CHAPTER-2

History and Evolution Of Management Thought

Objectives of The Chapter

To Understand Early Approaches to management Classical Approach Behavioral Approach Quantitative Approach Modern Approaches to management Emerging approaches in management thought.

Introduction
Both theory and history are indispensable tools for managing contemporary organizations. A theory is a conceptual framework for organizing knowledge that provides a blueprint for various courses of action.

Early Approaches to Management

Name Robert Owen Charles Babbage Andrew Ure Charles Dupin Henry R.Towne Period 1771-1858 1792-1871 1778-1857 1784-1873 1844-1924 Contribution Proposed legislative reforms to improve working conditions of labor Advocated the concept or division of labor Advocated the study of management Emphasized the need to consider management as separated field of study and the importance of business skills for running a business.

MAJOR CLASSIFICATION OF MANAGEMENT APPROACHES

CLASSICAL APPROACH BEHAVIORAL APPROACH SCIENTIFIC MANAGEMENT HAWTHORNE STUDIES BUREAUCRATIC ADMINISTRATI MANAGEMENT VE MANAGEMENT MASLOWS NEED HIERARCHY OPERATIONS MANAGEMENT CONTINGENCY THEORY THEORY X AND THEORY Y MANAGEMENT INFORMATION SYSTEM EMERGING APPROACHES

QUANTITATIVE MANAGEMENT APPROACH SCIENCE MODERN APPROACH THE SYSTEMS THEORY

Classical Approach
Forms the foundation for the field of management The schools for management thoughts are:
Scientific Management Administrative Theory Bureaucratic Management

CLASSICAL APPROACH
1. 2. SCIENTIFIC MANAGEMENT-F.W. TAYLOR Piece rate incentive system Time and motion study Gantt scheduling chart-Henry Laurence Gantt ADMINISTRATIVE THEORY- HENRY FAYOL Technical Commercial Financial Security Accounting managerial

CLASSICAL APPROACH
3. BUREAUCRATIC MANAGEMENT- MAX WEBER Work specialization and division of labor Abstract rules and regulations Impersonality of managers Hierarchy of organization structure

Scientific Management
Early 1900s It is defined as that kind of management which conducts a business or affairs by standards established, by facts or truths gained through systematic observation, experiment, or reasoning. Major contributors:
Frederick Winslow Taylor Frank and Lillian Gillbreth Henry L.Gantt

Frederick Winslow Taylor

Father of scientific management(1878) Two major managerial practices: Piece-rate incentive system Time-and-motion study

Frank and Lillian Gillbreth

1868-1924 Motion study involves finding out the best sequence and minimum number of motions needed to complete a task. Explore new ways for eliminating unnecessary motions and reducing work fatigue.

HENRY L.GANTT(1861-1919)
Well known for Task and - bonus system -The Gantt chart If the worker completed the work fast, i.e., in less than the standard time, he received a bonus. It is a Simple chart that compares actual and planned performances.

Limitations of Scientific Management

Do not focus on the management of an organization from a managers point of view. people were rational and were motivated primarily by the desire for material gain. It also ignored the human desire for job satisfaction.

Administrative Theory:
It focused on principles that could be used by managers to coordinate the internal activities of organizations. Henri Fayol (1841-1925)

Henri Fayol (1841-1925)

Fourteen principles: Division of work Authority and responsibility Discipline Unity of command Unity of direction Subordination of the individual interest to the general interest Remuneration Centralization: Scalar chain Order Equity Stability Initiative Espirit de corps (team spirit)

Bureaucratic Management
Weber (1864-1920) Characteristics of Webers ideal Bureaucracy: Work specification and division of labor Abstract rules and regulations: Impersonality of managers: Hierarchy of organization structure:

Limitations of Bureaucratic Management and Administrative Theory

Not universally applicable to todays complex organizations. Fayols principles like that of specialization were frequently in conflict with the principle of unity of command. Principle characteristic of bureaucracy changes in the global environment. Classical theorists ignored the problems of leadership, motivation, power or information relations.

Behavioral Approach
The behavioral approach to

management emphasized individual attitudes and behaviors and group processes, and recognized the significance of behavioral process in the workplace.

HAWTHORNE STUDIES
Illumination studies Relay assembly room study Bank wiring room study

Contributions of Behavioral Thinkers to Management Thought

Name Mary Parker Follet Elton Mayo Abraham Maslow Douglas McGregor Period Contribution 18681933 18681933 Advocated the concept of power sharing and integration foundation for the Human Relations Movement;

1908 motivated by a hierarchy of needs 1970 19061964 Theory X and Theory Y personalities Classified organizations based on the employees set of values

Chris Argyris -

Mary Parker Follet (1868-1933)

Power, according to Follet, was the ability to influence and bring about a change. Concept of integration, which involves finding a solution acceptable to all group members

Elton Mayo (1868-1933)

Pre-judgment Job performance depends on the individual worker Fatigue is the main factor affecting output. Findings The group is the key factors in job performance Perceived meaning and importance of the work determining output.

Management sets Workplace culture sets its production standards own production standards.

Abraham Maslow
His theory rested on these assumptions.
Physiological needs; Safety or security needs Belongingness or social needs; Esteem or status needs Self actualization or self-fulfillment needs.

Maslows Need Hierarchy

Self actualization needs Esteem needs Social needs Safety needs Physiological needs

Douglas Mcgregor
Theory X Most People dislike work Theory Y Work is a natural activity like play.

Most People must be People are capable of self coerced and threatened direction and self control before they work. Most people prefer to be directed. They avoid responsibility and have little ambition. People become committed to organizational objectives if they are rewarded in doing so.

Chris Argyris
Maturity immaturity theory People progress from a stage of immaturity and dependence to a state of maturity and independence. Model I and Model II organization analysis.

1. Model I organization are manipulative 2. Model II organization are open to learning

Quantitative Approach
It includes the application of statistics, optimization models, information models and computer simulations. More specifically, this approach focuses on achieving organizational effectiveness. Three main branches:
Management Science Operations Management and Management Information Systems.

Management Science
It stresses the use of mathematical models and statistical methods for decision-making. Another name is the Operations Research.

Operations Management
It deals with of the the effective production

management

process and the timely delivery of an organizations products and

services.

Management Information Systems

Management information systems focuses on designing and implementing organizations. computer-based

information systems for business

Modern Approaches to Management

Systems Theory Contingency Theory

Systems Theory
Inputs Resources

Transformation process Managerial and Technological Abilities Planning Organizing Staffing Leading Controlling Technology

Outputs Goods Services Profits and losses Employee satisfaction

Labor Materials Capital Machinery Information

Feedback

Contingency Theory
Systems Viewpoint How the parts fits together Individual Group Traditional Organization viewpoint environment What managers do Behavioral Viewpoint Plan How managers influence Organize others Lead Interpersonal Roles Control Informational Roles Decisional Roles Contingency Viewpoint Managers use of other view points to solve problems External environment Technology Individuals

Emerging Approaches In Management Thought

William Ouchi, outlined new theory called Theory Z. It is the blend of positive aspects of both American and Japanese management styles. Quality Management is a management approach that directs the efforts of management towards bringing about continuous improvement in product and service quality to achieve higher levels of customer satisfaction and build customer loyalty.

Now you are familiar with

Different classification of management approaches A few theorists and theories Early Approaches to Management Classical Approach Behavioral Approach Quantitative Approach Modern Approaches to management Emerging approaches in management thought.

Thank you!!!