„Schools of

Management
Thought”
 Introduction 1/2
 The history of management can be
traced back to 5000 B.C. when the
agriculture revolution was at the
initial stage.
 In Egypt, in 2900 B.C., the pyramids
were built in a highly organised and
coordinated manner.
 Management skills can also be
found in the suave cities of
Mohanjo-Daro in Pakistan.
 Great example of management was
shown in the organised military of
Alexander the Great and Sun Tzu.
 Introduction 2/2
 In the field of business organisation,
some contributions have come from
Robert Owen, James Watt, Charles
Babbage etc..
 Robert Owen was one of the first to
'manage' rather than order his
workforce, and the first to attempt to
gain agreement for his ideas rather
than impose them on others (a worker
could not be sacked for disagreeing
with Owen). Additionally, he required
his managers to behave with some
autonomy. Managers (or
superintendents) were selected
carefully and trained to be able to act
in Owen's absence.
 Schools of Management Thought

 Classical School of Management

 Scientific Management

 Administrative Management

 Human-Relation School of Managemnt

 Mathematical or Quantitative School of Management

 Systems School of Management

 Contingency School of Management

 Schools of Management Thought

Each school tries to explain the

nature and content of management,
but with diffrent belief, view and
formats.
Homework
 Scientific Management

Fig. 4. Lilian and Frank

Gilbreth
Source: http://mustafamemisoglu.
blogspot.com/2008/03/frank-
Fig. 1. Frederic Winslow Fig. 2. Henry Ford Fig. 3. Henry Laurence Gantt
bunker-lillian-moller-gilbreth.html
Taylor Source: Source:
Source: https://en.wikipedia.org/wiki/ https://en.wikipedia.org/wiki/
https://en.wikipedia.org/wiki/ Henry_Ford Henry_Gantt
Frederick_Winslow_Taylor
 Friderick Winslow Taylor 1/2

 Use the scientific method to study work and determine the

most efficient way to perform specific tasks.

 Match workers to their jobs based on capability and

motivation, and train them to work at maximum efficiency.

 Monitor worker performance, and provide instructions

and supervision to ensure that they're using the most
efficient ways of working.

 Allocate the work between managers and workers so that

the managers spend their time planning and training,
allowing the workers to perform their tasks efficiently.
 Friderick Winslow Taylor 2/2

 The optimal weight that a worker

should lift in a shovel was 21
pounds.

 The shovel should be sized so that

it would hold 21 pounds of the
substance being shoveled.

 The firm provided the workers

with optimal shovels.

Result: Three to four fold increase in

productivity
Exercise 1.: Henry Ford – Facts &
Summary

Fig. 5. Model T
Source: http://zonderpump.com/image-post/1005-ford-model-t2-1.jpg.html#gal_post_1005_ford-model-t2-
1.jpg
 Lilian and Frank Gilbreth
 Frank and Lillian Gilbreth
invented and refined
therbligs, roughly between
1908 and 1924.

 Therbligs comprise a system

for analyzing the motions
involved in performing a task.

 The identification of individual

motions, as well as moments
of delay in the process, was Fig. 6. Therbligs
Source: https://en.wikipedia.org/wiki/Therblig
designed to find unnecessary
or inefficient motions and to
utilize or eliminate even split-
Administrative Management 1/4

Fig. 7. Henri Fayol Fig. 8. Max Weber

Source: Source:
https://en.wikipedia.org/wiki/ https://pl.wikipedia.org/wiki/
Henri_Fayol Max_Weber
 Administrative Management 2/4
 Division of labor. Specialization of labor results in increased
productivity. Both managerial and technical work are amenable
to specialization.
 Authority. Authority was defined by Fayol as the "right to give
orders and the power to exact obedience". It is needed to carry
out managerial responsibilities.
 Discipline. Employees must respect the rules that govern the
organization.
 Unity of command. Employees should receive orders from only
one superior.
 Unity of direction. Each group of activities in an organization
should be grouped together under one head and one plan.
 Subordination of individual interests to the general
interest. The interests of one person should not be placed
 Administrative Management 3/4

 Remuneration. Compensation should be based on systematic

attempt to reward good performance.
 Centralization. The degree to which centralization or
decentralization should be adopted depends on the specific
organization, but managers should retain final responsibility to do
the tasks successfully.
 Scalar chain. A chain of authority should extend from the top to
the bottom of the organization. This chain implements the unity-
of-command principle and allows the orderly flow of information.
 Order. Human and material resources must be in the right place
at the right time.
 Equity. Employees should be treated as equally as possible.
 Administrative Management 4/4

 Stability of personnel. Successful firms usually had a stable

group of employees.
 Initiative. Employees should have the freedom to take initiative.
 Esprit de corps. Managers should encourage a sense of unity of
effort through harmony of interests.
 Human-Relation School of
Management

Fig. 9. Elton Mayo Fig. 10. Abraham Maslow Fig. 11. Douglas McGregor
Source: Source: http://totallyhistory.com/ Source: http://club-
https://pl.pinterest.com/pin/ abraham-maslow/ barcelona1.blogs
136374694941934990/ pot.com/2007/09/american-
sociologist -douglas-
mcgregor.html
Elton Mayo - Hawthorne Studies 1/
 Elton Mayo - Hawthorne Studies 2/
 Elton Mayo was curious about
ways to increase productivity in
organizations. After being
awarded a grant by the National
Research Council of the National
Academy of Sciences, he decided
to study productivity at the
Western Electric factory,
Hawthorne Works, in Chicago.
Initially, he thought that lighting
levels would have an impact on
worker productivity, and he
predicted that the more light
there was, the more productive
the worker would be.
 Elton Mayo - Hawthorne Studies 3/
After three years of studying lighting, Mayo realized that
lighting had no impact at all on his test groups - the
productivity increased with brighter intensity, but also
with lower intensity.

 The presence of the researcher and

the attention that the workers
received during these tests seemed
to be what increased employee
productivity.
 Conclusions of Hawthorne Studies
 Workers’ attitudes are associated with
productivity.
 Workplace is a social system and informal group
influence could exert a powerfull effect on
individual behavior.
 The style of supervision is an important factor in
increasing workers’ job satisfaction.
 Organization should take steps to assist employees
in adjusting to organizational life by fostering
collaborative systems between labor and
 Douglas McGregor - Theory X
and theory Y 1/2
 Theory X managers tend to take a pessimistic
view of their people, and assume that they are
naturally unmotivated and dislike work. As a
result, they think that team members need to be
prompted, rewarded or punished constantly to
make sure that they complete their tasks.
 Work in organizations that are managed like this
can be repetitive, and people are often motivated
with a "carrot and stick" approach.
Performance appraisals and remuneration are usually
based on tangible results, such as sales figures or
product output, and are used to control staff and
"keep tabs" on them.
 Douglas McGregor - Theory X
and theory Y 2/2
 Theory Y managers have an optimistic, positive opinion of
their people, and they use a decentralized, participative
management style. This encourages a
more collaborative, trust-based relationship between
managers and their team members.
 People have greater responsibility, and managers encourage
them to develop their skills and suggest improvements.
Appraisals are regular but, unlike in Theory X organizations, they
are used to encourage open communication rather than control
staff.
Exercise 2.: Theory X/Y
 Quantitative School of Managemen

 The Quantitative School of

Management is a result of the
research conducted during World War
II.
 The Quantitative Approach to
management involves the use of
quantitative techniques, such as
statistics, information models, and
computer simulations, to improve
decision making.
 Systems School of Management 1/
Organization as an „open
system”

ENVIRONMENT

INPUTS TRANSFORMATION OUTPUTS

S
  Goods
Information  Social  Services
 Energy components  Ideas
 People  Technological

components

FEEDBACK (represents information related to the organizations' outcomes

or outputs. Leaders can use this information to influence or make
decisions related to the organization's inputs ).
 Systems School of Management 2/2

 Entropy is the tendency of systems to deteriorate or

break down over time.

 Synergy is the ability of the whole system to equal

more than the sum of its parts.
1+1=3
 Contingency School of Managemen

 The Contingency School of Management can be summarized

as an
“it all depends” approach.
 The appropriate management actions and approaches
depend on the situation.
 Managers with a contingency view use a flexible approach,
draw on a variety of theories and experiences, and
evaluate many options as they solve problems.

There is no one best way to manage

QUIZ
 Test

1. What is not a core component of

administrative management theory?

A. Formalized organizational structure

B. Flat organizational structure
C. Division of labor
D. Delegation of power
 Test
2. Who came up with the concept of a
therblig?
A.Frederick Taylor
B.Henry Ford
C.Frank and Lillian Gilbreth
D.Max Weber
 Test
3. What were the Hawthorne Studies?
A.A series of studies on James Hawthorne, a
Chicago factory worker
B.A series of studies on workers at a Western
Electric plant near Chicago
C.A series of studies on workers in Hawthorne,
Indiana
D.A series of studies on workers done by the
Hawthorne Research Institute
 Test
4. Which of the following is considered only
by the quantitative school of management?
A.Analysing the behaviour of employees in order to
make them more productive
B.Analysing the production process and striving to
find ways to make it more profitable
C.Analysis of data using statistical models and
simulations
D.Analysis of company productivity
 Test
5. The board of an IT company is discussing their new business
strategy to increase sales by 30%, although they are satisfied
with the current number of products they have. Based on
customer surveys that shows a demand for a longer battery life
for their top product, an expensive mobile phone, they have
added a much stronger battery to their product. Why is this an
example of an open system?

A.Because they are considering a new business strategy

B.Because they want to increase sales

C.Because they have a conservative approach regarding the number of

products they have

D.Because they are paying attention to customer demands