School of Management

Thought
11 Timeline of Management Thought

2
 Introduction
Different writers have provided different categorization
schemes for studying management. In order to
facilitate easy understanding, we can identify three
broad approaches namely, the classical theory,
behavioral theory and modern theory.
 Classical Management Approach
• Also called universal or traditional approach.
• The objective of an organization may vary from
one another but the management of all
organizations requires the same management
approach.
• This approach has its roots in the concept of
division of labor and specialization.
Branches of Classical Theory

Scientific Management

Classical approach Administrative Management

Bureaucratic Management
 Classical Management Approach

• Scientific Management
– Frederick W. Taylor
– Frank and Lillian Gilbreth
– Henry Gantt
• Administrative Management
– Henri Fayol,
• Bureaucratic Management
– Max Weber
 Scientific Management-Frederick Taylor
(1856–1915)
•Developed by F.W. Taylor in view of many problems
faced by the workers, such as rampant inefficiency and
waste restricted output, ill-equipped and inadequately
trained workers and little cooperation between
management and workers.
•Gave practical approach combining empirical,
engineering and mechanistic emphasis that focused
primarily upon worker efficiency. He was mainly
concerned with task management or increasing
operational efficiency of the workers.
 Principles of Scientific Management

Taylor’s basic philosophy of scientific management is

expressed in terms of following principles:
1. Develop one best way of doing work.

2. Standardized the method.

3. Select the worker best suited to perform the task.

4. Train them in most efficient way for performing the

task.
 He intended to make management a science. (Father of
Scientific Management)

• Scientifically select, train, teach and develop worker.

Co-operate with men to ensure work in accordance with
management principles.

Divide responsibility between management and labour :

Management-plan, organize and control, worker does.
Two premises made:

– Enforced work discipline gives more output

– Management should not expect extraordinary work
with ordinary day’s wage-wage incentives were
Taylor’s idea.

Taylor’s work was followed by many- Henri

Gantt; Frank and Lillian Gilbreth-Work Study
concept; wage incentives and Gantt chart are
still useful concepts.
Opposition to Taylor’s Scientific Management:

Managers called it unwarranted interference in managerial

prerogatives-too mechanistic approach.

Worker’s resisted it-particularly organized labour attitude.

In his testimony in 1912 he said unions are not really
needed. Workers are treated like cogs in a machine.
 Administrative Theory of Management (1845–1925)

• Based on contributions of many scholar’s and practitioners

• Scientific Management principles of Taylor were at workers level
(shop floor level). In first half of the 20th century there developed
“Administrative Management Theory” (March and Simon) to give
broad guidelines applicable to higher organizational levels. Henri
Fayol a leading French industrialist in 1916 (translated in 1949)
developed comprehensive principles of management to provide
guidelines to managers and he did not intend to bring rigidity on
application or interpretation of such principles.
• Fayol believed that a manager’s job could be divided into five
functions, namely, planning organizing, command, coordination and
control and these functions have to be performed by every
manager.
 14 Principles of Management by Fayol:
1. Division of labour : Specialization of tasks.
2. Concept of authority and responsibility : Parity of
authority and responsibility. Authority is right to give
orders, make decisions and power to exert obedience.
3. Discipline : time and work discipline are essential
4. Unity of command : an employee receives orders from
one superior only.
5. Unity of direction : one head and one plan for a group
of activities having same objectives.
6. Subordination of individual interests to general
interests.
7. Fair remuneration : parity and fair to all parties.
8. Centralization : is essential and is a natural consequence
of organizing.
9. Scalar chain : Chain of superiors from ultimate authority to
the lowest rank.
10. Order : The organization should provide orderly place to an
employee. A place for everyone and everyone in his place.
11. Equity : equity and sense of justice to pervade the
organization.
12. Stability of tenure of personnel :High employee turnover is
inefficient. Management should provide orderly personnel
planning and ensure that replacements are available to fill
vacancies.
13. Initiative : at all levels. Zeal and energy are augmented by
it.
14. Espirit de corps : need for team work and maintaining
inter-personnel relations.
During 1920-30, many management consultants worked on
the pattern of Henri Fayol.
Bureaucracy- Max Weber (1864–1920)
Elements of Bureaucracy
Features of bureaucratic structure are:
 Hierarchy
 Division of work
 Rigidity in compliance with procedures and
framework of rules.
 Impersonal relationships
 Technical Competence
 Anticipated Benefit and Unanticipated Effects
of Bureaucratic Model of Management
Characteristic Anticipated Benefits Unanticipated
Effects
Rules and regulations Rigid rules
Impersonality Red tape
Lifelong Career Commitment Protection of authority
Efficiency
Division of Labour Slow decision – making
Hierarchical Structure Incompatibility with technology
Authority Structure Incompatibility with values
Rationality

HCL - HP DCM DOT PWD

Low bureaucratic Maruti MTNL High bureaucratic

Orientation orientation
 Criticism of Classical Theory

 Static view of organizations

 its tough, rigid structure.
 Closed system view
 Dehumanization of organization- employers ignored the
relational aspect in employees, in the process of trying
to predict and control human behaviour.
 Anti-democratic bias
 One of the main principles of the classical management
theory is to increase productivity and efficiency;
however, achieving these goals often came at the
expense of creativity and human relations.
Benefits of Classical Management Theory

 devised a methodology for how management should

operate. Management principles devised during this
period can be seen as a foundation for current
management behaviour today, such as serving as a
force of authority and responsibility.
 focus on division of labour. By dividing labour, tasks
could be completed more quickly and efficiently, thus
allowing productivity to increase.
 also gave rise to an autocratic leadership style, allowing
employees to take direction and command from their
managers.
 Behavioral Approach to Management
The human relations theory (also called neo-classical theory)
tried to compensate for the deficiencies in classical theory
(scientific management and administrative management)
modifying it with insights from behavioral sciences like
psychology, sociology and anthropology.
It is based on a strong conviction that efficient management
depends on the manager’s ability to understand work as well
as people who have different backgrounds, needs, values,
perceptions and personality.
Thus human factor remains central focus.
Behavioral Management

• Human Relations Movement

- Hawthorne Experiments- Elton Mayo
• Behavior science approach
– Employee Motivation- Abraham Maslow
– Leadership Approach – Mc Gregor
Human Relations Movement
• Attempt to make managers more sensitive to the needs of the
employees.
• Elton Mayo, Mary Parker Follet and Douglas McGregor have been
main contributors.
Main features:
• Human organization was considered as psycho-social system.
• Shift from economic man model to social man model.
• To secure maximum contribution, managers should get along with
them.
• A sense of belongingness should be created.
• This approach aims at providing a high degree of satisfaction and
motivation through improved working conditions.
 Hawthorne studies

– Behavioral theory gained popularity after the famous studies of human

behavior in work situations conducted at the Western Electric Company
from 1924 to 1933.
– These studies eventually became known as the ‘Hawthorne Studies’
because many of them were conducted at Western Electric’s Hawthorne
plant near Chicago. It was done to study the effect of “intensity of
illumination on worker efficiency – measured by output”.
– Where industrial engineers were studying factors such as fatigue, rest
pauses, physical work environment etc.
– The study failed to prove any simple relationship.
– They reversed the experiment and found that output went up.
– Reason was – Variables other than physical variables affects the output-
psycho-social factors-such as pattern of supervision; motivation; group
work etc.
The study indicated:
• Physiological factors are not the only thing.
• Social factors need also be looked into (multiple needs).
• Informal work groups have a great role to play in
motivation.

The study was controversial; had limited acceptance by

mangers but lead to recognition of human behaviour as an
important factor in evolving suitable management style.
 Criticisms of Human Relations Movement

• Productivity is Ignored
• Incomplete Package
• Missing Link between Humanization and Productivity
• Keeping Employee Happy is not enough
 Behavioral Sciences Approach
• This approach has an significant impact on modern
management theory because it helps in explaining why
employees behave as they do. This approach is based
on following assumptions:
• Socio-technical System
• Integration of Individual and Organizational goals
• Conflict and Cooperation
• Individual Difference
• People are the Key to Productivity
 A.H. Maslow : “Motivation and Personality”
(1954)

5 Hierarchy of Needs :
Physiological needs – nourishment, rest, oxygen.
Safety and security needs.
Social needs-sense of belongingness, acceptance by
group, association, affection, application.
Esteem or ego needs – self esteem and esteem from
others - confidence, status, recognition, appreciation.
Self actualization – fulfillment, self realization.
 NEED FOR
SELF
ACTUALIZATION

ESTEEM NEED

AFFILIATION OF
ACCEPTANCE NEEDS

SECURITY OR SAFTY NEEDS

PHYSICOLOGICAL NEEDS

MASLOW’S HIERARCHY OF NEEDS

 HERZBERG’S TWO-FACTOR THEORY:
“The Motivation to Work” – Fred. Herzberg, John-
Willey, 1959

• Identified two groups of factors in the context of

motivation.

Motivators Hygiene Factors

(Job satisfiers) (Job dis-satisfiers)
(presence will motivate) (absence will dissatisfy but
presence will not motivate)
DOUGLAS McGREGOR :

Theory X and Theory Y. Theory X is alike to Taylor’s philosophy and

theory Y is in tune with behavioural sciences. He opined to create
conditions for theory Y style of management.

CHRIS ARGYRIS: “Integrating the Individual and the Organiztion”

John-Wiley, 1964

RENSIS LIKERT : “New Patterns of Management”

McGraw Hill,
1961.
 Limitations
• The self-actualising view assumes that all employees will
seek self-actualisation at work.
• The behavioural scientists assume a great deal of
compatibility between individual and organisational goals.
• This approach discounted the non-human aspects of an
organisation such as task, technology and manufacturing.
• The behavioural approach fell into the same trap as earlier
approaches that searched for the one best way of
managing. It assumed that the one best way of managing
is humanising organisations.
• Finally, because human behaviour is so complex,
behavioural scientists often differ in their
recommendations for a particular problem, making it
difficult for managers to decide whose advice to follow’.
 Modern Approach of Management
Modern management thought is an integrative theory in
the sense that it combines the valuable concepts of
classical theory with the social and natural sciences.
● represents the latest development that took place after
1950.
● can be studied and analyzed in the following phases:

1. Quantitative Approach
2. System Approach
3. Contingency Approach
 Quantitative Approach

• known as management science approach.

• developed in 1950.
• Aims at achieving high degree of precision, perfection
and objectivity by encouraging the use of mathematical
and statistical tools to solve complex problems.
• These quantitative decision making tools are known as
‘operation research’ like LP, simulation, queuing theory,
game theory, etc.
• Involves the use of knowledge and skills of several other
disciplines like statistics, engineering, electronics,
accounting etc.
 Quantitative Approach

Limitations
not considered as a full fledge approach as application is limited
in respect of problem solving and decision making.
 Systems Approach

The Concept
The system approach to management is a management approach
based on general system theory--the theory that to understand fully
the operation of an entity, the entity must be viewed as a system. This
requires understanding the interdependence of its parts
It attempts to view the organization as a single unified, purposeful
entity, composed of interrelated parts. Rather than dealing separately
with the various parts of an organization, the systems theory gives
managers a way of looking at an organization as a whole and as a part
of the larger, external environment.
.
 GENERAL
ENVIRONMENT

SOCIAL OPERATING ECONOMIC

ENVIRONMENT
NEW ENTRANTS
SUPPLIER

PLANNING, ORGANIZING,
INFLUENCING, CONTROLLING
INPUT  PROCESS OUTPUT
SUBSTITUTES
POLITICAL COMPETITION
TECHNOLOGY

CUSTOMER

LEGAL
The Organization as an Open System

© 2008 Thomson/South-Western. All rights

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reserved.
Implications of the Systems Approach

• Managers must take into account interdependencies, interactions and

interrelationships among the various components of the system at the time
of taking decisions.
• Coordination of the organization’s parts is essential for proper functioning
of the entire organization.
• Decisions and actions taken in one area of the organization will have an
effect in other areas of the organization.
• Organizations are not self-contained and, therefore, must adapt to changes
in their external environment.
Criticism: Considered as a way of thinking rather than one providing solutions
to problems.

© 2008 Thomson/South-Western. All rights

2–37
reserved.
 Contingency (Situational) Approach

Contingency theory is based on the premise that situations

dictate managerial action; that is, different situations call for
different approaches.
According to contingency theory, effective management varies
with the organization and its environment. This approach is both
analytical and situational, with the purpose of developing a
practical answer to the question at hand.
•The contingency approach (ca 70’s) is a management
approach that
emphasizes that what managers do in practice depends on a
given set of circumstances--a situation.
 Important Elements of Contingency Theory
Contingency theory has the following features:
1. Managerial actions are contingent on certain actions
outside the system or sub-system as the case may be.
2. Organisational efforts should be based on the
behaviour of actions outside the system so that the
organisation gets smoothly integrated with the
environment.
3. Managerial actions and organisational design must be
appropriate to the given situation. A particular action is
valid only under certain conditions. There is no one best
approach to management. It varies from situation to
situation.
 Contingency Approach

Limitations:
• It is totally a practical approach without being
supported by the required theoretical and conceptual
framework.
• Managers experience difficulty in analyzing situations
and discovering appropriate management technique
in the absence of necessary research devices and
generalizations to understand the behavior of a
situation.