SCHOOL OF MANAGEMENT THOUGHTS
INTRODUCTION
The evolution of management thought is a dynamic journey that reflects the changing
landscape of organizations, the growth of industries, and the ever-evolving complexities of
the global business environment. Throughout history, various schools of management
thought have emerged, each with its unique principles, perspectives, and approaches to
addressing the challenges of managing people, resources, and processes within
organizations. These schools of thought have shaped the way we understand and practice
management, and they continue to influence modern management practices.
The study of management thought provides valuable insights into the historical development
of management theories and philosophies. It sheds light on how early management thinkers
sought to improve efficiency, productivity, and organizational structure, and how subsequent
schools of thought introduced new perspectives, emphasizing the importance of human
relations, innovation, and adaptability. In this exploration of management thought, we will
delve into the major schools that have contributed to the rich tapestry of management
theory, from the Classical and Behavioral Schools to the more contemporary and specialized
approaches that have emerged in response to the ever-changing business landscape.
Understanding the evolution of management thought not only offers a historical perspective
but also provides a foundation for contemporary management practices. It allows us to
appreciate the diversity of thought and the ongoing quest to discover the most effective
ways to manage organizations, motivate employees, make decisions, and navigate the
complexities of the modern business world. This exploration will offer a glimpse into the key
principles, thinkers, and concepts associated with each school of management thought,
shedding light on how their ideas continue to influence the way we manage and lead in the
present day.
EARLY MANAGEMENT THOUGHTS
Early management thought has its roots in the foundations of organization and leadership
practices that date back to ancient civilizations. While management as a distinct discipline
did not fully emerge until the 19th century, basic principles of organizing and leading groups
of people were applied in various contexts. These early ideas set the stage for the
development of modern management thought.
One of the earliest contributors to management thought was Adam Smith, an 18th-century
economist who laid the groundwork for the concept of specialization and division of labor in
his seminal work "The Wealth of Nations." Smith's ideas emphasized the efficiency gained by
having individuals focus on specific tasks, leading to increased productivity and economic
growth. His work had a profound impact on the organization of work, particularly in
manufacturing and industrial settings.
Charles Babbage, a 19th-century mathematician and inventor, made significant contributions
to management thought through his studies on the principles of organization and division of
labor. Babbage's work, particularly his "Economy of Machinery and Manufactures,"
emphasized the benefits of breaking down complex tasks into smaller, manageable parts.
His ideas influenced the development of manufacturing processes and laid the groundwork
for the scientific management principles that would be later developed by Frederick Taylor.
These early management thinkers set the stage for the systematic and scientific approaches
that would come to define modern management thought.
Problems in the early management thoughts:
1. Lack of Employee Consideration:
2. Overemphasis on Hierarchy and Bureaucracy:
3. Limited Focus on Leadership and Soft Skills:
4. One-Size-Fits-All Approach:
5. Mechanistic Approach:
6. Taylorism and Worker Exploitation:
7. Resistance to Change:
8. Inadequate Consideration of Cultural and Global Differences:
9. Overemphasis on Formal Structures:
10. Neglect of Environmental and Ethical Concerns:
11. Lack of Gender and Diversity Consideration:
EVOLUTION OF MANAGEMENT THOUGHT
The evolution of management thought is a process that started in the early days of man. It
began since the period man saw the need to live in groups. Mighty men were able to
organize the masses, share them into various groups. The sharing was done accord to the
masses' strength, mental capacities, and intelligence.
The evolution of management thought is a critical process of assessing and analyzing the
various theories and approaches that have emerged in the field of management over time.
This evaluation involves examining the strengths, weaknesses, and relevance of different
management concepts and ideologies.
Since managers also supervise, management can be interpreted to mean literally “looking
over” – i.e., making sure people do what they are supposed to do. ... Managers are,
therefore, expected to ensure greater productivity or, using the current jargon, 'continuous
improvement'.
➢ The concept of organisation and administration existed in Egypt in 1300 BC.
➢ In the field of business organisation, some contributions have come from Robert Owen,
James Watt, Charles Babbage etc.
➢ Robert Owen- emphasised on personnel aspects in management and advocated a number of
benefits to employers.
➢ It was unrecognized - two centuries ago.
➢ Central activity of our age and economy
➢ The Emergence of Management Thought can be classified under various schools of
management and can be put into 3 broad categories as follows:• The Classical Approach
• The Behavioural Approach
• The Quantitative Approach
Ancient Management:
Management practices can be traced back to ancient civilizations, such as the Sumerians
and Egyptians, who used planning and organization to construct impressive architectural
structures and manage resources.
Scientific Management:
Frederick W. Taylor is often considered the father of scientific management. He introduced
time and motion studies to increase efficiency and productivity. Taylor's work laid the
foundation for modern management principles.
Hawthorne Studies:
The Hawthorne Studies, conducted at the Western Electric Hawthorne Works in the 1920s,
highlighted the importance of social and psychological factors in the workplace. They
played a pivotal role in the development of the human relations movement.
Max Weber's Bureaucracy:
Max Weber's theory of bureaucracy emphasized a formalized organizational structure,
rules, and division of labor. It contributed to the understanding of large organizations and
their efficiency.
Administrative Management Principles:
Henri Fayol's principles of management, which include functions like planning, organizing,
and controlling, have had a lasting influence on management practices.
Management Gurus:
Prominent management thinkers like Peter Drucker, W. Edwards Deming, and Taiichi Ohno
made significant contributions to management thought in the mid-20th century. Drucker's
work on management by objectives and Deming's emphasis on quality management were
particularly influential.
Quality Management:
Total Quality Management (TQM) emerged as a significant movement in the late 20th
century, emphasizing continuous improvement, customer focus, and employee
involvement. It was popularized by figures like Deming and Joseph Juran.
Contingency Theory:
The contingency theory, proposed by scholars like Joan Woodward and Fred Fiedler,
stressed that there is no one universal approach to management; instead, it should be
adapted to the specific circumstances.
Information Age:
The information age brought about the integration of technology into management
practices, with the development of Management Information Systems (MIS), Enterprise
Resource Planning (ERP), and Customer Relationship Management (CRM) systems.
Sustainability and Ethics:
In recent years, management has increasingly focused on sustainable and ethical
practices, considering the environmental and social impacts of business operations.
Agile Management:
Agile management methodologies, originally developed for software development, have
gained popularity in various industries due to their flexibility and adaptability in rapidly
changing environments.
Globalization:
The globalization of business has necessitated a shift in management practices to
address cross-cultural and international challenges.
Knowledge Management:
The knowledge economy has led to a greater emphasis on knowledge management, which
involves capturing, storing, and sharing intellectual assets within organizations.
Digital Transformation:
The digital age has ushered in a new era of management, where data analytics, artificial
intelligence, and automation play a pivotal role in decision-making and operational
efficiency.
Hybrid and Holistic Approaches:
Modern management often combines elements from various historical management
schools of thought to create a more holistic and adaptable approach.
SCHOOLS OF MANAGEMENT THOUGHT
Schools of management thought represent different approaches and perspectives on how
to manage organizations. These schools have evolved over time and have influenced the
practice of management in various ways.
The schools of management thought represent distinct approaches and philosophies that
have shaped the practice of management over time. These schools have evolved in
response to changing business environments and management challenges. The classical
school, for example, emphasized principles of scientific management and administrative
management, focusing on efficiency, standardized processes, and organizational
structure. In contrast, the behavioral school, which emerged from the Hawthorne Studies,
highlighted the importance of human and social factors in the workplace, such as
employee motivation and group dynamics. The quantitative school introduced
mathematical and statistical techniques to decision-making, while the contingency school
stressed that management approaches should be contingent on specific situations. The
systems school viewed organizations as complex, interrelated systems, and the modern
management school introduced concepts like total quality management and strategic
planning. Contemporary management thought incorporates principles of sustainability,
digital transformation, and agile management, reflecting the dynamic and ever-evolving
nature of the business world.
Today, management thought continues to evolve, influenced by factors such as
globalization, technology, and societal changes. The cultural and cross-cultural school
recognizes the importance of adapting management practices to different cultural
contexts in a globalized world. The innovation and entrepreneurship school promotes
creativity and risk-taking, while the knowledge management school focuses on leveraging
intellectual assets. Many managers adopt hybrid and integrative approaches that combine
elements from various schools, recognizing that different situations require tailored
solutions. The digital and technology management school is increasingly relevant, as
technology plays a pivotal role in reshaping industries and decision-making processes.
Collectively, these schools provide a rich tapestry of management philosophies, offering
diverse tools and insights to address the multifaceted challenges faced by today's
organizations.
#Classical School:--Scientific Management: Developed by Frederick W. Taylor, this school focused on
improving efficiency and productivity through systematic analysis of work processes and
employee training. Administrative Management: Henri Fayol's principles of management
emphasized functions like planning, organizing, coordinating, and controlling.
#Behavioral School:
--Human Relations Movement: Emerging from the Hawthorne Studies, this school
emphasized the role of social and psychological factors in the workplace. It highlighted the
importance of employee morale, motivation, and group dynamics.
#Quantitative School:--Operations Research: This school applied mathematical and statistical techniques to
management decision-making, optimizing processes and resource allocation.Management
Information Systems (MIS): The use of technology to process and manage information
within organizations became a critical aspect of quantitative management.
#Contingency School:----This school suggests that there is no one-size-fits-all approach to management. The
effectiveness of a management style depends on the specific circumstances and context.
#Systems School:---This school views organizations as complex systems with interrelated parts. Managers
should focus on the holistic view of the organization and how various componentsinteract.
#Modern Management School:----Total Quality Management (TQM): TQM emphasizes continuous improvement, customer
satisfaction, and employee involvement in decision-making and quality control.
---Strategic Management: This school focuses on long-term planning, competitive
advantage, and aligning an organization's activities with its strategic goals.
#Knowledge Management School:----This school emerged in the knowledge economy, emphasizing the need to manage and
leverage intellectual assets and information effectively within organizations.
#Contemporary Management School:----Agile and Lean Management: These methodologies prioritize adaptability, flexibility, and
efficiency in responding to rapidly changing business environments.
----Sustainable and Ethical Management: With environmental and social concerns growing,
contemporary management places a strong emphasis on sustainability and ethical
practices.
----Digital Transformation: The integration of technology, data analytics, and artificial
intelligence into management practices has become a central focus.
#Cultural and Cross-Cultural School:----This school recognizes the importance of cultural factors in management. It highlights
the need to adapt management practices to various cultural contexts, especially in a
globalized world.
#Innovation and Entrepreneurship School:---In this school, the focus is on fostering innovation and entrepreneurial thinking within
organizations. It encourages risk-taking and creative problem-solving.
#Hybrid and Integrative School:----Many contemporary management approaches combine elements from various schools
of thought, recognizing that different situations may require a blend of techniques and
principles.
#Digital and Technology Management School:----As technology continues to reshape industries, this school focuses on harnessing digital
tools, data, and artificial intelligence to enhance decision-making and operational
efficiency.
1. CLASSICAL SCHOOL
The classical school of management thought, prominent in the late 19th and early 20th
centuries, introduced foundational principles that laid the groundwork for modern
management theory and practice. It comprises two primary approaches: scientific
management, pioneered by Frederick W. Taylor, which focused on improving efficiency
through systematic analysis of work processes and employee training, and administrative
management, articulated by Henri Fayol, which emphasized functions like planning,
organizing, commanding, coordinating, and controlling within organizations. Both
approaches underscored the importance of structured processes, division of labor, and
hierarchical organization in achieving operational effectiveness. While the classical
school's emphasis on efficiency and structure has been critiqued for its potential
mechanistic and rigid nature, it provided a vital foundation upon which subsequent
management schools built and adapted their principles to evolving organizational needs.
The classical management theory believes that employees are strongly motivated by their
physical needs and more specifically, monetary incentives. As such, organizations that
implement this management style often incorporate regular opportunities for employees
to be rewarded for their productivity with incentives.
The classical approach emphasized rationality and making organizations and workers as
efficient as possible. Two major theories comprise the classical approach: scientific
management and general administrative.
The classical approach is also called Management Process, Functional, and Empirical
Approach.
Some of the contributors are :
1. Fredrick W. Taylor:
2. Henri Fayol:
3. Max Weber:
4. Frank and Lillian Gilbreth:
5. Henry L. Gantt:
SCIENTIFIC MANAGEMENT BY TAYLOR
: Fredrick Winslow Taylor ( March 20, 1856 - March 21, 1915) commonly known as ’Father
of Scientific Management’ started his career as an operator and rose to the position of
chief engineer. He conducted various experiments during this process which forms the
basis of scientific management. It implies application of scientific principles for studying &
identifying management problems.
: According to Taylor, “Scientific Management is an art of knowing exactly what you want
your men to do and seeing that they do it in the best and cheapest way”. In Taylors view, if
a work is analysed scientifically it will be possible to find one best way to do it.
: Hence scientific management is a thoughtful, organized, dual approach towards the job
of management against hit or miss or Rule of Thumb.
: According to Drucker, “The cost of scientific management is the organized study of work,
the analysis of work into simplest element & systematic management of worker’s
Scientific Management, developed by Frederick W. Taylor in the early 20th century, is a
seminal approach to management that revolutionized industrial processes and labor
practices. Taylor's core concept was to scientifically analyze work methods and processes
to identify the most efficient way to perform tasks. He believed that there was "one best
way" to perform each job, and by carefully studying and optimizing these methods,
organizations could significantly increase productivity. Taylor introduced time and motion
studies, where he broke down tasks into their smallest elements and timed each element
to determine the most efficient way to complete the task. Workers who followed these
standardized procedures were offered incentives to increase their output, a concept known
as piece-rate payment.
While Scientific Management brought about substantial improvements in productivity and
efficiency in many industries, it also garnered criticism. Critics argued that it often led to
monotonous and dehumanizing work, as workers were reduced to mere cogs in a welloiled machine. This led to the development of the human relations movement, which
emphasized the importance of considering the social and psychological needs of
employees. However, Taylor's principles continue to influence aspects of modern
management, particularly in manufacturing and process-oriented industries, and are part
of the foundation upon which subsequent management theories have been built.
PRINCIPLES OF SCIENTIFIC MANAGEMENT
•
•
•
•
•
•
--Development of Science for each part of men’s job (replacement of rule of thumb).
--Scientific Selection, Training & Development of Workers.
--Co-operation between Management & workers or Harmony not discord.
--Division of Responsibility.
--Mental Revolution.
--Maximum Prosperity for Employer & Employees.
These principles were aimed at achieving a high degree of specialization and efficiency
in the workplace. While they significantly increased productivity and became
foundational in manufacturing and production industries, they also generated
controversy due to their potential dehumanizing effects on workers. As a result, the
principles of Scientific Management have been adapted and balanced with a focus on
worker well-being and job satisfaction in contemporary management practices.
CRITICISM OF SCIENTIFIC MANAGEMENT
•
Unemployment Workers feel that management reduces employment opportunities from them
through replacement of men by machines and by increasing human productivity
less workers are needed to do work leading to chucking out from their jobs.
•
Exploitation Workers feel they are exploited as they are not given due share in increasing
profits which is due to their increased productivity. Wages do not rise in
proportion as rise in production. Wage payment creates uncertainty & insecurity
(beyond a standard output, there is no increase in wage rate).
•
Monotony Due to excessive specialization the workers are not able to take initiative on
their own. Their status is reduced to being mere cogs in wheel. Jobs become
dull. Workers loose interest in jobs and derive little pleasure from work.
•
Weakening of Trade Union To everything is fixed & predetermined by management. So it leaves no room
for trade
unions to bargain as everything is standardized, standard output, standard
working conditions, standard time etc. This further weakens trade unions,
creates a rift between efficient & in efficient workers according to their wages.
•
Over speeding the scientific management lays standard output, time so they have to rush up
and finish the work in time. These have adverse effect on health of workers. The
workers speed up to that standard output, so scientific management drives the
workers to rush towards output and finish work in standard time.
•
Expensive Scientific management is a costly system and a huge investment is required in
establishment of planning dept., standardization, work study, training of
workers. It may be beyond reach of small firms. Heavy food investment leads to
increase in overhead costs.
•
Time Consuming Scientific management requires mental revision and complete reorganizing of
organization. A lot of time is required for work, study, standardization &
specialization. During this overhauling of organization, the work suffers.
TECHNIQUES OF SCIENTIFIC MANAGEMENT
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Method Study:-The purpose of the outlined study is to find out one vigorous way of
performing the job. There are different ways of performing the job. To
ascertain the best way, there are diverse parameters. Right from the
obtainment of raw materials until the ultimate product is presented to the
consumer, every pursuit is part of method research. Taylor devised the idea
of the assembly line by applying the method study.
•
Motion Study:-Motion study pertains to the study of movements like putting objects, lifting,
changing positions and sitting etc., which are moved while doing a
conventional job. Random movements are solicited to be reduced so that it
takes less time to perform the job effectively.
•
Time Study:-It circumscribes the conventional time taken to complete a well-defined job.
Time regulating devices are used for each part of the task. The standard
time is set for the entirety of the task by taking different readings. The
course of time study will rely upon the frequency and volume of the task, the
cycle time of the process and time measurement costs.
•
Fatigue Study:-A person is obliged to feel tired mentally and physically if she or he does not
relax while working. The rest periods will assist one to recover vitality and
work again with the same capacity. This will result in improved potency.
Fatigue study tries to define the amount and regularity of rest intervals in
accomplishing a task.
ADMINISTRATIVE MANAGEMENT- HENRI FAYOL
AND CHESTER BARNARD.
Whereas scientific management focused on the productivity of the individual worker, the
administrative theory focused on the total organization. Among the well-know contributors
to this theory were Lyndall Urwick, Chester Barnard, Alvin Brown, Henry Dennison, Oliver
Sheldon and Max Weber. However, the most notable of all contributors was Henry Fayol.
His book, General and Industrial Management, had a major impact on the emerging field of
management.
Chester I. Barnard (1886-1961)-made significant contributions to management in his book,
The Functions of the Executive. One of his contributions was the concept of the informal
organization. Another significant contribution was the acceptance theory of authority,
which states that people have free will and can choose whether to follow management
orders. An order is accepted if the subordinate understands it, is able to comply with it, and
views it as appropriate given the goals of the organization.
FAYOL’S 14 PRINCIPLES OF MANAGEMENT
Henri Fayol, a French mining engineer and management theorist, is known for his 14
Principles of Management. These principles were introduced in his book "General and
Industrial Management" in 1916 and have had a lasting impact on the field of
management. Here are Fayol's 14 Principles of Management:
•
Division of Work:
Work should be divided among individuals and groups to increase efficiency and
specialization.
•
Authority and Responsibility:
Managers should have the authority to give orders, and with that authority comes
responsibility for ensuring tasks are completed.
•
Discipline:
Employees should respect and obey organizational rules and agreements.
•
Unity of Command:
Each employee should receive orders from only one superior to avoid conflicting
instructions.
•
Unity of Direction:
The organization should have a single plan of action to guide its activities, which helps
avoid duplication of efforts.
•
Subordination of Individual Interests to the General Interest:
The interests of the organization should take precedence over the interests of any
individual employee or group.
•
Remuneration:
Compensation should be fair and provide satisfaction to both employees and the
organization.
•
Centralization:
The degree of centralization (concentration of authority) should be determined by the
specific circumstances of the organization.
•
Scalar Chain:
A clear and unbroken line of authority should extend from the top of the organization to
the bottom.
•
Order:
There should be a place for everything, and everything should be in its place. This
principle emphasizes the importance of an organized work environment.
•
Equity:
Managers should treat employees with kindness and justice, fostering a sense of
equity and fairness in the workplace.
•
Stability of Tenure of Personnel:
High employee turnover can disrupt efficiency, so efforts should be made to retain
employees.
•
Initiative:
Employees at all levels should have the opportunity to use their creativity and take
initiative to solve organizational problems.
•
Esprit de Corps:
Building team spirit and a sense of unity among employees can lead to enhanced
morale and organizational performance.
Fayol's Principles of Management continue to be studied and discussed in the context
of contemporary management practices. While some principles may be seen as
somewhat traditional, others, like unity of direction and initiative, are still very relevant
in modern organizations, and the principles as a whole provide a foundational
understanding of effective management.
BUREAUCRATIC MANAGEMENT
Bureaucratic management is a management approach introduced by Max Weber, a
German sociologist and one of the founding figures of modern sociology. He outlined
this concept in the early 20th century and it has since become a fundamental model for
understanding and organizing complex organizations, particularly in government and
large corporations.
In bureaucratic management, the organization is characterized by a highly structured
and formalized system of rules and procedures. It emphasizes the importance of clear
roles, hierarchy, and authority. Decision-making authority is vested in a hierarchical
order, with each level of management responsible for specific tasks and decisions. The
system is designed to promote consistency and reliability in organizational operations.
Key features of bureaucratic management include a clear division of labor, a welldefined hierarchy, clear and consistent rules and procedures, impersonal relationships
among employees, and the use of written records to document decisions and actions.
ADMINISTRATIVE MANAGEMENT
Administrative management, often associated with the work of Henri Fayol, is a key
school of management thought that emphasizes the functions and principles of
management in organizations. Fayol's work, which gained prominence in the early 20th
century, focuses on the administrative aspect of management, and his ideas are still
influential in contemporary management practices.
Fayol identified five primary functions of management: planning, organizing,
commanding, coordinating, and controlling. These functions provide a framework for
how managers should carry out their roles in organizations. In addition to these
functions, Fayol outlined 14 principles of management, which include division of work,
unity of command, and scalar chain, among others.
2. BEHAVIOURAL SCHOOL
The Behavioral School of management thought emerged as a response to the
limitations of classical and bureaucratic management approaches, particularly in
addressing the human and social aspects of organizations. It gained prominence in the
early to mid-20th century and introduced a more people-centric perspective to
management.
One of the key foundations of the Behavioral School is the recognition that
understanding human behavior is crucial for effective management. The Hawthorne
Studies, conducted at Western Electric's Hawthorne Works in Chicago during the
1920s, were pivotal in shaping this school of thought. These studies, led by Elton Mayo
and his colleagues, revealed that employee motivation and productivity were
influenced not only by economic factors but also by social and psychological factors.
The Hawthorne Studies underscored the importance of interpersonal relationships,
group dynamics, and the role of communication in the workplace.
Some important contributors :
1.
2.
3.
4.
5.
Elton Mayo:
Abraham Maslow:
Douglas McGregor:
Kurt Lewin:
Mary Parker Follett:
THE MANAGEMENT THEORY OF ELTON MAYO
Mayo developed a matrix to illustrate the likelihood that a given team would be successful.
His matrix demonstrates the role that varying combinations of group norms and group
cohesiveness play in team effectiveness.
Mayo’s theories identify a “norm” through the degree to which a group encourages positive
or negative behaviors. This is typically expressed through an employee handbook or
workplace policies and can include formal or informal rules.
Group cohesiveness is how a group cooperates together, defined as a group’s overall
comradery or level of teamwork.The following are the four combinations of a group’s norm
in relation to its cohesiveness:
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•
•
•
Low norm and low cohesiveness: This group is ineffective and has a minimal
impact since none of the members are motivated to excel.
Low norm and high cohesiveness: This group has a negative impact since fellow
members encourage negative behavior. In a typical workplace, an example would
be a group that gossips together and actively fights against management — a
group with high comradery and low structure.
High norm and low cohesiveness: This group has a small degree of positive impact
through individual member accomplishments. Each employee must maintain a high
standard of work but does not cooperate as part of a team.
High norms and high cohesiveness: This group has the greatest positive impact, is
held to a high standard and works together to achieve its goals.
HUMAN RELATIONS
The concept of human relations in the field of management centers on the idea that the
relationships between individuals within an organization significantly impact productivity,
job satisfaction, and overall well-being. Emerging in the 1930s and 1940s as a response to
the findings of the Hawthorne Studies, this approach emphasized the social and
psychological needs of employees and how they influence their performance.
Human relations theory stressed the importance of recognizing and addressing the
emotional and social aspects of the workplace. It highlighted the role of communication,
trust, and group dynamics in influencing employee morale and motivation. Managers were
encouraged to develop better interpersonal skills and create a more supportive and
participative work environment. The emphasis on employee well-being and the
consideration of individual needs contributed to the development of practices such as
employee involvement, and team-building exercises to enhance the quality of workplace
relationships and foster a positive organizational culture.
BEHAVIOURAL SCIENCE
Behavioral science is an interdisciplinary field that combines insights from psychology,
sociology, economics, and other social sciences to study and understand human behavior.
It plays a crucial role in the world of management by offering valuable insights into how
individuals and groups within organizations make decisions, interact with one another, and
respond to various stimuli. Understanding human behavior is essential for effective
management, as it allows organizations to develop strategies, policies, and practices that
align with the needs and motivations of their employees.
One of the key applications of behavioral science in management is in the field of
organizational behavior. Researchers and practitioners in this area explore topics like
motivation, job satisfaction, leadership, and team dynamics. They use scientific methods
to analyze and predict human behavior in the workplace.
3. QUANTITATIVE SCHOOL
The Quantitative School of management thought, which emerged in the mid-20th century,
is characterized by its application of mathematical and statistical methods to
management decision-making. This approach sought to bring precision and objectivity to
the field of management by using quantitative techniques to analyze and solve complex
problems.
One of the key foundations of the Quantitative School is the use of mathematical models
to aid in decision-making. Techniques such as linear programming, queuing theory, and
decision analysis were developed to optimize resource allocation, streamline processes,
and enhance problem-solving. Linear programming, for example, helps organizations find
the most cost-effective way to allocate resources given constraints.
The Quantitative School also gave rise to Management Information Systems (MIS), which
leverage technology to gather, process, and analyze data for managerial decision-making.
MIS provides organizations with tools to collect and manage vast amounts of data
efficiently, helping managers access timely and relevant information.
Some important contributors :
1. George Dantzig:
2. Ronald A. Howard:
3. John von Neumann:
TOTAL QUALITY MANAGEMENT
Total Quality Management (TQM) is a comprehensive management approach that focuses
on achieving excellence in all aspects of an organization's operations. It is rooted in the
philosophy that quality is not limited to products or services but extends to every facet of
an organization's activities, from leadership and culture to processes and customer
satisfaction.
At its core, TQM involves several key principles, including customer focus, continuous
improvement, and a commitment to employee involvement. TQM places a strong
emphasis on understanding and meeting the needs and expectations of customers, as
they are the ultimate judges of quality. Organizations implementing TQM engage in
ongoing efforts to identify and satisfy these customer requirements while also striving for
efficiency and excellence.
MANAGEMENT SCIENCE
Management science, also known as operations research or decision science, is a field of
study that applies mathematical and analytical methods to solve complex management
problems and make informed decisions. It originated during World War II when
mathematicians and scientists were tasked with addressing military logistics and strategic
planning. Since then, it has evolved into a powerful tool for various industries and
organizations to optimize operations, resource allocation, and decision-making processes.
Management science encompasses a wide range of techniques and methodologies,
including linear and nonlinear programming, queuing theory, simulation, network analysis,
and mathematical modeling. These tools are used to address challenges such as supply
chain optimization, production scheduling, inventory management, and project
management. In the modern business world, management science plays a critical role in
enhancing efficiency, reducing costs, and improving decision quality. It has also found
applications in fields like finance, healthcare, and marketing.
RESOURCE BASED VIEW
The Resource-Based View (RBV) is a strategic management theory that emphasizes the
importance of an organization's internal resources and capabilities as the primary sources
of sustainable competitive advantage. According to RBV, not all resources are equally
valuable or rare, and it is the unique combination of tangible and intangible resources,
along with the firm's capabilities, that sets it apart in the market. Firms that can leverage
their distinctive resources to create value, whether through cost leadership, differentiation,
or innovation, are more likely to achieve and maintain a competitive edge. The RBV
framework has had a profound impact on strategic management, shifting the focus from
external environmental factors to the internal strengths of the organization, and guiding
firms in identifying, developing, and exploiting their unique resources to achieve long-term
success.
OPERATIONS MANAGEMENT
Operations management is a critical field within the broader realm of management that
focuses on planning, designing, and overseeing the production and delivery of goods and
services. It plays a central role in ensuring that an organization's processes are efficient,
effective, and aligned with its strategic goals. Operations management encompasses a
wide range of activities, including process design, quality control, capacity planning,
inventory management, and supply chain optimization.
One of the primary goals of operations management is to enhance an organization's
efficiency and productivity while controlling costs. By optimizing processes, minimizing
waste, and improving quality, operations managers can help deliver products and services
to customers in a timely and cost-effective manner. In today's global and competitive
business environment, operations management has become increasingly important, with a
growing emphasis on lean and agile practices, as well as the integration of technology and
data-driven decision-making to streamline operations and meet customer demands
effectively.
MANAGEMENT INFORMATION SYSTEM
A Management Information System (MIS) is a specialized information system that
organizations use to collect, process, store, and distribute data for decision-making and
operational control. MIS systems are designed to provide managers and decision-makers
with accurate, timely, and relevant information to support their planning and decision
processes. These systems incorporate various hardware and software components and
can encompass everything from simple databases to complex networks and data analysis
tools.
MIS serves a crucial role in modern business operations by improving the efficiency and
effectiveness of managerial tasks. It enables organizations to automate routine tasks,
track performance metrics, and generate reports, dashboards, and other forms of data
visualization that assist managers in making informed decisions. Additionally, MIS
facilitates data integration from various sources within an organization, enabling a holistic
view of operations. This system is not only valuable for operational management but is
also instrumental in long-term strategic planning, helping organizations adapt to changing
market conditions, industry trends, and emerging technologies.
4. CONTINGENCY SCHOOL
The Contingency School of management thought, also known as the Contingency Theory,
challenges the notion of a one-size-fits-all approach to management. It posits that there is
no universal or best way to manage organizations, as the effectiveness of a management
style or structure depends on the specific circumstances or contingencies an organization
faces. This school of thought recognizes that various factors, such as an organization's
size, industry, culture, and external environment, can influence the most suitable
management approach.
The Contingency School emphasizes the need for managers to carefully assess the unique
challenges and situations an organization encounters and adapt their management
practices accordingly. It calls for flexibility and the willingness to change strategies when
the context changes. For example, a contingency approach might involve using a
participative management style in a creative and dynamic industry while adopting a more
autocratic approach in a highly regulated and stable environment.
This school of thought is an antidote to the rigidity of earlier management theories and
acknowledges the complex and dynamic nature of organizations and their environments.
The Contingency Theory suggests that the "best" management approach depends on the
specific circumstances, making it crucial for managers to diagnose situations accurately
and make adjustments as necessary.
Some important contributors :
1. Joan Woodward:
2. Paul Lawrence and Jay Lorsch:
3. Fred E. Fiedler:
4. Victor Vroom:
5. Jeffrey Pfeffer and Gerald Salancik:
5. SYSTEMS SCHOOL
The Systems School of management thought views organizations as complex systems
composed of various interrelated and interconnected parts. It emerged in the mid-20th
century and offers a holistic perspective on management, emphasizing that understanding
the whole is crucial for effective decision-making. This approach was influenced by
general systems theory, which posits that systems share common principles and patterns
of behavior, regardless of their specific nature.
In the Systems School, organizations are seen as dynamic entities with inputs, processes,
and outputs. These inputs might include resources, information, and people, while the
processes represent the activities and interactions within the organization.
One of the key insights of the Systems School is the understanding that organizations
exist within a broader environment, and they are influenced by and can, in turn, influence
this environment. This recognition has led to the study of open systems, where
organizations actively interact with and adapt to their external surroundings.
Some important contributors :
1. Ludwig von Bertalanffy:
2. Norbert Wiener:
3. Kenneth Boulding:
4. James G. March and Herbert A. Simon:
5. Peter Senge:
6. MODERN MANAGEMENT SCHOOL
The Modern Management School represents a contemporary approach to management
that combines elements from various historical management schools of thought and
adapts them to address the complexities of the modern business environment. It
acknowledges the evolving nature of organizations and the challenges they face in a fastpaced, interconnected world. This school emphasizes the need for a more holistic and
adaptable approach to management.
One of the central tenets of the Modern Management School is the recognition of the
importance of flexibility and adaptability. Modern organizations need to be agile in their
response to change, whether driven by technological advancements, shifting market
conditions, or evolving customer expectations.
Another critical aspect of the Modern Management School is a strong emphasis on
leadership that fosters creativity, inclusivity, and employee engagement. It recognizes that
in the knowledge-based and digital age, people are an organization's most valuable asset.
Effective leadership is not just about command and control but also about empowering
employees, encouraging innovation, and promoting a culture of continuous improvement.
The Modern Management School encourages a collaborative and open leadership style
that values the contributions of every member of the organization.
Some important contributors :
1. Peter Drucker:
2. Gary Hamel:
3. Clayton Christensen:
4. Tom Peters and Robert Waterman:
5. Jim Collins:
6. Daniel Pink:
THEORY OF PETER DRUCKER
Peter Drucker was a highly influential management theorist and author, often referred to as
the "father of modern management." His extensive body of work has had a profound and
lasting impact on the field of management. Some of the key theories and concepts
associated with Peter Drucker's work include:
1. Management by Objectives (MBO): Peter Drucker introduced the concept of
Management by Objectives in his 1954 book "The Practice of Management.
2. Knowledge Work: Drucker was one of the first to recognize and write about the
emerging importance of knowledge work in the modern economy.
3. Management as a Liberal Art: Drucker believed that management is not just a set
of technical skills but a liberal art.
4. Innovation and Entrepreneurship: Drucker's book "Innovation and Entrepreneurship:
Practice and Principles" explores the importance of innovation for business
success.
5. The Five Key Questions: Drucker proposed a set of five essential questions that
organizations should continually ask to ensure their viability and effectiveness:
What is our mission? Who is our customer? What does the customer value? What
are our results? What is our plan?
6. Decentralization: Drucker advocated for decentralization in organizations, where
decision-making authority is distributed to those closest to the information and
issues. He argued that decentralized organizations are more flexible, responsive,
and innovative.
7. The Concept of "Management": Drucker played a crucial role in defining
management as a distinct discipline, separate from economics and other fields.
7. KNOWLEDGE MANAGEMENT SCHOOL
The Knowledge Management School represents a contemporary approach to managing
one of the most valuable assets in the modern business world: knowledge. In an era where
information is abundant and the ability to leverage it effectively is a source of competitive
advantage, knowledge management has gained prominence as a critical discipline for
organizations.
Knowledge management involves the systematic collection, organization, distribution, and
utilization of an organization's intellectual assets. These assets include not only data and
information but also the tacit knowledge held by employees and their collective expertise.
The school recognizes that the ability to harness and apply this knowledge strategically
can enhance innovation, problem-solving, and decision-making, ultimately driving an
organization's success.
One of the fundamental principles of knowledge management is the notion that knowledge
should be accessible and shared within the organization. This approach encourages open
communication, the creation of knowledge-sharing platforms, and a culture of continuous
learning. The knowledge management school leverages technology to facilitate knowledge
sharing, with the use of knowledge management systems, intranets, and collaboration
tools to store and disseminate information and expertise.
Some important contributors :
1. Ikujiro Nonaka:
2. Thomas Davenport:
3. Larry Prusak:
4. Karl-Erik Sveiby
5. Nancy Dixon:
8. CONTEMPORARY MANAGEMENT SCHOOL
The Contemporary Management School represents a dynamic and adaptable approach to
management, characterized by its focus on addressing the unique challenges and
opportunities presented by the modern business landscape. This school of thought is
informed by the recognition that organizations operate in a rapidly evolving environment,
influenced by factors such as globalization, technological advancements, changing
customer expectations, and increased social and environmental awareness. Contemporary
management practices draw from a range of management theories and adapt them to
meet the demands of the current business era.
One of the defining features of the Contemporary Management School is its embrace of
technology and data-driven decision-making. In the age of big data, organizations are
increasingly leveraging technology to collect, analyze, and interpret vast amounts of
information. Data analytics, artificial intelligence, and machine learning are being used to
gain insights into consumer behavior, improve operational efficiency, and develop more
effective marketing strategies
Some important contributors :
1. Peter Senge:
2. Rosabeth Moss Kanter:
3. Richard Branson:
4. Simon Sinek:
5. Sheryl Sandberg:
6. Satya Nadella:
9. INNOVATION AND ENTREPRENEURSHIP
SCHOOL
The Innovation and Entrepreneurship School of management thought places a strong
emphasis on fostering creativity, encouraging risk-taking, and driving organizational
growth through innovation and entrepreneurial activities. It recognizes that in today's
dynamic business environment, organizations must be proactive in seeking new
opportunities, products, and processes to remain competitive and sustainable.
One of the key principles of this school is the recognition of the value of innovation as a
driver of organizational success. It encourages organizations to create a culture that
promotes and rewards creativity, experimentation, and the pursuit of new ideas. By
fostering an environment that supports innovation, organizations can stay at the forefront
of their industries and continuously adapt to changing market conditions.
Entrepreneurship is another core aspect of this school, emphasizing the importance of
taking calculated risks and pursuing new business ventures. Entrepreneurial management
encourages managers to identify and seize opportunities for growth, often by creating new
business units, products, or markets.
Some important contributors :
1. Joseph Schumpeter:
2. Clayton Christensen:
3. Steve Jobs:
4. Elon Musk:
5. Sara Blakely:
6. Eric Ries:
10.CULTURAL AND CROSS CULTURAL
SCHOOLS
The Cultural and Cross-Cultural Schools of management thought recognize the profound
impact of culture on organizational behavior and management practices. Culture
encompasses a set of shared values, beliefs, norms, and practices that shape the way
individuals and groups interact within an organization. Understanding and effectively
managing cultural dynamics is crucial in today's globalized world, where organizations
often operate across borders and diverse workforces are the norm.
Cultural management recognizes that organizational culture is not monolithic; it can differ
among various departments, teams, or locations within a single organization. Additionally,
it acknowledges that culture can be a powerful driver of employee behavior and
engagement. Managers in this school focus on shaping and nurturing a positive and
productive organizational culture that aligns with the values and goals of the organization.
They may use tools like employee engagement surveys, internal communication strategies,
and training programs to reinforce and strengthen desired cultural attributes.
Both Cultural and Cross-Cultural Schools underscore the significance of recognizing and
respecting the role of culture in organizations. They provide a framework for
understanding and managing cultural diversity and leveraging it as a source of strength
and competitive advantage. As the business world continues to globalize and diversify,
these schools are increasingly relevant for contemporary management practices.
Some important contributors :
1. Geert Hofstede:
2. Fons Trompenaars:
3. Erin Meyer:
4. Globe Project Researchers:
5. Edward T. Hall:
6. Hofstede Insights:
11.DIGITAL AND TECHNOLOGY MANAGEMENT
SCHOOL
The Digital and Technology Management School is a contemporary approach to
management that recognizes the transformative power of technology in today's business
landscape. This school of thought places technology and digital innovation at the forefront
of organizational strategy and decision-making. It acknowledges that technology is not
just an enabler but a driver of business success and competitive advantage.
In the Digital and Technology Management School, organizations focus on harnessing
technology to improve operational efficiency, enhance customer experiences, and drive
innovation. This approach involves adopting cutting-edge technologies, embracing digital
transformation, and developing data-driven strategies. It also emphasizes the importance
of cybersecurity and data privacy in an era where data is a valuable asset and a potential
liability.
The Digital and Technology Management School is particularly relevant in today's digital
age, where technology disruption is a constant and organizations are compelled to adapt
quickly. By adopting technology-centric strategies and placing digital innovation at the core
of their business model, organizations can gain a competitive edge and ensure their longterm sustainability in a rapidly evolving business environment.
Some important contributors :
1. Marc Andreessen:
2. Sheryl Sandberg:
3. Satya Nadella:
4. Reid HoffmanL:
5. Clay Christensen:
6. Erik Brynjolfsson and Andrew McAfee:
12.HYBRID AND INTEGRATIVE SCHOOL
The Hybrid and Integrative School of management thought is a modern approach that
recognizes the complexity of the business world and the need for flexibility in
management practices. It represents a blended perspective that draws from various
management theories and integrates them to address the diverse challenges
organizations face. This approach acknowledges that no single management theory is a
one-size-fits-all solution and that managers must adapt their practices to the specific
needs and context of their organization.
In the Hybrid and Integrative School, managers are encouraged to take the best elements
from different management theories and synthesize them into a customized approach that
suits their organization's unique circumstances. This may involve incorporating elements
of scientific management, human relations, contingency theory, or any other relevant
theories to create a management framework that is both practical and effective. By
embracing a hybrid and integrative approach, organizations can leverage the strengths of
various management theories while mitigating their weaknesses, leading to more tailored
and adaptable management practices.
The Hybrid and Integrative School is particularly relevant in today's diverse and rapidly
changing business environment. It allows organizations to create management strategies
that are agile and responsive to their specific challenges and opportunities.
Some important contributors :
1. Henry Mintzberg:
2. Mary Jo Hatch:
3. Richard Normann:
4. Michael Porter:
5. Arie de Geus:
THE INDIAN MANAGEMENT THOUGHTS :
Indian management thought refers to the unique approaches, philosophies, and practices
related to the field of management that have developed in India over the years. Indian
management thought is influenced by the country's rich cultural, historical, and
philosophical heritage. Here are some key aspects and contributors to Indian management
thought:
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•
•
•
•
•
•
•
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•
Spiritual and Ethical Foundations:
Gandhian Management:
Human-Centric Approach:
Holistic Management:
Family and Community Orientation:
Inclusiveness and Diversity:
Jugaad Innovation:
Leadership Styles:
Diversity of Thought:
Integration of Modern Management Practices:
Prominent Indian management thinkers and scholars, such as C.K. Prahalad, Anil K. Gupta,
and Sumantra Ghoshal, have contributed to the development and popularization of Indian
management thought on the global stage.
CONCLUSION
In conclusion, the evolution of management thought has been a dynamic journey,
reflecting the changing needs of organizations and the diverse perspectives of influential
thinkers. The various schools of management thought, from the Classical School to the
Contemporary and Modern Schools, offer a rich tapestry of ideas and approaches to
managing organizations. Each school contributed valuable insights and frameworks that
have shaped the way organizations are managed and led.
The Classical School laid the foundation for systematic management thinking,
emphasizing principles of efficiency and structure. Scientific management, administrative
management, and bureaucratic management each offered unique perspectives on how
organizations should be organized and operated.
The Behavioral School introduced the human element into management, recognizing the
importance of employee motivation, social dynamics, and leadership styles.
Subsequent schools, including the Contemporary and Modern Schools, built upon these
foundations, incorporating new concepts like Total Quality Management, Knowledge
Management, and the Resource-Based View. These schools adapted to the changing
business landscape and the increasing importance of technology, innovation, and
sustainability.