Topic 2
Chapter 2
Evolution of Fundamental
Management Theories
Learning Outcome
1. To differentiate between the
perspectives of classical,
behavioral and contemporary
viewpoints in the evolution of
management theories.
2. To apply the different perspectives
of management theories in
managing organizations today.
CLASSICAL
THEORY
EVOLUTION OF
MANAGEMENT
THOUGHT &
PRACTICES
BEHAVIOUR
AL THEORY
CONTEMPORA
RY THEORY
CONTINGEN
CY THEORY
Two Perspectives about
Management
Historical Perspective: includes
three viewpointsclassical,
behavioral, and quantitative.
Contemporary Perspective:
includes three viewpoints
systems, contingency, and
quality-management.
The Historical
Perspective
Classical
Viewpoint
Scientific
Management
Behavioral Viewpoint
Quantitative
Viewpoint
Early Behaviorists
Management
Science
Human Relations
Movement
Administrative
Management
Behavioral science
approach
Operations
Management
The Classical
Viewpoint
Classical Viewpoint: emphasized
finding ways to manage work more
efficiently, had two branches
scientific and administrative.
i) Scientific Management:
- Pioneered by Frederick Taylor
- emphasized the scientific study of
work methods to improve the
productivity of individual workers.
Scientific Management
4 Principles of Science
Pioneered by Frederick Taylor & Frank & Lillian
Gilbreth
Taylor believed: managers could eliminate
soldiering by applying these principles:
Evaluate a task by scientifically studying each part of
the task
Carefully select workers with the right abilities for the
task
Give workers the training and incentives to do the
task with the proper work methods
Use scientific principles to plan the work methods
and ease the way for workers do their jobs.
ii)
The Classical
Viewpoint
Administrative Management:
- approach of Henri Fayol and Max
Weber
- is concerned with managing with the
total organization.
- includes the ideas of the four
management functions (Fayol) and the
concept of bureaucracy (Weber)
The Rationality of Bureaucracy
Weber: a better-performing organization should
have five bureaucratic features:
A well-defined hierarchy of
authority
Formal rules and procedures
A clear division of labor
Impersonality
Careers based on merit
The Behavioral Viewpoint
Emphasized the
importance of
understanding human
behavior and of
motivating employees
toward achievement.
The Behavioral Viewpoint
1
Early Behaviorism: Approach of
Hugo Munsterburg, Mary Parker
Follet, Elton Mayo
- Hugo Munsterberg felt science
could contribute to industries in
three ways:
* Study jobs and determine which
people are best suited to specific
jobs
* Identify the psychological
conditions under which employees
did their best work
* Create management strategies to
influence employees to follow the
managements interests
The Behavioral Viewpoint
- Mary Parker Follett thought
organizations should become more
democratic, with managers and
employees working cooperatively
* Organizations should be operated
as communities
* Conflicts should be resolved and
find solutions that would satisfy
both parties
* The work process should be under
the control of workers with the
relevant knowledge
The Behavioral Viewpoint
Hawthorne effect
employees worked harder if
they received added
attention,
thought that managers cared
about their welfare and that
supervisors paid special
attention to them
by Elton Mayo
Human Relations
Movement:
-
Approach of Abraham Maslow,
Douglas McGregor
- Concern about better human
relations movement could improve
productivity
a) Abraham Maslow Proposed
the Hierarchy of Needs
Physiological, safety, social, esteem,
and self-actualization.
ABRAHAM
MASLOWS
HIERARCHY OF
NEEDS
Human Relations
Movement:
- Douglas McGregor proposed
Theory X and Y
* Theory X: pessimistic; negative
view of workers.
* Theory Y: optimistic; positive
view of workers.
Theory X Premises
A manager who views employees from a
Theory X (negative) perspective believes:
Employees inherently dislike work and,
whenever possible, will attempt to avoid it.
Because employees dislike work, they must
be coerced, controlled, or threatened with
punishment to achieve desired goals.
Employees will shirk responsibilities and
seek formal direction whenever possible.
Most workers place security above all
other factors associated with work and will
display little ambition.
A manager who views employees from a
Theory Y (positive) perspective believes:
Employees can view work as being as
natural as rest or play.
Men and women will exercise selfdirection and self-control if they are
committed to the objectives.
The average person can learn to
accept, even seek, responsibility.
The ability to make good decisions is
widely dispersed throughout the
population and is not necessarily the
sole province of managers.
The Behavioral Viewpoint
3
Behavioral Science:
*Relies on scientific research fo
developing theories about huma
behavior that can be used to pr
practical tools for managers.
Question?
John believes that individual
workers should be concerned
about productivity. He does
not allow them any input into
how to perform their job tasks.
What view does John have?
A. Scientific management
B. Administrative management
C. Behavioral science
D. Total Quality Management (TQM)
Veron manages a small coffee shop.
She believes it is important to
understand her employees behavior
and to help motivate them. Which
viewpoint does Veron have?
A. Scientific management
B. Administrative management
C. Behavioral
D.TQM
Anne has managed a Idas Club store for
many years. She believes her employees
are apathetic, irresponsible and must be
constantly supervised. What perspective
does Anne follow?
A. Theory X
B. Theory Y
C. Theory Z
D. Alphabet Theory
The Contemporary Viewpoint
System
Viewpoint
Quality Control
Contingency
Viewpoint
Quality
Assurance
Quality
Management
Viewpoint
Total Quality
Management
The Systems
System: is a set Viewpoint
of interrelated parts that operate
together to achieve a common purpose.
Looks at the organization as:
1) a collection of subsystems,
2) a part of a larger environment.
Subsystems: parts making up the
whole system.
The Four Parts of a System
Input
Transformational
Process
The people,
money,
information,
equipment and
materials required
to produce and
organizations
goods or services
The organizations
capabilities in
management and
technology that
are applied to
converting inputs
to outputs
Output
The products,
services, profits,
losses, employee
satisfaction or
discontent, and the
like that are produced
by the organization
Feedback
Information about the reaction of the environment to the
outputs that affect the inputs
Open and Closed
Systems
Open System: continually
interacts with its
environment; receives
sufficient feedback from
outside
Closed System: has
little interaction with its
environment; it receives
very little feedback
from the outside.
The Contingency Viewpoint
emphasizes that a managers
approach should vary
accordingly tothat is, be
contingent onthe individuals
and the environmental
situation.
Priya has many employees who have
spouses that are deployed in military
service. Even though there are
specific company rules regarding
attendance, she chooses to deal with
each employees issue on a case-bycase basis. This is an example of the
__________ viewpoint.
A.Operations
B.System
C.Project
D.Contingency
Reference
Chapter 2
Kinicki, A., & Williams,
B.K. (2013).
Management: A practical
introduction. (6th ed.).
New York: McGraw-Hill.
