History of

Management
 Early management Thought
• Management practice is as old as
human civilization.
• Management thought refers to the
theories that guide management of
the organizations.
• Initially, these theories developed out of
practical experience of managers in
the organizations. Later on, they
borrowed ideas from other fields of
study like science, anthropology,
sociology etc.
History of Management

• Management thought developed in the

mid-late 1800’s
• Ran parallel with the industrial revolution
– Prior to that time organizations were
small
– Agrarian society moved to a mass
production society
Management theories
• Pre-scientific theories (before 1880)
• Classical theories (1880-1930)
a. Taylor’s scientific management theory b. Fayol’s
administrative theory c. Weber’s bureaucracy theory

• Behavioral theories / Neo-classical (1930-1950)

a. Human relations theory b. Behavioral science theory

• Modern / Contemporary theories (1950 onwards)

a. Quantitative theory b. Systems theory c. Contingency
theory d. Operational theory
Timeline

Quality Viewpoint

Contingency Viewpoint

Systems Viewpoint

Behavioral Viewpoint

Traditional Viewpoint

1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
Five Viewpoints of Management

• Classical- late 1800’s

– Bureaucratic, Scientific, Administrative
• Behavioral- 1930’s, 40’s, 50’s
• Systems-50’s, 60’s, 70’s
• Contingency-60’s, 70’s, 80’s
• Quality-80’s, 90’s
Assumptions of Viewpoints

• Continuous viewpoints do not replace

each other but have differing perspectives
• All differ on how they view:
– behavior of individuals
– organizational goals
– issues that the organization faces
– how those issues should be resolved
Bureaucratic Management
Max Weber, 1864-1920

Bureaucracy

The exercise of control on the basis of

knowledge, expertise, or experience.
Aspects of Bureaucracy

• A rational method-scientific and logical

approach to business
• Formal Rules for uniformity
• Division of labor into specialized areas
• Hierarchy
• Set Decision/Power Structure
• Record keeping
Pros & Cons

• Positive aspects
– efficiency
– consistency
– set lines of communication
• Costs
– follows rigid rules for the sake of rules
– slow to change
– can’t respond to a dynamic environment
 Scientific Management
– Frederick W. Taylor (1856- 1915)
described scientific management as a
method of scientifically finding the “one
best/efficient way to do a job”.
– Time and motion study
– Standardization
– Training to workers
– Pay Differentials
– Specialization
– Employees are economically motivated
– Friendly management-labor relations
Taylor’s Four Management Principles

Rule
Rule of
of thumb
thumb should
should be
be replaced
replaced with
with science
science..

Scientifically
Scientifically select
select and
and then
then train,
train, teach,
teach, and
and
develop
develop the
the workman.
workman.

There
There should
should be
be harmony,
harmony, all
all work
work is
is done
done in
in
accordance
accordance with
with the
the principles
principles of
of the
the science.
science.
There
There is
is almost
almost equal
equal division
division of
of the
the work
work and
and the
the
responsibility
responsibility between
between management
management and and workmen.
workmen.
 General Administrative Theory

– Henri Fayol (1841-1925)

identified five management
functions and 14 management
principles.
– Management is a science that
can be learned.
– Focused on what constituted
good management.
 Administrative Management:
14 Principles
1.
1. Division
Divisionof
ofwork
work 8.
8. Centralization
Centralization
2.
2. Authority
Authorityand
and 9.
9. Scalar
Scalarchain
chain
responsibility
responsibility
3.
3. Discipline
Discipline 10.
10.Order
Order

4.
4. Unity
Unityof
ofcommand
command 11.
11.Equity
Equity
12.
12.Stability
Stabilityof
oftenure
tenure
5.
5. Unity
Unityof
ofdirection
direction of
ofpersonnel
personnel
6.
6. Subordination
Subordinationof of 13.
13. Initiative
Initiative
individual
individualinterests
interests
7.
7. Remuneration
Remuneration 14.
14. Esprit
Espritde
decorps
corps
 Cont’d..
• Scalar chain is a straight line or chain of authority
that runs from highest to lowest rank in the
organization.
• Unity of Direction Teams with the same objective
should be working under the direction of one
manager, using one plan
• Unity of Command states that employees should
receive orders and instructions from one boss only.
• Esprit de corps (Team spirit) feeling of enthusiasm,
devolution, loyalty, pride for a cause
Behavioral / Human relations
Approaches
• People and their behaviors matter within
the organization
• In light of that assumption this school
looks at how managers do their job in
order to affect the behavior of
subordinates.
• Efficiency alone is not enough to produce
organizational success.
• Success depends on treating workers well.
 The Hawthorne Studies: E. Mayo

• Conducted at the Western

Electric Company Works
these studies:
- Workers’ feelings and
attitudes affected their work.
- Financial incentives weren’t
the most important motivator
for workers.
- Group norms and behavior
play influence people
behavior at work.
Contd..

• Theorized that workers would be more

productive if given favorable working conditions.

• Found that the attention given to workers was

the variable that affected performance-
Hawthorne effect.
Quantitative / empirical approaches
• The quantitative approach applies statistics,
optimization models, information models,
computer simulations, and other quantitative
techniques to the management process.

• Use quantitative techniques to improve decision

making.

• Evolved from mathematical and statistical

solutions developed for military problems during
World War II.
Cont’d..

• Central to the quantitative approach is the

principle that organizations are decision-making
units. These decision-making units can be made
more efficiently using mathematical models that
place relevant factors into numerical terms.
Some techniques
• Theory of Probability,
• Sampling Analysis,
• Correlation / Regression Analysis,
• Time Series Analysis,
• Ratio Analysis,
• Variance Analysis,
• Statistical Quality Control,
• Linear Programming,
• Game Theory,
 Total Quality Management

• TQM is a management theory developed following WWII

during the reconstruction of Japan. It is a management
approach that focuses on the following elements of
operations: W. Edwards Deming and Joseph M. Duran ‘s
ideas became the basis for this approach.
 Customer Focus
 Employee Empowerment
 Final Product Quality
 Continuous Improvement
 Process Focused
 Accurate Measurement
 Operations management

• Operations management is a field of management

focusing on efficiency, effectiveness, and producing or
organizational systems, process, and functions used in
the manufacture of goods or provision of services. It
focuses on the operation and control of the production
process that transform resources into finished goods and
services.
• It is a derivative of the mathematical models in which
specified measurement systems are applied to
operational scenarios. These methods are used to
achieve a higher level of efficiency in operational tasks,
such as plant layout, plant location, inventory control, and
product distribution.
Operations Management Tools

Quality
Qualitycontrol
control
Forecasting
Forecastingtechniques
techniques
Capacity
Capacityplanning
planning
Productivity
Productivitymeasurement
measurementand
andimprovement
improvement
Linear
Linearprogramming
programming
Scheduling
Schedulingsystems
systems
Inventory
Inventorysystems
systems
Work
Workmeasurement
measurementtechniques
techniques
Project
Projectmanagement
management
Cost-benefit
Cost-benefitanalysis
analysis
 Management information systems
• MIS is the recent branch of the quantitative school. MIS
organizes past, present, and projected data from both
internal and external sources and processes it into usable
information, which it then makes available to managers at
all organizational levels.

• The information systems are also able to organize data

into usable and accessible formats. As a result, managers
can identify alternatives quickly, evaluate alternatives by
using a spreadsheet program, pose a series of “what‐if”
questions, and finally, select the best alternatives based
on the answers to these questions.
Contemporary approaches to
Management

Operations
Operations Management
Management Systems
Systems Management
Management

Information
Information Management
Management Contingency
Contingency Management
Management
Systems approach
Systems theory, organizations are seen as
systems composed of a set
of interdependent parts which co-ordinate
their efforts in order to achieve common
goals. Organizational systems operate on the
basis of four elements:
Inputs, Transformation, Output, and
Feedback
Cont’d..

• This approach allows managers to assess their

organization’s interaction with the larger
environment. An open system is an
organizational system which interacts with its
environment whereas a closed system is one that
does not do so and is therefore self-sufficient.
However, in reality, an organization cannot be a
totally closed system because for survival, an
organization has to interact with its
environment.
Systems approach
 Contingency Approach
• Fred Feildler (1922-2017) first popularized the
contingency approach (or situational approach)
which says that organizations, employees, and
situations are different and require different ways of
managing.

• Holds that the most effective management

theory or idea depends on the kinds of
problems or situations that managers are
facing at a particular time and place.
 Cont’d..

• The contingency theory therefore supports the

view that "there is no one best way to
manage" and emphasizes the use of any
management approach suited to the organizational
situation and helps managers to manage more
effectively. This theory implies that managers can
make decisions based on the situation at hand
rather than a "one size fits all" method. A
manager takes appropriate action based on
aspects most important to the current situation
A quick recap…..

https://www.youtube.com/watch?v=EobeHw
Ow3S4
 Questions ?

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