The evolution of management theory

“The Evolution of
Management Theories”

The driving force behind the evolution ofThe driving force behind the evolution of
management theory is the search formanagement theory is the search for
better ways to utilize organizationalbetter ways to utilize organizational
resources.resources.

1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
Scientific Management Theory
Behavioral Management Theory
Management Science Theory
Organizational Environment Theory
The Evolution of Management
Theory

Evolution of modernEvolution of modern
management began in themanagement began in the
late nineteenth century,late nineteenth century,
after the industrialafter the industrial
revolution.revolution.
Mechanization changed systemsMechanization changed systems
like crafts production into largelike crafts production into large
scale manufacturing.scale manufacturing.

1.The Classical theory of
management
Scientific Management
Bureaucratic Management
Administrative Management
2. Neo-Classical Theory
Human Relations
Behavioral Science Approach
3.The Modern Management
Theories
Quantitative Approach
System Approach
Contingency Approach
Operational Approach

Next Presenter,
ANUP ROY
ID-150

1.1.The Classical theoryThe Classical theory
of Managementof Management

DEFINITION OF CLASSICALAPPROACH
• Classical approach is the oldest formal
school of thought which began around 1900
and continued into the 1920s.
• Its mainly concerned with the increasing the
efficiency of workers and organizations
based on management practices, which were
an outcome of careful observation.
• Classical approach mainly looks for the
universal principles of operation in the
striving for economic efficiency.
• Classical approach includes scientific,
administrative & bureaucratic management.

“one best way” to do a job.
SCIENTIFIC MANAGEMENT focuses on the

MAJOR CONTRIBUTORS
•
FREDERICK WINSLOW TAYLOR
(1856-1915)
FRANK GILBERTH (1868-1924) &
LILLIAN GILBERTH(1878-19720)

Scientific Management
F.W. Taylor’s Contribution (1856-1915)
•Frederick Taylor, known as the father of Scientific
Management, Published Principals of Scientific
Management , in which he proposed work methods
designed to increase worker productivity.
•Scientific Management focuses on worker and machine
relationships.
•Organizational productivity can be increased by
increasing the efficiency of production processes.

The Main Things Taylor Noticed for
Inefficiency

Principles of Scientific Management

Basic Idea of
Scientific Management

General approach
Selected workers with
appropriate abilities for
each job
Trained workers in
standard method.
Supported workers by
planning their work and
eliminating interruptions.
Provided wage incentives
to workers for increased
output.

Contributions of Gilbreths :
• Scientific study of management should include
both analysis and synthesis
• Analysis-Breaking down a task into its essential
elements
• Synthesis–include necessary element for
efficient work and eliminate other elements.
• He concentrated on Motion Study and
suggested the first definition-“motion study as
the science of eliminating wastefulness
resulting from unnecessary, ill directed and
inefficient motions”
• He developed Process Chart-Over all picture of
all activities in a chart form.

Contributions of Henry L. Gantt :
 Worked with F.W. Taylor.Worked with F.W. Taylor.
 He Improved Taylor’sHe Improved Taylor’s differential piece rate system Task and Bonus Plandifferential piece rate system Task and Bonus Plan
(Provide extra wages for extra work).(Provide extra wages for extra work).
 He developed the daily balance chart (Gantt chart) output in one axis and timeHe developed the daily balance chart (Gantt chart) output in one axis and time
on the other axis.on the other axis.
 Humanistic approach and industrial responsibility.Humanistic approach and industrial responsibility.

Next Presenter,
Prosenjit Tarafdar
ID-151

BUREAUCRATIC MANAGEMENT
 Max Weber (1864-1920).Max Weber (1864-1920).
 Rules and regulations to eliminate managerialRules and regulations to eliminate managerial
inconsistencies.inconsistencies.
 AuthorityAuthority is the power to hold people accountable foris the power to hold people accountable for
their actions.their actions.
 Positions in the firm should be held based onPositions in the firm should be held based on
performanceperformance not social contacts.not social contacts.
 Position duties are clearly identified.Position duties are clearly identified. People shouldPeople should
know what is expected of them.know what is expected of them.
 Lines of authorityLines of authority should be clearly identified.should be clearly identified.
Workers know who reports to who.Workers know who reports to who.

Bureaucratic Principles
A BureaucracyA Bureaucracy
should haveshould have
Written RulesWritten RulesWritten RulesWritten Rules
System of taskSystem of task
relationshipsrelationships
Hierarchy ofHierarchy of
authorityauthority
Fair evaluationFair evaluation
and rewardand reward

Bureaucratic CharacteristicsBureaucratic Characteristics
1) Division of work1) Division of work
2) Hierarchy of position2) Hierarchy of position
3) Rules and regulations3) Rules and regulations
4) Impersonal conduct4) Impersonal conduct
5) Staffing5) Staffing
6) Technical competence6) Technical competence
7) Official records7) Official records

ADMINISTRATIVE MANAGEMENTADMINISTRATIVE MANAGEMENT
 Henri Fayol (1841-1925) Father of modern managementHenri Fayol (1841-1925) Father of modern management
 Introduced pyramidal form of organization.Introduced pyramidal form of organization.
Management consist 6 types of activities :
1) Technical Activities (Production, Manufacturing)1) Technical Activities (Production, Manufacturing)
2) Commercial Activities (Purchasing, Selling and Exchange)2) Commercial Activities (Purchasing, Selling and Exchange)
3) Financial Activities (Optimum use of capital)3) Financial Activities (Optimum use of capital)
4) Security (Protection of property and persons)4) Security (Protection of property and persons)
5) Accounting (Stock taking, Balance sheet, costing, statistics)5) Accounting (Stock taking, Balance sheet, costing, statistics)
6) Managerial (Planning, organizing, coordinating and controlling)6) Managerial (Planning, organizing, coordinating and controlling)

HENRI FAYOL’SHENRI FAYOL’S 1414 PRINCIPLESPRINCIPLES
1) Division of work (or Labor)1) Division of work (or Labor)
2) Authority & Responsibility2) Authority & Responsibility
3) Discipline3) Discipline
4) Unity of command4) Unity of command
5) Unity of direction5) Unity of direction
6) Subordination of individual to general interest6) Subordination of individual to general interest
7) Remuneration7) Remuneration
8) Centralization of authority8) Centralization of authority
9) Scalar chain or Line of authority9) Scalar chain or Line of authority
10) Order10) Order
11) Equity of treatment11) Equity of treatment
12) Stability of workers12) Stability of workers
13) Initiative13) Initiative
14) Team spirit (Espirit de crops)14) Team spirit (Espirit de crops)

Next Presenter,
• Shahinur AktarShahinur Aktar
• ID-175

NEO-CLASSICALNEO-CLASSICAL
THEORYTHEORY

1. Human Relations1. Human Relations

•Human relations management emerged in the 1920s and dealtHuman relations management emerged in the 1920s and dealt
with the human aspects of organizations.with the human aspects of organizations.
•It has been referred to as the neo-classical school because itIt has been referred to as the neo-classical school because it
was initially a reaction to the shortcoming of the classicalwas initially a reaction to the shortcoming of the classical
approaches to management.approaches to management.
•The human relations movement began with the HawthorneThe human relations movement began with the Hawthorne
studies.studies.

There are four major phases to the Hawthorne studies:There are four major phases to the Hawthorne studies:
•The illumination experiment: Tried to determine whether betterThe illumination experiment: Tried to determine whether better
lighting would lead to increased productivity.lighting would lead to increased productivity.
•The real assembly group experimentsThe real assembly group experiments
•The interviewing program andThe interviewing program and
•The bank wiring group studies.The bank wiring group studies.

2. Behavioral Science Approach2. Behavioral Science Approach
 The behavioral approach did not always increase productivity.The behavioral approach did not always increase productivity.
 Thus, motivates and leadership techniques became a topic ofThus, motivates and leadership techniques became a topic of
great interest.great interest.
 The human resources school understands that employees areThe human resources school understands that employees are
very creative and competent, and that much of their talent isvery creative and competent, and that much of their talent is
largely untapped by their employers.largely untapped by their employers.
 Employee want meaningful work; they want to contribute; theyEmployee want meaningful work; they want to contribute; they
want to participate in decision making and leadershipwant to participate in decision making and leadership
functions.functions.
 Main contributors- Maslow, F. Herz berg & D. Mc Gregor.Main contributors- Maslow, F. Herz berg & D. Mc Gregor.

Nature of management principle:Nature of management principle:
FlexibilityFlexibility
Universal applicationUniversal application
Principal are relative not absolutePrincipal are relative not absolute
Based on situationBased on situation
General statement.General statement.

Next Presenter,
Amzad Hossain
ID-212

The Modern ManagementThe Modern Management
TheoriesTheories

1. Quantitative Approach
 Main contributors–Taylor, Gilbreths,Main contributors–Taylor, Gilbreths,
Gantt, Newman & Joel Dean.Gantt, Newman & Joel Dean.
 Management is concerned with problemManagement is concerned with problem
solving and it must make use ofsolving and it must make use of
mathematical tools and techniques for themathematical tools and techniques for the
purpose.purpose.
 The different factors involved inThe different factors involved in
management can be quantified andmanagement can be quantified and
expressed in the form of equations.expressed in the form of equations.

 Management problems can be described inManagement problems can be described in
mathematical models.mathematical models.
 Operation research, mathematical tools,Operation research, mathematical tools,
simulation and model building are the basicsimulation and model building are the basic
methodologies developed by this approach.methodologies developed by this approach.

2. System Approach
 Main contributors – Johnson, Church man,Main contributors – Johnson, Church man,
Kenneth, Boulding & Rosen ZweigKenneth, Boulding & Rosen Zweig
 Related to organization system is defined as –“AnRelated to organization system is defined as –“An
established arrangement of components whichestablished arrangement of components which
leads to accomplish of particular objectives as perleads to accomplish of particular objectives as per
plan”plan”
 All organizations are open system.All organizations are open system.

Next Presenter,
Riead Piyas
ID-146

3. Contingency Approach3. Contingency Approach
 Main contributors–John Woodward, Fiedler, Lorsch &Main contributors–John Woodward, Fiedler, Lorsch &
Lawrence.Lawrence.
 The latest approach to management which interactThe latest approach to management which interact
the various approaches to management is known asthe various approaches to management is known as
the contingency approach.the contingency approach.
 The work of Joan Woodward in the 1950s marked theThe work of Joan Woodward in the 1950s marked the
beginning of this approach in management.beginning of this approach in management.

 Contingency school states that management isContingency school states that management is
situational & the study of management lies insituational & the study of management lies in
identifying the important variables in theidentifying the important variables in the
situation.situation.
 It recognizes that all the subsystem of theIt recognizes that all the subsystem of the
environment are interconnected andenvironment are interconnected and
interrelated.interrelated.
 By studying their interrelationship, theBy studying their interrelationship, the
management can find solution to specificmanagement can find solution to specific
situation.situation.

4. Operational Approach
 Main contributors- Koontz, O’Donnell andMain contributors- Koontz, O’Donnell and
Weihrich.Weihrich.
 It regards management as a universallyIt regards management as a universally
applicable body of knowledge that can beapplicable body of knowledge that can be
brought to bear at all levels of managing and inbrought to bear at all levels of managing and in
all types of enterprise.all types of enterprise.
 It recognizes that the actual problems whichIt recognizes that the actual problems which
managers face and the environment in whichmanagers face and the environment in which
they operate may vary between differentthey operate may vary between different
enterprises and levels.enterprises and levels.

The evolution of management theory

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The evolution of management theory