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Module I.2
History of Management Thought
Dr. K. Rangarajan
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History of Management Thought
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Management Thought Has Been
Grouped Into Three Approaches:
Classical
Behavioral
Management Science
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Classical Approach
Late 19th century effort to understand work
and how workers can be more productive and
efficient
Two perspectives:
Scientific management
Classical organization theory
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Scientific Management
Focus is on the management of work
Focus on the physical environment
Concentrate on the problems of lower-level managers
dealing with the everyday problems of the work
force
Study work processes to make them more efficient in
order to better use labor at that timeunskilled, no
formal education, largely immigrant
Primary contributorsengineers
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Scientific ManagementContributors
Frederick W. Taylor, father of scientific
management, developed 4 principles based on his
beliefs that the interests of both management & labor
can be combined:
1 best way to do a job
Optimum work pace
Train people to do a job
Reward using incentive pay system
Frank & Lillian Gilbreth, time & motion studies,
break down job motions into elementary parts and
find better ways to perform each part
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Classical Organization Theory
Focus is on the management of organizations
Concentrate on the problems top-level managers face
in managing the organization as a whole
Two major purposes:
Develop basic principles to create, and maintain
large organizations
Identify basic functions of managing
organizations
Primary contributorspracticing executives
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Classical Organization TheoryContributors
Max Weber, theory of bureaucracy, thought an
organization should be based on 5 principles:
Formal authority of managers
Jobs based on qualifications
Authority and responsibility clearly defined
Hierarchical positions
Rules and SOPs control organization
Modern ideas based on Weber: TQM, process
specialization, competency testing
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Classical Organization TheoryContributors (cont)
1. Division of labor
2. Management authority
and responsibility
3. Unity of command
4. Line of Authority
5. Centralization
6. Unity of direction
7. Equity
8. Order
9. Initiative
10. Discipline
11. Remuneration
12. Tenure Stability
13. Common Interest
14. Esprit De Corps
Henri Fayol developed 14 principles
essential to effective management:
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Behavioral Approach
Developed because (a) classical approach
didnt achieve total efficiency and workplace
harmony and (b) managers still encountered
problems because workers didnt always
behave as they were supposed to
Two branches:
Human Relations Approach
Behavioral Sciences Approach
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Human Relations Approach
Focus on the social environment of a job
Refers to the manner in which managers
interact with subordinates
Managers must know why subordinates behave
as they do
Importance of individuals in success or failure
of an organization
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Human Relations Approach(cont.)
Management should recognize employees
need for recognition and social acceptance
Management should look on work group as a
positive force
Managers should be trained in human relations
skills as well as in technical skills
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Behavioral Sciences Approach
Focus is on the nature of work itself
Individuals are motivated to work for reasons
other than money and social relationships
recognition, societal contributions, personal
fulfillment
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Behavioral Sciences ApproachContributors
Mary Parker Follett viewed organizations from the
perspective of individual or group behavior, i.e.,
people-centered view. Managers job is to
harmonize and coordinate group efforts
Hawthorne Studies varied lighting levels at the
Western Electric Company; productivity increased
regardless of the illumination level
Elton Mayo replicated Hawthorne Studies and the
results; workers enjoyed the attention and produced
the results they believed researchers wanted
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Management Science Approach
Developed to solve complex military problems in
World War II, American business firms began to use
a similar approach to deal with operating issues
Formerly called operations research, this approach
uses mathematics and statistics to aid in resolving
production and operations problems
Solve technical rather than human behavior
problems; analyze the problem and often develop a
mathematical representation of it
Provide management with quantitative bases for
decisions
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Integrating the 3
Approaches Classical,
Behavioral, and Management
Science
Systems Approach
Contingency Approach
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Systems Approach
Views an organization as interrelated parts
with a unified purpose: surviving and ideally
thriving in its environment
Management should focus on efficiency and
effectiveness in each part of the organization
Elements of an organization are interconnected
Organization is linked to its environment
Open Systems vs. Closed Systems
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Contingency Approach
Helps in better understanding the interactions of an
organizations components. Views an organization as
interrelated parts with a unified purpose: surviving and
ideally thriving in its environment
Workplace situations are too complex to analyze and
control; thus, instead of focusing on trying to find the one
best way to arrange workplace variables, managers focus
on adapting their behavior to match the demands of the
situation