03. evolution of management

7/31/2019 03. Evolution of Management

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The Evolution of Management Theory



Theories of Management

Scientific

Management

Bureaucratic

Management

Administrative

Management

Classical

Theories

Behaviourist

Theories

Hawthorne

Studies

Human

Relations

Behavioural

Science

Behavioural

Theories

Management

Science

Operations

Management

Management

Information

Systems

Quantitative

Theories

Systems

Theory

Contingency

Theory

Emerging

Views

Contemporary

Theories

Management

TheoryCLASSICAL

THEORI

ES SCIENTI

FIC

MANAG

EMENT



Frederick Taylor

Developed the specific principles of ScientificManagement

Scientific Management

The systematic study of the relationships betweenpeople and tasks for the purpose of redesigningthe work process for higher efficiency.

Defined by Frederick Taylor in the late 1800’s to replaceinformal rule of thumb knowledge.

Taylor sought to reduce the time a worker spent oneach task by optimizing the way the task was done.



Taylor’s 4 Principles of

Scientific Management • Scientifically study each part of a task and

develop the best method for performing

the task

• Carefully select workers and train them to

perform the task by using the scientificallydeveloped method



Taylor’s 4 Principles of

Scientific Management • Cooperate fully with workers to ensure

that they use the proper method

• Divide work and responsibility so thatmanagement is responsible for planning

work methods using scientific principlesand workers are responsible for executingthe work accordingly



Problems with Scientific Management

• Managers frequently implemented only the increasedoutput side of Taylor’s plan.

– Workers did not share in the increased output.

• Specialized jobs became very boring, dull.

– Workers ended up distrusting the Scientific Management

method.• Workers could purposely “under-perform.”

– Management responded with increased use of machines andconveyors belts.



Administrative Management

Theory• Administrative Management

–The study of how to create an organizational

structure that leads to high efficiency andeffectiveness.

•Max Weber

–Developed the concept of bureaucracy as aformal system of organization andadministration designed to ensure efficiencyand effectiveness.



Weber’s Principles of Bureaucracy

Figure 2.2



Weber’s Five Principles of

Bureaucracy• Authority is the power to hold people

accountable for their actions.

• Positions in the firm should be held based onperformance, not social contacts.

• Position duties are clearly identified so thatpeople know what is expected of them.

• Lines of authority should be clearly identifiedsuch that workers know who reports to who.

• Rules, standard operating procedures (SOPs),

and norms guide the firm’s operations.



Fayol’s Principles of Management

• Division of Labor: allows for jobspecialization.

– Fayol noted jobs can have too much

specialization leading to poor quality andworker dissatisfaction.

• Authority and Responsibility

– Fayol included both formal and informalauthority resulting from special expertise.

• Unity of Command

– Employees should have only one boss.



Fayol’s Principles of Management (cont’d)

• Line of Authority

– A clear chain of command from top to bottom of thefirm.

• Centralization

– The degree to which authority rests at the top of theorganization.

• Unity of Direction – A single plan of action to guide the organization.



Fayol’s Principles of Management(cont’d)

• Equity

– The provision of justice and the fair andimpartial treatment of all employees.

• Order

– The arrangement of employees where theywill be of the most value to the organization

and to provide career opportunities.

• Initiative

– The fostering of creativity and innovation by

encouraging employees to act on their own.




• Discipline

– Obedient, applied, respectful employees arenecessary for the organization to function.

• Remuneration of Personnel – An equitable uniform payment system that motivates

contributes to organizational success.

• Stability of Tenure of Personnel

– Long-term employment is important for thedevelopment of skills that improve the organization’sperformance.




• Subordination of Individual Interest to theCommon Interest

– The interest of the organization takesprecedence over that of the individualemployee.

• Esprit de corps – Comradeship, shared enthusiasm fosterdevotion to the common cause (organization).




Scientific

Management

Bureaucratic

Management

Administrative

Management

Classical

Theories

Behaviourist

Theories

Hawthorne

Studies

Human

Relations

Behavioural

Science

Behavioural

Theories

Management

Science

Operations

Management

Management

Information

Systems

Quantitative

Theories

Systems

Theory

Contingency

Theory

Emerging

Views

Contemporary

Theories

Management

Theory

BEHAVIO

URAL

THEORIE

S

AWTHORNE

TUDIES



Behavioural Theories

Emphasise the importance of

attempting to understand thevarious factors that affecthuman behaviour in

organisations.



The Hawthorne Studies

A group of studies conducted atthe Hawthorne plant of the

Western Electric Company duringthe late 1920’s and early 1930’s



Hawthorne Studies

Researchers monitored the productivity of fivewomen who assembled electrical relays for

several years.




Scientific

Management

Bureaucratic

Management

Administrative

Management

Classical

Theories

Behaviourist

Theories

Hawthorne

Studies

Human

Relations

Behavioural

Science

Behavioural

Theories

Management

Science

Operations

Management

Management

Information

Systems

Quantitative

Theories

Systems

Theory

Contingency

Theory

Emerging

Views

Contemporary

Theories

Management

Theory

BEHAVIOURAL

THEORIES

HUMAN

RELATI

ONS



Maslows

Hierarchyof Needs

Basic Needs Safety & Security

Needs

Social

Needs

Self Esteem

Self Actualisation



Theory X & Theory Y

Theory X • The average person dislikes work and will try

to avoid it.

• Most people need to be coerced, controlled,directed, and threatened with punishment toget them to work towards organisationalgoals.

• The average person WANTS to be directed,shuns responsibility, has little ambition, andseeks security above all.



Theory X & Theory Y

Theory Y • Most people do not inherently dislike work; it

is seen as natural as recreation and rest.

• People will exercise self-direction and self-control to reach goals to which they arecommitted.

• Commitment to goals is a function of therewards available; particularly esteem andself-actualisation needs.



Theory X & Theory Y

Theory Y • When conditions are favourable, the average

person learns not only to accept

responsibility, but also to seek it.• Many people have the capacity to exercise a

high degree of creativity and innovation insolving organisation problems.

• The intellectual potential of most individualsis only partially utilised in most organisations.




Scientific

Management

Bureaucratic

Management

Administrative

Management

Classical

Theories

Behaviourist

Theories

Hawthorne

Studies

Human

Relations

Behavioural

Science

Behavioural

Theories

Management

Science

Operations

Management

Management

Information

Systems

Quantitative

Theories

Systems

Theory

Contingency

Theory

Emerging

Views

Contemporary

Theories

ManagementTheory

QUANTITATIVE

THEORIES

MANAGEMENT

INFORMATION

SYSTEMS



Management InformationSystems

Focuses on designing andimplementing computer-basedinformation systems for use bymanagement.

These systems turn raw data intoinformation that is useful to variouslevels of management.




Scientific

Management

Bureaucratic

Management

Administrative

Management

Classical

Theories

Behaviourist

Theories

Hawthorne

Studies

Human

Relations

Behavioural

Science

Behavioural

Theories

Management

Science

Operations

Management

Management

Information

Systems

Quantitative

Theories

Systems

Theory

Contingency

Theory

Emerging

Views

Contemporary

Theories

ManagementTheory

CONTEMPORARY

THEORIES SYSTEMS

THEORY



Systems Theory

Based on the idea thatorganisations can bevisualised as systems

System

A set of interrelated partsthat operate as a whole inpursuit of common goals



Systems Theory

Developedthrough the

sciences of Biology andPhysical

Science



Inputs Transformation

Processes

Outputs

Feedback from Environment

Resources

•Human

•Materials

•Equipment

•Finance

•Information

Abilities

•Planning

•Organising

•Leading

•Control

•Technology

Outcomes

•Products

•Services

•Profit & Losses

•EmployeeGrowth &

Satisfaction



Open vs. Closed Systems

Closed System A system that does little or no

interacting with its

environment and receiveslittle feedback

Open System

A system that operates incontinual interaction with its

environment




Scientific

Management

Bureaucratic

Management

Administrative

Management

Classical

Theories

Behaviourist

Theories

Hawthorne

Studies

Human

Relations

Behavioural

Science

Behavioural

Theories

Management

Science

Operations

Management

Management

Information

Systems

Quantitative

Theories

Systems

Theory

Contingency

Theory

Emerging

Views

Contemporary

Theories

ManagementTheory

CONTEMPORARY

THEORIES

CONTINGENCY

THEORY



Contingency Theory

A viewpoint that argues thatappropriate managerial action dependson the circumstances of the situation.

In other words ………..

there is no single right way to manage



Contingency Theory

UniversalManagement

Principals

Contingency ViewAppropriate

managerial

action depends on

situation

Situation A

Situation B Situation C



Contingency Theory

03. evolution of management

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