Evolution of Management

How the field of study called management has evolved.

Historical Background

• Early Examples of
Management

• Adam Smith

• Industrial Revolution
 Early Management Examples

 Egyptian pyramids

 Great Wall of China

Question:
Who told the worker what to do? Who ensured that there
would be enough stones at the sites to keep the site to
keep workers busy?

Answer:
The managers. Someone had to plan what was to be done,
organize people and materials to do it, make sure those
workers got the work done. And impose some controls
to ensure that everything was done as planned.
 Early Management Examples

City of Venice

- a major economic and trade center in

the 1400s.
The Venetians used warehouse and
inventory system to keep tracks of
materials, human resource
management functions to manage the
labor force and accounting system to
keep track of revenues and costs.
 Adam Smith
 18th century economist
 “Wealth of Nations”
 Job specialization or division of
labor.
Example :
Surgery team, meal preparations tasks
done by workers in restaurant
kitchens, or positions played by
players on a football team, etc.
 Industrial Revolution

– substitute for human power

 Major Approaches to Management
Theory

4. Contemporary Approach

3. Quantitative Approach

2. Behavioral
Approach

1. Classical
Approach
 Classical Approach

 Emphasized rationality and making organizations and workers as

efficient as possible.

Classical Approach Theory

1. Scientific management theory
2. General Administrative Theory
 Scientific Management Theory

o an approach the involves using scientific method to find “ one

best way” for a job to be done.

o Frederick W. Taylor
- Father of Scientific Management
 Taylor’s Scientific Management Principles

1. Develop a science for each element of an individual’s work to

replace the old rule-of- thumb method.
2. Scientifically select and then train, teach , and develop the
worker.
3. Heartily cooperate with the workers so as to ensure that all
works is done in accordance with the principles of the science
that has been developed .
4. Divide work and responsibility almost equally between
management and workers.
 How today’s managers use scientific
management

1. Devised for improving production efficiency. It

eliminates wasted motions.
2. Hire best –qualified workers for a job.
3. Design incentives systems based on output.
 General Administrative Theory

 Focused more on what managers do and what constituted good

management practice.

 Henry Fayol

- Father of Modern Management

Five functions that managers perform according
to Henry Fayol

1. Planning
2. Commanding
3. Coordinating
4. Organizing
5. Controlling
 Bureaucracy

 a theory of authority structures and relations based on ideal

type of organizations.
Max Weber

 a German sociologist who

studied organization.
 Developed the concept of
bureaucracy as a formal system
of organization and
administration designed to
ensure efficiency and
effectiveness.
 the theory of ideal bureaucracy is
Characteristic of Bureaucracy

1. Division of labor
2. Authority hierarchy
3. Formal selection
4. Formal rules and regulations
5. Impersonality
6. Career orientation
 How today’s managers use general
administrative theory

1. Functional view of manager’s job.

2. The 14 principles of management serve as a frame of reference
from which many current management concepts- such as
managerial authority, centralized decision making, reporting to
only one boss.
3. Bureaucratic mechanism are necessary to ensure that resources
are used efficiently and effectively.
 Behavioral Approach

 the field of study that researches the actions ( behavior) of people at work.
 managers get things done by working with people.
Mary Parker Follett
Concerned that Taylor ignored the human side of the
organization
- Suggested workers help in analyzing their jobs
- If workers have relevant knowledge of the task, then they
should control the task
What manager’s do today when
managing people?

1. Motivating
2. Leading
3. Building trust
4. Working with team
5. Managing conflict
Early advocates of
Organizational Behavior

Year

1700s Robert Owen

1900s Hugo Munsterberg and

Mary Parker Follet

1930s Chester Bernard

 Hawthrone Studies

• a series of studies a series of studies conducted at the Western

Electric Company in Cierso, Illinois
• the studies started during 1924
• Designed by Western Electric engineers as a scientific
management experiment.
• Elton Mayo
- study consultant
 Hawthrone Studies

• They only wanted to examine the effect of various lighting on

worker productivity.
• Researchers found that regardless of whether the light levels
were raised or lowered, worker productivity increased.

• S=R ( Stimulus= Response)

• Example: The sensory organs
 Elton Mayo’s Conclusion

1. People’s behavior and attitudes are closely related.

2. Group factors affect individual behavior
3. Group standards establish individual worker output
4. Money is less a factor in determining output than a group
standard, group attitudes and security.
 Theory X and Theory Y

Douglas McGregor proposed the two different sets of assumptions

about workers.
Theory X assumes the average worker is lazy, dislikes work
and will do as little as possible.
Managers must closely supervise and control through
reward and punishment.
 Theory X and Theory Y

Theory Y assumes workers are not lazy, want to do a good job

and the job itself will determine if the worker likes the work.
Managers should allow workers greater latitude, and create
an organization to stimulate the workers.
 How today’s managers use the behavioral
approach

 People were the most important asset of the organization and

should be manage accordingly.
 Behavioral approach provide an ideas for management practice
in terms of employees selection procedures, motivation
programs and promotion of team work.
 Leadership
 Group behavior and development.
 Quantitative approach

 this is also known as management science, this approach use

quantitative techniques to improve decision making .
 it involve statistics and other quantitative model to improve
managerial decision making.
 Example:
 Linear programming
 Critical-path scheduling analysis
 Economic Order Quantity
 1980s and 1990s Quality Business Revolution

 W. Edward Deming and Joseph M. Juran are the quality experts.

They focus in quality comparison.
 The idea were became the basis for today’s quality management
programs or the TOTAL QUALITY MANAGEMENT .
 What is Quality Management

1. Intense focus on the customer.

2. Concern for continual improvement.
3. Process focused
4. Improvement in the quality of everything the organization
does.
5. Accurate measurement .
6. Empowerment of employees.
 Total Quality Management or
TQM

 is a management philosophy devoted to continual

improvement and responding to customer needs and
expectations.
 TQM it encompasses continual improvement, customers,
employees, and suppliers.
Components of Total Quality Management

Total
Total Quality
Quality
Management
Management

Continuous
ContinuousQuality
Quality Empowered
Empowered
Improvement
Improvement Employees
Employees
How today’s managers use the quantitative
approach

1. queue management
2. planning and control
3. budgeting
4. scheduling
5. quality control
Contemporary approach

 Means new, recent or current approaches in the field of

management
 it focus on managers’ concerns inside the organizations but
during 1960s management researchers began to look what was
happening outside the organization or in the external environment.

 2 Contemporary Management Perspectives

 Systems Theory
 Contingency Theory
 Systems Theory

 A basic theory in the physical sciences, but had never been

applied to organized human effort
 System - A set of interrelated and interdependent parts arranged
in a manner that produces a unified whole.
 2 Basic Types of Systems

 Closed Systems – not influenced by and do not

interact with their environment

 Open Systems – influenced by and do interact with

their environment
 Today’s organizations are described as open systems 
How does the systems approach contribute to our
understanding of management?

 Researchers envisioned an organization as being made up of

“interdependent factors, including individuals, groups, attitudes,
motives, formal structures, interactions, goals, status, and
authority which means that as managers coordinate work
activities in the various parts of the organization, they ensure
that all of these parts are working together so the organization’s
goals can be achieved.
How does the systems approach contribute to our
understanding of management?

 Managers coordinate work activities in the various parts of the

organization, they ensure that all these parts are working
together so the organization's goals can be achieved.
 System approach recognizes that organizations are not self-
contained.
 Contingency Theory

 sometimes called as “situational approach”

 states that organizations are different, face different situations
(contingencies), and require different ways of managing
 describe as “if, then”; If this is the way my situation is, then this
is the best way for me to manage in this situation
 stresses that there are no simplistic or universal rules for
managers to follow
 4 Popular Contingency Variables

 Organization Size – as size increase, so do the problems of coordination

 Routineness of task technology – routine technologies require
organizational structures, leadership styles and control systems that differ
from those required by customized or nonroutine technologies
 Environmental uncertainty – what works best in a stable and predictable
environment may be totally inappropriate in a rapidly changing and
unpredictable environment
 Individual differences – individuals differ in terms of their desire for
growth, autonomy, tolerance of ambiguity and expectations