HISTORY OF MANAGEMENT

The first study of management took place in early twentieth century in what is called
classical approach.

Classical Approach

The approach emphasized rationality and making organizations and workers as

efficient as possible.

Two major theories comprise the classical approach:

(a) Scientific management

The two most important contributors to scientific management theory were
Frederick W. Taylor and the husband-wife team of Frank and Lillian Gilbreth.
In 1911 Taylor who was a mechanical engineer published a book Principles of
Scientific Management.
In the book he emphasized on the use of scientific methods to define the “one
best way” for a job to be done. This was the case because Taylor observed
inefficiencies as employees performed different techniques for the same job.

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 work 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. Management does all work for which it is better suited than the
workers.

Frank and Lillian Gilbreth.

Frank Gilbreth studiedscientific management after hearing Taylor speak at a

professional meeting.
Frank and his wife Lillian, a psychologist, studied work to eliminate inefficient
hand-and body motions. The Gilbreths also experimented with the design and
use of the proper tools and equipment for optimizing work performance.
Frank is probably best known for his bricklaying experiments. By carefully
analyzing the bricklayer’s job, he reduced the number of motions in laying
exterior brick from 18 to about 5, and in laying interior brick from 18 to 2. Using
 Gilbreth’s techniques, a bricklayer was more productive and less fatigued at the
end of the day.
The Gilbreths invented a device called a microchronometer that recorded a
worker’s hand-and-body motions and the amount of time spent doing each
motion.
Wasted motions missed by the naked eye could be identified and eliminated. The
Gilbreths also devised a classification scheme to label 17 basic hand motions
(such as search, grasp, hold), which they called therbligs (Gilbreth spelled
backward with the th transposed). This scheme gave the Gilbreths a more precise
way of analyzing a worker’s exact hand movements.

(b) General administrative theory

The two most important contributors to general administrative theory were
Henri Fayol and Max Weber.
General administrative theory focused more on what managers do and what
constituted good management practice.

Fayol’s 14 Principles of Management

1. Division of Work. Specialization increases output by making employees more
efficient.
2. Authority. Managers must be able to give orders, and authority gives them
this right.
3. Discipline. Employees must obey and respect the rules that govern the
organization.
4. Unity of command. Every employee should receive orders from only one
superior.
5. Unity of direction. The organization should have a single plan of action to
guide managers and workers.
6. Subordination of individual interests to the general interest. The interests of
any one employee or group of employees should not take precedence over the
interests of the organization as a whole.
7. Remuneration. Workers must be paid a fair wage for their services.
8. Centralization. This term refers to the degree to which subordinates are
involved in decision making.
9. Scalar chain. The line of authority from top management to the lowest ranks is
the scalar chain.
10. Order. People and materials should be in the right place at the right time.
11. Equity. Managers should be kind and fair to their subordinates.
12. Stability of tenure of personnel. Management should provide orderly
personnel planning
 and ensure that replacements are available to fill vacancies.
13. Initiative. Employees who are allowed to originate and carry out plans will
exert high levels of effort.
14. Esprit de corps. Promoting team spirit will build harmony and unity within
the organization.

MAX WEBER
In early 1900s, Weber developed a theory of authority structures and relations
based on an ideal type of organization he called a bureaucracy—a form of
organization characterized by division of labor, a clearly defined hierarchy,
detailed rules and regulations, and impersonal relationships.

Characteristics of Weber's Bureaucracy

a. Division of labour
b. Impersonality
c. Formal selection
d. Authority hierarchy
e. Formal rules and regulations
f. Career orientation

Behavioral Approach
The field of study that researches the actions (behavior) of people at work is
called organizational behavior (OB).

Hawthorne Studies
The most important contribution to the OB field came out of the Hawthorne
Studies.
A series of studies conducted at the Western Electric Company Works in Cicero,
Illinois. These studies wanted to examine the effect of various lighting levels on
worker productivity. Control and experimental groups
were set up with the experimental group being exposed to various lighting
intensities, and the control group working under a constant intensity.
The researchers thought that individual output in the experimental group would
be directly related to the intensity of the light. However, they found that as the
level of light was increased in the experimental group, output for both groups
increased. Then, much to the surprise of the engineers, as the light level was
decreased in the experimental group, productivity continued to increase in both
groups. In fact, a productivity decrease was observed in the experimental group
only when the level of light was reduced to that of a moonlit night. What would
explain these unexpected results?
The engineers weren’t sure, but concluded that lighting intensity was not directly
related to group productivity, and that something else must have contributed to
the results. They weren’t able to pinpoint what that “something else” was.
In 1927, the Western Electric engineers asked Harvard professor Elton Mayo and
his associates to join the study as consultants.
The researchers concluded that social norms or group standards were the key
determinants of individual work behavior.
Mayo concluded that people’s behavior and attitudes are closely related, that
group factors significantly affect individual behavior, that group standards
establish individual worker output, and that money is less a factor in
determining output than are group standards, group attitudes, and security.

QUANTITATIVE APPROACH
Quantitative approach, which is the use of quantitative techniques to improve
decision making. This approach also is known as management science.
Quantitative approach involves applying statistics, optimization models,
information models, computer simulations, and other quantitative techniques to
management activities. Linear programming, for instance, is a technique that
managers use to improve resource allocation decisions. Work scheduling can be
more efficient as a result of critical-path scheduling analysis. The economic order
quantity model helps managers determine optimum inventory levels.

What is involved in Quantitative Approach?

1. Intense focus on the customer. The customer includes outsiders who buy the
organization’s products or services and internal customers who interact with and
serve others in the organization.
2. Concern for continual improvement. Quality management is a commitment
to never being satisfied. “Very good” is not good enough. Quality can always be
improved.
3. Process focused. Quality management focuses on work processes as the
quality of goods and services is continually improved.
4. Improvement in the quality of everything the organization does. This relates
to the final product, how the organization handles deliveries, how rapidly it
responds to complaints, how politely the phones are answered, and the like.
5. Accurate measurement. Quality management uses statistical techniques to
measure every critical variable in the organization’s operations. These are
compared against standards to identify problems, trace them to their roots, and
eliminate their causes.
6. Empowerment of employees. Quality management involves the people on the
line in the improvement process. Teams are widely used in quality management
programs as empowerment vehicles for finding and solving problems.

CONTEMPORARY APPROACHES
It has two approaches: system and contingency.
A system is a set of interrelated and interdependent parts arranged in a manner
that produces a unified whole. The two basic types of systems are closed and
open. Closed systems are not influenced by and do not interact with their
[Link] contrast, open systems are influenced by and do interact with
their environment. Modern organizations are open systems that interact with the
environment in transforming inputs into outputs.

CONTRIBUTION OF SYSTEMS APPROACH

a. Need for coordination of various parts of the organization finance, marketing,
production etc.
b. Decisions in one area of business affect other areas.
c. Organizations are not self-contained, they rely on the environment.

Contingency Approach(Situational Approach)

Different and changing situations require managers to use different approaches
and techniques.

Popular Contingency Variables

Organization Size. As size increases, so do the problems of coordination. For
instance, the type of organization structure appropriate for an organization of
50,000 employees is likely to be inefficient for an organization of 50 employees.
Routineness of Task Technology. To achieve its purpose, an organization uses
technology. Routine technologies require organizational structures, leadership
styles, and control systems that differ from those required by customized or
nonroutine technologies.
Environmental Uncertainty. The degree of uncertainty caused by environmental
changes influences the management process. 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. These and other individual
differences are particularly important when managers select motivation
techniques, leadership styles, and job designs.