EVOLUTION OF MANAGEMENT THOUGHTS

Evolution of Management Thought

Management has been progressively evaluated through the following three stages.

The Classification theory of management

It has three streams:1.

Bureaucracy : 1900

2.

Scientific management: 1900-1930

3.

Administrative / Operational management: 1916-1940

The Neo-classical Theory of management

It has two streams:1.
2.

Human Relations: 1930-1950

Behavioral Approach: 1940-1950

Modern Theory of management

It has three streams:1.
2.
3.

Quantitative Approach: 1950-1960

Systems Approach: 1960s on words
Contingency Approach: 1970s on words

Evolution of Management Thought Frederick Winslow Taylor - Theory of Scientific Management

F.W.Tylor is considered as the "Father of scientific management" and his
contributions mark a new era in Modern Management Thought. The concepts
propounded by him have an impact on management service practice as well as
on management thought up to the present day.. Taylor formalized the principles
of scientific management,and the fact-finding approach put forward and largely
adopted was a replacement for what had been the old rule of thumb.

He also developed a theory of organizations , which has been largely accepted

by subsequent Management Philosophers

F.W. Taylor's Contributions to Scientific Management

By 1881 Taylor had published a paper that turned the cutting of metal into a
science. Later he turned his attention to shoveling coal. By experimenting with
different designs of shovel for use with different material (from 'rice' coal to ore)
he was able to design shovels that would permit the worker to shovel for the
whole day.
In so doing, he reduced the number of people shoveling at the Bethlehem Steel
Works from 500 to 140. This work, and his studies on the handling of pig iron,
greatly contributed to the analysis of work design and gave rise to method study.
To follow, in 1895, were papers on incentive schemes. A piece rate system on
production management in shop management, and later, in 1909, he published
the book for which he is best known, Principles of Scientific Management.
A feature of Taylor's work was stop-watch timing as the basis of observations.
However, unlike the early activities of Perronet and others, he started to break
the timings down into elements and it was he who coined the term 'time study'.
Taylor's uncompromising attitude in developing and installing his ideas caused
him much criticism. Scientific method, he advocated, could be applied to all
problems and applied just as much to managers as workers. In his own words he
explained:
"The old fashioned dictator does not exist under Scientific Management. The
man at the head of the business under Scientific Management is governed by
rules and laws which have been developed through hundreds of experiments just
as much as the workman is, and the standards developed are equitable."

Objectives of Scientific Management

The four objectives of management under scientific management were as
follows:
The development of a science for each element of a man's work to replace
the old rule-of-thumb methods.

 The scientific selection, training and development of workers instead of

allowing them to choose their own tasks and train themselves as best they
could.
The development of a spirit of hearty cooperation between workers and
management to ensure that work would be carried out in accordance with
scientifically devised procedures
The division of work between workers and the management in almost
equal shares, each group taking over the work for which it is best fitted
instead of the former condition in which responsibility largely rested with
the workers. Self-evident in this philosophy are organizations arranged in a
hierarchy, systems of abstract rules and impersonal relationships between
staff.

F.W. Taylor's Contribution to Organizational Theory

This required an organization theory similar for all practical purposes to that
advocated by those organizational theorists who followed. These theorists
developed principles of management which included much of Taylor's philosophy
His framework for organization was:
clear delineation of authority
responsibility
separation of planning from operations
incentive schemes for workers
management by exception
task specialization

Criticism Of Theories Expounded by Taylor

Taylor's Philosophy though gained immense popularity, was also widely criticised
on three grounds.
1. Scientific management ignored human side of organization.. Taylor viewed
on average worker as a machine that could be motivated to work hard

through economic incentives. Workers and Trade Unions opposed his

views strongly on the plea that it was exploitative.
2. Taylor's theory is narrow in scope having direct application to factory jobs
at the Shop Floor Level. Taylor and his disciples were called "Efficiency
Experts" because they concentrated attention on improving efficiency of
workers and machines. Scientific management is therefore restricted in
scope as a theory of Industrial Engineering or Industrial Management,
rather than a general theory of management.
3. Taylor advocated excessive use of specialisation and separation of
planning from doing. Excessive division of labour had disastrous
consequences in the form repetitive and monotonous jobs and discontent
among workers.
Nevertheless, Taylor's theory and principles have exercised considerable
influence on modern management thought. His emphasis on use of scientific
methods in solving work-related problems is widely accepted by modern experts
on management. Taylor's impact has been so great because he developed a
concept of work-measurement, production control and other functions, that
completely changed the nature of industry. Before scientific management, such
departments as work-study, personnel, maintenance and quality control did not
exist. What was more his methods proved to be very successful. Quantitative
approach or management science approach is based largely on Taylor's
philosophy.
"Scientific Management focuses on job-productivity at the shop floor, in particular
upon techniques that could be used on manual workers. Scientific management
principles continue to be widely applied today. In a typical manufacturing
orgnization one will see scientific managment ideas and techniques being
applied to the shop floor, and bureaucratic principles of organization being used
in the office areas".*
*

Andrzej A. Huczynski in "Management Gurus - What makes them and how to

become one" (p.12)

Scientific Management- (Contribution of F.W.

Taylor)

Scientific Management
(Contribution of F.W. Taylor)
Frederick Winslow Taylor was first person who gave
Scientific Management in 1911. He also called the father of
scientific management. Scientific Management was concerned to
improving the operational efficiency at the shop-floor level.

According to Taylor, scientific management means knowing

exactly what you want men to do and seeing that they do it in the
best and cheapest way.

Scientific management is based on the analysis, planning and

control functions. And job accomplished by analyzing, and works
can selected and trained scientifically. In this, management role is
to determine the kind of work for which an employee suited and
hire and assign workers accordingly. Management is not
responsible for execution of work but they are responsible for how
the work is done. Co-operation between management and
workers can enhance the work and achieve the maximum output.

Taylor called it as Mental Revolution, because it creates the

mutual understanding, trust and confidence between the
management and workers for achieving goal (higher production).

Principles of scientific Management

Under scientific management, Taylor developed the following
parameters for organization.

 Scientific work study

Task planning
Tools and materials
Selection and Training
Standardization
Worker management interrelationships
Differential piece wage system

Objective of Scientific Management

 Scientific utilization of various resources like human power,

material etc.
To provide trained and efficient work force.
To provide standardize methods of work.
To provide a scientific base for selecting material, and equipment.
To provide extra wages to the worker for higher production.
Replace old rule of thumbs to new scientific methods.
To develop a good rapport between management and workers.
To achieve higher production, with reduce costs and maximum
efficiency.
Less wastage.

(Contribution of Henri Fayol)

Henri Fayol was real father of modern Management. Henri
Fayol is the French industrialist in 1841-1925. He was a mining
engineer in. Henri Fayol spent his entire working career in French
industry; French cool and iron combine of commentary

fourchambault. Henri Fayol developed a general theory

of Business Administration.

Henri Fayol was concerned the principles of organization and

the function of management. Fayol laid the foundation of
management as a separate body of knowledge. He always
insisted that if scientific forecasting and proper methods are used
in management than company can get satisfactory results.
According to Fayol, management was not personal talent; it is a
knowledge base skill.

Henri Fayols Administrative Management is based on six

admin activities. They are1. Technical : Production and manufacture
2. Managerial : Planning, controlling, co-ordination
3. Commercial : Purchasing and selling
4. Financial : Use of capital
5. Accounting : Asset, Liabilities, cost, profits
6. Security : Protection of goods and

Person

Fayols fourteen Principles of management

Fayol derived the following fourteen principles.-

Division of work: Division of work means specialization. Each

job and work should be divided into small task and should be
assigned to specialist of it.

Authority and responsibility: Authority means right to give

order and command while responsibility means
to accomplish objective.

Discipline: Discipline is required at every level in every

organization. Fayol stated discipline in terms of obedience,
application, and respect to superiors.

Unity of command: A subordinate should receive order from

only one boss.

Unity of direction: It means that all the works of an

organization must work together to accomplish a common
objective in under one plan and head.

Subordination of individual interest to common

interest: Worker follows the common interest of organization
rather than individual.

Remuneration: Remuneration should be fair and adequate. It

includes both types of incentives financial as well as non financial.

Centralization: There should be one central point in

organization which exercises overall direction and control of all
the parts.

Scalar Chain: Scalar chain is the chain or line of command from

superior to subordinates.

Order: Only proper order can give an efficient management.

Equity: Equity creates loyalty and devotion among the
employees.

Stability of tenure personnel: Security of job for an employee

in an organization is very important and pre-requisite condition.
Retaining productive employee should always a higher priority of
management.

Esprit de corps: Management should encourage harmony and

proper understandings between workers. Fayol said that in union
there is strength. Whole organization should work as a team.

Initiative: Manager should be encouraged the employees

Initiative for creative working.

BUREAUCRACY MANAGEMENT (Max Weber-1900)

Bureaucracy management is a stream of classical theory of

management. Max Weber was the first of management theorists
who were concerned the management structure with the sets of
rule and regulations. Bureaucracy management depends upon
administration devices. Max Weber presents the ideal
organization structure. There are four major characteristics of
organizational structure.

Hierarchical positions

Rules of system

Division of labour for specialization

Impersonal relationship

Advantage of bureaucracy management:

Hierarchy of authority.

Employment is based on the technical efficiency.

Eliminate managerial inconsistencies.

A well understood system.

Maintain the consistency of working.

Rules and regulation of the duties are followed by the

employees.

Records are kept for future references.

People are given authority according to their position in
organization.

Disadvantage of bureaucracy management:

resources are not tackled.

Human

Inter personal relations are discarded.

It does not allow for personal growth and development.

It does not possess adequate.

Organization becomes static and change is not anticipated.

Difficult to keep co-ordination and communication between

employees.

It is a closed system.

Neoclassical theorists recognized the importance of individual or

group behaviour and emphasized human relations. Based on the
Hawthorne experiments, the neoclassical approach emphasized
social or human relationships among the operators, researchers
and supervisors (Roethlisberger and Dickson, 1943). It was
argued that these considerations were more consequential in
determining productivity than mere changes in working
conditions. Productivity increases were achieved as a result of

high morale, which was influenced by the amount of individual,

personal and intimate attention workers received.
Principles of the neoclassical approach
The classical approach stressed the formal organization. It was
mechanistic and ignored major aspects of human nature. In
contrast, the neoclassical approach introduced an informal
organization structure and emphasized the following principles:
The individual An individual is not a mechanical tool but a
distinct social being, with aspirations beyond mere
fulfilment of a few economic and security works. Individuals
differ from each other in pursuing these desires. Thus, an
individual should be recognized as interacting with social
and economic factors.
The work group The neoclassical approach highlighted
the social facets of work groups or informal organizations
that operate within a formal organization. The concept of
'group' and its synergistic benefits were considered
important.
Participative management Participative management or
decision making permits workers to participate in the
decision making process. This was a new form of
management to ensure increases in productivity.
Note the difference between Taylor's 'scientific management' which focuses on work - and the neoclassical approach - which
focuses on workers.

DEFINITION

Hawthorne effect
the Business terms glossary:
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The Hawthorne effect is a psychological phenomenon

that produces an improvement in human behavior or

performance as a result of increased attention from

superiors, clients or colleagues.
Introduction
Elton Mayos team conducted a number of experiments involving six female workers.
These experiments are often referred to as the Hawthorne experiments or Hawthorne
studies as they took place at The Hawthorne Works of the Western Electric Company
in Chicago.
Hawthorne Experiment Details
Over the course of five years, Mayos team altered the female workers working
conditions and monitored how the change in working conditions affected the workers
morale and productivity. The changes in working conditions included changes in
working hours, rest brakes, lighting, humidity, and temperature. The changes were
explained to the workers prior to implementation.
Hawthorne Experiment Results
At the end of the five year period, the female workers working conditions, reverted
back to the conditions before the experiment began. Unexpectedly the workers morale
and productivity rose to levels higher than before and during the experiments. The
combination of results during and after the experiment (ie the increase in the workers
productivity when they were returned to their original working conditions) led Mayo
to conclude that workers were motivated by psychological conditions more than
physical working condition.

Hawthorne Experiment Conclusions

After analysing the results from the Hawthorne experiments Mayo concluded that
workers were motivated by more than self interest and the following had an impact
too:

Psychological Contract
There is an unwritten understanding between the worker and employer regarding what
is expected from them; Mayo called this the psychological contract.
Interest in Workers
A workers motivation can be increased by showing an interest in them. Mayo
classified studying the workers (through the experiments) as showing an interest in the
workers.

Work is a Group Activity

Work is a group activity, team work can increase a workers motivation as it allows
people to form strong working relationships and increases trust between the workers.
Work groups are created formally by the employer but also occur informally. Both
informal and formal groups should be used to increase productivity as informal groups
influence the workers habits and attitudes.
Social Aspect of Work
Workers are motivated by the social aspect of work, as demonstrated by the female
workers socialising during and outside work and the subsequent increase in
motivation.
Recognise Workers
Workers are motivated by recognition, security and a sense of belonging.
Communication
The communication between workers and management influences workers morale
and productivity. Workers are motivated through a good working relationship with
management.
Conclusion
The traditional view of how to motivate employees is that you offer monetary rewards
(pay increases, bonuses etc) for work completion. However the Hawthorne
experiments may suggest that motivation is more complicated than that. Advocates of
the "Hawthorne Effect" will state that the Hawthorne experiment results show that
motivation can be improved through improving working relationships and social
interraction.

Major contributors of Neo-classical theory are:

Chris Argyris- He recommended that worker should be given freedom to
make their own judgments.
Mary Praker Follett: He referred group influence.

Dougals Me Gorgor: he referred two views.

X-theory- it is based on classical theory and
Y-theory- it is based on neo-classical theory.
Abraham Maslow: He referred individual needs.