Professional Documents
Culture Documents
Theory
Chapter 2
The driving force behind the evolution of
management theory is the search for
better ways to utilize organizational
resources.
The Evolution of Management
Theory
1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
Evolution of modern
management began
in the late nineteenth
century, after the
industrial revolution.
Problems faced:
Famous economist,
Adam Smith,
journeyed around
England in 1700s
studying the
effects of industrial
revolution.
Job Specialization Division of Labor
Better Organizational
Increased Efficiency
performance
With insights gained from Adam Smiths
observations, other managers and
researchers began to investigate how to
improve job specialization to increase
performance.
They focused on how to organize and
control the work process.
F.W. Taylor (1856-1915)
Scientific Management
1. Division of Labour
2. Authority and Responsibility
3. Unity of Command
4. Line of Authority
5. Centralization
6. Unity of Direction
7. Equity
1. Order
2. Initiative
3. Discipline
4. Remuneration of Personnel
5. Stability of tenure of Personnel
6. Subordination of Individual Interests to
the Common Interest
7. Esprit de Corps
1. Division of Labour
Theory X and Y
Behavioral Management
Experimental findings
Productivity unexpectedly increased under imposed
adverse working conditions.
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.
Human Relations Movement
Assumptions:
Average worker is lazy
Dislikes work
Assumptions:
Workers are not inherently lazy