Evolution of Management Thoughts

EVOLUTION OF MANAGEMENT THOUGHTS
▼ learning objectives
Explain the contributions of the following:
 Practices of management before pre-classical
 Pre-classical management theory
 Classical management theories
 Scientific management
 Administrative management
 Bureaucratic management
 Behavioral management theory
 Modern approach to managements
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 System & contingency approaches

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▼ How management concepts are evolved?
 The principle of management can be traced back many
centuries: prehistoric times-hunting, food preparation,
etc. in primitive society
 Egypt- The Egyptians organized their people and their slaves
to build their cities and pyramids – need for effective
management
 Roman- The Roman Empire is thought by many to have
been so successful because of the Romans‘ great ability to
organize the military and conquer new lands. Emperor
Diocletian’s (A.D. 284)
• 4 geographical areas; 13 dioceses;
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• 100 provinces – effective mgmt through delegation of

authority
 Roman Catholic Church - with its efficient formal

organization and management techniques. The most
important contributions:
 Hierarchy of authority: there was a hierarchical
structure from pop-bishop- priest – laity
 Specialization of activities: there was a training to be
a pop, bishop, priest & laity
 Bible (exodus 18: 13-16)- Jethro, Moses’ father in-
law, observed Moses spending an entire day
listening to the complaints & problems of this
people
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Then, Jethro advised Moses to relief him of his burden:
 Ordinance & laws should be taught to the people – policies, rules &
procedures
 Leader should be selected & assigned to be rulers of thousands, hundreds,
fifties & tens – delegation of authority
 The rulers should administer all routine matters & should bring to Moses
the important questions – the principle of exception
 China- the great wall of chine – the importance of
organizational effectiveness
 Ethiopia- the magnificent obelisk of Axum, rock hewn
churches of Lalibela- the need for effective organization
 Various ancient civilization of Greek, Mesopotamia, India etc.
contributed to the early management thought
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 All these are good examples that indicate how modern mgmt was practiced
in ancient times
 Although management practices go back several thousands
years, the development of management as a field of knowledge
is much recent.
 Much of the impetus for the development of management
theories & principles grew out the industrial revolution of the
early 1800s
 It was manifested by the:
• Revolution of factories & large organization
• Substitution of human labor by machine power
• Need for the coordination of the efforts of large numbers of
people
 Thus, attempts to develop theories & principles of management
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as a discipline evolved almost 200 years ago

 Consequently, a number of individuals began to think in terms of
innovative ways to run them more effectively
 These individuals are known as the pre-classical contributors to
management
 The focus were particular techniques to solve specific problems evolved
classical, behavioral, quantitative & contemporary etc.
 Robert Own-(1771-1858)
Pre-
Pre-classical
classical A British industrial & an owner –
Management
Management manager of several successful cotton mills
theory
theory in Scotland
 Recognized the importance of human resources in an
organization
 Improved working conditions of employees in the factory
 Argued, improving the condition of employees would
inevitability lead to increased production & profits
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 Was considered as father of modern personnel management spirit

of cooperation
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Pre-
Pre-classical
classical  Charles Babbage-(1792-1871)
Management
Management A British mathematician who built the
theory
theory first practical mechanical calculator
 Known as a “father of modern computing.”

 Emphasized the idea work specialization
 Not only physical work but also mental work could be
specialized.
 He was an early advocator of division of labor principle-
specialization:
 To improve skills of workers
 To reduce learning time & other expenses
 His management ideas also anticipated the concept of
incentive pay & profit sharing to improve productivity.
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 Harmonious r/ship between management and workers

Pre-
Pre-classical
classical  Adam Smith-(1776)
Management
Management A British economist – the wealth of
theory
theory Nations
 Made an important contribution to the development of management

thought division of labor (the breakdown of jobs into narrow,
repetitive tasks) would bring to organizations and society.
 His conclusion was specialization could to increased efficiency.
This is because:
 The ambidexterity of an employee increases in every particular work
 The time lost in passing from one type of work to another will be
saved
 Leads to the invention of great number of machines, which enables to
perform more
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 Thus, the focus was mainly on the mechanical side of the job-
division
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Broadly, there are different approach to management:
pre-classical, classical, & modern. However, the major,
approach, to management as a field of study are
presented as follows:
Evolution of management thoughts
Classical theory Neo-classical theory

(Bureaucracy theory by Human relations theory Modern management
Weber (1900) theory
-- (1930)
Scientific management Behavioral science * Operations research
Theory-Taylor (1910) * * Contingency Theory
theory - Maslow and Mc
Process management * System Approach to
Gregar (1940)
theory (Administrative Management
theory) Fayol-(1910) * TQM, Re-engineering
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 Evolved in an effort to develop
Classical
Classical techniques that would solve problems
Management
Management
theory
of organizational efficiency in the
theory production of goods and services
 Three perspectives: based on the issues and problems that they
address
 Scientific management emerged By American scholars and
managers
 Focused on in the management of work and workers (lower level managers).
 Administrative theory: evolved from a concern by both
European and American academicians and managers
 Focused on the problem of top managers in managing the entire organization
Bureaucracy theory, emerged by The German sociologist
 Concentrate on structure and design of organization
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 characterized by a hierarchy of authority, formalized rules and regulations

that serve to guide the coordinated functioning of an organization.
 Arose because of the need to increase
Scientific
Scientific productivity and efficiency.
Management
Management
Theory
Theory
 The emphasis was on trying to find the best way to get the most
work done by examining how the work process was actually
accomplished and by analyzing the skills of the workforce
 Frederick W. Taylor (1856–1915)
 exercise: who was Fredric W. Taylor?
 A pioneer who advocated scientific principles of management as
the result of his keen research in different industrial activities
 Started work as an apprentice pattern making in a small workshop
in Midvale steel company
 Within 8 years, he progressed from ordinary laborer to chief
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engineer (time keeper, machinists, gang boss, foreman, assistant

engineer)
Classical
ClassicalManagement
Management theory,
theory,Frederick
FrederickW.
W.Taylor
Taylor(1856–1915
(1856–1915
 He worked in Bethlehem steel company till 1901, acquired a
technical excellence in the field of engineering
 Published principle of scientific management (1911)
 Thus, he is considered as the father of scientific management
 Exercise: could you mention the four principle of scientific
management?
 He saw that the employees were deliberately working at a pace
slower than one capabilities. He found three reasons behind it
a)Fear of losing their jobs if they increase their output
b)Faulty wage systems
c)Outdated methods of working.
 He suggested some principles to overcome this problems.
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These principles formed the basis of scientific management

theory.
 Taylor’s four principles of scientific management
 The development of a true science of management, so that the
one best method for performing each task could be determined.
 Carefully select workers so that they possess skills and abilities
that match the needs of the task, and train them to perform the
task according to the established rules and procedures
 Intimate, friendly cooperation between management and labour
 Divide work & responsibility almost equally b/n management
and workers where they better fitted.
 Major conclusions
 The two major elements of scientific management were:
o Discovery by experiment the best way of performing & the
proper time for every operation & every component unit in light
of the best material, tool & machine.
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o The division of labor as b/n management & workers

 Major conclusions
 great gain in productivity from this technique of management
came not form greater exertion by workers but from elimination
of wastages
 Worker’s time & machine time, caused by:
o Delays of misapplied efforts
o Failure on coordination of quantities, etc.
 Thus, scientific management involves a complete mental
revolution on the part of workers & those of management – the
main objectives were:
o The elimination of waste effort
o Emphasis on fitting workers to particular tasks
o Greater care in training workers to the specific requirements
of their jobs
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o Greater specialization of work activities

o Theby South-Western,
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 The main ideas articulated by Taylor
 Standardization & simplification of work
 Time and motion studies
 The right person with the right job
 The right person with the correct tools & equipment
 Production planning & control
 Piece- wage system of payment on differential basis
 Ultimately, the main aim of scientific management was
to maximize the efficiency of workers- maximizing
their potentials
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Criticism of Taylor Theories

Taylor's Philosophy though gained immense popularity,
was also widely criticized on three grounds.
1. Scientific management ignored human side of
organization. Taylor viewed on average worker as a
machine that could be motivated to work hard
through economic incentives
2. Taylor's theory is narrow in scope having direct
application to factory jobs at the Shop Floor Level.
"Efficiency Experts"
3. Excessive division of labour had disastrous
consequences in the form repetitive and monotonous
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jobs and discontent among workers.

 Henry I. Gantt
 Henry L. Gantt (1861–1919) worked with Taylor on several
projects.
 Gantt began to reconsider Taylors incentive system. Gantt came
up with a new idea.
 Every worker who finished a day‘s assigned work load would
win a 50 cent bonus. Then he added a second motivation.
 The supervisor would earn a bonus for each worker who
reached the daily standard, plus an extra bonus if all the
workers reached it.
 Every workers progress was rated publicly and recorded on
individual bar charts
 – in black on days the worker made the standard,
 in red when he or she fell below it.
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 Going beyond this, Gantt originated a charting system for

production
Copyright scheduling:
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a division of Thomson Gantt
Learning. All rights chart
reserved is still in use today.
The Gilbreths
 Frank B. and Lillian M. Gilbreth (1868– 1924) and (1878–
1972) made their contribution to the scientific management
movement as a husband and wife team.
 Lillian and Frank collaborated on fatigue and motion
studies and focused on ways of promoting the individual
workers welfare.
 The ultimate aim of scientific management was to help
workers reach their full potential as human being.
 In their conception, motion and fatigue were intertwined-
every motion that was eliminated reduced fatigue.
 Using motion picture cameras, they tried to find the most
economical motions for each task in order to upgrade
performance and reduce fatigue.
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 Administrative theory focuses on the total
Administrative
Administrative organization and attempts to develop
Management
Management principles that will direct managers to
Theory
Theory more efficient activities.
 It had two major purpose:
 Develop basic principles that could guide the design, creation &
maintenance of large corporations
 Identify the basic functions of managing organization
 Henri Fayol (1841-1925)
 Henri Fayol was a French mining engineer who spent many of his
later years as an executive for a French coal and iron combine
 Henri Fayol is the one who identified:
 The major types of activities
 Management as a separate field of study
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 General management principles

 The major types of activities involved in an industry or a
business as
Activities of a Business
Technical Commercial Financial Security Accounting Managerial
Planning Organizing Commanding Coordinating Controlling
 Management as a separate field of study

 Management is a discipline worth studying (formal
managerial training schools are needed)
 Managerial ability could be applied to the home, church,
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military, politics, & industry.

General management principles
 Fayol listed fourteen principles of management based purely on
his experience.
1. Division of labour : Division of work leads to specialization
resulting in higher output.
2.Authority : Managers must have the authority to issue orders and
instructions to the subordinates.
3.Discipline : Discipline means respect for rules and agreements.
4.Unity of command : There should be one boss for one
subordinate.
5. Unity of direction : All operations in an organization need to be
directed towards one objective.
6.Subordination of individual interest to general interest : If
there is a conflict between the individual goals and organizational
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goals, preference should be given to organizational goals,

General management principles
7. Remuneration : There should be a fair system of remuneration
that ensures equal pay for equal work.
8. Centralization : It refers to declining role of subordinates in the
decision making.
9. Scalar Chain (Hierarchy) : This the line of authority running
from top level to lower level of management.
10. Order : People and material should be in the right place at the
right time.
11. Equity : Managers should be fair to their subordinates.
12. Stability of staff : Employee turnover should be less to ensure
efficiency of an organization.
13. Initiative : Subordinates should have the freedom to conceive
new ideas and do their task, even though they commit mistakes.
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14. Esprit de corps : ‘ Unity is strength’. People should work as a

team
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Positive attributes of Fayol’s theory :
 Fayol pioneered in distinguishing management functions from
other functions/activities of a business.
 He was first to highlight the universality of management
principles.
 His contribution to management theory provided foundation to
development of management thought.
Major limitation
 Some of the principles are rigid (chain of command, unit of
command)
 The principles are applicable in a relatively stable & predictable
environments
 Prescription of universal principles that are not really
appropriate in some settings (decentralization, matrix structure )
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Bureaucracy
Bureaucracy  Is merely a type of organizational structure
Theory
Theory developed by the germen sociologist Max
Management
Management Weber.
 What is Bureaucracy?
 Bureaucracy is associated with negative connotation among
the general population
 Thus, most people attribute several prejudices to
Bureaucracy:
 Rigid application of rules
 Paper shuffling
 Redundancy of error
 Lethargic attitude toward change, etc.
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 Max Weber (1864-1920)

 Weber developed the principles of bureaucracy—a
formal system of organization and administration
designed to ensure efficiency and effectiveness.
 In a bureaucracy, a manager’s formal authority
derives from the position he or she holds in the
organization.
 A well-defined hierarchy.
 Division of labor and specialization..
 Rules and regulations.
 Impersonal relationships between managers and
employees..
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Chester Barnard (1886-1961)
 Barnard's, viewed the organization as a "cooperative system" of
individuals embodying three essential elements:
(1)willingness to cooperate,
(2) a common purpose, and
(3)communication.'
 the source of authority did not reside in the person who gave the
orders; rather, authority resided in the subordinates
 Subordinates would assent to authority when four conditions were
satisfied:
(1)they could and did understand the communicated directive;
(2)they believed that the directive was consistent with the purpose of
the organization;
(3) they believed that the directive was compatible with their own personal
interests; and
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(4) they were mentally and physically able to comply with the directive.' This
view of authority has become known as acceptance theory.
Criticism of bureaucracy
 Reduces flexibility –leads to bureaucratic
behavior
 Specialization conflicts & minimum
performance level
 Inappropriate application of rules & regulations
 Difficulty of responding to changing conditions
 Feeling of being irrelevant-routine activities can
be easily learned
 Enormous degree of power in the hands of a
very few
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Neo-classical  emphasized human relations, the
Neo-classical
management
management importance of individual as well as group
theory
theory relationship and social aspects.
 Since the classical management theory:
 Couldn’t achieve total efficiency & work place harmony
 Viewed organization from the mechanistic viewpoint &
considered workers as devices & only ration beings
 Focused on controlling & standardizing the individual behavior
 Practicing managers got problems in managing organizations
because subordinates weren’t behaving as expected
 It appeared essential to fined a means that could help managers
become effective in dealing with people & thereby increasing
worker’s productivity
 Then, behavioral management theory emerged emphasizing on
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human relation
 Copyright
Exercise: isSouth-Western,
©2005 by that simple toofstandardize
a division individual
Thomson Learning. All rights reserved human behavior?
Behavioral
Behavioral  Is the study of the actions of people at
Management
Management work. People are the most important
Theory
Theory asset of an organization.
 Human relations approach :
 It refer to the interaction of managers with their subordinates
based on:
o Social environment of work, individual & group behavior, and
interpersonal relationships.
 HRs: used concepts from psychology, sociology & anthropology
to assist managers understand human behavior in the work place
 Focused on motivation, communication, work group formation &
leadership
 Thus, the behavioral school of management had its origins in
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industrial psychology & sociology emphasis on the interactions of

people in an organization
 series of studies conducted at the
THE
THEHAWTHRONE
HAWTHRONEWestern Electric Company from
EXPERIMENTS
EXPERIMENTS
1924 to 1933.
 Elton Mayo : He is recognized as the father of human relations
approach.
 Mayo and his associates were conducted experiments in four
phases.
 (1)Illumination experiment, (2)Relay assembly test room
experiments
 (3)Interview phase (4) Bank wiring observation room
experiment.
 Scholars generally agree that the Hawthorne studies, had a dramatic impact on
the direction of management thought.
 Mayo concluded that group influences significantly affects individual behavior
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 Social norms, group standards & attitudes more strongly influence individuals
output
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 These experiment signified new approach to the

problem of productivity
 b/c scientific management theorists believed that
physical factors are determinants of workers
productivity
 Illumination experiments :
 The intension of this experiment was to learn if there
was any correlation b/n intensity of light & productivity
 Accordingly, two group of women were taken for the
experiment:
 The experiment group- one subjected to variety in
the intensity of light
 A controlled group –which was exposed to constant
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illumination intensity
 After their experiment, the researchers were
puzzled by their experiment:
 Productivity constantly increased in both the
experimental & controlled groups
 Surprisingly, productivity kept on ascending even
if they:
 Increased the intensity of illumination in the
experimental room
 Diminished the light so that it was barely
enough to see in the control room
 After seeing this puzzle, researchers concluded
that illumination has little or no effect on
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productivity.
 Relay assembly test room experiment :
 This set of experiments was conducted under the
guidance of Elton Mayo.
 The researchers selected six women employees of the
relay assembly test room, and were put in a separate
room.
 In the test room, a number of variables were altered, like
increased wages and rest period, shortened workday and
workweek etc.
 Productivity increased during the study period.
 Such results led the researcher to believe that better
treatment of subordinates made them more productive.
 They highlighted the significance of social relations. This
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condition was later labeled as the Hawthorne effect.

 INTERVIEW PHASE :
Large number people were interviewed. The purpose
of the interviews was to explore the attitude of workers
in depth. The conclusions that emerged were.
 All objects, persons, and events carry some social meaning.
They relate to employee’s satisfaction or dissatisfaction.
 Workers assign meaning to their status in the organization
and give value to events, objects, and specific features of their
environment
 Workers derive satisfaction or dissatisfaction from the social
status of an organization. This means that they also look for
social rewards, associating them with an organization.
 Workers’ social demands are influenced by social experiences
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in groups, both inside and outside the workplace

BANK WIRING OBSERVATION ROOM
EXPERIMENT
 In this experiment there were fourteen participants
including wiremen, solder men and inspectors.
 There was no change in the physical working conditions.
 Sample workers were paid based on an incentive pay plan,
relating their pay to output. They had the opportunity to
earn more by increasing the output.
 However, it was observed that the output was constant at a
certain level.
 Analysis of the results showed that the group encourages
neither too much nor too little work.
 They enforce ‘a fair day’s work’ on their own. Group norms, therefore
more important to the worker than money.
 This study, thus provided, some insight into informal social relations
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within groups
 Finding & Implications of Hawthorne Studies
 Hawthorne Studies constituted the single most important foundation for
the behavioral approach to management
 The conclusions drawn from them were many & varied:
 Physical working conditions did not seem to explain the changes that
were related in productivity
 There are other factors other than physical factors & monetary
incentives, which affect productivity
 Theses factors are social & psychological in nature
 Social environment
 Ability to talk to each other
 The right to choose their rest periods
 The right to leave the workstation without permission
 The right to have a say in suggested changes
 Psychological conditions:
 Being a member of the study group they felt social acceptance & recognition
 Thus, human beings are social beings not only rational, economic being (i.e.,
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motivated not only by the body needs but also by social & psychological needs)

Human behavioral approach
From Human Relations To The Behavioral Science Approach
 Later researchers, more rigorously trained in the social
sciences psychology, sociology, and anthropology used more
sophisticated research methods and became known as
behavioral scientists.
 The behavioral scientists brought two new dimensions
 First they advanced an even more sophisticated view of
human beings and their drives than did Mayo and his
contemporaries.
 Abraham Maslow and Douglas McGregor, wrote about self actualizing
people.
 They also determined that people wanted more than instantaneous
pleasure or rewards.
 If people were this complex in the way they led their lives, then their
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organizational relationships needed to support that complexity.

 Second, behavioral scientists applied the methods
of scientific investigation to the study of how
people behaved in organizations as whole entities.
 The classic example is the work of James March
and Herbert Simon in the late 1950s.
 March and Simon developed hundreds of
propositions for scientific investigation, about
patterns of behavior,
 particularly with regard to communication, in
organizations.
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Behavioral Scientist: Maslow
 According to Maslow, - that people are motivated by five
distinct types of needs which are arranged in a hierarchy in
order of their power to motivate human behavior:
1.Physical or physiological needs
2.Safety or security needs
3.Social needs
4.Ego or status needs
5.Self-actualization, self realization, self-fulfilment needs.
 Physiological and safety needs are at the bottom of the
hierarchy, and at the top are ego needs the need for respect,
for example and self actualizing need such as the need for
meaning and personal growth.
 In general Maslow said lower-level needs must be satisfied
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before higher level needs can be met.

Behavioral Scientist: McGregor
 McGregor provided another angle on this complex person idea.
 He distinguished two alternative basic assumptions about people
and their approach to work.
 Theory X managers believe that
 their subordinates basically try to avoid responsibility and
work assignments.
 So they can not be inspired or motivated.
 Thus theory X takes a relatively pessimistic and negative
view of workers.
 Theory Y managers
 hold progressive outlook and are dynamic in nature.
 They view work as rewarding if given the chance by
superiors.
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Modern Management Theory

 With increasing complexities of organizations, the
modern management theories(thoughts) are
developed.
 Management is responsive to environmental
changes.
 Business firms have multiple objectives.
 Management is multi-disciplinary in nature.
 Management is future oriented.
MODERN MANAGEMENT THEORIES
Contingency
Quantitative Theory System Theory Current trends
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Theory

Quantitative School
 During World War II, mathematicians, physicists, and
other scientists joined together to solve military problems.
The quantitative school of management is a result of the
research conducted during World War II.
 The quantitative approach to management involves the
use of quantitative techniques, such as statistics,
information models, and computer simulations, to improve
decision making. This school consists of :
a)Management science
b) Operations Management
c) Management information system
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Management science
 The management science school emerged to treat the problems
associated with global warfare.
 Today, this view encourages managers to use mathematics,
statistics, and other quantitative techniques to make management
decisions.
 Managers can use computer models to figure out the best way to
do something — saving both money and time.
 Managers use several science applications:
 Mathematical forecasting helps make projections that are
useful in the planning process.
 Inventory modeling helps control inventories by
mathematically establishing how and when to order a product.
 Queuing theory helps allocate service personnel or
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workstations to minimize customer waiting and service cost

Operations management
 Operations management is a narrow branch of the quantitative
approach to management.
 It focuses on managing the process of transforming materials,
labor, and capital into useful goods and/or services.
 The product outputs can be either goods or services; effective
operations management is a concern for both manufacturing and
service organizations.
 The resource inputs, or factors of production, include the wide
variety of raw materials, technologies, capital information, and
people needed to create finished products.
 The transformation process, in turn, is the actual set of
operations or activities through which various resources are
utilized to produce finished goods or services of value to
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customers or clients.
Management information systems

 Management information systems (MIS) is the most recent
subfield of the quantitative school.
 A management information system organizes past, present,
and projected data from both internal and external sources
and processes it into usable information, which it then makes
available to managers at all organizational levels.
 The information systems are also able to organize data into
usable and accessible formats.
 As a result, managers can identify alternatives quickly,
evaluate alternatives, and select the best alternatives based
on the answers to these questions.
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THE SYSTEMS THEORY APPROACH
 System defined as a set of interrelated and interdependent parts
arranged in a manner that produces a unified whole.
 E.g. computers, automobiles, organizations, and animal and
human bodies.
 This approach consider the organization as a whole because of
the interdependent nature of activities, requiring the
organization to interact with external environmental factors.
 Two basic types of systems:
 Closed systems are not influenced by and do not interact with
their environment.
 open system approach recognizes the dynamic interaction of
the system with the environments by taking in inputs &
transforming them into outputs that are distributed into their
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environments.
Social Variables
Technological Variables
Customer Competitors
Financial Employee Suppliers

Institute
The
Organization
Labor
Union Shareholders & Board of Govt
Directors
The Media Special Interest
group
Economic Variables Political Variables

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Internal External Indirect Action Elements

Stakeholders Stakeholders (PEST)
Some key concepts:
 Subsystems: The parts that make up the whole of a system are
called subsystems.
 Synergy: Synergy means that the whole is greater than the sum
of its parts. synergy means that as separate departments within
an organization cooperate and interact, they become more
productive than if each were to act in isolation.
 System Boundary: Each system has a boundary that separates it
from its environment.
 Flow: A system has flows of information, materials and energy
including human energy.
 Feedback: Feedback is the key to system controls. As
operations of the system proceed, information is fed back to the
appropriate people,
Chapter 2
 Entropy: is the tendency of systems to deteriorate or break

down
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by South-Western,
Implications of the systems approach

Synchronization-coordination of the organization’s
parts is essential for proper functioning of the entire
organization
Mutual influence- decisions & actions taken in one
area of the organization will have an effect in other
areas of the organization
Dependency- organizations are not self reliant &
therefore there exists mutual dependence among
them selves
Generally, the key implication is that organizations
must adapt to changes in their external
Chapter 2
environment
Contingency approach/Situational approach
 The contingency approach was developed by managers,
consultants and researchers who tried to apply the
concepts of the major schools to real life situations.
 When methods highly effective in one situation failed to
work in other situations.
 Why for example, did an organizational development
program work brilliantly in one situation and fail
miserably in another.
 Results differ because situations differ. A technique that
works in one case will not necessarily work in all cases.
 There is no universally applicable set of management
principles (rules) by which to manage organizations
Chapter 2

 Organizations are individually different, face different
situations & require different ways of managing
 Therefore, managerial decisions must be specific for
specific situations by recognizing the uniqueness of the
environment
 According to the contingency approach:
 the managers‘ task is to identify which technique will in
a particular situation, under particular circumstances,
and at a particular time, best contribute to the
attainment of management goals.
 The contingency approach represents an important turn
in modern management theory, because it portrays each
set of organizational relationships in its unique
circumstances.
Chapter 2

Current trends & issues
Exercise: referring the appropriate sources &
briefly discuss the following trends & issues
 Quality School of Management
 Kaizen approach
 Reengineering approach
 Globalization and ethics
 Workforce diversity & entrepreneurship
 E-Business & knowledge management
Chapter 2

Evolution of Management Thoughts

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Evolution of Management Thoughts

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EVOLUTION OF MANAGEMENT THOUGHTS

 System & contingency approaches

• 100 provinces – effective mgmt through delegation of

 Roman Catholic Church - with its efficient formal

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as a discipline evolved almost 200 years ago

 Was considered as father of modern personnel management spirit

 Known as a “father of modern computing.”

 Harmonious r/ship between management and workers

 Made an important contribution to the development of management

Classical theory Neo-classical theory

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 characterized by a hierarchy of authority, formalized rules and regulations

engineer (time keeper, machinists, gang boss, foreman, assistant

These principles formed the basis of scientific management

o The division of labor as b/n management & workers

o Greater specialization of work activities

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Criticism of Taylor Theories

jobs and discontent among workers.

 Going beyond this, Gantt originated a charting system for

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 General management principles

Technical Commercial Financial Security Accounting Managerial

Planning Organizing Commanding Coordinating Controlling

 Management as a separate field of study

military, politics, & industry.

goals, preference should be given to organizational goals,

14. Esprit de corps : ‘ Unity is strength’. People should work as a

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 Max Weber (1864-1920)

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industrial psychology & sociology emphasis on the interactions of

 These experiment signified new approach to the

condition was later labeled as the Hawthorne effect.

in groups, both inside and outside the workplace

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organizational relationships needed to support that complexity.

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before higher level needs can be met.

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Modern Management Theory

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workstations to minimize customer waiting and service cost

Management information systems

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Financial Employee Suppliers

Economic Variables Political Variables

Internal External Indirect Action Elements

 Entropy: is the tendency of systems to deteriorate or break

Implications of the systems approach

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