EVOLUTION OF

MANAGEMENT
THOUGHTS
Management practice is as old as human civilization when people started living
togetherin groups. For, every human group requires management and the history of
human beings is full of organizational activities. In the earlier years, management
concept were applied was held low, unworthy of study; indifferent approach of
other social scientists like economist, sociologist, psychologist, etc., towards
management and business organizations treatment of management as an art not as a
science and commonly held belief that managers are born not made.
The situation changing with the beginning of the 20
th
century; specially the
world war 1
st
created the situation where people started thinking of solution to the
problem of how limited resources could be applied in better way. The world war 2
nd

added further problem to this end.

In recent years, there has been worldwide rivalry for markets, power & progress.
The increasing serve competition has come from such factors as: technological
innovations, increase in capital investment, increased government regulation,
organised union activities to put pressure on management.
APPROACHES
CLASSI CAL -
scientific management & administrative management.
NEOCLASSI CAL -
humanatarian approach.
MODERN-
system approach & contingency approach.

CLASSICAL- Something traditionally
accepted or long-etablished
But classical views are not static and time bound.
Interrelated functions
Guiding principles
Beaurocratic structure
Worked at Midvale & Bethlehen Steel Companys
in Pennyslvania
Was disgusted to see the inefficiency of workers
Applied scientific method to workers on the shop
floor
Emphasized one best way philosophy
Experimented with various physical positions- eg;
walking speed, carrying positions, leg positions etc.
Thus, found out one best way to perform the task
Thus Taylor achieved significant
improvements in productivity
Wrote two books-
Shop Management
The Principles of Scientific
management
Each task must be scientifically
designed so that it can replace the old,
rule- of thumb methods
Workers must be scientifically selected
& trained so that they can be more
productive on their jobs
There must be division of labor and
cooperation between management and
workers
Science, not rule of thumb
Harmony, not discord
Cooperation, not individualism
Maximum output in place of restricted output
Development of each man to his greatest
efficiency and prosperity
Equitable division of work and responsibility
between management and labor
1. Scientific task planning- The amount of work which
an average worker can perform during a day under
normal working conditions- called as a fair days work
2. Time & Motion Studies-
Time- Time standard is the period of time that an average
worker should take to do a job
Motion- Under Motion studies finger movements, hand
movements, arm movements, and shoulder movements
are studied.
Managers are charged with the task of planning the work
through the above studies and workers are expected to
implement the same.
3. Standardization-
Under scientific management standards have to be set
in advance for the task , materials, work methods,
quality, time & cost, working conditions etc
4.Diffrential Piece Rate System-
A worker who completes the normal work gets wages
at higher rate per piece than a worker who fails to
complete the same within the time limit set by
management.
This is done to motivate workers.
5. Functional foremanship-
Factories divided into several components , each
incharge of a specialist. The workers are expected to
implement the commands of functional specialists.
Drucker calls this principles as an undemocratic one.

Exploitative Device
Depersonalized work
Unpsychological
Undemocratic
Anti social
Unoriginal- Hoagland and others felt that
Taylors contributions is overrated and over
emphasised.
Unrealistic- He ignored the social and ego
needs of people.
He was the contemporary of Taylor
Revolutionized managerial thinking in France
Was trained as a mining engineer, made his
marg as an industrialist with the French coal
and iron combine of Comentry-
Fourchambault
in 1988 the company he joined, had been
near bankruptcy, transformed it into a
financially strong organization

Administrative theory explains the
process of managing an organization
from the top managerial perspective

Considered as founder of the classical
management school
Classified business operations into six
major activities-
Technical(production)
Commercial(buying and selling)
Financial(use of capital)
Security(protection of property)
Accounting(keeping financial records)
Managerial
Planning
Organizing
Commanding
Coordination
Controlling

Division of work
Authority and responsibility
Discipline
Unity of command
Unity Of Direction
Subordination of individual interest to
the common good
Remuneration of personnel
Order- a place for everything and everything in its
place and a place for everyone and everyone in his
place
Centralization
Scalar chain- the graded chain of authority
from top to bottom through which all
communications flow is termed as scalar
chain
Equity
Stability of tenure
initiative
Esprit de corps(team spirit)
Physical
Mental
Moral
Educational
Technical
Experience
During 1920s and 1930s observers started
criticizing administrative management
movement and scientific approach
Scientific approach focused on the activities
of workers whereas administrative approach
focused attention on the activities of
managers
Social aspects of a workers job were totally
ignored.
Thus the Human Relations Theory, also
called Neo-Classical Theory came into being
The theory is based on the famous studies of
human behavior in work situations conducted
at the Western Electric Company from 1924-
1933
These studies are known as Hawthorne
Studies conducted at Western Electrics
Hawthorn plant near Shikogo.
Purpose was to determine the effects of
different levels of illumination on workers
productivity
Test Group- Light systematically varied
Control Group- Light held constant
Result- With increase in light productivity
increased in test group
But productivity also increased in the control
group which receive no added light
Thus something else was responsible for
increased productiviy.
Mayo initiated three year long interview
program in1928 covering more than 21000
employees
Employee were left free to air their opinion
The point illustrated by this interviewing
program is central to the Human Relations
Movement
social factors were found to be prominent
than the economic factor
Focus on people, groups
Make workers happy
Man wants company, loves interaction and is
guided by group goals
Inputs drawn from behavioral sciences
Groups dominate, individuals, follow, group
norms irrespective of what management
states
Mayo emphasised friendly supervision and
monitoring of group norms so as to provide a
positive work climate
This approach applies the knowledge of the
behavioural sciences- psychology, sociology
and anthropology- to managing people
Abraham Maslow Need Hierarchy Approach
Five basic needs- Physiological, safety, social,
self-esteem and Self-actualization

This approach attempts to view the
organization as a single unified, purposeful
entity composed of interrelated parts
A system view of management , eg; would
recognize that, regardless of how efficient the
production department might be, if the
marketing department does not anticipate
changes in consumer taste and work with the
product development department in creating
what consumers want, the organizations
performance will be hampered
This approach states that appropriate
managerial action depends on the particular
parameters of the situations.
Situations dictate managerial action
Therefore no single way of solving problems is
best for all situations.
The choice of a particular method of managing
largely depends on the nature of the job, the
people involved and the situations.
Features-
The managerial action are contingent on
certain actions outside the system or
subsystems.
Organizational efforts should be based on
the behavior of actions outside the system so
that the organization gets smoothly
integrated with the environment.
Managerial actions and organizational design
must be appropriate to the giving situation.