3

Lecture

The Evolution of
Management Theory
Chapter 2
Management by Stoner

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Md. Shahriar Jahan Hossain, Assistant

Professor, Dept. of IPE, BUET

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Scientific Management School(1890-1940)

Frederick W. Taylor
Described scientific management
as a method of scientifically
finding the one best way to do a
job
Scientific selection of worker
scientific education and
development.
Intimate and friendly cooperation
between management and labor.
Md. Shahriar Jahan Hossain, Assistant
Professor, Dept. of IPE, BUET

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Scientific Management School(1890-1940)

Limitations
Working harder and faster would
exhaust whatever work available.
Pressure on employee to work
faster
More worker joined unions and
mistrust and suspicion is
reinforced.

Md. Shahriar Jahan Hossain, Assistant

Professor, Dept. of IPE, BUET

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Scientific Management School(1890-1940)

Henry L. Gantt
Introduced a second motivation
Work progresses should rated
and recorded publicly.

The Gilbreths
Used motion picture camera to
find most economical motion for
each task to upgrade
performance and reduce fatigue

Md. Shahriar Jahan Hossain, Assistant

Professor, Dept. of IPE, BUET

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Classical Organization Theory

Henri Fayol
Believed that the practice of management was distinct from
accounting, finance, production, distribution and other typical
business functions
Developed principles of management that applied to all
organizational situations

Max Weber
Developed a theory of authority structures and relations based on an
ideal type of organization he called a bureaucracy.
Emphasized rationality, predictability, impersonality, technical
competence, and authoritarianism

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Fayols 14 Principles of Management

1. Division of labor

7.

Remuneration

2. Authority

8.

Centralization

3. Discipline

9.

Hierarchy

4. Unity of command

10. Order

5. Unity of direction

11. Equity

6. Subordination of
individual interests
to the general
interest

12. Stability of staff

13. Initiative
14. Esprit de corps
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Webers Bureaucracy

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Behavioral Approaches(1920-1990)
Maslaws Need Theory
Needs that people are
motivated to satisfy fall into a
hierarchy.
Lower level need must be
satisfied before higher level
need is met.

Md. Shahriar Jahan Hossain, Assistant

Professor, Dept. of IPE, BUET

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Behavioral Approaches(1920-1990)
McGregors Theory
Distinguished two basic assumption about people
and their approach to work.
Theory X managers assumed that people must
constantly be motivated to do their work.
Theory Y managers assume that, people are
eagerly approach their work and opportunity to
develop their creative capacity.

Md. Shahriar Jahan Hossain, Assistant

Professor, Dept. of IPE, BUET

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Behavioral Approaches(1920-1990)
The Hawthorne Studies
A series of productivity experiments conducted at Western Electric
from 1924 to 1932.

Experimental findings
Productivity increased with increasing light level, but
surprisingly output also increased with decreasing light level
until reduced to that of a moonlit night.
The effect of incentive plans was less than expected.

Research conclusion
Social norms, group standards and attitudes more strongly
influence individual output and work behavior than do
monetary incentives.
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Management Science School

Quantitative techniques (Operations Research) were used to
improve decision making.
It was evolved from mathematical and statistical solutions
developed for military problems during World War II.
It gained popularity through two postwar phenomena. First, the
development of high-speed computers. Second, Robert
McNamara implemented this approach at Ford Motor Company.
This approach contributes directly to management decision
making in the areas like budgeting, queuing, scheduling, quality
control, etc.

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Systems Approach
System Defined
A set of interrelated and interdependent parts arranged
in a manner that produces a unified whole.

Basic Types of Systems

Closed systems
Are not influenced by and do not interact with their environment
(all system input and output is internal).

Open systems
Dynamically interact to their environments by taking in inputs
and transforming them into outputs that are distributed into
their environments.
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The Organization as an Open System

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Systems Approach
Organization is made up of independent factors,
including individuals, groups, attitudes, motives,
formal structure, interactions, goals, status, and
authority. This means that as managers coordinate
work activities.
Decisions and actions in one organizational area will
affect other areas.
Organizations are not self-contained. They rely on
their environment for essential inputs and outlets to
absorb their outputs.
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Contingency Approach
Sometimes called the situational approach.
There is no one universally applicable set of
management principles (rules) by which to manage
organizations.
Organizations, employees and situations are different
and require different ways of managing.

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Popular Contingency Variables

Organization size
As size increases, so do the problems of coordination.

Routineness of task technology

Routine technologies require organizational structures,
leadership styles and control systems that differ from
those required by customized technologies.

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Popular Contingency Variables

Environmental uncertainty
What works best in a stable and predictable
environment may be totally inappropriate in a
rapidly changing and unpredictable environment.

Individual differences
Individuals differ in terms of their desire for growth,
autonomy, tolerance of ambiguity and expectations.

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Dynamic Engagement Approach

New organizational environments

Ethics & social responsiveness
Globalization & management
Inventing & reinventing organizations
Cultures & multiculturalism
Quality

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