Evolution of Management thought History of Management theories Classical School Behavioral school Integration and Contingency school of Management

Other Contemporary/ Modern theories of Management Background Management is Predominantly a Twentieth century Phenomenon In the earlier years management could never get attention of researchers The field of Business in which management concepts were applied were held extremely low & un worthy of study Indifferent attitude of other social scientists Post World War I & II - created a situation where people started of solution to problems - where limited resource should be applied in a better way Problems/ Issues Growing Competition, Complexity of handling large Business Organizations Hence the need for Systematic Principles & concepts was felt Recent Developments worldwide rivalry for markets, power and progress Increasing Competition Technological Innovations & their dissemination in Businesses Growing Technological Obsolescence Increase in Capital investment Freedom at national & international markets Increasing buyers Complexity of Managing Business Increasing size of Business organizations High degree of division of labour & specialization Increased government regulations & control to make businesses more socially-oriented Organized labour union activities to put pressure on the management Pressure of various other conflicting interest groups

Both growing Competition & complexityin Managing Business have demandedefficiency in the Management Process Classification of Management Thought Emergence of a variety of Approaches & orientations in management 1. Classical Approach - Scientific/ Administrative /OperationalManagement 2. Neo Classical Approach 3. Modern Approach Systems Approach/ Contingency Approach Classical Theory of Management Scientific Management F W Taylor Process Management Henri Fayol Bureaucracy Max Weber Fredrick Taylor Father of Scientific Management Frederick Winslow Taylor was an American mechanical engineer who sought to improve industrial efficiency Taylor was one of the first managementconsultants. He was one of the first to haveimmense imp act on the early development of Management Rising from the lowest to a high rank gave him a number of opportunities to understand the problems and attitudes of workers and see the great possibilities for improving the quality of Management Famous Work - The Principles of Scientific Management. Trainee to common Labour to Foreman to master mechanic to Chief Engineer of a steel company Essence of his story His primary concern was to increase productivitythrough greater efficiency in production andincr eased pay for workers He emphasized on using science, creating group harmony and cooperation, achieving the maximum output and training workers
Key Objectives of the theory

Human relations / Social Systems Approach / Decision Theory Approach/ Management Science Approach / Human Behavior Approach

1. Replacing the decisions based upon tradition and old rule-of-thumb with Science and organized procedures developed after careful study of an individual at work 2. Obtaining harmony in group action and develop a standard method for performing each job 3. Selection is based upon technical competence and experience 4. Training and development of workers to the fullest extent possible for their own and the companys highest prosperity

5. Labour is defined and authority/responsibility is legitimized 6. Sprit of immense cooperation between workers and management to ensure that tasks are carried out in accordance with the scientifically devised procedures. Support workers by planning their work and eliminating interruptions 7. Actions and decisions are recorded to allow continuity and memory. 8. Managers follow rules/procedures to enable reliable/predictable behavior. 9. Management is different from ownership of the organization. Positions placed in hierarchy and under authority of higher level 10. Provide wage incentives to workers for increased output. Henry Fayol Modern Operational Management Theory Henri Fayol, a French management theorist is referred to as " the father of modern operational management theory" . He was one of the most influential contributors to modern concepts of management. Fayol's work has stood the test of time and has been shown to be relevant and appropriate to contemporary management . Based largely on his own management experience, he developed his concept of administration He derived 14 principles of management that were discussed in detail in his book - General and Industrial Management, widely considered a foundational work in classical management theory Henry Fayols 14 Principles of Management 1. Authority & Responsibility - The right to give orders/ issue commands and the power to extract obedience. There should be a balanced responsibility for this function 2. Specialization or Division of labour Specialization allows individuals to build up experience and the continuous improvement in skills. It gives way to higher productivity and efficiency 3. Discipline - The workers should be obedient and respectful of organization. The management should provide good leadership. There should be no slacking, bending of rules 4. Unity of command - Employees should receive orders from one superior. There should not be any conflicting lines of command 5. Unity of direction People engaged in the same kind of activities must have the same objectives in a single Plan. This is essential to ensure unity and coordination in the enterprise 6. Subordination of Individual Interests - When at work, only things related to work should be pursued or thought about 7. Remuneration - Employees receive fair payment for services, not what the company can get away with 8. Centralization - Consolidation of management functions. Decisions are made from the top 9. Chain of Superiors (line of authority) - A hierarchy is necessary for the unity of direction. It refers to the formal chain of command running from top to bottom of the organization. it should not be over-stretched or consist of too many levels 10. Order Social as well as material order is necessary. Both should stand at their prescribed places

11. Equity In a running business a combination of kindliness and justice is needed. Treating employees well is important to achieve equity 12. Personnel Tenure Employees work better if job security and career progress are assured to them. An insecure tenure and a high rate of employee turnover will affect the organization adversely. 13. Initiative Allowing all personal to show their initiative in some way is a source of strength for the organization 14. Esprit de corps There should be harmony and cohesion/ consistency/commonality among personnel It's a great source of strength in the organization. Fayol stated that for promoting esprit de corps, the principle of unity of command should be observed along with teamwork, the dangers of divide and rule Relevance in todays context Some of these ideas may seem self-evident today, but can be seen as being revolutionary in Fayol's time Until today, his principles remain important as they continue to have a significant impact on current managerial thinking Fayol's main contribution was the idea that management was not a talent related to genetic hereditary, but a skill that could be taught.(doesnt flow down from generations but can be learned) He created a system of ideas that could be applied to many areas of management and laid down basic rules for managing large organizations
http://www.scribd.com/doc/39816275/Evolution-of-Management-Thought-MBA-1