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A Brief History of the Management

Management Antiquity:
Scientific Management is gaining phenomenal development from 3000BC.
• The Egypt ions practiced management functions such as Planning, Organizing
and control when they built the famous Pyramids.
• The Roman Empire developed efficient organizational structure 800-500BC fro
facilitates communication and control.
• The Babylonians during 2000-500BC
• The Greeks during 1000-200BC
• The Chinese during 1500BC to 1300AD
• The Venusians during 450-1500AD all of them contributed a lot to wards
development of management
• Adam Smith 1776 AD propounded the theory of ‘Division of Labour’
• Robert Owen – the British Industrialist was recognized the importance of Human
Resources Management.
• Charles Babbage 1972-1871 English Mathematician is the originator of modern
management theory and practice.

Classical Management:
Classical management is emerged early 20th century is known as Era of Scientific
Management. The classical management consists of two distinct branches namely Scientific
Management (The Operational Approach) and Administrative Management (the Universal
Process approach).

No Universally Accepted Theory of Management. There are several approaches to

the theory and practice of management.
1. The Universal process approach
2. The Operational approach
3. The Behavioral approach
4. The Systems approach
5. The Contingency approach
6. The Attributes of Excellence approach

The Universal Process Approach

• Assumes all organizations require the same rational management process.

• Core management process remains the same regardless of the purpose of the
organization.
• The management process can be reduce to a set of separate functions and related
principles.
Henri Fayol – known as the father of Process Management
Henri Fayol’s Universal Management Process
Fayol published Administration Industrielle et Générale in 1916.
• Divided the manager’s job into five functions:
• Planning, organizing, command, coordination, and control
• Developed 14 universal principles of management

Lessons from the Universal Process Approach

• The management process can be separated into interdependent functions.

• Management is a continuous process.
• Management is a largely, though not an entirely, rational process.
• The functional approach is useful because it specifies what managers should do.
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2) The Operational Approach

• Describes the production-oriented area of management dedicated to improving

efficiency, cutting waste, and improving quality.
• Covers the technical and quantitative approaches to management :
-Management science
-Operations research
-Production management

Frederick Winslow Taylor’s Scientific Management

Frederick Winslow Taylor - The father of Scientific
Management.
Frederick Winslow Taylor was an American Engineer born in
March 20th Sunday, 1856 – March 21st, 1915. He is known for
coinage of the term ‘Scientific Management’. However, his
approach is more often referred to, frequently disparagingly, as
Taylorism. Taylorism or Scientific Management is the name
of the approach to management and Industrial/Organizational
Psychology initiated by Frederick Winslow Taylor in his 1911
monograph "The Principles of Scientific Management".
• Developing performance standards based on systematic
observations and experimentation.
• Standardization of work practices and methods reduce waste and increase
productivity
• Time and task study of workers’ efforts to maximize productivity and output.
• Systematic selection and training of workers to increase efficiency and
productivity.
• Differential pay incentives based on established work standards.

• Scientific Management is an attitude that aims at replacing ‘I think’ by

I know’.
• Scientific approach is to manage organization based on observation,
experimentation and rational decisions.
• It consists of observation fact gathering, formulation of hypothesis,
testing the results and implementation.

Summary on Taylor’s theory of scientific management:

• Scientific study of each men’s work
• Scientific selection and recruitment, training and placement of
worker
• Mutual understanding between employee and employer

Various aspect of Taylor’s theory:

• Replacing thumb rules by organizing scientific methods
• Standardization of tools and equipment
• Standardization of task and method
• Time and motion study
• Fatigue study
• Scientific selection of workers
• Ensure cooperation among workers
• Psychological changes
• Wage payment and welfare measures
• Maximum prosperity of employee and employers
• Functional organization
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Taylor’s Followers:

Frank and Lillian Gilbreth

• Refined time and motion

study methods for use in work
simplification.

Henry L. Gant: - Henry Laurence Gantt (1861-1919) was a

mechanical engineer and management consultant who is most
famous for developing the Gantt chart in the 1910s. These Gantt
charts were employed on major infrastructure projects including the
Hoover Dam and Interstate highway system.
• Refined production control and cost control techniques.
• Developed the Gantt chart for work-scheduling of projects
• Early advocate of the importance of the human factor and the
importance of customer service over profits

Walter A. Shewhart
• Introduced the concept of Statistical Quality Control.

Kaoru Ishikawa
• Proposed a preventive approach to quality.
• Developed fishbone diagram approach to problem-solving.

W. Edwards Deming
• Based his 14 principles on reformed management style, employee participation, and
striving for continuous improvement.

Joseph M. Juran
• Proposed the concept of internal customers, teamwork, partnerships with suppliers,
and brainstorming.
• Developed Pareto analysis (80/20 rule) as a tool for separating major problems from
minor ones.

Armand V. Feigenbaum
• Developed the concept of Total Quality Control.

Philip B. Crosby
• Promoted the idea of zero defects (doing it right the first time).

Lesson form the Operational Approach:

• A dedication to finding a better way is still important.
• Using scientific management doesn’t dehumanize workers.
• Quality advocates, inspired by the scientific approach, have been right all along about
the importance of quality and continuous improvement
• The operational approach fostered the development of operations management.
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3) The Behavioral Approach

• The Human Relations Movement
• An effort to make managers more sensitive to their employees’ needs.
• Arose out the influences of
- the threat of unionization.
- the Hawthorne studies.
- the philosophy of industrial humanism.
The Human Relations Movement Pyramid

• The Threat of Unionization

• The Wagner Act of 1935 legalized
union-management collective bargaining,
promoting the growth of unions and union
avoidance by firms.

• The Hawthorne Studies (1924)

• The study’s results that productivity was
strongly affected by workers’ attitudes
turned management toward the humanistic
and realistic viewpoint of the “social man”
model.
The Philosophy of Industrial Humanism

Elton Mayo
• Believed emotional factors were more important
determinants of productive efficiency than were
physical and logical factors.

Mary Parker Follett

• Advocated that managers become aware of how
compels each employee is and how to motivate
employees to cooperate grater than to demand
performance from them.

Douglas Mc Gregor
• Developed Theory X and Theory Y.
Theory X: management’s traditionally negative view
of employees as unmotivated and unwilling workers
Theory Y: the positive view of employees as
energetic, creative, and willing workers

Theory X: Some traditional assumptions about people:

i) Most people dislike work, and they will avoid it when they can.
ii) Most people must be coerced and threatened with punishment before they
will work. They require close direction.
iii) Most people prefer to be directed. They avoid responsibility and have
little ambition. They are interested only in security.

Theory Y: some modern assumptions about people:

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i) work is a natural activity, like play or rest.

ii) People are capable of self-direction and self-control if they are committed to
objectives.
iii) People will become committed to organizational objectives if they are
rewarded for doing so.
iv) The average person can learn to both accept and seek responsibility.
vi) Many people in the general population have imagination, ingenuity, and
creativity.

Organizational Behavior
A modern research-oriented approach seeking to discover the causes of work behavior and to
develop better management techniques
Maslow's Hierarchy of Needs

If motivation is driven by the existence of unsatisfied needs, then

it is worthwhile for a manager to understand which needs are the
more important for individual employees. In this regard,
Abraham Harold Maslow developed a model in which basic,
low-level needs such as physiological requirements and safety
must be satisfied before higher-level needs such as self-
fulfillment are pursued. In this hierarchical model, when a need
is mostly satisfied it no longer motivates and the next higher
need takes its place. Maslow's hierarchy of needs is shown in the
following diagram:
Maslow's Hierarchy of Needs:

Lessons from the Behavioral Approach

• People are the key to productivity.
• Success depends on motivated and skilled
individuals committed to the organization.
• Managerial sensitivity to employees is necessary
to foster the cooperation needed for high
productivity.

4) The Systems Approach

• What is a System?
A collection of parts that operate interdependently to achieve a common purpose.
• Systems Approach
• Posits that the performance of the whole is greater that the sum of the
performance of its parts.
• Analytic versus synthetic thinking: outside-in thinking versus inside-out
thinking.
• Seeks to identify all parts of an organized activity and how they interact.

Chester I. Barnard’s Early Systems Perspective

• Wrote Functions of the Executive.
• Characterized all organizations as cooperative systems.
• Defined principle elements in an organization as
o willingness to serve.
o common purpose.
o communication.
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• Strong advocate of business ethics.

General Systems Theory

o An area of study based on the assumptions that everything is part of a larger,
interdependent arrangement.
Levels of systems
o Each system is a subsystem of the system above it.
o Identification of systems at various levels helps translate abstract systems
theory into more concrete terms.

Closed Versus Open Systems

o Closed system - A self-sufficient entity.
o Open system - Something that depends on its surrounding environment for
survival
• Systems are classified open (closed) by how much (how little) they interact
with their environments.

• New Directions in Systems Thinking: Organizational learning and knowledge

management
• Organizations are living and thinking open systems that learn from experience and
engage in complex mental processes.
• Chaos theory
• Every complex system has a life of its own, with its own rule book.
• Complex adaptive systems
• Complex systems are self-organizing.

5) Contingency Approach
• A research effort to determine which managerial practices and techniques are
appropriate in specific situations.
• Different situations require different managerial responses.
• Can deal with intercultural feelings in which custom and habits cannot be
taken for granted.

Contingency Characteristics:
• An open-system perspective
• How subsystems combine to interact with outside systems.
• A practical research orientation
• Translating research findings into tools and situational refinements for more
effective management.
• A multivariate approach
• Many variables collectively account for variations in performance.

Lessons from the Contingency Approach

• Approach emphasizes situational appropriateness rather than rigid adherence to

universal principles.
• Approach creates the impression that an organization is captive to its environment.
• Approach has been criticized for creating the impression that an organization is a
captive of its environment.

6) The Attributes of Excellence Approach: A Modern Unconventional Approach

Peter and Waterman’s Approach

• Attacked conventional management theory and practice as outmoded in almost every

dimension.
• Replaced conventional management terminology with new catch phrases.
• Made key points with anecdotes and stories rather than quantifiable objective data
and facts.
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A Critical Appraisal of the Excellence Approach

• Raises more questions than it answers.

• Ignores the contingency approach to management.
• Relies heavily on unsupported generalizations.
• Fails to position management effectiveness as important to sustaining corporate
excellence.
Lessons from the Excellence Approach

• Reminded managers to pay close attention to the basics.

• Reminded managers of the importance of on-the-job experimentation.

Henry Fayol

F W Taylor