CHAPTER 2

EVOLUTION OF MANAGEMENT THOUGHT

MGT 400
PRESENTER

NAME C ID’S
MUHAMMAD IKMAL BIN AHMAD 2022928521

MUHAMMAD AMIRUL RAZIQ BIN AZIZAN 2022946787

NOR HAZIRAH BINTI HASHIM 2022755285

NOR FARHANA BINTI MOHD RASDI 2022752971

NUR IRDINA BALQIS BINTI HIZAM 2022738933

ENVIRONMENTAL FACTORS

TECHNOLOGICAL

GLOBAL SOCIAL

ECONOMIC POLITICAL
 CHRONOLOGICAL DEVELOPMENT
OF MANAGEMENT PERSPECTIVE

CLASSICAL BEHAVIORAL QUANTITATIVE SYSTEMS CONTINGENCY

PERSPECTIVE PERSPECTIVE PERSPECTIVE PERSCPECTIVE PERSPECTIVE
 ADMINISTRATIVE
MANAGEMENT
FOCUS ON THE
FUNCTION OF THE
MANAGEMENT
SCIENTIFIC BUREAUCRATIC
MANAGEMENT MANAGEMENT
FOCUSES ON THE FOCUS ON THE
INDIVIDUAL OVERALL
WORKER’S ORGANIZATIONAL
PRODUCTIVITY SYSTEM

CLASSICAL
PERSPECTIVE
 SCIENTIFIC MANAGEMENT

1. Frederick W. Taylor (1856-1915)

• Father of “Scientific Management.
❑ attempted to define “the one best way” to perform every task through systematic study and other
scientific methods.
❑ believed that improved management practices lead to improved productivity.

• Three areas of focus:

A. Task Performance
B. Supervision
C. Motivation
 A. Task Performance

□ Scientific management incorporates basic expectations of management,

including:
• Development of work standards
• Selection of workers
• Training of workers
• Support of workers
 B. Supervision

□ Taylor felt that a single supervisor could not be an expert at all tasks.
• As a result, each first-level supervisor should be responsible only workers who perform
a common function familiar to the supervisor.
• This became known as “Functional Foremanship.”
 C. Motivation

□Taylor believed money was the way to motivate workers to their

fullest capabilities.
• He advocated a piecework system in which worker’s pay was tied to
their output.
• Workers who met a standard level of production were paid a standard
wage rate.
• Workers whose production exceeded the standard were paid at a
higher rate for all of their production output.
 2. THE GILBRETHS
A. Frank Gilbreth
• Specialized in time and motion studies to determine the most efficient way to perform tasks.
• Used motion pictures of bricklayers to identified work elements (therbligs) such as lifting and
grasping.

B. Lillian Gilbreth
• A strong proponent of better working conditions as a means of improving efficiency and
productivity.
• Favored standard days with scheduled lunch breaks and rest periods for
workers.
• Strived for removal of unsafe working conditions and the abolition of child
labor.
 3. HENRI FAYOL.
• Was an engineer and worked his way up to become a manager.
• He wanted managers to be responsible for more than just increasing production.
• Fayol’s duties of management help us understand the functions of managers in any type
of organization
Fayol’s General Principles of Management

1. Division of work 8. Centralization

2. Authority and responsibility 9. Scalar chain

10. Order
3. Discipline
11. Equity
4. Unity of command
12. Stability
5. Unity of direction 13. Initiative
6. Subordination of individual 14. Esprit de corps
interest to the common good
7. Remuneration of personnel
• Division of work- Assign each employee a task
• Authority and responsibility- Managers must possess the authority to give orders,
and recognize that with authority comes responsibility.
• Discipline- agreements between the organization and employees
• Unity of command- an employee should receive orders from one supervisor only.
• Unity of direction- is the condition essential to unity of action, coordination of
strength and focusing of effort
• Subordination of individual interest to the common good- Individuals should
pursue team interests over personal ones
• Remuneration of personnel- Employee satisfaction depends on fair
remuneration for everyone
• Centralization- Balancing centralized decision making (from the top) with
letting employees make decisions.
• Scalar chain- the organization's hierarchy and who to speak to within a chain
of command
• Order- The right man in the right place
• Equity- Managers should be fair to all employees
• Stability- Organizations should minimize staff turnover and role changes to maximize
efficiency
• Initiative- Employees should be encouraged to develop and carry out plans for
improvement
• Esprit de corps- Organizations should strive to promote team spirit, unity, and morale.
 Bureaucratic Management
 Bureaucratic management is to control the activities of people that work for large organizations and government
 Weber and Fayol, the original proponents of this style of management, were fighting favoritism and
incompetence, common in large organizations at the time.
 Between them, they defined the characteristics of organizations and the functions of managers that we still accept
today.
• Firm rules
• Policies and procedures
• A fixed hierarchy
• A clear division of labor
 Bureaucratic Management: Weber’s
• Weber was interested in industrial capitalism, an economic system where
industry is privately controlled and operated for profit.
• Weber’s rules for bureaucracy govern most large organizations, from
multinational organizations to armies, hospitals, and universities
 Bureaucratic Management: Weber’s
• Division of labor Tasks- everyone is treated equal. Expert in their own area.
• Hierarchy of authority- levels below is controlled by the upper level.
• Rules and regulations- employee obedience also help improve efficiency and
consistency of result.
• Impersonality Rules- applied uniformly to everyone. There is no preferential
treatment or favoritism.
• Employee selection and promotion- based on experience, competence, and
technical qualification demonstrated by examinations, education, or training.
 Weber’s Forms of Authority
• Traditional
Based upon custom or tradition on the past upper-class families also win respect more
• Charismatic
Based upon special personal qualities associated with certain social reformers,
political leaders, religious leaders, or organizational leaders.
• Rational–legal
Based upon the position held by superiors within the organization power.
 CLASSICAL VS BEHAVIORAL PERSPECTIVE

CLASSICAL PERSPECTIVE BEHAVIORAL PERSPECTIVE

FOCUSED ON RATIONAL ACKNOWLEDGED THE

BEHAVIOR IMPORTANCE OF HUMAN
BEHAVIOR
 BEHAVIORAL PERSPECTIVE
• Spawn the behavioural perspective of management, which recognizes the importance
of human behaviour patterns in shaping managerial style.

• Is associated with: ● Mary Parker Follet

● Elton Mayo
● Douglas Mcgregor
● Chester Barnard
 Mary Parker Follett
◦A key to effective management was coordination.

◦Coordinate and harmonize group efforts rather than force and coerce people.

◦Management is continuous, dynamic process.

◦The best decisions would be made by people who were closet to the decision situation.
 Follett On Effective Work Groups
• 1) Coordination requires that people be in direct contact with one another.

• 2) Coordination is essential during the initial stages of any endeavour.

• 3) Coordination must address all factors and phases of any endeavour.

• 4) Coordination is continuous, ongoing process.

 Elton Mayo
• Conducted the famous Hawthorne Experiments.

• Represents the transition from scientific management to the early human

relations movement.
 Douglas McGregor
• Proposed the Theory X and Theory Y styles of management.
 Theory X
• managers perceive that their subordinates have an dislike of work and will avoid it if at all
possible.
• It summaries that workers need to be constantly watched and instructed what to do
 Theory Y
• managers perceive that their subordinates enjoy work and that they will gain satisfaction from
performing their jobs.
• It emphasizes that staff are self-disciplined and would like to do the job themselves
Comparison of Theory X and Theory Y
Assumptions
Work is
Avoid work natural

Must be THEORY Avoid

Self-direction
THEORY Seek
controlled
X responsibility
Y responsibility

Good
decisions
Seek security
widely
dispersed
 Chester Barnard
• Felt that executives serve two primary functions:
 Must establish and maintain a communications system among employees.
 Must establish the objectives of the organization and motivate employees.
• Developed an acceptance theory of authority:
 Authority of a manager flows from the ability of subordinates to accept or
reject an order from the manager once they:
 Comprehend what the order requires of them.
 Review the order’s consistency with organization goals.
 Perceive a personal benefit in obeying the order
 The Quantitative Perspective
• Characterized by its use of mathematics, statistics, and
other quantitative techniques for management decision
making and problem solving.
• This approach has four basic characteristics:
1. A decision-making focus
2. Development of measurable criteria
3. Formulation of a quantitative model
4. The use of computers
 The Quantitative Perspective
• Decision-Making Focus
 The primary focus of the quantitative approach is on problems or
situations that require direct action, or a decision, on the part of
management.
• Measurable Criteria
 The decision-making process requires that the decision maker
select some alternative course of action.
 The alternatives must be compared on the basis of measurable
criteria.
 The Quantitative Perspective
• Characterized by its use of mathematics, statistics, and other quantitative
techniques for management decision making and problem solving.
• This approach is also reffered to as management science in some circles.
Regardless of the name, the quantitative perspective has 4 basic characteristics :
i. A decision-making focus
ii. Development of measurable criteria
iii. Formulation of a quantitative model
iv. The use of computers
 1. A decision-making focus

• The primary focus of the quantitative approach is on problems or situations that require
direct action, or a decision, on the part of management.
• Decision-making is a truly fascinating science, incorporating organizational behavior,
psychology, sociology, neurology, strategy, management, philosophy, and logic.
• The ability to make effective decisions that are rational, informed, and collaborative
can greatly reduce opportunity costs while building a strong organizational focus.
• As a prospective manager, effective decision-making is a central skill necessary for
success. This requires the capacity to weigh various paths and determine the optimal
trajectory of action.
 2. Measurable Criteria

• The decision-making process requires that the

decision maker select some alternative course of
action.
• The alternatives must be compared on the basis of
measurable criteria.
 3. Quantitative model

• To assess the likely impact of each alternative on the stated criteria, a

quantitative model of the decision situation must be formulated.
• Use of mathematical symbols, equations, and formulas to represent the
properties are useful in the problem-solving process.
• Often necessary for extremely complex quatitative formulation
 4. Computers

• Many quantitative can be solved manually, such as an approach is often

time-consuming and costly.
• Computers are quite useful in the problem solving process.
• Often necessary for extremely complex quantitative formulations.
 Systems perspective
• An approach to problem solving that is closely aligned with the
quantitative perspective is system analysis.
Input : Can vary greatly depending upon the nature of the system.
Such as diverse items as materials, workers, capital, land,
equipment, customers and information are potential inputs.

Output : Typically consist of some physical commodity or some

intangible service or information that is desired bhy the customers
or users of the system.
Transformation process : The mechanism by which are converted
to output.

Feedback : represent information about the system’s status and

performance.
 Contingency Perspective
• A view that proposes that there is no one best approach to management for
all situations.
• Asserts that managers are responsible for determining which managerial
approach is likely to be most effective in a given situation.
• This requires managers to identify the key contingencies in a given
situation.
Blending Components
into a Contingency
Perspective