1

1 Chapter - 02
2

Management History Module

2
3

1. Describe some early management

3 examples.
4
2. Explain the various theories in the
4 classical approach.
3. Discuss the development and uses of
the behavioral approach.
5 4. Describe the quantitative approach.
5. Explain various theories in the
contemporary approach.
Classical Approach
• The classical approach of management emphasized rationality and
making organizations and workers as efficient as possible.
• It represents the first studies of management.
• The Classical management theory is based on the belief that workers
only have physical and economic needs.
• It advocates a specialization of labor, centralized leadership and
decision-making, and profit maximization.
• Two major theories compose the classical approach:
1. Scientific management and
2. General administrative theory.
Scientific Management
• In 1911, Frederick Winslow Taylor’s Principles of Scientific
Management was published. It described the theory of scientific
management.
• He is called the father of scientific management.
• Scientific management is an approach that involves using the
scientific method to find the “one best way” for a job to be done. It is
concerned with improving the performance of individual workers.
• Taylor worked at the Midvale and Bethlehem Steel Companies in
Pennsylvania. His experiences at Midvale led him to define clear
guidelines for improving production efficiency.
Scientific Management (cont.)
He argued that these four principles of management would result in
prosperity for both workers and managers. That’s are:
1) Develop a science for each element of an individual’s work to replace
the old rule-of-thumb method.
2) Scientifically select and then train, teach, and develop the worker.
3) Heartily cooperate with the workers to ensure that all work is done
following the principles of the science that has been developed.
4) Divide work and responsibility almost equally between management
and workers. Management does all work for which it is better suited
than the workers.
General Administrative Theory
• General administrative theory focuses on describing what managers do
and what constitutes good management practice.
• It focuses on managing the total organization.
• Henri Fayol developed 14 principles of management—fundamental rules of
management that could be applied to all organizational situations and taught
in schools.
• Fayol’s work General and Industrial Management was translated into
English in 1930.
• He is called the father of management.
• While Taylor was concerned with first-line managers and the scientific
method, Fayol’s attention was directed at the activities of all managers.
 Fayol’s 14 Principles of Management
Unity of direction: The organization should
5 have a single plan of action to guide
managers and workers.

Unity of command: Every employee should

4
receive orders from only one superior.

Discipline: Employees must obey and

3
respect the rules that govern the organization

Authority: Managers must be able to give

2
orders, and authority gives them this right.

Division of work: Specialization increases

1 output by making employees more efficient.
 Fayol’s 14 Principles of Management
Order: People and materials should be in
10 the right place at the right time.

Scalar chain: The line of authority from top

management to the lowest ranks is the scalar 9
chain.
Centralization: This term refers to the
8 degree to which subordinates are involved in
decision-making.

Remuneration: Workers must be paid a fair

7
wage for their services.
Subordination of individual interests to the
6 general interest: The interests of any one employee or
group of employees should not take precedence over the
interests of the organization.
 Fayol’s 14 Principles of Management
Esprit de corps: Promoting team spirit will
build harmony and unity within the 14
Organization.

Initiative: Employees allowed to originate

13 and carry out plans will exert high levels of
effort.
Stability of tenure of personnel:
Organizations should ensure job stability to
enhance productivity and morale. 12
Employees must not frequently enter and
exit the firm.

Equity: Managers should be kind and

11
fair to their subordinates.
Max Weber’s Bureaucracy
• Max Weber (pronounced VAY-ber) was a German sociologist.
• In the early 1900s, developed a theory of authority structures and
relations based on an ideal type of organization he called a
bureaucracy.
• Bureaucracy is a form of organization characterized by division of
labor, a clearly defined hierarchy, detailed rules and regulations, and
impersonal relationships.
• Weber recognized that this “ideal bureaucracy” didn’t exist in reality.
• Instead, he intended it as a basis for theorizing about how work could
be done in large groups.
• His theory became the structural design for many of today’s large
organizations
Max Weber’s Bureaucracy
Division
Divisionof
ofLabor
Labor

Career
CareerOrientation
Orientation Authority
AuthorityHierarchy
Hierarchy

A bureaucracy
should have

Impersonality
Impersonality Formal
FormalSelection
Selection
Formal Rules and
Regulations

Exhibit 1: Characteristics of Weber’s Bureaucracy

System Theory
• System is an interrelated set of elements functioning as a whole.
• The two basic types of systems are closed and open.
✓Open systems are the system that interacts with its
environment.
✓ A closed system is a system that does not interact with its
environment.
• Subsystem is a system within another system.
• Synergy means two or more subsystems working together to produce
more than the total of what they might produce working alone.
• Entropy is a normal process leading to system decline.
System Theory
Environment

Organization

Transformation
Input Output
Process

Feedback

Environment

Exhibit 2: Organization as an Open System