EVOLUTION OF MANAGEMENT

Management Theories and Practices

• MANAGEMENT is a very popular term and has been
used extensively for all types of activities and mainly
for taking charge of different activities in any
enterprise.

• Thus, management has to see that tasks are completed

and goals are achieved (i.e., effectiveness) with the
least amount of resources at minimum cost (i.e.,
efficiency).

• Management has therefore ben defined as a process of

getting things done with the aim of achieving goals
effectively and efficiently.
 DEFINITION:
• “Management is the process of designing and
maintaining an environment in which individuals ,
working together in groups, efficiently accomplish
selected aims.” – Harold Koontz and Heinz Weihrich
• “Management is defined as the process of planning,
organizing, actuating and controlling an organization’s
operation in order to achieve coordination of the human
and material resources essential in the effective and
efficient attainment of objectives.” - Robert L.
Trewellyand M. Gene Newport
 CONCEPTS OF MANAGEMENT
1. Functional Concepts – as a process: This group emphasizes
management in terms of function undertaken by the manager
in an integrated way to achieve organizational purposes.
2. Human relation concepts: Here human aspect of organization
emphasized. It conceives organization as a social system.
Management is concerned with development of people.
3. Decision Making Concepts: This concepts views management
as rule-making and rule-enforcing body, Whatever a manager
does, he/she does through his decisions. The life of a
manager is a perpetual choice making activity
4. Productivity Concepts : Accroding to this concept,
management is a technical necessesity. It aims at
maximum efficiency. Here, management is a technique
of increasing productivity.

5. Integration Concepts : According to Wheeler,

“Business Management is a human activity which directs
and controls the organization and operation of business
enterprises. Management is centered in the
administration or managers of the firm who integrates
men, material and money into an effective operating
unit.”
 CHARACTERISTICS OF MANAGEMENT
• It is a process: - Management is a process of palnning,
organizing, coordinating and controlling the activities of people
working in a group to achieve the organizational objectives.
• It is a social process: - Management is concerned with getting
things done through the efforts of other people. So it is a social
process
• Existence of Objectives: The aim of management is to achieve
specific objectives. Without objectives the group activities
cannot be defined and efforts of the people in the
organization.
• Integration of Organizational Resources: Organizational
resources include money, machine, materials and people. The
management integrates all these resources of an enterprise for
achieving pre-determined objectives.
• Decision Making: Management process involes decision making
at various levels for getting things done by others. Decision-
Making involves selection of the best course of action from a
number of alternatives. The entire future of the organization
depends upon to the degree to which the right decisions are
made by the managers.
• Leadership – The management has to lead a team of workers. It
must be capable of inspiring, motivating and winning the
confidence.
 NATURE OF MANAGEMENT
• UNIVERSAL APPLICATION: Management is the universal activity. It can be
applied to any form of activity like economic, social, business, religion and
education.
• MANAGEMENT IS A GOAL ORIENTED: Every firm determines the objectives to
be achieved. So an organization is working to achieve these objectives. The
management performs all activities on the basis of the predetermined goals.
• MANAGEMENT IS A HUMAN ACTIVITY: Individuals discharge all management
function no artificial person can perform the function of management.
• MANAGEMENT IS A PROFESSION: Some of the authorities argue that
management is a profession. Certain persons argue that management fails
to quality the test of professionalism in relating to restricted entry.
• Management is Art as well as Science: It contains a body of
verified systematized knowledge and it also helps in utilizing
that knowledge for achieving organizational goals. It is both
science and art.
• Multidisciplinary: It is basically multidisciplinary. Management
integrates the ideas and concepts taken from different
disciplines like psychology, sociology, anthropology,
economics, statistics, operation research etc.
• Dynamic: Management is not static but dynamic. It adopts
changes in environment and also initiates and introduces
changes.
• Intangible: Management is intangible. It cannot be seen with
the eyes, or touched.
• Distinct Process: Management is a distinct process. It
involves getting things done through others rather than
doing itself.
• Management is a system of authority: Authority is the
right to give orders and power to get them executed.
The task of the management is to get things done
through and with the help of people. For this purpose,
authority is a necessity.
• It is required at all levels of the enterprise.
• An Activating factor: The management should activate
the other factors of production. The manager should
motivate others to accomplish desired results.
 SCHOOL OF
MANAGEMENT
THOUGHTS
• The purpose of studying various schools of
management thought is to enable you to recognize
and appreciate how developments in the field of
management could contribute to current practices.
• An examination of these past and present approaches
can help to discover the strengths and weaknesses of
current managerial practices and finally enable you,
as a potential manager of an information centre, to
choose appropriate management styles.
• Today’s management is both a reflection of and a
reaction to past management theories.
• Several schools of thought in management have
evolved over a period of time. Mamagement
philosophy gives concrete and balanced approach to
managing business activities.
• These philosophies provide general guidelines of
business management and it is regarded as the
foundation of management thinking and actions.
• Various Schools of Management thoughts developed
from time to time
• The growth of modern techniques in management
began with the industrial revolution in England during
the 19th century
 APPROACHES TO MANAGEMENT
1. CLASSICAL APPROACH TO MANAGEMENT:
- The Classical School is occasionally called as the traditional
school management
- Introduced in the late 19th Century during the Industrial
Revolution
- Managers were interested to find out ways to improve
productivity, lower cost, increase quality of their products, improve
employee/manager relationship and increase efficiency at their
industrial units.
- The objective of classical management is to reduce costs and achieve
results in more efficient ways.
 - The Classical Approach is not concerned with the employee
satisfaction or anything from the view point of employees.
- The Classical theories of management can be divided into
mainly three distinct areas. They are the bureaucratic,
administrative, and scientific theories of management.
- The major contributors of classical approach are of Frederick
Winslow Taylor (1856-1915), Frank Gilberth (1868-1924), Lillian
Gilberth (1878-1972), Henri Fayol (1841-1925) and Max Weber
(1864-1920)
1. SCIENTIFIC MANAGEMENT

• Frederick W. Taylor was considered as the father of scientific management

• He analyzed management scientifically to find out the most effective way
to do a job. That is the “one best way” to do the job.
• Scientific Management is a theory of management that analyzed the
workflows, with the objective of improving labour productivity
management of a business, industry, or economy, according to principles of
efficiency derived from experiments in methods of work and production,
especially from time and motion studies.
• Frank B. Gilberth and Lilliam M. Gilberth – 17 principle “Threbling”
2. GENERAL MANAGEMENT THEORY
(Administrative Management)
• It is a way to organize things in a systematic manner.
• The systematic way includes clearly defined tasks division of labour and a
hierarchical structure of the organization. This concept of management
emphasizes improving the performance and overall function of an organization.
• Henri Fayol is the major contributor to this school of management thoughts and
according to him this school basically deals with people in system.
• According to him activities of an industrial enterprise can be grouped in to six
categories such as technical, commercial, financial, security, accounting and
managerial.
• Fayol described management as a scientific process built up of five absolute
elements such as Planning, Organizing, Commanding, Coordinating, and
Controlling
3. THEORY OF BUREAUCRACY (Bureaucratic
Management)

• Bureaucratic Management is a stream of classical theory of

management
• It is a formal system of organization that is based on clearly
defined hierarchical level and roles in order to maintain efficiency
and effectiveness.
• It focuses to operate the organization under a hierarchy of
positions
• The main contributors in bureaucratic management are Henri
Fayol and Max Weber
NEO CLASSICAL APPROACH

• George Elton Mayo was considered as a founder of neo classical theory

• The Neoclassical Theory is the extended version of the Classical theory:
wherein the behavioral sciences get included into the management
• Classical theories focused more on structure and physical aspects of the
worker. But neo classical theory gave importance to human and social
aspects of the worker and his relations in the organization.
• The Neo Classical Theory is also called the Behavioral Theory of
Organization, or the Human Relation Approach
• There are two main sources of neoclassical theory: the human relations
movement and the behavioral movement.
LIMITATIONS

1. It’s Lack the precision of classical theory because

human behavior is unpredicted
2. Its conclusions lack scientific validity and suffer from
a clinical bias, its findings are tentative.
3. Its application in practice is very difficult because its
requires fundamental changes.
HUMAN RELATION APPROACH

• It is a progressive development as compared to classical

approach. Here, productivity is not treated merely as an
engineering problem. Cooperation of employees, team spirit and
their satisfaction are treated as factors useful for raising
productivity. It’s often said that a happy employee is more
productive employees.
• This approach was proposed by Elton Mayo. He mainly focused
on the people who were working in an organization. Elton Mayo
was considered as the father of the human relation movement,
which later became organizational behavior.
FEATURES OF HUMAN RELATIONS APPROACH

1. A business