3 - Evolution of Management Thought

EVOLUTION
of
MANAGEMENT THOUGHT
Alauddin M A Wadud 1
1904 ; small batch production, mostly man made !!!
1913 ; Mass production.
Revolutionary change
In FORD manufacturing
Plant !!!
How the Concepts progressed……
• Classical Management theory - around the
tern of 20th century.
• Behavioral management theory– before

and after World War II.
• Management Science theory – during

World War II.
• Organization Environment theory – (1960-

1970).
Evolution of Management Theory
Org. Environment
Management Science
Behavioral Management
Administrative Management
Scientific Management
1890 1910 1940 1980 1990 2000
Today's Discussion
Classical Management
• Scientific Management
• Administrative Management
Scientific Management Theory
Matching people and task to maximize efficiency
BACKGROUND OF SCIENTIFIC MANAGEMENT
• Began in the closing decades of 19th century.
• Out come of the dramatic change in political,

economical, technical and cultural fields due to
industrial revolution.
• Craft Production turned to be Mechanized

production as the blessings of steam power
crowded all over.
• New concept in production- Task Mix.

Job Specialization and Adam Smith’s Study
Job Specialization
The process by which a division of labor

occurs as different worker specialize in
different task over time.
Fedrick W Taylor and Scientific Management
The systematic study of relationships

between people and tasks for the purpose
of redesigning the work process to
increase efficiency.
3 Concepts of Taylor’s Theory
• Specialization.
• Division of Labor – distribute labor as the

job specifies.
• Soldiering – employees deliberately working

at a slow pace.
4 Principles of Taylor’s Theory
• Study the way workers perform their task,
experiment with ways of improving the way
tasks are performed.
• Codify new methods of performing task

into written rules and SOP.
• Carefully select works as required by

the task.
• Establish a fair level of performance and

evaluate based on that.
Rules – Formal written instructions
specifying actions under certain
circumstances.
SOP – Specific written instructions

how to perform a job.
Fair level – a level of performance that
an efficient worker practically should
be able to attain – Not imaginary.
Study by Frank and Lillian Gilbreth
Major Contributions to the theory

• Standardize the work procedures.
• Reduction of steps of work.
Reduction of Cost
A scene
from “Cheaper by
dozen”
“Efficient” family
of Gilbreths !!!
Steps of Scientific Management
Develop a new way for each

element of the job to replace the old
rule of thumb methods.
Scientifically select employees

and train them to do the job as
described in step 1.
Monitor Employees to be sure Continue to plan the work,

that they perform as prescribed but actually get the work
methods. done.
Problems with Scientific Management
• Specialization repetitive, monotonous

and boring job.
• Hide and Seek Play between managers

and employees.
• Too much focus on efficiency – Ignoring the

well being of employees.
When machine
Outplayed man !!
Chaplin in famous
movie “Modern
Times”
Administrative Theory of Management
Evolved side by side Scientific Management theory.
Major contributors to the Theory
• Henri Fayol (1841-1925) – A French Industrialist.
• Max Weber (1864-1920) – A German Sociologist.
Fayol’s 14 Principles
• Division of Labor.
• Authority and Responsibility.
• Unity of Command.
• Line of Authority.
• Centralization of Authority.
• Unity of Direction.
• Equity.
• Order.
• Initiative.
• Discipline.
• Remuneration.
• Stability of tenure of personnel.
• Convert individual interest to Organization Interest.
• Esprit de Corps.
Bureaucratic Management
Max Weber’s Concept
“Evolved when Germany was undergoing industrial

Revolution.”
Bureaucracy
A formal system of organization and

administration designed to ensure
efficiency and effectiveness.
Principles of Bureaucratic Management
• Manager’s formal authority comes from

it’s position.
• People occupy positions because of their

performance.
• Specify the extend of authority and responsibility.
• Clear hierarchy, reporting relations.
• SOP and rules for evaluating performance.

Authority – The power to hold people
accountable for actions.
Problem with Administrative Management
• Rigid Management.
• Over exercising Power.
• Ignoring well being of Employees.
See U next class……….
with “Behavioral Management Theory.”
till then………..bye !!!

3 - Evolution of Management Thought

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3 - Evolution of Management Thought

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EVOLUTION

• Behavioral management theory– before

• Management Science theory – during

• Organization Environment theory – (1960-

Matching people and task to maximize efficiency

• Began in the closing decades of 19th century.

• Out come of the dramatic change in political,

• Craft Production turned to be Mechanized

• New concept in production- Task Mix.

The process by which a division of labor

The systematic study of relationships

• Division of Labor – distribute labor as the

• Soldiering – employees deliberately working

• Codify new methods of performing task

• Carefully select works as required by

• Establish a fair level of performance and

SOP – Specific written instructions

Major Contributions to the theory

• Reduction of steps of work.

Develop a new way for each

Scientifically select employees

Monitor Employees to be sure Continue to plan the work,

• Specialization repetitive, monotonous

• Hide and Seek Play between managers

• Too much focus on efficiency – Ignoring the

Evolved side by side Scientific Management theory.

Major contributors to the Theory

• Henri Fayol (1841-1925) – A French Industrialist.

• Max Weber (1864-1920) – A German Sociologist.

“Evolved when Germany was undergoing industrial

A formal system of organization and

• Manager’s formal authority comes from

• People occupy positions because of their

• Specify the extend of authority and responsibility.

• Clear hierarchy, reporting relations.

• SOP and rules for evaluating performance.

• Over exercising Power.

• Ignoring well being of Employees.

till then………..bye !!!

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