History and Evolution
of
Management Thought
Development of Major Management
Theories
Pre-classical Classical
contritheorists
butions
Scientific
management
General
administrative
theorists
Bureaucratic
Model
Behavioral
approach
Group
Influences
Hawthorne
studies
Maslow’s
Needs Theory
Theory X &
Theory Y
Model I versus
Model II Values
Quantitative
approach
Management
Science
Operations
managemen
t
Management
Information
System
Modern
Integrative
approaches
The
Systems
Theory
Contingency
Theory
Emerging
Approaches:
Theory Z and
Quality
Management
The Classical Perspective

Began around 1900 and continued into the 1930s

Traditional or classical management focuses on
efficiency
 Focuses
on ways to improve the performance of
individual workers
 One
of the major contributors was F.W. Taylor
Scientific Management
Taylor’s four principles

Develop a science for each element of work

Scientifically select, train, teach, and develop
the worker

Cooperate with the workers to ensure that all
work is done as per principles

Divide work and responsibility equally between
management and workers
Administrative Management

Henri Fayol was the first to identify the five
management functions Planning
 Organizing
 Leading
 Coordination
 Controlling
Administrative Management
Fayol’s 14 Principles of Management

Division of work
* Centralization

Authority
* Scalar Chain


Discipline
Unity of command
* Order
* Equity
* Stability of tenure

Unity of direction

Subordination of the individual * Initiative
interests to the general interests * Esprit de Corps

Remuneration
of personnel
(unity is strength)
Bureaucratic Model
 Max
Weber (1864-1920), analyzed
bureaucracy as the most logical and rational
structure for large organizations
 Bureaucracies
are founded on legal or rational
authority, which is based on law, procedures,
rules
The Behavioral / Neo-classical
Perspective

Emerged in the 1920s and dealt with the human
aspects of organizations

How people in the workplace interact together

Interactions between workers affected
productivity and hence should be used to
positively influence the same
The Behavioral Perspective
 The
Hawthorne Studies by Elton Mayo
 Significant
because they demonstrated the
important influence of human factors on worker
productivity
 Mayo
concluded that individual and social
relationships played a major role in shaping
workers attitudes and behavior at work
The Behavioral Perspective
 Thus
a manager's concern for workers will
lead to their increased satisfaction and
improved performance
 Includes
the need theories of motivation, such
as Maslow's hierarchy of needs, and
McGregor's Theory X and Theory Y
The Behavioral Perspective
 Behavioral
Scientists focused on human
behavior and the study of
 motivation
 leadership
 group dynamics
 participative management
The Quantitative Perspective
 Management
science focuses specifically on
the development of mathematical models
which help organizations experiment with
computers and identify the best way to do
things, saving money and time
The Quantitative Perspective
 Operations Management is an applied form
of management science that helps
organizations develop techniques to produce
their products and services more efficiently
The Quantitative Perspective

Management Information System converts
raw data into information and provides the
needed information to each manager at the
right time, in the needed form
Integrating Perspectives
The Systems Approach

That nothing exists in a vacuum-- that each
level of a company affects each other

And that each company exists in a system

And each system exists in a larger system
The Nature of Systems
A System in Interaction with its Environment
Sources of
energy,
materials,
information,
Human
Resources
Inputs
Transforming
mechanism
Outputs
Users
Internal Interface
Feedback Mechanisms
External
Interface
Feedback
Mechanisms
Integrating Perspectives
The Contingency Approach
Contingency perspective argues that
universal theories cannot be applied to
organizations because each is unique
Evaluate your situation, select the best
approach for that situation - and make
your personal style compatible with the
approach
Integrating Perspectives
The Contingency Approach

Emphasizes the fit between organization
processes and the characteristics of the
situation

Calls for fitting the structure of the
organization to various possible or chance
events
Modern Management Thought
Contributors:
Peter Drucker - MBO
William Ouchi - Theory Z
Michael Porter - Competitive Strategy
Blake & Mouton - Managerial Grid
McKinsey’s
- 7-S Framework
Boston Consulting Group (BCG) - Matrix