Historical Foundation of

Management
Early
Management
Thought

Classical
Perspective

Contemporary
Management
Perspectives

Behavioral
Perspective

1-1

Early Management Thought

Early ideas about management
strategy
Sun Tzu, The Art of War

Early ideas about leadership

Nicol Machiavelli, The Prince

Early ideas about the design and

organization of work
Adam Smith, The Wealth of Nations
division of labor
1-2

History of management
thought
Management Thought

Period

Early contribution

Up to 19th century

Scientific management

1900-1930

Administrative/Operational

1916-1940

Behavior Approach

1950-1970

System Approach

1960s onwards

Contingency approach

1970s onwards

1-3

MAJOR CLASSIFICATION OF
MANAGEMENT APPROACHES
CLASSICAL
PERSPECTIVE

BEHAVIORAL
PERSPECTIVE

CONTEMPORARY
MANAGEMENT
PERSPECTIVE

SCIENTIFIC

BUREAUCRA

ADMINISTRA

MANAGEME

TIC

TIVE

NT

MANAGEMEN MANAGEME

E STUDIES

NEED

HAWTHORN

MASLOWS
T

THEORY
X
NT
AND

THE

HIERARCHY THEORY Y
CONTINGENC EMERGING

SYSTEMS

Y THEORY

THEORY

APPROACHE
S
1-4

Classical Perspective
Scientific Management
Frederick W. Taylor

Bureaucratic Management
Max Weber

Administrative Management
Henri Fayol

1-5

Taylors Four Principles of Scientific

Management
1. Scientifically study each part of a task and

develop the best method of performing the

task.
2. Carefully select workers and train them to
perform the task by using the scientifically
developed method.
3. Cooperate fully with workers to ensure that
they use the proper method.
4. Divide work and responsibility so that
management is responsible for planning work
methods using scientific principles and
workers are responsible for executing the work
accordingly.
1-6

Key Characteristics of Webers

Ideal Bureaucracy

Specialization of labor
Formal rules and procedures
Impersonality
Well-defined hierarchy
Career advancement based on
merit

1-7

Fayols 14 Principles of
Management
1. Division of work

8. Centralization

2. Authority

9. Scalar chain

3. Discipline

10. Order

4. Unity of command

11. Equity

5. Unity of direction

12. Stability and

6. Subordination of

individual interest
to the general
interest

tenure
13. Initiative
14. Esprit de corps

7. Remuneration
1-8

Behavioral Perspective
The Hawthorne Studies
Human Relations Approach
Employee motivation
Abraham Maslow

Leadership style
Douglas McGregor

1-9

Hawthorne Effect:

The discovery that paying special

attention to employees motivates them
to put greater effort into their jobs.
(from the Hawthorne management studies,
performed from 1924 1932 at Western Electric
Companys plant near Chicago)

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Maslows Hierarchy of Needs

Physical Needs
Need for Security
Need for Social Relations
Need for Self Esteem
Self-Actualization
Copyright 2002 by The McGraw-Hill
Companies, Inc. All rights reserved.

1-11

McGregors Theory X and

Theory Y
Leaders and managers who hold Theory X
assumptions believe that employees are
inherently lazy and lack ambition.
A negative perspective on human behavior.

Leaders and managers who hold Theory Y

assumptions believe that most employees
do not dislike work and want to make
useful contributions to the organization.
A positive perspective on human behavior.

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Contemporary
Management
Perspectives
Systems Theory
Contingency Theory
Total Quality Management
The Learning Organization

1-13

Systems Theory
Views the organization as a system of
interrelated parts that function in a
holistic way to achieve a common
purpose.
Systems theory concepts that affect
management thinking:
Open and closed systems
Subsystems
Synergy
Equifinality
1-14

Systems Theory
Inputs
Resources

Labor
Materials
Capital
Machinery
Information

Process
Managerial and
Technological
Abilities

Planning

Organizing

Staffing

Leading

Controlling

Technology

Outputs

Goods
Services
Profits and
losses
Employee
satisfaction

Feedback
1-15

Contingency Theory
States that there is no one best
way to manage an organization.
Because what works for one
organization may not work for another
Situational characteristics
(contingencies) differ
Managers need to understand the key
contingencies that determine the most
effective management practices in a
given situation
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