The Evolution of Management Thought

Principles of Management

Evolution of Management Thought

• Classical / Traditional School

• Human Relations School

• Management Science or Quantitative School

• Modern Management

1. Classical / Traditional School of Thought

• Henri Fayol– French Industrialist– Theory of Admisnistration (14 Principles of

Management)

• Frederick Taylor– Father of Scientific Management

• Gilbreths– Therbligs

1. Classical / Traditional School of Thought• Henri Fayol's 14 Principles of Management

– Division of Work– Authority and Responsibility– Unity of Command– Remuneration– Centralization– Subordination of Individual interest to general interest– Scalar Chain– Stability of Tenure– Esprit de Corps– Span of Control– Simplicity– Unity of Direction– Order– Equity

1. Classical / Traditional School of Thought

• Frederick Taylor

– Time-and-Motion Study– Piece-rate Incentive System

• Reward the worker who produced the maximum output.

1. Classical / Traditional School of Thought

• Gilbreths– Frank and Lilian Gilbreth– Therbligs

• Ideal motion required to perform a job in an optional fashion

2. Human Relations School

• Elton Mayo– Hawthorne Studies

• Experimentation with illumination as evidence of the fact that managers was interested in them and their welfare and the result was an increase in productivity

• Mary Parker Follet– Defined management as an art in getting

things done through people

3. Management Science or Quantitative School of Thought

• Stresses the use of quantitative techniques and methods in decision making

• Operations Research• Application of scientific approach to managerial

problems and situations• Improvements of manager's decision-making• High regard for economic effectiveness• Reliance on the use of quantitative tools or

mathematical models• Use of electronic computers in decision making

and other areas of management

4. Modern Management

• Top Management – Long-range Plans and Strategies– Evaluates overall performance of various

deparments and ensures cooperation– Involves in the selection of key personnel– Consults subordinate, manages on subjects

or problems of general scope

4. Modern Management

• Middle Management– Makes plans of intermediate range and

prepares long-range plans for review of the top management

– Analyzes managerial performance to determine capability and readiness for promotion

– Establishes departmental policies

4. Modern Mangement

• Supervisory Management– Makes detailed, short-range operating plans– Reviews performance of subordinates– Supervises day-to-day operations– Makes specific task assignments– Maintain close contact with operative

employees