Was developed by managers, consultants and
researcher who tried to apply the concept of earlier
approaches to real life situations.

‘ There is no best way to tackle the problem of

management. The application of management
principles and practices is contingent upon the
environment’
Managerial Principles +
Environment
Concepts Techniques
 Best solution is one which is responsive to the
pecularities of a given situation.

Features
1. Mgt is situational.
2. Should match or fit its approach to the requirements of a
particular situation.
3. Mgt’s success depends on its ability to cope with its env, it
should sharpen its diagonistic skills so as to anticipate and
comprehend the environmental change.
4. Mgrs should understand that there is no best way to manage.
4 Sequential Steps

1. Analyze and understand the situation

2. Study and examine the validity of various
concepts, principles and techniques to situation.
3. Make the right choice by matching the technique
to the situation.
4. Implement the choice.
Practical Utility of Approach

• Clear view of the realities of managerial job.

• Suggests situation specific solutions.
• Common sense value and widens practical utility
• Integrate classical approach + apply contingent to
situation
• Organisations environment are dynamic to be
always effectively managed in the same manner.
• No golden rule – Applicable in all situations.
Negatives..
• Confusion

• No theoritical foundation

• Does not incorporate all aspects of systems theory

• Reactive strategy rather than proactive theory.

Queries… ???

Ms. Amanpreet Kaur