Evolution of Management

Pre
Historic
Era

The practice of management has existed since

the earliest time.
Mesopotamia, Greece, and Rome

Management practice in business, government

and the church remained quite stable through
the centuries until the mid 18th century.

Industrial Revolution

Substitution of machine power for man

power.
Mass production
Improved transportation and
communication system.
Centralization of production activities.
Establishment of new employer
employee relationships.

Problems

Short supply of skilled labor.

Losses, Wastage
Corruption
Favoritism
Nepotism,
Laziness
Difficult to maintain efficiency and
effectiveness

SCIENCETIFIC
MANAGEMENT THEORY

Focuses on worker and machine relationships.

increasing the efficiency of production processes.
concerned with creating jobs that economize on
time, human energy, and other productive
resources.

Contributors.

F.W.Taylor (father of scientific

management)
Frank and Lillian Gilbreth
Henry L. Gantt

FREDERICK TAYLOR
(1856-1915)

He was finding more efficient methods and

procedures for coordination and controlling work.
Principles of Scientific Management in which he
proposed work methods designed to increase
worker productivity.
Taylor broke the job down into its smallest
constituent movements, timing each one with a
stopwatch. The job was redesigned with a
reduced number of motions as well as effort and
the risk of error

Four basic principles for

increasing efficiency.
1. The development of a true science for
each persons work.
2. The scientific selection, training, and
development of workers
3. Intimate friendly cooperation with the
workers to ensure work is carried out in
a prescribed way.
4. The division of work and responsibility
between mgt. and the workers.

He believed that

There is a best machine for each work.

It is a best working method by which the workers should
undertake
All work process should be analyzed into separate tasks by
scientific method.
Each job was broken into component parts, each part timed
and part rearranged into most efficient method of working.
Then it was possible to find the one best method to perform
each task.
Employees can be motivated by highest possible wages
through working in the most efficient and productive way.
Emphasis on fair day work.(differential rate systems).
He was a believer in the rational economic needs component
of motivation.

Criticism

Emphasis on optimizing the level of worker

productivity.
Workers require little skills. So they were found
boring and monotonous.
Workers retained unfriendly.
Workers were regarded as machines and from a
engineering point of view.
One best method is not always the best method
for every worker.
Reduction of some physical movements is not
always beneficial and some wasteful movements
are essential to maintain the overall rhythm of the
work.

Criticism cont.

Operation managers gave a dangerous

high level of power.
Workers were regarded as rational
economic being motivated only by monitory
incentives.
They were viewed as isolated individuals
handled almost in the same way as
machines.
He did not so much concern complexity of
individuals and human behavior,
importance of individuals own feelings,
group working.

FRANK (1868-1924) AND

LILLIAN GILBERTH (1878 Fatigue and motion studies to finding the
1972)

ways of promoting the individual workers

welfare.
Using motions cameras found the most
economical motions and then upgrade
performance and reduce fatigue.
Raise worker moral

HENRY L GANTT
(1861-1919)

Reconsider the Taylors incentive system

Worker who finished the days
assignment would win a 50% bonus.
Supervisor would earn a bonus for each
worker who reach the daily standard,
and extra bonus if all the workers
reached it.
Workers progress was rated publicly.
Recorded and displayed in charts.

CLASSICAL ORGANIZATION
THEORY

Scientific mgt. deals with the job of the

individual workers classical organizational
theory focuses on managing the total
organization as a whole.

Primary Contributors.
Henry Fayol
Max Webber.
Chester I Bernard.

HENRI FAYOL (1841-1925),

Father of Modern Management, a French

industrialist who developed a framework for studying
management.
Wrote the book General and Industrial
Management.
1. Technical producing and manufacturing
2. Commercial buying and selling
3. Financial acquiring using capital
4. Security protecting employees and property
5. Accounting recording transactions
6. Management

Fourteen Principles
Division of labour
The more people specialize the more efficiently they can perform
their work.
Authority
Managers have the right and the authority to give orders to get
things done.
Discipline
Members of an organization need to respect the rules and
regulations that governed by the organization.
Unity of commands
Each employee should receive instructions from only one
supervisor.
Unity of direction
Operations with similar objectives should be directed by one
manager using one plan.
Subordination of individual interests to common goal.
Individual interests should not be placed before the
organizational goals.

Remuneration
Should be fair to both employees and the organization
Centralization.
Power and authority should be centralized to the upper level to
the possible extent.
Scalar Chain.
The chain of authority should extent from top to bottom.
Order
Human and materials should be placed at the required place at
required time.
Equity
Managers should be fair and kind to subordinate.
Stability
Employee stability.
Initiative
Employees should be given to enough freedom for initiative
Espirit De Corps
Teamwork, team spirit and sense of unity and togetherness
should be fostered and maintained.

BUREAUCRATIC
MANAGEMENT - MAX
1. Division of labour
WEBBER
(1864-1920)

2. Authority and responsibility are clearly

defined
3. Rules and regulations.
4. Procedures to deal with various situations.
5. Selections are based purely on
qualifications.
6. Promotions are based on seniority and
merits.
7. Separation of official work from personal
work.
8. Extensive record keeping.

CHESTER BARNARD
(1886-1961)
He developed the concepts of strategic
planning and the acceptance theory of
authority.
Three top functions of the executive
(l) establish and maintain an effective
communication system,
(2) hire and retain effective personnel, and
(3) motivate those personnel.

Acceptance Theory of
Authority

Managers only have as much authority

as employees allow them to have.
Barnard believed that each person has
a zone of indifference or a range within
each individual in which he or she would
willingly accept orders without
consciously questioning authority.

HUMAN RELATION
APPROACH / (BEHAVIORAL
THEORY)
Contributors
Elton Mayo
Abraham Maslow
Douglas McGregor
Hertzberg

ELTON MAYO 1924

AND 1927

Experiment in illumination.
Varied lighting
Relay Assembly test room Experiment.
Wage, rest periods, work day and work week,
Refreshments
Hawthorne effect-possibility that workers who
receive special attention will perform better.

Mass Interviewing.
to determine worker attitudes and sentiments
on supervision and general conditions of
work.
found that the work group as a whole
determine the production output of individual
group members by enforcing an informal
norms.

Bank Wiring Room Experiment.

This phase was to determine and analysis of
social organizations at work.
concluded that the work group set their fair
rates for each of its members.
wage incentive plan was less important in
determining individual workers output, than
the group acceptance and security.

After the hawthorn experiments theorists

tried to identify the way to enhance
effectiveness and efficiency by satisfying the
human needs and motivating them for higher
level of efficiency and effectiveness.
Maslows Hierarchy of Needs
McGregors Theory X and theory Y
Hertzbergs two factor theory

Quantitative Approach
Management Science
After the World war II
Approach

Approaching management problems

through the use of mathematical
techniques

SYSTEMS
APPROACHES

To recognize organizations as a;
Complex, integrated system of interrelated variables.
The systems theory looks at the
organization as a whole, examining all
relevant organizational variables
simultaneously.

CONTINGENCY
APPROACH

Different and changing situations require

managers to use different approaches
and techniques. Because organizations
are different, they face different
circumstances (contingencies) and, thus
may require different ways of managing.

TOTAL QUALITY
MANANGEMENT

Total Quality Management (TQM) is an

organization wide strategy that focuses
on achieving or exceeding customer
expectations.
An organizational cultural commitment
to satisfy customers through the use of
an integrated system of tools,
techniques and training.

Demings 14 Points for

Managers

Create constancy of purpose

Adopt a new philosophy
Cease dependence on inspection to
achieve quality.
End the practice of awarding business
on the basis of price tag.
Improve constantly and forever the
system of production

Institute training on the job.

Institute supervision
Drive out fear
Break down the barriers between
departments.
Eliminate slogans, targets for the work force
Eliminate work standards that prescribe
numerical quotas

Remove barriers to pride of workmanship

Institute a vigorous program of education
and retraining.
Put everybody in the company to work to
accomplish the transformation