Development of

Management Thought and

Approach
 Theories of Management

• Bureaucracy by Weber
• Scientific Management by Taylor
Classical Theories (1880 • Administrative Theory by Fayol
– 1930s)

• Human Relations Theory by Mayo & Roethlisberger

Neo classical theories
• Behavioral Science Theory by Maslow & Mc Gregor
(1920s-1960s)

• System Approach by Katz & Kahn

• Socio Technical Approach
Modern Management
• Quantitative Approach ( Operations Research)
Theories ( From 1950s) • Contingency Approach
 Classical Theories

• Father of Scientific
• Features
Management Functional
Foremanship
• His book
Taylor’ “Principles of Separation of
planning and Job analysis
Scientific doing.
Scientific Management.”
fea
Management • Time and Motion tu
re
s
Approach Study. Financial
standardization
incentive

Scientific
selection and
training of
workers
Principles of Scientific Management

Replacing Rule of Thumb

with Science

Harmony in Group Action

Development of Workers

Cooperation, Not
Individualism
Techniques of Scientific Management

Functional Foremanship

Production Maintenance Gang Boss

Speed boss Inspector
department Foreman

• Time & Cost • Disciplinarian

• Planning • Route Clerk • Instruction Clerk
Department Card Clerk
 Scientific
Time Study
Selection & Mental
Motion Study Differential Piece Standardization Work Study Method Study Fatigue Study
Training of Revolution
Wage System
Workers
Administrative Theory of Fayol

• Father of Modern Management

• Fayol found that activities of an industrial organization could be
divided into 6 groups.

Technical Commercial Managerial

Financial Security Accounting

 Fayol has divided his
approach of studying Elements of
Managerial qualities and General Principles of Management
management into 3 parts Management
training.
 Managerial
Qualities
Physical
Experience
Ability Elements of
Management
Technical Mental
Ability Ability Controlling Planning

Educational Moral
Ability Ability
Coordination Organizing

Commanding
General Principles of Management

Division of Work Centralization

Authority Scaler Chain

Discipline Order

Unity of Command Equity

Unity of Direction Stability of Tenure of Personnel

Subordination Initiative

Remuneration Espirit de Corps

Herbert A. Simon:

He analyzed the problems

of management from the
socio-psychological view
point. He perceived the modern manager as being limited
in his knowledge of a problems and the number of
alternative available to him is also limited. Thus, the
manager is an administrative man, not an economic
He is best known for his man, who makes decision amid bounded rationality
work in the field of and selects not the maximizing alternative.
decision making and
administrative behaviour.
Neoclassical Theory ( Human Relations Movement)

Elton Mayo
and Mary
The Work Participative
Parker Follet Principles: The Individual
Group Management
are the main
contributors. Hawthorne Experiments
Conclusions drawn from Hawthorne Experiments:

Social unit

Group Influence

Motivation

Supervision

Participative Working Conditions

Employee Morale

Communication

Balanced Approach
Behavioural Science Movement

The contributors
Employee
Motivation of Communication included
Refinement of Leadership Study development –
employees for Organization as a for better Abraham
human relations of Managerial upgrading of
improving social system understanding of Maslow, Douglas
movement. behaviour employee and
productivity organization Mc Gregor,
managerial skills.
Chester Barnard.
Assumptions of Theory X Assumptions of Theory Y

Average human beings have an inherent dislike of The expenditure of physical and mental effort in work
work and will avoid it if they can. is as natural as play or rest
People must be coerced, controlled, directed, and Individuals will exercise self-direction and self-control
threatened with punishment to get them to work in the service of objectives to which they are
committed.
People prefer to be directed, wish to avoid People learn, under proper conditions, not only to
responsibility, have relatively little ambition, and, accept but also to seek responsibility.
above all, want security.
People are self-centered and do not like change Imagination, ingenuity, and creativity are widely
distributed among workers.
Peter Drucker

Peter Drucker (1919–2005), who in the 1950s introduced management by

objectives, an approach that advocates substituting a more participative
approach for that of authoritarianism, was another proponent of this school.
Management Science Approach to
Management

Management problems Operations research,

Management is regarded
can be described in This approach covers mathematical tools,
as the problem-solving
terms of mathematical decision making, system simulation, model etc,
mechanism with the help
symbols and data. Thus analysis and some aspect are the basic
of mathematical tools
every managerial activity of human behaviour. methodologies to solve
and techniques.
can be quantified. managerial problems.
Contingency or Situational Approach to
Management
• Pigors and Myers propagated this approach in 1950.
• Other contributors include Joan Woodward, Tom Burns, G.W.Stalker, Paul
Lawrence, Jay Lorsch and James Thompson.
• Management is entirely situational. The application and effectiveness of
any techniques is contingent on the situation.
• Management action is contingent on certain action outside the system or
subsystem as the case may be.
• Management should, therefore, match or fit its approach to the
requirements of the particular situation. To be effective management
policies and practices must respond to environmental changes.
A General Framework for Contingent Management

Examine the Make the right choice

Analyze and applicability or validity of
by matching the
understand the different principles and
techniques to the
Implement the choice
situation techniques to the
situation at hand. situations.