History and Evolution of

Management
Team
Annapurani E
Monisha V
Balachander V
Michael Jernil L
Praveen Raj S
Sathya Prabhu G
Susvant Raj B
Historical Background of Management
• Why history is important for contemporary managers?
• Further development in management and to avoid the mistakes of others.
• When actually evolved?
• Management thought developed in the mid-late 1800’s.
• Ran parallel with the industrial revolution
• Ancient management:-
• Egypt ( pyramids ) and china ( great wall )
• Venetians ( floating warship assembly lines )
• Adam Smith:-
• Published " the wealth of nations" in 1776.
• Advocated the division of labour ( job specialization )
to increase the productivity of workers.
• Industrial revolution:-
• Substituted machine power for human labor.
• Created large organizations in need of management.
• Management thought:-
• Classical- late 1800’s.
• Bureaucratic, Scientific, Administrative
• Behavioral- 1930’s, 40’s, 50’s
• Systems-50’s, 60’s, 70’s
• Contingency-60’s, 70’s, 80’s
• Quality-80’s, 90’s
CLASSICAL APPROACH
• Classical approach is the first formal study of management that began
around 1900 and continued into 1920.
• Classical approach emphasizes rationality and making organization
and workers as efficient as possible.
• Classical approach includes majority of scientific management and
general administrative theory.
 Contributors of Classical Approach
Scientific Management theory
• Fredrick Winslow Taylor(1856-
1915)
• Frank and Lillian Gilbreth
General Administrative theory
• Henry Fayol(1841-1925)
• Max Weber(1864-1920)

Scientific management theory

• Scientific management is a theory of management that analyzes and
synthesizes workflows.
• Its main objective is improving economic efficiency, especially labour
productivity.
• It was the earliest attempts to apply science to management and was
done by Fredrick Winslow Taylor.
Taylor’s Scientific Management Principles
• Taylor is the father of Scientific management and defines it as the ‘’one
best way’’ for a job to be done.
1. Develop a science for each element of an individual’s work to replace
the old rule of thumb method.
2. Scientifically select and then train, teach, and develop the worker.
3. Heartily cooperate with workers so as to ensure that all work is done in
accordance with the principles of science that has been developed.
4. Divide work and responsibility almost equally between management
and workers. Management does all work for which it is better suited
than the workers.
Findings of Taylor for inefficiency
1. The lack of standard tools or techniques.
2. There is no match between skill and job.
3. No motivation from the management.
GENERAL ADMINISTRATIVE THEORY:
• The two most important contributors to general administrative theory
were Henri Fayol and Max Weber.
• General administrative theory focused more on what managers do and
what constituted good management practice.
• Henri Fayol first identified five functions that managers perform: planning,
organizing, commanding, coordinating, and controlling.
• His belief that management was an activity common to all business
endeavors, government, and even the home led him to develop 14
Contributors :
principles of management.
Henry Fayol (1841-1925)
Max Weber (1864-1920)
14 PRINCIPLES OF MANAGEMENT :
1. Division of Work.
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction.
6. Subordination of individual interests to the general interest
7. Remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure of personnel
13. Initiative
14. Esprit de corps.
BUREAUCRACY:
• Weber was a German sociologist who developed a theory of
authority structures and relations based on an ideal type of
organization called bureaucracy .

• It is a form of organization characterized by division of labor, a

clearly defined hierarchy, detailed rules and regulations, and
impersonal relationships.

• Bureaucracy, as described by Weber, is a lot like scientific

management in its ideology. Both emphasized rationality,
predictability, impersonality, technical competence, and
authoritarianism. Although Weber’s ideas were less practical
• than Taylor’s.
How today’s managers use general
administrative theory ?
• Several of our current management ideas and practices can be directly traced to
the contributions of general administrative theory.
• In addition, his 14 principles serve as a frame of reference from which many
current management concepts—such as managerial authority, centralized
decision making, reporting to only one boss, and so forth—have evolved
• Weber’s bureaucracy was an attempt to formulate an ideal prototype for
organizations. Many managers feel that a bureaucratic structure hinders
individual employees’ creativity and limits an organization’s ability to respond
quickly to an increasingly dynamic environment.
• However, even in flexible organizations of creative professionals—such as
Microsoft, Samsung, General Electric, or Cisco Systems—some bureaucratic
mechanisms are necessary to ensure that resources are used efficiently and
effectively
BEHAVIORAL APPROACH
The analysis of employees' actions to identify
behavior patterns for a specific job or function
that can separate an effective employee from a
less effective or nonperforming employee.
EARLY ADVOCATES OF ORGANIZATIONAL
BEHAVIOR
• Robert owen
• Hugo munsterberg
• Mary parker follett
• Chester irving barnard
Robert owen
• Robert owen was born on may 14,1771 in Newtown,
Montgomeryshire,wales.
• He is a welsh manufacturer turned reformer.
• His new Lanark mills in Lanarkshire,Scotland is
famous for its social and industrial welfare programs.
Contributions of Robert owen
• He was concerned about the deplorable working conditions prevailing
in the factories.
• He proposed idealistic workplace conditions.
• He proposed the ban on employment of children under the age of 10.
• Owen developed an aid to motivation and discipline called silent
monitoring system.
• By examining working conditions and methods and seeking to improve
these, he is justifiably called “father of personnel management”.
Silent monitoring system
Hugo munsterberg
• Hugo munsterberg was born on June 1,1863 in Danzig, Germany.
• He was a psychologist primarily known as pioneer of applied psychology
including industrial,organizational,clinical and forensic psychology.
• His researches were later published in a book called “psychology and
industrial efficiency”.

Contribution of Hugo munsterberg

• Pioneer in the field of industrial psychology-scientific study of people at work.
• Suggested psychological test for selection of employee, learning theory
concepts for employee, training and study of human behavior for employee
motivation.
• He also conducted research on several different occupations seeking evidence
for a correlation between mental test and job performance.
Mary parker follett
• Mary parker follettt was born on sep,1868 in
Quincy,Massachusetts,United states.
• She was a social worker and consultant and author of many books on
democracy, human relations and management.
• She defined management as “the art of getting work done through others”.
Contributions of Mary parker follett
• She proposed more people oriented ideas than scientific followers.
• She thought organization sould be based on group ethics.
• Follett's major ideas could be discussed under the following sub topics.
1. Constructive conflict
2. Co-ordination
3. Power , authority and control
4. Leadership
Chester irving barnard
• Chester irving barnard was born on
november7,1886 in Maiden, Massachusetts.
• He was an American business executive and public
administrator.
• His landmark book “functions of the executive" set
out the functions of executives in an organization
and the setup of an organization.
Contribution of Chester barnard
• Barnard viewed organization as a system of co-operation of human activity and noted
that they are typically short lived.
• According to him organization are not long lived because they don’t two criteria
necessary for survival effectiveness and efficiency.
• He divided organization into formal and informal organization.
• He defines formal organization as a system of consciously co-ordinated activity of two
or more person.
• The initial existence of an organization depends on three elements.
1. Willingness of the person to contribute efforts to the co-operative system.
2. There should be an objective of co-operation.
3. Proper communication system is necessary.

• He refers informal organization as to those social interactions which do not

have consciously co-ordinated joint purpose.
Hawthorne studies
• It was conducted by western electric company at their Hawthorne plant in
cicero, Illinois in 1924.
• They wanted to examine the effect of physical environment on workers
productivity.
• And so a control group and experimental group was set up with experimental
group being exposed to various levels of intensity of light and control group
being kept under normal lighting.
• Similarly they piped in music, varied the temperature, tried different
compensating schemes etc.
• Two things emerged from the initial studies.
I. Experimenter effect
II. Social effect
How today's manager use the behavioral approach
• The behavioral approach has largely shaped how today’s organization are
managed.
• Managers use these techniques to design the job, to work with employee
teams and to communicate with them.
• Hawthorne studies have provided the foundation for current theories of
motivation, leadership, group behavior and several other behavioral
approaches.
Quantitative Approach
History
• The quantitative approach evolved from mathematical and
statistical solutions developed for military problems during World
War II.
• After the war was over, many of these techniques used for military
problems were applied to businesses.
What exactly does the quantitative approach
do?
• It involves applying statistics, optimization models, information models,
computer simulations, and other quantitative techniques to management
activities.
• For instance, Linear programming is a technique that managers use to
improve resource allocation decisions.
• The economic order quantity model helps managers determine optimum
inventory levels.
• Economic Order Quantity – EOQ
• EOQ = √(2SD / H)
• S = Setup costs (per order, generally includes shipping and handling)
D = Demand rate (quantity sold per year)
H = Holding costs (per year, per unit)
How today’s Managers use the Quantitative
Approach?
• The quantitative approach contributes directly to management decision making
in the areas of planning and control.

• For instance, when managers make budgeting, queuing, scheduling, quality

control, and similar decisions, they typically rely on quantitative techniques.
CONTEMPORARY APPROACH
• It means the new, recent or current approaches in the field of
management.
• Provides a framework of management based on the most recent trends
such as Globalization, excellence models, productivity, quality issues etc.
• It helps us to understand management from the global perspective.
• Arthur Bedeian, Alfred Bolton, Daniel Wren have contributed to
Contemporary approach of management.
Systems Theory
• It is a basic theory of physical sciences which is being applied to an organization.
• There are two types of Systems:
• Closed System
They are not influenced and do not interact with the environment.
• Open System
They are influenced and do interact with the
environment.
Open System
Contingency Approach
• Contingency Approach stress the need for flexibility ad adaptation of
management practices and ideas to suit the changing circumstances
• Also known as Situational Approach or IF….THEN approach.
• Situational Variables:
• Organization Size
• Routines of task technology
• Environmental uncertainty
• Individual Differences
References
• Robbins, S and Coulter, M, 11th Edition, Prentice Hall, January 2011.