UNIVERSITY OF HONG KONG

Department of Electrical & Electronic Engineering

M.Sc.(Eng) in building services
MEBS6003 Project Management

Evolution of
Management
Theories
UNLESS OTHERWISE STATED, THIS POWERPOINT ADOPTED FROM

“MANAGEMENT THEORY & PRACTICE” BY G.A. COLE AND PHIL KELLY, 7TH ED. SOUTH WESTERN (2011)

AND FROM

“INTRODUCTION TO MANAGEMENT”, 13TH ED BY JOHN R. SCHERMERHORN, JR AND DANIEL G. BACHRACH)

K.F. Chan (Mr.) MEBS6003 1

What is management?

Talking, not doing?

Signing papers, not
doing?
Finger pointing?
Blame allocation?
Fault finding?
K.F. Chan (Mr.) 2

K.F. Chan (Mr.) 1

 UNIVERSITY OF HONG KONG
Department of Electrical & Electronic Engineering
M.Sc.(Eng) in building services
MEBS6003 Project Management

What is management?

Adopted from “Introduction to Management”, 13th Ed by John R.

SCHERMERHORN, Jr and Daniel G. BACHRACH)

K.F. Chan (Mr.) 3

What is management?
Management is an art as well as science.
⮚Unlike philosophy, physics, chemistry, literature,
which had been well established subjects in schools
and proper areas of research, management did not
come into a subject in schools and not an area of
formal research until the late 18th century.
⮚In this presentation, we will look into the “evolution”
of management science and different schools of
thoughts, and how to apply them in different
situations

K.F. Chan (Mr.) 4

K.F. Chan (Mr.) 2

 UNIVERSITY OF HONG KONG
Department of Electrical & Electronic Engineering
M.Sc.(Eng) in building services
MEBS6003 Project Management

Road map
 Scientific management theory
➢ Job Specialization and the Division of Labour
➢ F.W. Taylor and scientific management
➢ The Gilbreths
 Administrative management theory
➢ Weber’s theory of bureaucray
➢ Henri Fayol’s 14 principles of management
 Behavioural management theory
➢ The work of Mary Parker Follett
➢ Elton Mayo, the Hawthorne studies and Human
Relations
➢ McGregor’s Theory X and Theory Y
➢ Argyris’ Theory of Adult Personality
 Management science theory
 Organizational environment theory
➢ Open system view
➢ Contingency theory
➔ Mechanistic structures
➔ Organic structures

K.F. Chan (Mr.) MEBS6003 5

[Adopted from “Management Theory & Practice” by G.A. Cole and

Phil Kelly, 7th Ed. South Western (2011)]

K.F. Chan (Mr.) MEBS6003 6

K.F. Chan (Mr.) 3

 UNIVERSITY OF HONG KONG
Department of Electrical & Electronic Engineering
M.Sc.(Eng) in building services
MEBS6003 Project Management

Scientific Theories
❑FW Taylor (father of modern scientific
management and ergonomics)

❑Henry Ford
❑Gilbreths

K.F. Chan (Mr.) MEBS6003 7

FW Taylor
1) Study the ways workers work – there should be ONE
BEST METHOD
2) Codify the best method and teach all workers
3) Scientifically select workers, scientifically train them
4) Establish a fair performance level and pay system –
differential rate
⮚Espouse genuine cooperation between management and workers
based on self interest
⮚Management should take complete responsibility for design of
work
⮚Workers primary responsibility is to implement the work plan
⮚Principles of Taylor is still used today by companies like United
Parcel Service (UPS)

Photo source:
http://en.wikipedia.org/wiki/File:F._Taylor_1856-1915.jpg

K.F. Chan (Mr.) 8

K.F. Chan (Mr.) 4

 UNIVERSITY OF HONG KONG
Department of Electrical & Electronic Engineering
M.Sc.(Eng) in building services
MEBS6003 Project Management

Henry Ford
• Division of work
• Moving conveyor belt
• Obsession with control

Photo source:
http://en.wikipedia.org/wiki/File:Mr_and_Mrs_Henry_Ford_in_his_first_c
ar.jpg
http://en.wikipedia.org/wiki/File:Ford_assembly_line_-_1913.jpg

K.F. Chan (Mr.) MEBS6003 9

Gilbreths
• Break up actions into components
• Find better ways to perform each
component actions
• Reorganize each of the component
actions so as to perform tasks more
efficiently
• The Gilbreths were able to cut down the
number of motions used by bricklayers
and tripled their productivity.
✓Studied fatigue
Photo source:
http://en.wikipedia.org/wiki/File:DVD_cover_of_Cheaper_by_the_Dozen_(1950_film).jpg

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K.F. Chan (Mr.) 5

 UNIVERSITY OF HONG KONG
Department of Electrical & Electronic Engineering
M.Sc.(Eng) in building services
MEBS6003 Project Management

Critics
• Frequently, the management of work settings
became a game between workers and managers:
Managers tried to initiate work practices to
increase performance, and workers tried to hide the
true potential efficiency of the work setting in order
to protect their own well-being.

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Contribution of
Scientific Management
• Pours out finished products faster than could ever
be imagined
• Efficiency techniques applied to many tasks in non-
industrial organizations

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K.F. Chan (Mr.) 6

 UNIVERSITY OF HONG KONG
Department of Electrical & Electronic Engineering
M.Sc.(Eng) in building services
MEBS6003 Project Management

Limitations of
Scientific Management
• Workers feared that faster work would exhaust
jobs available
• Time is of essence – places undue pressure on
employees
• Emphasis on productivity, and profitability, exploits
both the workers and customers
• Unions thus formed, leading to suspicion and
mistrust.

K.F. Chan (Mr.) MEBS6003 13

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Administrative & Bureaucratic

Theory
Instead of looking at individual level, looks at the
bigger picture of an organization:
Henri Fayol’s 14 Principles of
Management
Max Weber’s Theory of Bureaucracy

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K.F. Chan (Mr.) 7

 UNIVERSITY OF HONG KONG
Department of Electrical & Electronic Engineering
M.Sc.(Eng) in building services
MEBS6003 Project Management

Fayol’s 5 management functions

• Planning
• Organizing
• Commanding
• Coordinating
• Controlling
(where is leading?)

K.F. Chan (Mr.) 15

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Fayol’s
14 principles of management
1) Division of work 8) Centralization
2) Authority 9) Scalar chain
3) Discipline 10) Order
4) Unity of command 11) Equity
5) Unity of direction 12) Stability of tenure of personnel
6) Subordination of individual 13) Initiative
interest to the general interest
14) Esprit de corps
7) Remuneration

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K.F. Chan (Mr.) 8

 UNIVERSITY OF HONG KONG
Department of Electrical & Electronic Engineering
M.Sc.(Eng) in building services
MEBS6003 Project Management

Critical evaluation
• First one to look into necessity of formal
education and training in management
instead of just technical abilities

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Critics
• Too formal
• Pro-management bias

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K.F. Chan (Mr.) 9

 UNIVERSITY OF HONG KONG
Department of Electrical & Electronic Engineering
M.Sc.(Eng) in building services
MEBS6003 Project Management

Weber’s Theory
of Bureaucracy
(Adopted from “Introduction to
Management”, 13th Ed by John
R. SCHERMERHORN, Jr and
Daniel G. BACHRACH)

1) Formal authority derives from position

2) People occupy positions because of their performance, not
because of their social standing or personal contacts
3) Formal authority, task responsibilities and relationship with
other positions should be clearly specified
4) Positions should be arranged hierarchically so that
employees know whom to report
5) Managers must create well defined SOP (standard operating
procedures)
K.F. Chan (Mr.) 19

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Weber’s Theory
of Bureaucracy

Key characteristics of bureaucracy:

A bureaucracy operates with a strict
hierarchy of authority, promotion
based on competency and
performance, formal rules and
procedures, and written
documentation.

K.F. Chan (Mr.) 20

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K.F. Chan (Mr.) 10

 UNIVERSITY OF HONG KONG
Department of Electrical & Electronic Engineering
M.Sc.(Eng) in building services
MEBS6003 Project Management

System of written rules and

standard operating Clearly specified
procedures that specify hierarchy of authority.
how employees should
behave.

A bureaucracy
should have a :

Clearly specified system Selection and evaluation

of task and role system that rewards
relationships. employees fairly and
equitably.

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Criticism
• Paperwork and rules at times too
clumsy
• Often leading to “Red Tapes”

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K.F. Chan (Mr.) 11

 UNIVERSITY OF HONG KONG
Department of Electrical & Electronic Engineering
M.Sc.(Eng) in building services
MEBS6003 Project Management

K.F. Chan (Mr.) MEBS6003 23

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Classical Management
Approaches
• In contrast with Behavioural Management
Approaches and Modern Management Foundations

(Adopted from “Introduction to Management”, 13th Ed by John R. SCHERMERHORN, Jr and Daniel G. BACHRACH)

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K.F. Chan (Mr.) 12

 UNIVERSITY OF HONG KONG
Department of Electrical & Electronic Engineering
M.Sc.(Eng) in building services
MEBS6003 Project Management

Behavioral theory
Study how managers should behave to motivate
employees and encourage them to perform at high
levels
• Mary Parker Follett
• Elton Mayo and the Hawthorne studies
• Maslow’s Hierarchy of Needs
• McGregor’s Theory X and Theory Y
• Argyris Theory of Adult Personality

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Foundations in the Behavioural

Management Approaches
In contrast with Classical Management Approaches and Modern Management
Foundations

(Adopted from “Introduction to Management”, 13th Ed by John R. SCHERMERHORN, Jr and Daniel G. BACHRACH)

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K.F. Chan (Mr.) 13

 UNIVERSITY OF HONG KONG
Department of Electrical & Electronic Engineering
M.Sc.(Eng) in building services
MEBS6003 Project Management

Mary Parker Follett

• While FW Taylor is hailed as the father of modern
scientific management, Follet is considered as the
Mother.
• Advocated that workers knew best about their jobs
• Power is FLUID – authority should go with
knowledge whether it is up the line or down –
horizontal view
• Making every employee an owner would create
feelings of collective responsibility.
• Managers as coaches and facilitators
• Cross functioning
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Elton Mayo, Hawthorne studies

and Human Relations Movement
• Hawthorne Works of Western Electric
• Workers’ attitudes
• Rate busters vs Chiselers
• Managers should be trained to elicit cooperative
behavior from their subordinates

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K.F. Chan (Mr.) 14

 UNIVERSITY OF HONG KONG
Department of Electrical & Electronic Engineering
M.Sc.(Eng) in building services
MEBS6003 Project Management

Elton Mayo, Hawthorne studies

and Human Relations Movement
• Individual workers should not be treated in
isolation but as a GROUP
• Money and working conditions are less
important than the NEED to belong to a
GROUP
• Informal GROUPs influences
• Managers should be aware of “social needs”

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Hawthorne Effect
• The tendency of workers singled out for special
attention to perform as good as – or even better
than – anticipated, because of expectations created
by the situation.

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K.F. Chan (Mr.) 15

 UNIVERSITY OF HONG KONG
Department of Electrical & Electronic Engineering
M.Sc.(Eng) in building services
MEBS6003 Project Management

Elton Mayo, Hawthorne studies

and Human Relations Movement
Mayo concluded that workers are best motivated by
• Better communication
• Greater manager involvement
• Working in groups or teams

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Elton Mayo, Hawthorne studies

and Human Relations Movement
• There is NO ONE BEST METHOD which Taylor
espoused.

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K.F. Chan (Mr.) 16

 UNIVERSITY OF HONG KONG
Department of Electrical & Electronic Engineering
M.Sc.(Eng) in building services
MEBS6003 Project Management

Maslow’s Hierarchy of Needs

[Ir. C.S. Ho will further discuss motivation theories]

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McGregor

[Ir. C.S. Ho will further discuss McGregor’s Theory X and Theory Y when it comes to motivation theories]

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K.F. Chan (Mr.) 17

 UNIVERSITY OF HONG KONG
Department of Electrical & Electronic Engineering
M.Sc.(Eng) in building services
MEBS6003 Project Management

Argyris’ Theory of Adult Personality

• Argyris contrasts management practices
found in traditional, bureaucratic
organizations with the needs and capabilities
of mature adults.
• If you treat people as grown-ups, that’s the
way they will behave.

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Organizational Environment
Theory
❑Studies the set of forces and conditions that
operate beyond an organization’s boundaries but
affect a manager’s ability to acquire and utilize
resources
❑One way of determining an organization’s success
is how effective its managers are at obtaining
scarce and valuable resources
➢Open system view
➢Contingency theory

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K.F. Chan (Mr.) 18

 UNIVERSITY OF HONG KONG
Department of Electrical & Electronic Engineering
M.Sc.(Eng) in building services
MEBS6003 Project Management

Open system view

• An open system

[Adopted from “Management Theory & Practice” by G.A. Cole and Phil Kelly, 7th Ed. South Western (2011)]

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Open system view

• Organization as an open system

[Adopted from “Management Theory & Practice” by G.A. Cole and Phil Kelly, 7th Ed. South Western (2011)]

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K.F. Chan (Mr.) 19

 UNIVERSITY OF HONG KONG
Department of Electrical & Electronic Engineering
M.Sc.(Eng) in building services
MEBS6003 Project Management

Open system view

• Basic cycle of an organization system

[Adopted from “Management Theory & Practice” by G.A. Cole and Phil Kelly, 7th Ed. South Western (2011)]

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Open system view

• Competition between organizations for resources
is one of the major challenges to managing the
organizational environment

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K.F. Chan (Mr.) 20

 UNIVERSITY OF HONG KONG
Department of Electrical & Electronic Engineering
M.Sc.(Eng) in building services
MEBS6003 Project Management

Open system view

• Production manager vs marketing manager vs Open
System View trained manager who make decisions
after they identified the impact of their decisions
on other departments and on the ENTIRE
organization
• SYNERGY
• Communication

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Contingency theory
• No ONE BEST METHOD
• What is best for this particular
situation? “Contingent” on the
situation!
• Takes an “if-then” approach
❑Mechanistic vs Organic structures

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K.F. Chan (Mr.) 21

 UNIVERSITY OF HONG KONG
Department of Electrical & Electronic Engineering
M.Sc.(Eng) in building services
MEBS6003 Project Management

General model of contingency theory

[Adopted from “Management Theory & Practice” by G.A. Cole and Phil Kelly, 7th
Ed. South Western (2011)]
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Contingency theory
Mechanistic
structure

Characteristics Determine the design of

of an organization’s
structure and control
the Environment systems

Organic
structure

There is no one best way

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K.F. Chan (Mr.) 22

 UNIVERSITY OF HONG KONG
Department of Electrical & Electronic Engineering
M.Sc.(Eng) in building services
MEBS6003 Project Management

Contingency theory
• Mechanistic structure – rests on Theory X, more
suitable when environment is STABLE, and is more
efficient. Typically used by organizations like
McDonald.
• Organic structure – rests on Theory Y assumptions,
more suitable when environment is UNSTABLE and
when there is a need to react quickly to a changing
environment, more expensive to operate

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• [Adopted from “Management Theory & Practice”

by G.A. Cole and Phil Kelly, 7th Ed. South Western
(2011)]
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K.F. Chan (Mr.) 23

 UNIVERSITY OF HONG KONG
Department of Electrical & Electronic Engineering
M.Sc.(Eng) in building services
MEBS6003 Project Management

Applying management principles

• Analyze current division of labor, any need to change
level of job specialization?
• Examine administration wrt Weber and Fayol’s
principles. Does it meet organization’s needs? Is the
discipline and remuneration system right?
• Are managers behaving in an equitable manner?
• Analyze structure and control system to see if it is
applicable to the environment, competition,
technology and economic situation.
• Analyze how departments behave and examine if
synergy is achieved among different departments.

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Evolution of management theories

• [Adopted from “Management Theory & Practice” by

G.A. Cole and Phil Kelly, 7th Ed. South Western (2011)]
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K.F. Chan (Mr.) 24