History and Evolution of Management Thoughts

1. Chapter-1
History and Evolution of
Management Thought

2. Introduction

3. Early Approaches to management
Robert Owen:
Human Resource Management Pioneer

4. Charles Babbage: Inventor
and Management Scientist

5. Andrew Ure and Charles Dupin:
Management Education Pioneers

6. Henry Robinson Towne
(1844 – 1924)

7. Classical Approach
Classical Management can be divided into
three separate schools:
 Scientific Management
 Administrative Approach
 Bureaucratic approach

8. Scientific Management
Some of the earliest advocates of
scientific management were:
 Fredrick Winslow Taylor
 Frank and Lillian Gilbreth
 Henry Gantt

9. Frederick Winslow Taylor
 Known as “father of scientific
management
 Soldiering Problem: An Insight
Workers indulge in soldiering for
three main reasons:
1. Fear of loss of job incase of
increased productivity
2. Faulty wage systems
3. Outdated methods of
working

10. Cont..
Major Managerial practices that emerged
from Taylor’s Approach:
 Piece-rate system
 Time-and-motion study

11. Frank and Lillian Gilbreth
 Frank Gilbreth – “Father
of motion study”
 Lillian Gilbreth associated
with research pertaining
to motion study
 Motion study:
The way of finding best
sequence and minimum
no. of motions.
- Classification Scheme
- Micro Motion Study

12. Henry Gantt (1861-1919)
 Task-and-bonus
system
 Gantt Chart

13. Limitations
 These principles focus on solutions of problems
from engineering point of view
 Motivated primarily by desire for material gains
 Ignore human desire for job satisfaction

14. Administrative Theory
Focus: coordination of internal
activities of organizations

15. Henry Fayol (1841-1925)
Developed general theory
of management.

16. Business Operations of an
Organisation
Acc. To Fayol, business operations of an organization
could be divided into 6 activities:
 Technical – Producing and manufacturing products
 Commercial - Buying, selling , exchange
 Financial – Search for optimal use of capital
 Security Activities - Protecting employees and property
 Accounting Activities - Recording and taking stock of
cost, profits and liabilities
 Managerial Activities - Planning, Organizing,
Commanding, Coordinating, Controlling

17. Managerial Activities

18. Principles of management
 Division of work
 Authority
 Discipline
 Unity of command
 Unity of direction
 Subordination of
individual interest
 Remuneration
 Centralization
 Scalar chain
 Order
 Equity
 Stability of tenure
 Initiative
 Esprit de corps

19. Bureaucratic Management
 Emphasized the need for
organizations to function on
a rational basis
 Observed practice of
nepotism and condemned it.
 Identified characteristics of
Bureaucracy.
 Bureaucracy derived from
German word buro, meaning
office.
 A highly structured,
formulized and impersonal
organization.

20. Characteristics of Weber’s Bureaucracy
 Work specialization
 Abstract rules and regulations
 Impersonality of Managers
 Hierarchy of organization structure

21. Advantages of Bureaucratic Management
 Help remove ambiguities and inefficiencies
that characterize many organizations.
 Undermine the culture of patronage that
he saw in conflict with the principle of
unity if control

22. Limitations of Bureaucratic Management and
Administrative theory
 Principles inapplicable to today's complex organizations.
 Fayol’s principle of specialization in conflict with principle
of unity of control.
 Principle characteristics of bureaucracy destroy creativity
and flexibility to respond to complex changes in global
environment.
 Classical Theorists ignored important aspects of
organizational behavior.
 Failed to consider impact of external and internal
environment upon employee behavior in organizations.

23. Behavioral Approach
Emphasis on Human Element

24. Mary Parker Follet: Focus on Group
Influences
 Human Element
 Groups
 Power Sharing
 Integrity

25. Elton Mayo: Focus on Human Relations
 Hawthorne Experiment:
four phases
 Illumination Experiments
 Relay Assembly Test
Room Experiment
 Interview Phase
 Bank wiring observation
room experiment

26. Contributions of the Experiment
Prejudgments
 Job performance
depends on the
individual worker
 Fatigue is the main
factor affecting output
 Management sets
production standards
Findings
 The group is the key
factor in job
performance
 Perceived meaning and
importance of the work
determine output
 Workplace culture sets
its own production
standard

27. Criticisms
 Analysis supported by little evidence
 Relationship between satisfaction and
productivity- too simplistic
 Failed to focus attention on the attitudes
of employees

28. What is Human Relations
Approach?

29. Limitations
 The approach says very little about
positive motivation
 It does not provide enough focus on work
 It tends to be very vague

30. Abraham Maslow
Three assumptions:
 Needs are never
completely fulfilled
 Through over actions we
satisfy our unsatisfied
needs
 Hierarchical of needs
1. Physiological Needs
2. Safety or security
needs
3. Social Needs
4. Self Fulfillment Needs

31. Maslow’s Hierarchy of Needs

32. Douglas McGregor
Challenging Traditional
Assumptions about
Employees

33. Theory X and Theory Y

35. Chris Argyris: Matching Human and
Organizational Development
Three major
contributions:
 Maturity-Immaturity
Theory
 Integration and
Organizational Goals
 Model I and Model II

36. Quantitative Approach

37. Quantitative Approach
 Emerged during World War II
 Includes:
 Application of statistics
 Optimization models
 Information Models
 Computer Simulations

38. Branches of quantitative approach:
 Management Science
 Operations Management
 Management Information System

39. Management Science
 Need for management science???
 Areas of usage:
 Capital Budgeting and cash flow management
 Production Scheduling
 Development of product strategies
 Planning for human resource development programs
 Maintenance of optimal inventory levels
 Aircraft Scheduling

40. Operations Management
 Operations Management:
Applied form of management science.
 Concerned with:
 Inventory Management
 Work Scheduling
 Production Planning
 Facilities, location and design
 Quality assurance

41. Management Information
System
Focus: Designing and
implementing computer based
information system

42. Modern Approaches To Management

43. Modern Approaches To Management
 System Theory
This system approach gives manager a new way
of looking at an organization as a whole and as
a part of the larger, external environment
 Two types of systems:
 Open System- which interacts with its
environment
 Closed System – which does not interact with its
environment

44. Contingency theory
 Also known as situational theory.
 According to this theory, there is no one
best way manage all situations
 Developed by managers, consultants and
researchers who tried to apply the
concepts of the major schools of
management thought to real life situation.

45. Emerging Approaches in
Management Thought
William Ouchi, conducted
research on both American
and Japanese management
approaches and outlined a
new theory called theory Z.

46. Theory Z
 Involves providing job security to employees.
 Ensures job rotation of employees to develop
their cross-rotational skills.
 Advocates participation of employees in the
decision making process
 Emphasizes on use of informal control in
organization.
 Shows concern for employee’s wellbeing
 Lays emphasis on their training and
development

47. Thank You