IBEO1-Evolution of MGMT

8/9/2019 IBEO1-Evolution of MGMT

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The EvolutionThe Evolution

ofof

ManagementManagementTheoryTheory


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Early Thinking about ManagementEarly Thinking about Management

MachiavelliMachiavelli-- from his name was born thefrom his name was born theterm Machiavellian which meansterm Machiavellian which meanscunning and manipulativecunning and manipulative

He set forth principles like resolution ofHe set forth principles like resolution ofinternal conflict within the organization,internal conflict within the organization,the maintaining power of the many, athe maintaining power of the many, a

weak manager can follow the strong one,weak manager can follow the strong one,but not another weak one and maintainbut not another weak one and maintainauthorityauthority


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Early Thinking about ManagementEarly Thinking about Management

Sun TzuSun Tzu-- wrote the art of war whichwrote the art of war whichstated principles like: if the enemystated principles like: if the enemy

advances we retreat, when the enemyadvances we retreat, when the enemyhalts, we harass, when the enemy seekshalts, we harass, when the enemy seeksto avoid battle we attack, when the enemyto avoid battle we attack, when the enemyretreats we pursue.retreats we pursue.

These strategies were used as on how toThese strategies were used as on how toengage competitorsengage competitors


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The Scientific Management SchoolThe Scientific Management School

Frederick W. TaylorFrederick W. Taylor the father ofthe father ofmanagement.management.

Set forth principles like: the best methodSet forth principles like: the best methodto performing each task, job person fit,to performing each task, job person fit,scientific education and devt of thescientific education and devt of theworker, intimate and friendly cooperationworker, intimate and friendly cooperation

between mgmt and laborbetween mgmt and labor Differential rate= a higher rate is paid toDifferential rate= a higher rate is paid to

more efficient workersmore efficient workers


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Scientific Management Theory sought toScientific Management Theory sought todetermine scientifically the best methodsdetermine scientifically the best methods

for performing any task, and for selecting,for performing any task, and for selecting,training, and motivating workerstraining, and motivating workers

The scientific management era wasThe scientific management era wasushered by the need to increaseushered by the need to increase

production in a time when there is scarcityproduction in a time when there is scarcityof skilled laborersof skilled laborers


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Contributed the principle of the assemblyContributed the principle of the assemblyline, efficiency techniques have beenline, efficiency techniques have been

applied to may task in nonapplied to may task in non--industrialindustrialorganizations, ranging from fast foods toorganizations, ranging from fast foods tothe training of fast food employees andthe training of fast food employees andsurgeonssurgeons


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Limitations of this theory is the emphasisLimitations of this theory is the emphasison productivity and profitability that led toon productivity and profitability that led to

exploitation of customers and employeesexploitation of customers and employeesleading to mistrust between mgmt andleading to mistrust between mgmt andemployees resulting into the formation ofemployees resulting into the formation ofunions that strained laborunions that strained labor--mgmt realtionsmgmt realtions


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Henry GanttHenry Gantt-- created the Gantt chart whichcreated the Gantt chart whichmonitors each workers progress for each daysmonitors each workers progress for each dayswork loadwork load

He added a second bonus on top of theHe added a second bonus on top of thedifferential rate system, he added bonus todifferential rate system, he added bonus tothose workers who would finish each days workthose workers who would finish each days workload, and added a bonus to the supervisor to,load, and added a bonus to the supervisor to,

with the expectation that the supervisor willwith the expectation that the supervisor willtrain his employees hardertrain his employees harder

Basic Production management tools wereBasic Production management tools werecreated from Henry Gantts workscreated from Henry Gantts works


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The GilbrethsThe Gilbreths-- fatigue and motion studiesfatigue and motion studiesthat focused on ways to of promoting thethat focused on ways to of promoting the

employees full potential as a humanemployees full potential as a humanbeingsbeings

There conception states that every motionThere conception states that every motioneliminated reduced fatigue which theneliminated reduced fatigue which then

they said will bolster employee moralethey said will bolster employee morale


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The Classical Organization TheoryThe Classical Organization Theory

SchoolSchool The classical Organization TheoryThe classical Organization Theory

attempted to identify the principles andattempted to identify the principles and

skills that underlie effective mgmtskills that underlie effective mgmt This theory grew out of the need toThis theory grew out of the need to

manage complex organizations such asmanage complex organizations such asfactoriesfactories


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SchoolSchool Henri FayolHenri Fayol-- the father of classicalthe father of classical

management, he was the first to observemanagement, he was the first to observemanagement behavior and the first tomanagement behavior and the first to

systematize itsystematize it Before Fayol, Managers were born, notBefore Fayol, Managers were born, not

mademade

Fayol believed that management is a skillFayol believed that management is a skillthat can be taught once underlyingthat can be taught once underlyingprinciples are understoodprinciples are understood


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SchoolSchool Max WeberMax Weber-- developed a theory ofdeveloped a theory of

bureaucracy that stressed the need of forbureaucracy that stressed the need of fora strictly defined hierarchy governed bya strictly defined hierarchy governed byclearly defined regulations and lines ofclearly defined regulations and lines ofauthority considered the ideal organizationauthority considered the ideal organizationas aas a bureaucracybureaucracy whose activities andwhose activities and

objectives were rationally spelled outobjectives were rationally spelled out


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SchoolSchool Weber also stressed on the emphasis onWeber also stressed on the emphasis on

technical competence, and thattechnical competence, and thatperformance evaluations should be madeperformance evaluations should be madeentirely on the basis of meritentirely on the basis of merit

This theory advanced the formation ofThis theory advanced the formation ofhuge corporations such as fordhuge corporations such as ford


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SchoolSchool Mary Parker FolletMary Parker Follet-- introduced new elements espintroduced new elements esp

in the are of human relations and org structurein the are of human relations and org structure

She called management the art of getting thingsShe called management the art of getting things

done through peopledone through people Her holistic model of control took into accountHer holistic model of control took into account

not just individuals and groups, but the effectsnot just individuals and groups, but the effectsof such environmental factors such as politics,of such environmental factors such as politics,

economics and biologyeconomics and biology Paved the way for the study of broader set ofPaved the way for the study of broader set of

relationshipsrelationships


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SchoolSchool Chester BarnardChester Barnard-- people come together aspeople come together as

a group to achieve things that they cannota group to achieve things that they cannotaccomplish aloneaccomplish alone

His central thesis states that an enterpriseHis central thesis states that an enterprisecan operate efficiently and survive onlycan operate efficiently and survive onlywhen the organizations goals are kept inwhen the organizations goals are kept in

the balance with the aims and needs ofthe balance with the aims and needs ofthe individuals working for itthe individuals working for it


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SchoolSchool He specifying a principle by which peopleHe specifying a principle by which people

can work in a stable and mutuallycan work in a stable and mutuallybeneficial relationships over timebeneficial relationships over time

Acknowledged the importance of informalAcknowledged the importance of informalorganizationsorganizations

Zone of indifference (area of acceptance)Zone of indifference (area of acceptance)--what the employees would do withoutwhat the employees would do withoutquestioning the authority of the managerquestioning the authority of the manager


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The Behavioral School: theThe Behavioral School: the

organization is peopleorganization is people Emerged primarily because the classicalEmerged primarily because the classical

school did not achieve sufficientschool did not achieve sufficientproduction efficiency and workplaceproduction efficiency and workplace

harmonyharmony To managers frustration people did notTo managers frustration people did not

always follow predicted or expectedalways follow predicted or expected

patterns of behavior: hence the interestpatterns of behavior: hence the intereston the people side of the org wason the people side of the org washeightenedheightened


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organization is peopleorganization is people The Behavioral school then is a group ofThe Behavioral school then is a group of

management scholars in sociology,management scholars in sociology,psychology and related fields, who usepsychology and related fields, who use

their diverse knowledge to propose moretheir diverse knowledge to propose moreeffective ways to manage people in theeffective ways to manage people in theorgorg

Human relations is the way in whichHuman relations is the way in whichmanagers interact with other employeesmanagers interact with other employeesor recruitsor recruits


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organization is peopleorganization is people Moral and efficiency is now based on theMoral and efficiency is now based on the

state of human relationsstate of human relations

The human relations movement aroseThe human relations movement arosefrom the early attempts to systematicallyfrom the early attempts to systematicallydiscover the social and psychologicaldiscover the social and psychologicalfactors that would create effective humanfactors that would create effective human

relationsrelations


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organization is peopleorganization is people The Hawthorne EffectThe Hawthorne Effect-- the possiblity thatthe possiblity that

workers who receive special attention wilworkers who receive special attention wilperform better simply because they receivedperform better simply because they receivedthat attention: (one interpretation by Elton Mayothat attention: (one interpretation by Elton Mayo

and his colleagues)and his colleagues) Resulted in the concept of the social man, whoResulted in the concept of the social man, who

is motivated by social needs and on the jobis motivated by social needs and on the jobrelationships, and responding more to workrelationships, and responding more to workgroup pressure than management controlgroup pressure than management control-- thisthiswas necessary to compliment the rational manwas necessary to compliment the rational manwho is motivated by personal and economicwho is motivated by personal and economicneedsneeds


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organization is peopleorganization is people Behavioral scientists brought two newBehavioral scientists brought two new

dimensions to the study of managementdimensions to the study of management

FirstFirst-- they advanced a more sophisticatedthey advanced a more sophisticatedview of human beingsview of human beings-- (self actualizing(self actualizingman, the complex man)man, the complex man)

-- People wanted something more thanPeople wanted something more than

instantaneous pleasure theirinstantaneous pleasure theirorganizational relationship needs toorganizational relationship needs tosupport this complexitysupport this complexity


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organization is peopleorganization is people

SecondSecond--applied scientific investiations as toapplied scientific investiations as tohow people behave in the organization,how people behave in the organization,particularly with regards to communicationparticularly with regards to communicationand politicsand politics

There contribution to the devt ofThere contribution to the devt ofsubsequent management theories hassubsequent management theories hasbeen significant and ongoingbeen significant and ongoing


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The Management Science SchoolThe Management Science School

Management scienceManagement science-- approachingapproachingmanagement problems through the use ofmanagement problems through the use ofmathematical techniques for theirmathematical techniques for theirmodeling, analysis, and solutionmodeling, analysis, and solution

Operations researchOperations research-- mathematicalmathematicaltechniques for the modeling, analysis, andtechniques for the modeling, analysis, and

solutions of management problems, alsosolutions of management problems, alsocalled management sciencecalled management science

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IBEO1-Evolution of MGMT