The Evolution and The Evolution and Theories of Theories of

Management Management

Introduction To TheoryIntroduction To Theory Theory is known as body of principles as in mathematics Theory is known as body of principles as in mathematics

they are known as theorems. they are known as theorems.

As Mathematical theorems which explains certain As Mathematical theorems which explains certain phenomena and tries to give a clear, systematic view of the phenomena and tries to give a clear, systematic view of the subject, on the same lines management theories clarify subject, on the same lines management theories clarify different concepts of management in a clear and different concepts of management in a clear and systematical manner. These theories makes management systematical manner. These theories makes management teachable. teachable.

The main objectives of management theory is to help The main objectives of management theory is to help to improve the practice and utility of management. to improve the practice and utility of management. The art and quality of management can only be The art and quality of management can only be improved by knowledge and understanding of improved by knowledge and understanding of theory.theory.

One can study the evolution of management by One can study the evolution of management by dividing the theories of management into three dividing the theories of management into three stages.stages.

The Evolution of Management The Evolution of Management ThoughtThought A great deal of management knowledge comes from A great deal of management knowledge comes from

the autobiographies and memoirs of people who the autobiographies and memoirs of people who practiced management. practiced management.

Many individuals whose interest in management was or Many individuals whose interest in management was or is strictly scientific also have contributed knowledge to is strictly scientific also have contributed knowledge to the field. the field.

Management professors, psychologists, sociologists, Management professors, psychologists, sociologists, and anthropologists consider management to be a and anthropologists consider management to be a social phenomenon and managers to be an important social phenomenon and managers to be an important social resource. social resource.

Numerous other professions such as mathematics, Numerous other professions such as mathematics, accounting, economics, law, political science, accounting, economics, law, political science, engineering, and philosophy also have contributed to engineering, and philosophy also have contributed to the understanding of management. the understanding of management.

Numerous other professions such as mathematics, accounting, Numerous other professions such as mathematics, accounting, economics, law, political science, engineering, and philosophy economics, law, political science, engineering, and philosophy also have contributed to the understanding of management. also have contributed to the understanding of management.

With so many individuals with different purposes and such With so many individuals with different purposes and such diverse fields of study contributing to understanding, we face a diverse fields of study contributing to understanding, we face a problem problem

The knowledge must be organized so that it becomes The knowledge must be organized so that it becomes meaningful and useful. meaningful and useful.

Approaches To Approaches To ManagementManagement

According to the schools of Management According to the schools of Management thought the growth of modern management thought the growth of modern management techniques began with the industrial techniques began with the industrial revolution in England during the 18revolution in England during the 18thth and 19 and 19thth centuries. Many important inventions has led centuries. Many important inventions has led the production on large scale and introduction the production on large scale and introduction of division of labour .of division of labour .

Cont’dCont’d There was a great need of persons who could There was a great need of persons who could

manage big industrial enterprises.manage big industrial enterprises. The above development led to the emergence The above development led to the emergence

to different schools of thought of management.to different schools of thought of management.

Harold Koontze, mgt writer, call the Harold Koontze, mgt writer, call the resulting arrary “ the management theory resulting arrary “ the management theory jungle”jungle”

Schools of Management thoughtsSchools of Management thoughts

Classical theoryClassical theory1.1. BureaucracyBureaucracy

2.2. Scientific Management approachScientific Management approach

3.3. Management Process or Administrative ManagementManagement Process or Administrative Management

Neo-Classical theory or Human relations ApproachNeo-Classical theory or Human relations Approach

The modern management theoriesThe modern management theories1.1. Quantitative or Management Science ApproachQuantitative or Management Science Approach

2.2. Systems approachSystems approach

3.3. Contingency ApproachContingency Approach

Classical TheoryClassical Theory

It signifies the beginning of the systematic It signifies the beginning of the systematic study of management organization. The study of management organization. The classical writers thought of the organization in classical writers thought of the organization in terms of its purpose and formal structure.terms of its purpose and formal structure.

Emphasis on the planning of work, the Emphasis on the planning of work, the technical requirements of the organization, technical requirements of the organization, Principles of management, and the assumption Principles of management, and the assumption of rational and logical behaviour.of rational and logical behaviour.

The Classical ApproachThe Classical Approach

The classical approach to management can be better The classical approach to management can be better understood by examining it from three perspectives. understood by examining it from three perspectives. These perspectives are: These perspectives are:

Max Weber’s Ideal BureaucracyMax Weber’s Ideal Bureaucracy

Frederick W. Taylor’ scientific managementFrederick W. Taylor’ scientific management: The : The practices introduced by to accomplish the management practices introduced by to accomplish the management job. Taylor advocated the use of scientific procedures job. Taylor advocated the use of scientific procedures to find the "one best way" to do a job.to find the "one best way" to do a job.

Fayol’s Administrative ManagementFayol’s Administrative Management

Bureaucratic Model by Bureaucratic Model by Max Webber in 1900Max Webber in 1900

The BM was introduced by Max Webber The BM was introduced by Max Webber who was a German sociologist, was the who was a German sociologist, was the chief advocator of the Bureaucratic chief advocator of the Bureaucratic model. model.

Bureaucratic theory is based on rigours Bureaucratic theory is based on rigours rules and regulation without scope for rules and regulation without scope for innovationinnovation

Main featuresMain features Rules and RegulationsRules and Regulations Hierarchy of AuthorityHierarchy of Authority Technical CompetenceTechnical Competence Division of WorkDivision of Work Record keepingRecord keeping Impersonal RelationsImpersonal Relations

Scientific Management:Scientific Management:

Fredrick Winslow Taylor (F.W. Taylor) Fredrick Winslow Taylor (F.W. Taylor) was the father of scientific management. was the father of scientific management. He recognized and emphasized the need He recognized and emphasized the need for adopting a scientific approach to the for adopting a scientific approach to the task of managing an enterprise. He task of managing an enterprise. He started his career as a ordinary worker started his career as a ordinary worker and then become the operation manager and then become the operation manager of that very organisation.of that very organisation.

During his study in that During his study in that company he felt that:company he felt that:

The industrial resources are not being fully The industrial resources are not being fully utilizedutilized

Most of the business houses are being Most of the business houses are being managed by the rule of thumb. managed by the rule of thumb.

There is no proper division of responsibilities There is no proper division of responsibilities between the workers and managementbetween the workers and management

There is no scientific efforts had been made to There is no scientific efforts had been made to determine exact nature of the work to be done determine exact nature of the work to be done and the best way of doing that and the best way of doing that

F.W. Taylor’s contribution has F.W. Taylor’s contribution has broadly two dimensions broadly two dimensions 1.1. Mechanical sideMechanical side

Here the Taylor introduced time and motion studies, Here the Taylor introduced time and motion studies, standardized of tools, methods and working conditions, standardized of tools, methods and working conditions, differential piece rate for the payment of wages etc.differential piece rate for the payment of wages etc.

2.2. Philosophical sidePhilosophical side

He tried to develop the management based on He tried to develop the management based on scientific lines, which demands a proper understanding scientific lines, which demands a proper understanding of Taylor’s philosophy. of Taylor’s philosophy.

Principles of Scientific Principles of Scientific ManagementManagement

1.1. Principle of replacement of old rule of thumb Principle of replacement of old rule of thumb method. Emphasis on scientific task planning.method. Emphasis on scientific task planning.

2.2. Principle of scientific selection and training of Principle of scientific selection and training of workersworkers

3.3. Principle of co-operation between labour and Principle of co-operation between labour and managementmanagement

4.4. Principle of maximum output.Principle of maximum output.

5.5. Principle of equal division of responsibility Principle of equal division of responsibility

Fayol’s Administrative Fayol’s Administrative ManagementManagement

Division of Industrial ActivitiesDivision of Industrial Activities

Technical (relating to production)Technical (relating to production)

Commercial (buying, selling and exchange)Commercial (buying, selling and exchange)

Financial (search for capital and its optimum use)Financial (search for capital and its optimum use)

Security (protection of property and persons)Security (protection of property and persons)

Accounting (preparation of various statements, accounts)Accounting (preparation of various statements, accounts)

Managerial (planning, org, command, co-ordination and controlManagerial (planning, org, command, co-ordination and control

Qualities of an Effective ManagerQualities of an Effective Manager Functions of managementFunctions of management Principles of ManagementPrinciples of Management

Neo Classical Theory (1930-Neo Classical Theory (1930-1950)1950)

During this period, the human relations During this period, the human relations made very significant contributions to the made very significant contributions to the management thought. Elton Mayo’s management thought. Elton Mayo’s “Hawthorne Experiments conducted at “Hawthorne Experiments conducted at Western Electric Company between Western Electric Company between 1927-1932 are worth mentioning in this 1927-1932 are worth mentioning in this connection.connection.

Human Relation Human Relation ApproachApproach

The term human relations refers to the manner in which The term human relations refers to the manner in which managers interact with subordinates. To develop good human managers interact with subordinates. To develop good human relations, followers of this approach believe, managers must relations, followers of this approach believe, managers must know why their subordinates behave as they do and what know why their subordinates behave as they do and what psychological and social factors influence them. psychological and social factors influence them.

Students of human relations brought to the attention of Students of human relations brought to the attention of management the important role individuals play in determining management the important role individuals play in determining the success or failure of an organization. They tried to show the success or failure of an organization. They tried to show how the process and functions of management are affected by how the process and functions of management are affected by differences in individual behavior and the influence of groups differences in individual behavior and the influence of groups in the workplace. Thus, while scientific management in the workplace. Thus, while scientific management concentrated on the concentrated on the physicalphysical environment of the job, human environment of the job, human relations concentrated on the relations concentrated on the socialsocial environment. environment.

Elton Mayo’s “Hawthorne Elton Mayo’s “Hawthorne ExperimentsExperiments

Illumination ExperimentsIllumination Experiments Relay Assembly Test GroupRelay Assembly Test Group Interviewing ProgrammeInterviewing Programme The Bank Wiring Observation Room The Bank Wiring Observation Room

Experiment Experiment

Behavioural Science Behavioural Science ApproachApproach

This study was carried out by behavioual This study was carried out by behavioual scientists who were trained in social sciences scientists who were trained in social sciences like psychology, sociology and anthropology. like psychology, sociology and anthropology.

They began to study people at work. They had They began to study people at work. They had advanced training in applying the scientific advanced training in applying the scientific approach to the study of human behavior. approach to the study of human behavior. These individuals are known as These individuals are known as behavioral behavioral scientistsscientists, and their approach is considered to , and their approach is considered to be distinct from the human relations approach. be distinct from the human relations approach.

AssumptionsAssumptions

It is based on social and psychological It is based on social and psychological aspects of control and self development.aspects of control and self development.

Management attitude towards human Management attitude towards human behavior should be positive.behavior should be positive.

Individual behavior is closely linked with Individual behavior is closely linked with the behavior of the groups to which he the behavior of the groups to which he belongs.belongs.

Features Features Individual differ in terms of their attitude, perception and Individual differ in terms of their attitude, perception and

value systemvalue system

Employees working in an organization have their needs and Employees working in an organization have their needs and goals which may differ from organization‘s needs and goals which may differ from organization‘s needs and goals.goals.

Informal leadership, rather than authority of Informal leadership, rather than authority of officer/supervisors is more important for setting and officer/supervisors is more important for setting and enforcing group standards of performers.enforcing group standards of performers.

Most of the employees by their nature enjoy work and are Most of the employees by their nature enjoy work and are motivated by self-forces like one’s perception, attitudes, motivated by self-forces like one’s perception, attitudes, habits and socio-cultural environment also shape behavior.habits and socio-cultural environment also shape behavior.

contributioncontribution

Development of need hierarchy to explain Development of need hierarchy to explain human behaviour and the dynamics of human behaviour and the dynamics of motivation process.motivation process.

Douglas McGregor’s theory of X and Theory YDouglas McGregor’s theory of X and Theory Y Frederick Herzberg developed a two-factor Frederick Herzberg developed a two-factor

theory of motivation.theory of motivation. Chester Barnard’s Social Systems Approach Chester Barnard’s Social Systems Approach

The behavioural sciences approaches The behavioural sciences approaches gives emphasis on increasing gives emphasis on increasing productivity through motivation, productivity through motivation, leadership, communication, participative leadership, communication, participative management and group dynamics.management and group dynamics.

Difference BetweenDifference Between

Human Relations Human Relations ApproachApproach

Behavioural sciences Behavioural sciences ApproachApproach

Emphasis on the Emphasis on the individual, his needs individual, his needs and behaviorand behavior

Stressed upon groups Stressed upon groups and group behaviorand group behavior

The management science The management science approachapproach

The management science approach is in one The management science approach is in one sense a modern version of the early emphasis sense a modern version of the early emphasis on the "management of work" by those on the "management of work" by those interested in scientific management. Its key interested in scientific management. Its key feature is the feature is the use of mathematics and statistics use of mathematics and statistics to aid in resolving production and operations to aid in resolving production and operations problemsproblems. Thus, the approach focuses on . Thus, the approach focuses on solving technical rather than human behavior solving technical rather than human behavior problems. The computer has been of problems. The computer has been of tremendous value to this approach because it tremendous value to this approach because it has enabled analyses of problems that would has enabled analyses of problems that would otherwise be too complex. otherwise be too complex.

Quantitative school of Quantitative school of ManagementManagement

This approach or school used scientific This approach or school used scientific tools for providing a quantitative base for tools for providing a quantitative base for managerial decisions which include:managerial decisions which include:

Linear programmingLinear programming Critical Path Method (CPM)Critical Path Method (CPM) Programme Review Technique (PERT)Programme Review Technique (PERT) Break Even Analysis, Return on Break Even Analysis, Return on

InvestmentInvestment

In fact this approach used mathematical In fact this approach used mathematical formulas for finding solutions to the formulas for finding solutions to the problems that was previously not much in problems that was previously not much in practice.practice.

The Systems Approach The Systems Approach

the systems approach , stresses that the systems approach , stresses that organizations must be viewed as organizations must be viewed as systems with each part linked to every systems with each part linked to every other part. other part.

the contingency the contingency approachapproach

the contingency approach , stresses that the contingency approach , stresses that the correctness of a managerial practice the correctness of a managerial practice is contingent on how it fits the particular is contingent on how it fits the particular situation to which it is applied; in other situation to which it is applied; in other words, it "depends on the situation. words, it "depends on the situation.