HND in Business Management

BHNC4205 - People and Organizations

QCF Level: 4
Credit Value: 20

Lecturer: Dulanga Kodituwakku

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 Learning Outcome 01

Identify the basic concepts of organizations

and individuals

(Session 02)

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 Evolution of Management Thoughts

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 Lecture Outline
Classical Approach
Scientific Management
Administrative Management
Bureaucratic Management

The Human Relations Approach

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 Chronological Development of Management Perspectives
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 Classical Perspective

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 Focuses on the
individual worker’s
productivity
Focuses on the
overall
organizational
Focuses on the system
functions of
management

Subfields of the Classical Perspective on Management

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 Scientific Management
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:
 Task Performance
 Supervision
 Motivation

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 Task Performance
Scientific management incorporates basic expectations of
management, including:
Development of work standards
Selection of workers
Training of workers
Support of workers

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 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.”

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 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.

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 Scientific Management: The Gilbreths
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.
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.
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 Administrative Management
Henri Fayol (1841–1925)
First recognized that successful managers had to understand
the basic managerial functions.

Developed a set of 14 general principles of management.

Fayol’s managerial functions of planning, leading,

organizing and controlling are routinely used in modern
organizations.

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 Fayol’s General Principles of Management

1. Division of Work 8. Centralization

2. Authority and Responsibility 9. Scalar Chain

3. Discipline 10. Order

4. Unity of Command 11. Equality

5. Unity of Direction 12. Stability

6. Subordination of Individual
Interest to the Common Good 13. Initiative

7. Remuneration of Personnel 14. Esprit de Corps

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 Bureaucratic Management
Focuses on the overall organizational system.
Bureaucratic management is based upon:
Firm rules
Policies and procedures
A fixed hierarchy
A clear division of labor

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 Bureaucratic Management
Max Weber (1864–1920)
A German sociologist and historian who envisioned a
system of management that would be based upon
impersonal and rational behavior—the approach to
management now referred to as “bureaucracy.”
 Division of labor
 Hierarchy of authority
 Rules and procedures
 Impersonality
 Employee selection and promotion

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 Weber’s Forms of Authority
Traditional authority
Subordinate obedience based upon custom or tradition (e.g.,
kings, queens, chiefs).
Charismatic authority
Subordinates voluntarily comply with a leader because of his
or her special personal qualities or abilities (e.g., Martin
Luther King, Gandhi).
Rational-legal authority
Subordinate obedience based upon the position held by
superiors within the organization (e.g., police officers,
executives, supervisors).

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 Weber’s Three Types of Authority

Type Description

Subordinate obedience based upon custom or

Traditional tradition

Subordinate obedience based upon special

personal qualities associated with certain social
Charismatic reformers, political leaders, religious leaders, or
organizational leaders

Subordinate obedience based upon the position

Rational–Legal held by superiors within the organization

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 Bureaucratic Hierarchical Power Structure
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 Behavioral Perspective

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 vs.

Classical Perspective vs. Behavioral Perspective

Classical Behavioral
Perspective Perspective

Acknowledged the
Focused on rational importance of human
behavior behavior

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 Behavioral Perspective
Followed the classical perspective in the development of
management thought.
Acknowledged the importance of human behavior in
shaping management style
Is associated with:
 Mary Parker Follett
 Elton Mayo
 Douglas McGregor
 Chester Barnard

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 Mary Parker Follett
Concluded that a key to effective management was
coordination.
Felt that managers needed to coordinate and harmonize
group effort rather than force and coerce people.
Believed that management is a continuous, dynamic
process.
Felt that the best decisions would be made by people who
were closest to the situation.

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 Follett on
Effective Work Groups
Four principles of coordination to promote effective work
groups:
Coordination requires that people be in direct contact with
one another.
Coordination is essential during the initial stages of any
endeavor.
Coordination must address all factors and phases of any
endeavor.
Coordination is a continuous, ongoing process.

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 Elton Mayo
Conducted the famous Hawthorne Experiments.
“Hawthorne Effect”
 Productivity increased because attention was paid to the workers in
the experiment.
 Phenomenon whereby individual or group performance is
influenced by human behavior factors.

His work represents the transition from scientific

management to the early human relations movement.

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 Douglas McGregor
Proposed the Theory X and Theory Y styles of
management.
Theory X managers perceive that their subordinates have
an inherent dislike of work and will avoid it if at all
possible.
Theory Y managers perceive that their subordinates enjoy
work and that they will gain satisfaction from performing
their jobs.

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Comparison of Theory X and Theory Y Assumptions
Factor Theory X Assumptions
Employee attitude toward Employees dislike work and
work will avoid it if at all possible.
Employees must be directed,
Management view of coerced, controlled, or
direction threatened to get them to put
forth adequate effort.
Employees wish to avoid
Employee view of direction responsibility; they prefer to
be directed and told what to
do and how to do it.
Authoritarian style of
Management style
management
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Theory Y Assumptions
Employees enjoy work and
will actively seek it.
Employees are self-motivated
and self-directed toward
achieving organizational
goals.
Employees seek
responsibility; they wish to
use their creativity
imagination, and ingenuity in
performing their jobs
Participatory style of
management
 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.

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 Review Questions
1. What are the sub fields of Classical perspective?
2. Who is the father of Scientific Management
3. What are the main principles of Scientific
Management?
4. Briefly explain main focuses and basic elements of
Administrative and Bureaucratic Management
5. What is the main focus of Behavioral Perspective to
Management
6. Explain any 3 main behavioral management concepts

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 Thank you
Session 03 - Evolution of Management
Thoughts

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