SCRIPT

Subject: Management
Chapter 2: THE EVOLUTION OF MANAGEMENT THEORIES
Topic 1: Classical approaches to management

Slide Content
Hello everybody,
We have studied the goal and concept of management, also realized managers’
tasks and their skills. Today, we are going to look back on the evolution of
management thought. After studying this chapter, you should be able to use
Slide 2
English to:
 Describe the process of the evolution of management theories
 Explain the theories of management from the classical to the contemporary
approach.
In this chapter, we study three topics: (1) Classical approaches to management;
Slide 3 (2) Behavioral approach to management; (3) Contemporary approaches to
management.
Topic 1: Classical approaches to management. After studying this topic, you
should be able to use English to:
Slide 4  Describe the process of the evolution of management theories.
 Explain classical management theories that contributed to increasing
organizational effectiveness and efficiency.
Slide 5 The first objective of the topic is to describe the process of the evolution of
management theories. The driving force behind the evolution of management
theory is the search for better ways to use organizational resources to make goods
and services. The theories of management from the searches have evolved since
the 1900s.
First, classical management theories emerged around the turn of the 20 th century.
 The theory includes scientific management and administrative management.
Particularly, scientific management focuses on matching people and tasks to
maximize efficiency, and administrative management focuses on identifying the
principles that will lead to the creation of the most efficient system of organization
and management. Next, behavioral management theories developed both before
and after world war II. These theories focus on how managers should lead and
control their workforces to increase performance. Then, management science
theory was developed during world war II. It has become increasingly important
when researchers have developed rigorous analysis by quantitative techniques to
help managers measure and control organizational performance. Finally,
organizational environment theory was elaborated from the middle to the late 20 th
century to identify effects in management practice, and help managers find out the
best way to manage an organization efficiently. These are the process of the
evolution of management theories, also the theories that we discover afterward.
Now, we discover the first theory in the evolution of management theories,
Classical Management. The theory emphasized rationality and making
organizations and workers efficiently. Two major theories comprise the classical
approach: scientific management and administrative management. The two most
Slide 6 important contributors to scientific management theory were Frederick W. Taylor
and the husband-wife team of Frank and Lillian Gilbreth. The two most important
contributors to administrative management theory were Henri Fayol and Max
Weber. Let’s take a look at each of these important figures in management
history.
Slide 7 The first figure of scientific management is Frederick Winslow Taylor who was
born in 1856 and died in 1915. He was a best known American mechanical
engineer for defining the techniques of scientific management. According to
Taylor, the way to create the most efficient division of labor could best be
determined by scientific management techniques. Based on his experiments and
 observations as a manufacturing manager in a variety of organizations, he
developed four principles to increase efficiency in the workplace.
Principle 1: Study the way workers perform their tasks, gather all the informal
job knowledge that workers possess, and experiment with ways of improving how
tasks are performed. For example, Taylor found ways to improve each worker’s
ability to perform a particular task by reducing the number of motions workers
made to complete the task, or by changing the layout of the work area or the type
of tools workers used, or by experimenting with tools of different sizes.
Principle 2: Codify the new methods of performing tasks into written rules and
standard operating procedures.
Principle 3: Carefully select workers who possess skills and abilities that match
the needs of the task, and train them to perform the task according to the
established rules and procedures.
Principle 4: Establish a fair or acceptable level of performance for a task, and
then develop a pay system that rewards performance above the acceptable level.
The second figures of scientific management are Frank Bunker Gilbreth (1868-
1924) and his wife Lillian Evelyn Gilbreth (1878-1972) were pillars of the
Scientific Management movement in the first half of the 20th century. They
contributed three ways to increase the following efficiency:
1. Analyze every necessary action of an individual to perform a task.
2. Find better ways to perform each action.
Slide 8 3. Reorganize each of the actions to complete the task efficiently.
In summary, the search for efficiency started with the study of how managers
could improve person–task relationships to increase efficiency. The concept of job
specialization and division of labor remains the basis for the design of work
settings in modern organizations. New developments such as lean production and
total quality management are often viewed as advances in the early scientific
management principles developed by Taylor and the Gilbreths.
 Now we move on to administrative management theory. The study of how to
create an organizational structure and control system that leads to high efficiency
and effectiveness. Organizational structure is the system of task and authority
Slide 9
relationships that controls how employees use resources to achieve the
organization’s goals. The typical researchers of the theory are Max Weber, Henri
Fayol.
The first leading figure of administrative management theory was Max Weber
who was born in 1864 and died in1920. He developed the principles of
bureaucracy - a formal system of organization and administration designed to
ensure efficiency and effectiveness. A bureaucratic system of administration is
based on the following five principles.
Principle 1: Formal authority derives from one’s position inside the organization.
Slide 10 Principle 2: Individuals occupy positions because of their performance.
Principle 3: Each individual’s authority and responsibilities are specified by the
organization.
Principle 4: Authority is exercised effectively when positions are arranged
hierarchically.
Principle 5: Rules of the organization are followed and control individual
behavior.
Slide 11 The second well-known figure of administrative management theory is Henri
Fayol who was born in 1841 and died in1925. He identified 14 principles that he
believed essential to increase the efficiency of the management process.
1. Division of labor: Job specialization and the division of labor should
increase efficiency, especially if managers take steps to lessen workers’
boredom.
2. Authority and responsibility: Managers have the right to give orders and
the power to exhort subordinates for obedience.
3. Unity of command: An employee should receive orders from only one
 superior.
4. Line of authority: The length of the chain of command that extends from
the top to the bottom of an organization should be limited.
5. Centralization: Authority should not be concentrated at the top of the
chain of command.
6. Unity of direction: The organization should have a single plan of action to
guide managers and workers.
7. Equity: All organizational members are entitled to be treated with justice
and respect.
8. Order: The arrangement of organizational positions should maximize
organizational efficiency and provide employees with satisfying career
opportunities.
9. Initiative: Managers should allow employees to be innovative and
creative.
10. Discipline: Managers need to create a workforce that strives to achieve
organizational goals.
11. Remuneration of personnel: The system that managers use to reward
employees should be equitable for both employees and the organization.
12. Stability of tenure of personnel: Long-term employees develop skills that
can improve organizational efficiency.
13. Subordination of individual interests to the common interest: Employees
should understand how their performance affects the performance of the
whole organization.
14. Esprit de corps: Managers should encourage the development of shared
feelings of comradeship, enthusiasm, or devotion to a common cause.
In summary, Max Weber and Henri Fayol outlined principles of bureaucracy and
administration that are as relevant to managers today as they were when
developed at the turn of the 20th century. Much of modern management research
refines these principles to suit contemporary conditions. For example, the
increasing interest in the use of cross-departmental teams and the empowerment
of workers are issues that managers also faced a century ago.
Thank you for your attention and see you next topic.