The Evolution of Management

Theory: Development of Major

Management Theories
The Evolution of
Management Theory
The Evolution of
Management Theory
 Scientific Management
Dates Contributors Management Contributions
1856- Frederic W. 1. Four Basic principle:
1915 Taylor  The development of science of management methods
 The scientific selection of workers
 The scientific education and development of the workers
 Friendly cooperation between management and workers
2. Differential rate system
1861- Henry L. Gant 1. Principles:
1919  Cooperation between management and workers
 The scientific selection of workers
 Incentive rate system
 Detailed working instruction
2. Gant Chart
1868- Frank B. Gilberts Time and motion study
1924
1878- Lillian M. Gilberts  Focused on human being aspects
1972  Using Psychology approach for selection, placement and
training
 Main contribution: Assembly line, Efficiency techniques and methods, Working design,
Increasing productivity
 Limitations: Neglected worker as social human being, Worker Exploitation, Increasing
productivity was not followed by improving income
 Classical Organization Theory
Dates Contributors Management Contributions
1841-1925 Henry Fayol 1. Functional management: planning, organizing, directing, coordinating
and controlling
2. Firm’s operations:
 Techniques: production and manufacturing
 Commercial: material purchasing and product selling
 Financial: income and using capital
 Safety: labor and asset protection
 Accountancy: recording and reporting
 Managerial
Fayol’s 14 principles of management

James D Mooney Management Principles: Coordination, Authority, functional and staff

1868-1933 Marry Parker 1. Human Relation and Organizational

Follett 2. Using social science into management
3. The art of getting things done through people

1886-1961 Barnard 1. Organization as a system to achieve its goals

2. Area of acceptance
 Classical Organization Theory
Dates Contributors Management Contributions
1863- Hugo 1. Using Psychology approach for increasing
1916 Munsterberg productivity through:
Best possible persons
Best possible works
Best possible effect
2. Using Psychology techniques to motivate for
workers
1880- Elton Mayo 1. Effect
1849 2. The role informal group to increase productivity
3. Social human concept to motivate worker
 Main contribution: as complementary of scientific management in
increase productivity
 Limitations: Concept of social human did not representative completely
for individual workers
 F.W. Taylor: Scientific
Management
Scientific Management
◦ The systematic study of the relationships
between people and tasks for the purpose
of redesigning the work process to
increase efficiency.
 Problems with
Scientific
Management
Managers frequently implemented only the
increased output side of Taylor’s plan.
◦ Workers did not share in the increased output.
Specialized jobs became very boring, dull.
◦ Workers ended up distrusting the Scientific
Management method.
 Administrative
Management Theory
Administrative
Management
◦ The study of how to
create an
organizational
structure that leads
to high efficiency
and effectiveness.
Weber’s Principles of
Bureaucracy
 Fayol’s Principles of
Management
1. Division of work. 7. Remuneration.
2. Authority. 8. Centralization.
3. Discipline. 9. Scalar chain.
4. Unity of command. 10. Order.
5. Unity of direction. 11. Equity.
6. Subordination of 12. Stability of tenure of
individual interests personnel.
to the general
interest. 13. Initiative.
14. Esprit de corps.
Behavioral Management
Theory
The study of how managers should
personally behave to motivate
employees and encourage them to
perform at high levels and be
committed to the achievement of
organizational goals.
 Behavioral Management
Theory

Mary Parker Follett

Concerned that Taylor ignored the human side
of the organization
◦ Suggested workers help in analyzing their jobs
◦ If workers have relevant knowledge of the task, then they
should control the task
 The Hawthorne
Studies
Studies of how characteristics of the
work setting affected worker fatigue
and performance at the Hawthorne
Works of the Western Electric Company
from 1924-1932.
Worker productivity was measured at
various levels of light illumination.
 The Hawthorne Studies
Human Relations Implications
Hawthorne effect — workers’ attitudes toward
their managers affect the level of workers’
performance
 The Hawthorne
Studies
Human relations movement
advocates that supervisors be behaviorally
trained to manage subordinates in ways
that elicit their cooperation and increase
their productivity
 Implications of the
Hawthorne Studies
Behavior of managers and workers in the
work setting is as important in explaining the
level of performance as the technical aspects
of the task
Demonstrated the importance of
understanding how the feelings, thoughts,
and behavior of work-group members and
managers affect performance
Theory X vs. Theory
Y
 Management Science
Theory
Management Science Theory
Contemporary approach to
management that focuses on the
use of rigorous quantitative
techniques to help managers make
maximum use of organizational
resources to produce goods and
services.
 Management Science
Theory
Quantitative management
 utilizes mathematical techniques, like linear
programming, modeling, simulation and chaos theory
Operations management
 provides managers a set of techniques they can use to
analyze any aspect of an organization’s production
system to increase efficiency
Management Science
Theory
Total quality management
focuses on analyzing an organization’s input,
conversion, and output activities to increase
product quality
Management information systems
help managers design systems that provide
information that is vital for effective decision
making
 Organizational
Environment Theory
Organizational Environment
 The set of forces and conditions that operate
beyond an organization’s boundaries but affect a
manager’s ability to acquire and utilize resources
Open System
 A system that takes resources for its external
environment and transforms them into goods
and services that are then sent back to that
environment where they are bought by
customers.
 The Open-Systems
View
Open System
A system that takes resources for its
external environment and transforms them
into goods and services that are then sent
back to that environment where they are
bought by customers.
The Organization as an
Open System
 The Open-Systems
View
Input stage
 organization acquires resources such as raw materials,
money, and skilled workers to produce goods and
services
Conversion stage
 inputs are transformed into outputs of finished goods
Output stage
 finished goods are released to the external
environment
 Closed System
Closed system
A self-contained system that is not
affected by changes in its external
environment.
Likely to experience entropy and lose its
ability to control itself
 Contingency
Theory
The idea that the organizational structures
and control systems manager choose are
contingent on characteristics of the external
environment in which the organization
operates.
“There is no one best way to organize”
Contingency Theory