Management

The Evolution Of Management Thought
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1. INTRODUCTION
Management has developed and grown in leaps and bounds from a nearly insignificant topic in
the previous centuries, to one of the integral ones of our age and economy. Management has
evolved into a powerful and innovative force on which our society depends for material
support and national well-being. The period between 1700 and 1850 is highlighted by the
industrial revolution and the writings of the classical economists. The advent of the factory
system during this period highlighted, for the first time, the importance of direction as a
managerial function. As factories and jobs increased and a distinctive work culture began to
take shape, appropriate management of all this became imperative. This development brought
along with it new questions and problems to which adequate solutions were required. To find
appropriate solutions to these problems, people began to recognize management as a
separate field of study. The term management encompasses an array of different functions
undertaken to accomplish a task successfully. It is the process of designing and maintaining an
environment in which individuals, working together in groups, efficiently accomplish selected
aims. Despite the inexactness and relative crudity of management theory and science the
development of thought on management dates back to the dates. Early management theory
consisted of numerous attempts at getting to know these newcomers to industrial life at the end
of the nineteenth century and of the twentieth century in Europe and United States. Although
modern operational management theory dates primarily from the early twentieth century,
there was serious thinking and theorizing about managing many years before. Difficulties have
been t he t umbl i ng blocks in locating the source and the evolution of management. In
the quest of searching its evolution people have made two verticals. One is ruled by the concept
of modern conceptualization that is the modernity and the other is taking back to the days of
the Sumerian traders or the builders of the pyramids of the ancient Egypt to keep the
communities and the slaves respectively, open to exploitation but motivated yet. As the pattern
of managing men changed, the concept of management shifted into the organizational
affairs more, keeping the industrial revolution as a yard stick. It is worthwhile for persons
interested in management to know something of the background of the evolution of

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management thought. The here reflects the movement of the management thoughts of the
former vertical, dealing mainly with the organization and its work force and its credence to
execute in their respective areas. In fact management nurtures on the concept of `necessity
is the mother of inventions ' where the lack of mechanized records during the pre- industrial
revolution era pushed it to refine the complexities of the perpetual journey of the changing
management principals through its school of thoughts Even limited knowledge can help one
appreciate the many insights, ideas, and scientific underpinnings that preceded the upsurge
in the management writing during recent years. It is the industrial revolution that escalated the
flow and the type of business and a creative need for the professional managers. Considering
the traditional or the classical school of management thought commonly perceived as the
beginning of the management as per the concept of modernity took the then leadership
execution into further complexity to solve more demanding situations in the emerging business
trends. The Classical school of thoughts came into existence around 1900 through 1920s setting three
main principles. Familiarity with the history of management thought may help to avoid
rediscovering the previously known ideas. Many writers and practitioners have contributed to
the development of management thought. Many current management concepts and
practices can be traced to early 20th century management theories. Some of the main
approaches to management were the scientific management approach, the general
administrative approach and the human relations approach. Some of the exponents of the early
theories were Frederick Taylor, Max Weber, Elton Mayo, Chester Barnard, Mary Parker Follett
and Henri Fayol. While it would be too complex and voluminous to include the persons who
have made significant contributions to the evolution of management thought, major
contributors are noted. Neo classical theory developed between 1920s to 1950s felt that
employees simply do not respond rationally to rules, chains of authority and economic
incentives alone but are also guided by social needs, drives and attitudes. Hawthorne Studies
at GEC etc., were conducted then. It was quite natural that in the early phases of the industrial
revolution, the emphasis was on development of techniques and technology.

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In recent times, management has become a more scientific discipline having certain
standardized principles and practices. The following is a breakdown of the evolution of
management thought during its developmental period:
Early management approaches which are represented by scientific management, the
administrative management theory and the human relations movement
Modern management approaches which are represented by scientific management, the
administrative/management science approach, the systems approach and the contingency
approach.

2. MANAGEMENT AND ORGANIZATION
Management in all business areas and organizational activities is the act of getting people
together to accomplish desired goals and objectives efficiently and effectively. Management
comprises planning, organizing, staffing, leading or directing and controlling an organization (a
group of one or more people or entities) or efforts for the purpose of accomplishing a goal.
Resourcing encompasses the deployment and manipulation of human resources, financial
resources, technological resources and natural resources.
The definitions by different management thinkers are as follows:
Management is the accomplishment of results through the efforts of other people.
(Lawrence A. Appley)
Management is the art of getting things done through and with the people in formally
Organized groups. (Koontz H.)
Management is a process of planning organizing, actuating and controlling to
determine and accomplish the objectives by the use of people and resources. (Terry G.)
Management is the process by which managers create, direct, maintain and operate
purposive organizations through systematic, coordinated, cooperative human effort.
(McFarland)

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It is the coordination of all resources through the process of planning organizing,
directing and controlling in order to attain stated objectives. (Sisk)
Management has also been defined as a decision-making, rule-making and rule enforcing body.
According to Professor Moore, management means decision-making. Appley called it
personnel administration. For the sake of simplicity and convenience, we can broadly define
the term thus: management is concerned with resources, tasks and goals. It is the process of
planning, organizing, staffing, directing and controlling to accomplish organizational
objectives through the coordinated use of human and material resources.

3. BASIC FEATURES OF MANAGEMENT
3.1 Organized activities:
Management can be called as a process of organized activities. Organization is required to
ensure that two groups of people can be involved in the performance of activities.
Management comes into existence when a group of people are involved in working towards a
common objective and goal. The organized activities may take a mixture of forms ranging from
a strongly structured organization to a very relaxed organization. It can be a company like Tata
Iron and Steel Company or a local social club. Whatever types of organizations they may be,
they all have one thing in common, they want to progress efficiently towards the achievement
of their objectives, through the coordinated efforts of people. This is done by the
management process. Therefore, management has no operational meaning in the case of an
individual striving for his/her personal goal or objectives.
3.2 Existence of objectives:
Every group or organization should have an objective or a set of objectives, which will serve as
their ultimate goal. This is what they will strive for and all their activities will be directed
towards this. Without objectives, it becomes difficult to identify the direction in which

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organized group activities are headed. The existence of objectives is a basic criterion of every
human organization because all organizations are deliberate and purposive in creation and
therefore, they should have some objectives.
The objectives are established by the members of the group or the organization. The
organizational objectives are the desired state of affairs, which an organization attempts to
realize. This realization of objectives is sought through the coordinated efforts of the people
constituting an organization.

3.3 Relationship among resources:
Organized activities meant to achieve common goals are brought about to establish certain
relationships among the available resources. The resources in question are materialistic and
otherwise, for instance money, machine, materials and people. All these resources are made
available to those who manage; they utilize data and information, experience and doctrines
for getting the desired results.
Thus, the essence of management is the integration of the various organizational resources.
However, since people at the operative level do the things by the use of various physical and
other resources, it is more important for the management to take care of the integration of
human resources. Thus, management is concerned with the proper consumption of human
resources, which in turn, employs other resources.

3.4 Working with and through people:
Management entails engaging people and getting organizational objectives accomplished
through them. The basic idea is to delegate and assign specific duties and responsibilities to
subordinates. The superior-subordinate relationships are created because of organized
activities. Through the process of assignment and reassignment of activities, concrete work is
performed by the lower level operations people, which is the lowest level in the organization.
Thus, a sizeable proportion of management principles relates to how human beings can put
enhanced endeavors into the organization.


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3.5 Decision-making:
Decision-making is one of the key management processes that enable getting work done by
others at various levels, therefore increasing the output by delegating authority. Decision-
making involves selection of the best alternative out of the available alternatives. If there is
only one alternative, then the question of decision-making does not arise at all. The quality the
decision selected by the manager, determines the organizations performance and the future
of the organization. Therefore, the success or failure rate of a manager can be judged by the
quality of decisions he/she makes.

There are various elements of the management process. These are generally classified as
planning organizing, staffing, directing and controlling. The coordinated performance of these
leads to the realization of organizational objective.

Fig: Functions Of Management


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4. EVOLUTION OF MANAGEMENT THOUGHT
Management and organizations are products of their historical and social times and places.
Thus, we can understand the evolution of management theory in terms of how people have
wrestled with matters of relationships at particular times in history.

4.1 Early Management Thought
The economic facet relationship of people to resources. The social facet relationship of
people to other people. The political facet relation of the individual to the state .The
technological facet related to the art and applied science of making tools and equipment
.The human being is then fundamental unit of analysis for the study of mankind, management,
and organizations. Human basic needs and social needs led to the formation of family and
groups, a primitive hierarchy of organization. People found advantages in participating and
cooperating with others to achieve goals. Management is essential to organized endeavors.
Persons may be designated to manage; sometimes groups can come to agreements and
manage their efforts. In either case, however, the activity of management must be present.
4.2 Management before Industrialization
First, there has to be a goal. Second, people must be attracted to the purpose in order to
participate. Third, organizational members need resources. Fourth, activities must be
structured. Fifth, results were better achieved through the activity of management.
Hammurabi Code of Law. Sun Tzu Planning and Strategy. Confucius Personnel selection
by merit, early bureaucracy, and division of labor. Kautilya Public administration, trait
approach for selecting leaders, use of staff for advising, and job descriptions. Joseph best
known vizier - from which the word supervisor is derived
Egypt: Joseph as Vizier from which the word supervisor is derived Span of Control Rule of
ten.

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Hebrews: Origins of Charisma. Moses and his ideas: organization, span of control, delegation,
and the exception principle. Other quotes suggest the Hebrews provided advice on planning,
listening to advisers, and controlling.
Greece: Socrates transferability of managerial skills.
Aristotle specialization of labor, departmentation, delegation, synergy, leadership
and scientific method.
Xenophon advantages of specializing labor
Rome: The span of control in their military as well as Roman Law became a model for later
civilizations.
The Catholic Church: Oldest living organization
Conflict between centralized and decentralized authority still exists today characterized as the need
for unanimity of purpose yet discretion for local problems and conditions. Papal authority may reside in
a passage found in Matthew 16:18. Jesus says to Peter; You are Peter, a stone; and upon this rock I will
build my church. Since Peter was crucified and buried in Rome, some believe that the church in Rome
(St. Peters Basilica) fulfilled this prophecy.

4.3 Feudalism and the Middle Ages
Caused by the development of free people as tenant farmers, growth of large estates, political
disorder, economic, social, and political chaos. Tied people to the land, fixed rigid class
systems, established landed aristocracy, stopped education, caused poverty and ignorance,
and stifled human progress until the Age of reformation. Air and water pollution existed long
before the Industrial Revolution. Marco Polo travels to the Far East sees the Rule of Ten in the
Tatar tribes. Craft Guilds makers of goods; regulated job access. Merchant Guilds buyer &
sellers of goods. Domestic (Putting Out) System - Pay based on performance where one did
not get paid until work was returned to the merchant. Luca Paciolis system of double-entry

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accounting the first management information system (cash & inventory position and a check on cash
flow) developed in 15th century.
Summa de Arithmetica, geometrica, proportioni, et proportionalita. Just Price = market price;
advocated by Saint Thomas Aquinas in 13th century. Trade rules (Code of Ethical Conduct)
proposed by Friar Johannes Nider in 1468: Goods should be lawful, honorable, and useful.
Price should be just. Seller should beware. Speculation was a sin.
4.4 The Cultural Rebirth
Traces social, political, and economic changes that preceded the Industrial Revolution in Great
Britain. Max Weber (1864-1920) advocated the belief that Protestants held different attitudes toward
work. This spirit of capitalism led to the Industrial Revolution: Individual responsibility and self-
control. Work as a means of salvation. Do not waste time or money. Do your best in your
calling. Do not consume beyond your basic need
Greed vs. Capitalism: Read Webers distinction between the impulse to acquisitionthe greed for
gain and capitalism as the rational tempering of this greed on p. 26 of the text. Do you agree or
disagree with Weber?
Criticism of Weber: R.H. Tawneys opinions. Capitalism existed before the Protestant Ethic.
Capitalism was the cause and justification of the Protestant Ethic, not the effect. Economic
motivation pressured to change Church dogma to sanction economic efforts.
Modern Support for Weber: David C. McClelland. Support for Weber in his observations of the
influence of religion on human attitudes toward work and self-reliance. He found that children
of Protestants had higher achievement than children of Catholics, and children of Jews had
still higher achievement. McClelland said the need for achievement is not restricted to
Protestants and there are wide variations among individuals which are influenced by the
lessons they learn early in life about work, risk-taking, and self-reliance.
The Liberty Ethic: Differing ideas of the assumptions made about the nature of people guiding the
choice of leadership style. Machiavelli and Hobbes insist that humans are basically nasty so they

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must be governed closely. Nicolo Machiavelli The Prince all men are bad and ever ready
to display their vicious nature (1513). Thomas Hobbess Leviathan. Some great power
must exist to bring order from chaos. (1651)
The Market Ethic: Adam Smith Wealth of Nations (1776). Market forces were far more efficient
in allocating resources and more just in rewarding individuals who produced the wealth than
Mercantilism (government regulated the economy).
Early management thought was dominated by cultural values that were antibusiness. Three
forces, or ethics, interacted to provide for a new age of industrialization. Protestant Ethic.
Liberty Ethic and Market Ethic.

5. THE INDUSTRIAL REVOLUTION
A human turning a millstone can covert one-half bushel of wheat into flour in one hour. Three
bushels can be ground in one hour with a horse-driven mill. A steam driven mill can do 10
bushels per hour. James Watt perfected the Steam Engine making it a reliable source of power for
factories and transportation. It became more economical to bring people to the work (factory)
rather than taking the work home (domestic system). As factories grew,
management/leadership became more important. Richard Cantillon, currency speculator Wrote
Essay on the Nature of Commerce. First to use the term entrepreneur in an economic sense.
Entrepreneur applied to anyone who bought or made a product at a certain cost to sell at an
uncertain price. Influenced Francois Quesnay, leader of the Physiocrats. Management joins land,
labor and capital as a recognized factor of production. J.B. Say provided a more definitive
explanation of the role of entrepreneur. The entrepreneur became a manager for others and
assumed an additional risk in combining the factors of land, labor, and capital.
Labor: Recruiting workers. Training (most were illiterate). Discipline/Motivation. Wage incentives (the
carrot). Punishment or fines (the stick). Use of religious morals and values to create the proper

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work attitudes and behaviors (the factory ethos). Finding qualified managers. The Luddite
movement machine breaking.
No body of management knowledge existed. The general view of leadership depended on character of
the leader and personal traits. James Montgomery first management texts of managerial advice: How
to discern quality & quantity of work. How to adjust & repair machinery. How to keep costs down. How
to avoid unnecessary severity in disciplining subordinates.
Management Functions in the Early Factory: Planning operations. Planning against worker organization
and Luddites. Planning of power sources and connections. Planning flow of work. Controlling
performance.
Cultural Consequences of the Industrial Revolution: Condition of the Worker. Economists Thomas
Malthus and David Ricardo view worker condition as dismal and inevitable. Robert Owen, Karl Marx,
and Friedrich Engels saw people as powerless in their environment. Rise of capitalism released people
from drudgery. Incentive plans, steady employment and regular hours improved worker well-being.
Workers real wages and conditions improved. Child and Female Labor. Primarily found in the textile
industry. Entrepreneurs ranged from exploiters to good employers such as Josiah Wedgwood,
Matthew Bolton, James Watt and Robert Owen. Contradictory evidence, religious and moral concerns
affect understanding of the true situation. Over time, legislation and capitalism made it uneconomical
to employ children. Industrial capitalism created a method to gain leverage for a better life. Industrial
Revolution inherited worker poverty. Industrial efficiency reduced prices of goods and raised real
wages. Child and female labor existed long before factories began. Victorian values of keeping women
at home created the atmosphere for critics of the factory system like Charles Dickens.
6. MANAGEMENT PIONEERS IN THE EARLY FACTORY
Robert Owen problems in human terms. Charles Babbage systematic management. Andrew Ure
trained managers. Charles Dupin took Ures ideas to France. Robert Owen learned about
management by observing and trial and error on the job. At New Lanark he advocated more labor
intensive agriculture, using a spade rather than a plow. He did not believe industrial progress was
adequate to feed the growing population. Reformed the factory system by improving workers
working & living conditions. Employed child labor but worked to get a law passed to regulate hours of
work. Silent Monitor which relied on peer pressure or public knowledge of performance vs. corporal

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punishment. Philosophy was to invest in the vital machines as a means of increasing profitability.
Entrepreneurs should invest in the vital machine (people) as a means of increasing profitability.
Individuals were creatures of their environment; character developed if the material and moral
environment was proper.
Charles Babbage never a manager, however a keen observer of the factory and a brilliant inventor and
scientist. The Difference Engine a mechanical calculator. The Analytical Engine the first computer.
Conceived an early 19
th
century printer Charles Babbage Institute.
Augusta Ada Byron was countess of Lovelace, Programmer and a Contributor in describing the
operations of the computer. Scientific, systematic approach in analyzing industrial operations.
Descriptive cost accounting (not standard costing that Emerson developed later). Mutual interests
between the workers and management. Bonus for suggestions to improve operations first of its kind.
Profit sharing idea from MaisonLeClaire, Parisian house painting firm.
Andrew Ure was the First teacher of management. Well known scientist his courses attracted
those seeking technical knowledge to obtain a managerial job. Ure wrote about the operations of the
factory including: Admonishing the workers to accept the introduction of machinery. Organizing the
factory into an organic system of the mechanical, the moral and the commercial (production,
personnel, and sales & finance areas). Had an early notion of the task of the general manager to
integrate the parts to contribute to the whole (organic system). Defended the factory claiming it
enabled more benefits to society. Believed that workers were generally non-appreciative of
managements efforts. Defended the factory system using comparison data from the cotton mills of
1833 and 1804.

7. INDUSTRIAL REVOLUTION IN THE US
British mercantilism kept the U.S. as a colony which delayed economic development. Great
Britain prohibited the sale of manufacturing equipment and emigration of skilled labor to U.S.
Adam Smith influenced writing of the U.S. Constitution and economic system. Earliest
factories were textile mills. Commonwealth vs. Hunt 1842. American System of Manufactures
manufacture by interchangeable parts. Largest industry at the time was textile. Even though the

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textile industry was the largest business, factories were still small. Photo on the left depicts
an early textile mill.
Samuel Slater Rhode Island System Very similar to practice and personnel policies existing in
Great Britain. First to use steam-driven power looms. Relied on sole proprietorship or
partnership form of ownership initially. Relied on family for labor with growth had to hire
professional managers. Vertically integrated operations forward and backward.
Francis Lowell Waltham System. Used water-power looms. Hired non-family supervisors &
managers with corporate model. Used integrated spinning and weaving to manufacture goods in large
quantities. Relied on adult female labor. Praised by Charles Dickens for better treatment of employees.
Commonwealth v. Hunt: Worker combinations (unions) were no longer illegal unless their intent was
criminal. Seeking a closed shop and striking were no longer illegal. Only applied to Massachusetts but
discouraged prosecution of worker organizations elsewhere.
Manufacture by interchangeable parts was not new previously confined to making muskets and
revolvers. The Springfield (MA) Armory was an early factory prototype. 250 employees largest factory
in the U.S. until after the Civil War. Organized by Colonel Roswell Lee in 1815. Used piece rate incentive
payments and accounting system. Labor was more specialized. Uniform standards promoted
interchangeability of parts. Ideas spread to other areas of manufacturing. Ex: The reaper by Cyrus
McCormick. The American System received its name at the exposition of 1851 in London. U.S.
factories remained relatively small. The McLane report of 1832 found the firms were mostly: Family
owned and managed. Few corporations unlimited liability. Little use of steam power. Similar to
findings of Andrew Ure regarding English firms.
Communication Revolution: Telegraph, patented by Samuel Morse in 1837, started concurrent
revolution in communication. By 1860, about 50,000 miles of wires extended over the eastern U.S.
Dramatic effect on business communication. Facilitated U.S. industry move from local markets to
national markets. Richard Sears used the telegraph to see gold watches the first electronic
commerce.


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8. INDUSTRIAL GROWTH AND SYSTEMATIC MANAGEMENT
Growth of enterprise was facilitated by transportation and communication revolutions as well
as manufacture by interchangeable parts. Chandler wrote about the evolution of U.S. Corporations
in 1962 book Strategy and Structure. He developed his ideas from the study of U.S. corporations
during this period. Described the late 19th century as the accumulation of resources with growth
occurring because of: Horizontal combinations of firms in smaller fields. Vertical integration
forward and backward. Larger firms and the growth of hierarchy of managers to coordinate
and integrate operations were the result. Key to success was good management, not size.
Edward Atkinson management made a difference. Alfred and Mary Marshall. Management
requires rarer natural abilitiesand training. Managers must forecast, plan, and organize to
gain economies of scale. Internal economies are enable by more efficient management.
The Labor Question: Some Social Gospel proponents felt that workers should join unions, share in
profits, and have arbitration instead of strikes. Engineers and others felt that better work methods and
systems were the answer, including pay for performance incentive systems. In 1895 Frederick W. Taylor
proposed a rate setting and piece-rate system.
Business & Society: Matthew Josephson characterized the business leaders of this time as Robber
Barons. There is evidence that business leaders did engage in some corrupt practices: watering stock,
bribery of government officials, manipulating stock, and conspiracy. Their motivation was alleged to be
survival of the fittest and desire for monopoly. Motivation was also drive for economies of scale that
led to lower prices. The social conscience of the 19th century entrepreneur gave rise to individual
philanthropy: Ezra Cornell his money founded Cornell University. William Colgate college changed
its name to his as result of his generosity. John Hopkins founded John Hopkins University. Cornelius
Vanderbilt founded Vanderbilt University.
Business and Labor: The Commonwealth v. Hunt decision (1842) broke the British tradition of unions as
conspiracies in restraint of trade. U.S. craft unions and brotherhoods of railroad workers were
successful in the late 19th century. Efforts to organize other workers were generally unsuccessful.
Labor violence in the late 1800s fueled public fear of unions. American Federation of Labor organized in

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1886 under Samuel Gompers. Without unions, and despite growing numbers of immigrants, U.S.
workers found their wages and real (purchasing power) wages rising during the period.

9. THE SCIENTIFIC MANAGEMENT ERA
Taylors Early Years: Frederick Taylor was born in Germantown, PA in 1856. Father Prosperous
Lawyer. Mother Puritan roots to Colonial times. Advantage of fine prep school Philips Exeter
Academy, NH. Travels to Europe. Membership in an exclusive social club. Did not go to Harvard
due to failing eyesight. Began as a factory apprentice pattern maker. His early experiences as a
worker shaped his views of management. Started as a laborer in 1878 and worked his way into
management. As a worker, then a first line supervisor, he observed numerous industrial practices that
led him to his lifes work. Taylor took a home study course to get his college degree in mechanical
engineering in 1883 from Stevens Institute of Technology at Hoboken, New Jersey.
Natural Soldiering: Natural soldiering the natural instinct and tendency of men to take it easy.
Taylor blamed management for not designing jobs properly and not offering proper
incentives. Taylor initially thought that a supervisor may be able to inspire or force workers to
stop natural soldiering.
Systematic Soldiering: Systematic soldiering resulted from group pressure on individuals to conform
to output norms set by the work group. Taylor attributed this to a lump of labor theory. Taylor
felt he could overcome soldiering and improve the situation if workers knew that the
production standards were established by a study of the job, rather than by historical data,
and if incentives could be provided.
Time Study: Time study was a prescriptive in that Taylor sought to identify the time a job should take.
Time study was analytical, breaking the job into its components and eliminating useless
movements; and constructive, building a file of movements that were common to other jobs.

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Search for Science in Management: Taylor intended to use a scientific fact-finding method to
determine a better way to work. These are Taylors notes for shoveling. In modern terms, Taylors
concept of job design was to analyze the job, discard wasted movements, and reconstruct the job as it
should be done. He also sought to find the right tools, the right way to operate the machinery, and the
right way to operate the machinery to make the job more efficient. At the time, Scientific Management
was the latest management fadit was bigger than reengineering and lean manufacturing is today.
The ad on the left demonstrates the popularity. However, the ad is misleading. There is not one, all
purpose scientific shovel the ideal shovel is based on the weight of material it moves. Taylor made
front page news the Sunday after he spoke at the ASME conference in 1903. He basically read Shop
Management word for word to the group. Even though many thought his speech was boringthe
story made it to the front page.
Frederick Taylor and Incentives: Taylor criticized systems of payment based on quantity and quality of
work. Taylors system consisted of:
(1) Observation and analysis through time study to set the standard
(2) A differential rate system of piecework
(3) Paying men and not positions.
Taylor discouraged profit sharing because it did not reward the individual and because it occurred long
after the performance. Taylors differential piece-rate paid those who did not reach the performance
standard an ordinary rate of pay (like minimum wage); a higher rate of pay was given for attaining the
standard. Taylor also recognized non-economic incentives, like promotion and shorter hours.
First-Class Worker: Taylor believed that everyone was best or first class at some type of work.
Taylor believed there should be a match between a persons abilities and the persons job placement.
Task Management: Task Management consisted of time study and developing performance standards.
Selection of workers and the differential piece rate system was included. Management was responsible
for designing the job properly. Task Management depended on planning, organizing, and guiding the
work to completion. Taylor had the idea that knowledge was authority. Supervisors could not know
everything about the planning and performance of the work. Functional specialists would provide

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assistance to workers. In retrospect, Taylor had recognized the need for staff advice and assistance
from people who had special abilities or knowledge.
Taylor after Midvale: He developed an accounting system based on the Hayes-Basley system used by
RRs. He became a consultant for various firms, such as Simonds Rolling Company and Bethlehem Steel.
He implemented his ideas in these and other firms with varying degrees of success. He also traveled
and lectured to various groups to promote his ideas.
F.W. Taylor and Scientific Management: Frederick W. Taylor (18561915) is best known for defining the
techniques of scientific management, the systematic study of relationships between people and tasks
for the purpose of redesigning the work process to increase efficiency. Taylor believed that if the
amount of time and effort that each worker expended to produce a unit of output (a finished good or
service) could be reduced by increasing specialization and the division of labor, then the production
process would become more efficient. Taylor believed that the way to create the most efficient division
of labor could best be determined by means of scientific management techniques, rather than intuitive
or informal rule-of-thumb knowledge. Based on his experiments and observations as a manufacturing
manager in a variety of settings, he developed four principles to increase efficiency in the workplace.

Principle 1: Study the way workers perform their tasks, gather all the informal job knowledge that
workers possess, and experiment with ways of improving the way tasks are performed.

To discover the most efficient method of performing specific tasks, Taylor studied in great detail and
measured the ways different workers went about performing their tasks. One of the main tools he
used was a time-and-motion study, which involves the careful timing and recording of the actions taken
to perform a particular task. Once Taylor understood the existing method of performing a task, he tried
different methods of dividing and coordinating the various tasks necessary to produce a finished
product. Usually this meant simplifying jobs and having each worker perform fewer, more routine
tasks, as at the pin factory or on Fords car assembly line. Taylor also sought ways to improve each
workers ability to perform a particular taskfor example, by reducing the number of motions workers
made to complete the task, by changing the layout of the work area or the type of tool workers used,
or by experimenting with tools of different sizes.


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Principle 2: Codify the new methods of performing tasks into written rules and standard operating
procedures.

Once the best method of performing a particular task was determined, Taylor specified that it should
be recorded so that the procedures could be taught to all workers performing the same task. These
rules could be used to standardize and simplify jobs furtheressentially, to make jobs even more
routine. In this way, efficiency could be increased throughout an organization.

Principle 3: Carefully select workers so that they possess skills and abilities that match the needs of the
task, and train them to perform the task according to the established rules and procedures.

To increase specialization, Taylor believed workers had to understand the tasks that were required and
be thoroughly trained in order to perform the tasks at the required level. Workers who could not be
trained to this level were to be transferred to a job where they were able to reach the minimum
required level of proficiency.

Principle 4: Establish a fair or acceptable level of performance for a task, and then develop a pay
system that provides a reward for performance above the acceptable level.

To encourage workers to perform at a high level of efficiency, and to provide them with an incentive to
reveal the most efficient techniques for performing a task, Taylor advocated that workers should
benefit from any gains in performance. They should be paid a bonus and receive some percentage of
the performance gains achieved through the more efficient work process.

By 1910, Taylors system of scientific management had become known and, in many instances, faithfully
and fully practiced. However, managers in many organizations chose to implement the new principles
of scientific management selectively. This decision ultimately resulted in problems. For example, some
managers using scientific management obtained increases in performance, but rather than sharing
performance gains with workers through bonuses as Taylor had advocated, they simply increased the
amount of work that each worker was expected to do. Many workers experiencing the reorganized
work system found that as their performance increased, managers required them to do more work for

19

the same pay. Workers also learned that increases in performance often meant fewer jobs and a
greater threat of layoffs, because fewer workers were needed. In addition, the specialized, simplified
jobs were often monotonous and repetitive, and many workers became dissatisfied with their jobs.
Scientific management brought many workers more hardship than gain, and left them with a distrust of
managers who did not seem to care about their wellbeing. These dissatisfied workers resisted
attempts to use the new scientific management techniques and at times even withheld their job
knowledge from managers to protect their jobs and pay. Unable to inspire workers to accept the new
scientific management techniques for performing tasks, some organizations increased the
mechanization of the work process. For example, one reason for Henry Fords introduction of moving
conveyor belts in his factory was the realization that when a conveyor belt controls the pace of work
(instead of workers setting their own pace), workers can be pushed to perform at higher levelslevels
that they may have thought were beyond their reach. Charlie Chaplin captured this aspect of mass
production in one of the opening scenes of his famous movie, Modern Times (1936). In the film, Chaplin
caricatured a new factory employee fighting to work at the machine imposed pace but losing the battle
to the machine. Henry Ford also used the principles of scientific management to identify the tasks that
each worker should perform on the production line and thus to determine the most effective way to
create a division of labor to suit the needs of a mechanized production system. From a performance
perspective, the combination of the two management practices(1) achieving the right mix of
workertask specialization and (2) linking people and tasks by the speed of the production linemakes
sense. It produces the huge savings in cost and huge increases in output that occur in large, organized
work settings.

The Gilbreths: Two prominent followers of Taylor were Frank Gilbreth (18681924) and Lillian Gilbreth
(18781972), who refined Taylors analysis of work movements and made many contributions to time-
and-motion study. Their aims were to (1) break up into each of its component actions and analyze every
individual action necessary to perform a particular task, (2) find better ways to perform each
component action, and (3) reorganize each of the component actions so that the action as a whole
could be performed more efficientlyat less cost of time and effort. The Gilbreths often filmed a
worker performing a particular task and then separated the task actions, frame by frame, into their
component movements. Their goal was to maximize the efficiency with which each individual task was
performed so that gains across tasks would add up to enormous savings of time and effort. Their

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attempts to develop improved management principles were capturedat times quite humorouslyin
the movie Cheaper by the Dozen, which depicts how the Gilbreths (with their 12 children) tried to live
their own lives according to these efficiency principles and apply them to daily actions such as shaving,
cooking, and even raising a family. Eventually, the Gilbreths became increasingly interested in the study
of fatigue. They studied how the physical characteristics of the workplace contribute to job stress that
often leads to fatigue and thus poor performance. They isolated factors such as lighting, heating, the
color of walls, and the design of tools and machinesthat result in worker fatigue. Their pioneering
studies paved the way for new advances in management theory. In workshops and factories, the work
of the Gilbreths, Taylor, and many others had a major effect on the practice of management. In
comparison with the old crafts system, jobs in the new system were more repetitive, boring, and
monotonous as a result of the application of scientific management principles, and workers became
increasingly dissatisfied. Frequently, the management of work settings became a game between
workers and managers: Managers tried to initiate work practices to increase performance, and workers
tried to hide the true potential efficiency of the work setting in order to protect their own well-being.
Scientific Management reached maturity in the 1920s. The movement was assisted by Taylors disciples
Carl Barth, Henry Gantt, and Morris Cooke. Other notable contributors to the evolution of Scientific
Management were Frank and Lillian Gilbreth and Harrington Emerson.
10. THE HUMAN FACTOR: PREPARING THE WAY
One part of personnel management can be found in the industrial betterment/welfare movement. The
other side comes from scientific management and the needs for record. A number of companies hired
a welfare secretary to advise management. Their duties were many, and in some cases appeared to be
paternalistic. Many secretaries were female, perhaps because of their experience in vocational
guidance or social work, or perhaps because some of their duties resembled a role stereotype of what
a woman did i.e. administering dining facilities, handling illnesses, etc. Scientific management
emphasized improved personnel selection, placement, wage plans, and other matters that involved
employee welfare. Others advanced personnel management. Mary Gilson, Clothcraft Shops of the
Joseph & Feiss Co., is one example of the scientific management viewpoint. Jane Williams at Plimpton
Press. The Henry Gantt/Elizabeth Briscoe clash at Bancroft Mills relates similarities and differences
between the welfarists and those of scientific management. Henry Ford and his $5 per day minimum is
worth mentioning, as well as his "sociological department. This approach grew out of the Social

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Gospel movement. The moral behavior of unmarried females factory workers was a concern. Early
companies establishing welfare offices: National Cash Register Company in 1897. John Bancroft and
Sons in 1899. H.J. Heinz Company in 1902. International Harvester Company in 1903. Scientific
management emphasized Personnel selection, Placement, Wage plans and Other issues involving
employee welfare. Welfare work eventually was replace with Employment Management after 1910
as personnel practices were standardized and improved.
Wilhelm Wundt pioneered scientific psychology. He opened the first laboratory in Leipzig in 1879. He
founded experimental psychology, leading to applied and industrial psychology. Morris Cooke, Ordway
Tead, and Robert Valentine were examples of those who were trying to reformulate what labor felt
was the unyielding, no union, position of scientific management. The revised emphasis was to be on
consent: Union-management cooperation plans began when union membership was in decline in the
early 1920s. Unions agreed to accept scientific management if they were involved by electing
representatives and could bargain about wages, hours working conditions, etc. Employee
representation plans did not involve unions but the workers elected representatives and participated
through shop councils and committees. Unions did not like these plans, but studies of these plans
indicated they were progressive and improved labor-management relations. The 1920s was prosperous
for employers and employees. Despite a surplus of labor, employers created industrial goodwill with
a variety of employee benefit programs. Scientific Management inspired social scientists and
psychologists to study the workplace. Industrial Sociology began in the 1920s. The Social Gospel
spawned the industrial betterment/welfare movement.

11. ADMINISTRATIVE MANAGEMENT THEORY
Side by side with scientific managers studying the persontask mix to increase efficiency,
other researchers were focusing on administrative management, the study of how to create
an organizational structure that leads to high efficiency and effectiveness. Organizational
structure is the system of task and authority relationships that control how employees use
resources to achieve the organizations goals. Two of the most influential views regarding the
creation of efficient systems of organizational administration were developed in Europe. Max

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Weber, a German professor of sociology, developed one theory. Henri Fayol, the French
manager who develop the model of management, developed the other.

The Theory of Bureaucracy: Max Weber (18641920) wrote at the turn of the twentieth
century, when Germany was undergoing its industrial revolution. To help Germany manage its
growing industrial enterprises at a time when it was striving to become a world power, Weber
developed the principles of bureaucracya formal system of organization and administration
designed to ensure efficiency and effectiveness. A bureaucratic system of administration is
based on five principles.

Principle 1: In a bureaucracy, a managers formal authority derives from the position he or
she holds in the organization.

Authority is the power to hold people accountable for their actions and to make decisions
concerning the use of organizational resources. Authority gives managers the right to direct
and control their subordinates behaviour to achieve organizational goals. In a bureaucratic
system of administration, obedience is owed to a manager, not because of any personal
qualities that he or she might possess such as personality, wealth, or social statusbut
because the manager occupies a position that is associated with a certain level of authority
and responsibility.

Principle 2: In a bureaucracy, people should occupy positions because of their performance,
not because of their social standing or personal contacts.

This principle was not always followed in Webers time and is often ignored today. Some
organizations and industries are still affected by social networks in which personal contacts
and relations, not job-related skills, influence hiring and promotional decisions.


23

Principle 3: The extent of each positions formal authority and task responsibilities, and its
relationship to other positions in an organization, should be clearly specified.

When the tasks and authority associated with various positions in the organization are clearly
specified, managers and workers know what is expected of them and what to expect from
each other. Moreover, an organization can hold all its employees strictly accountable for their
actions when each person is completely familiar with his or her responsibilities.

Principle 4: So that authority can be exercised effectively in an organization, positions should
be arranged hierarchically, so employees know whom to report to and who reports to them.

Managers must create an organizational hierarchy of authority that makes it clear who reports
to whom and to whom managers and workers should go if conflicts or problems arise. This
principle is especially important in the armed forces, CSIS, RCMP, and other organizations that
deal with sensitive issues involving possible major repercussions. It is vital that managers at
high levels of the hierarchy be able to hold subordinates accountable for their actions.

Principle 5: Managers must create a well-defined system of rules, standard operating
procedures, and norms so that they can effectively control behavior within an organization.

Rules are formal written instructions that specify actions to be taken under different
circumstances to achieve specific goals (for example, if A happens, do B). Standard operating
procedures (SOPs) are specific sets of written instructions about how to perform a certain
aspect of a task. A rule might state that at the end of the workday employees are to leave their
machines in good order, and a set of SOPs then specifies exactly how they should do so,
itemizing which machine parts must be oiled or replaced. Norms are unwritten, informal codes
of conduct that prescribe how people should act in particular situations. For example, an
organizational norm in a restaurant might be that waiters should help each other if time
permits. Rules, SOPs, and norms provide behavioral guidelines that improve the performance

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of a bureaucratic system because they specify the best ways to accomplish organizational
tasks. Companies such as McDonalds and Wal-Mart have developed extensive rules and
procedures to specify the types of behaviors that are required of their employees, such as,
Always greet the customer with a smile. Weber believed that organizations that implement
all five principles will establish a bureaucratic system that will improve organizational
performance. The specification of positions and the use of rules and SOPs to regulate how
tasks are performed make it easier for managers to organize and control the work of
subordinates. Similarly, fair and equitable selection and promotion systems improve managers
feelings of security, reduce stress, and encourage organizational members to act ethically and
further promote the interests of the organization. If bureaucracies are not managed well,
however, many problems can result. Sometimes, managers allow rules and SOPs
bureaucratic red tapeto become so cumbersome that decision making becomes slow and
inefficient and organizations are unable to change. When managers rely too much on rules to
solve problems and not enough on their own skills and judgment, their behavior becomes
inflexible. A key challenge for managers is to use bureaucratic principles to benefit, rather than
harm, an organization.

12. FAYOLS PRINCIPLES OF MANAGEMENT
Working at the same time as Weber but independently of him, Henri Fayol(18411925), the CEO
of Comambault Mining, identified 14 principles that he believed to be essential to increasing
the efficiency of the management process.26 Some of the principles that Fayol outlined have
faded from contemporary management practices, but most have endured.

Fayols 14 Principles of Management

1. Division of Labor Job specialization and the division of labor should increase efficiency,
especially if managers take steps to lessen workers boredom.

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2. Authority and Responsibility Managers have the right to give orders and the power to
exhort subordinates for obedience.

3. Unity of Command An employee should receive orders from only one superior.

4. Line of Authority The length of the chain of command that extends from the top to the
bottom of an organization should be limited.

5. Centralization Authority should not be concentrated at the top of the chain of
command.

6. Unity of Direction The organization should have a single plan of action to guide
managers and workers.

7. Equity All organizational members are entitled to be treated with justice and respect.

8. Order The arrangement of organizational positions should maximize organizational
efficiency and provide employees with satisfying career opportunities.

9. Initiative Managers should allow employees to be innovative and creative.

10. Discipline Managers need to create a workforce that strives to achieve organizational
goals.

11. Remuneration of Personnel The system that managers use to reward employees
should be equitable for both employees and the organization.


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12. Stability of Tenure of Personnel Long-term employees develop skills that can improve
organizational efficiency.

13. Subordination of Individual Interests to the Common Interest Employees should
understand how their performance affects the performance of the whole organization.

14. Esprit de Corps Managers should encourage the development of shared feelings of
comradeship, enthusiasm, or devotion to a common cause.

The principles that Fayol and Weber set forth still provide a clear and appropriate set of
guidelines that managers can use to create a work setting that makes efficient and effective
use of organizational resources. These principles remain the bedrock of modern management
theory; recent researchers have refined or developed them to suit modern conditions. For
example, Webers and Fayols concerns for equity and for establishing appropriate links
between performance and reward are central themes in contemporary theories of motivation
and leadership.

13. BEHAVIORAL MANAGEMENT THEORY

The behavioral management theorists writing in the first half of the twentieth century all
espoused a theme that focused on how managers should personally behave in order to
motivate employees and encourage them to perform at high levels and be committed to the
achievement of organizational goals. The Management Insight indicates how employees can
become demoralized when managers do not treat their employees properly.

Management Insight: How to Discourage Employees: Catherine Robertson, owner of
Vancouver-based Robertson Telecom Inc., made headlines in February 2001 for her

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management policies. Robertson is a government contractor whose company operates
Enquiry BC, which gives British Columbians toll-free telephone information and referral
services about all provincial government programs. Female telephone operators at Robertson
Telecom must wear skirts or dresses even though they never come in contact with the public.
Not even dress pants are allowed. As Gillian Savage, a formar employee, notes, This isnt a
suggested thing, its an order: No pants. Brad Roy, another former employee, claims a female
Indo-Canadian employee was sent home to change when she arrived at work wearing a
Punjabi suit (a long shirt over pants). The no-pants rule is not the only concern of current and
former employees. Roy also said, I saw some people being reprimanded for going to the
washroom. While Robertson denied Roys allegation regarding washrooms, she did confirm
that company policy included the no-pants rule, that employees were not allowed to bring
their purses or other personal items to their desks, and that they were not allowed to drink
coffee or bottled water at their desks. The company does not provide garbage cans for the
employees. A group of current and former employees recently expressed concern with the
number of rules Robertson has in place, and claimed that the rules have led to high turnover
and poor morale. A current employee claims that many workers do not care whether they give
out the right government phone numbers. Robertson said that she knew of no employees
who were discontent, and was shocked that the policies had caused distress among
employees. She defended the dress code as appropriate business attire. Robertson may have
to make some adjustments in her management style. The cabinet minister responsible for
Enquiry BC, Catherine Mac Gregor, ordered an investigation of the contractor after being
contacted by The Vancouver Sun about the allegations. She noted that the skirts-only rule for
women is not appropriate, and that, All of our contractors are expected to fully comply with
the Employment Standards Act, Workers Compensation rules and human rights legislation.
Additionally, Mary-Woo Sims, head of the BC Human Rights Commission, said dress codes cant
be based on gender. Thus, an employer cant tell men they must wear pants (as Robertson
does), but tell women they cant. On the face of it, it would appear to be gender
discriminatory, Sims said.


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The Work of Mary Parker Follett: If F.W. Taylor is considered to be the father of management
thought, Mary Parker Follett (18681933) serves as its mother. Much of her writing about
management and about the way managers should behave toward workers was a response to
her concern that Taylor was ignoring the human side of the organization. She pointed out that
management often overlooks the multitude of ways in which employees can contribute to the
organization when managers allow them to participate and exercise initiative in their everyday
work lives. Taylor, for example, relied on time-and-motion experts to analyze workers jobs for
them. Follett, in contrast, argued that because workers know the most about their jobs, they
should be involved in job analysis and managers should allow them to participate in the work
development process. Follett proposed that, Authority should go with knowledge ... whether
it is up the line or down. In other words, if workers have the relevant knowledge, then
workers, rather than managers, should be in control of the work process itself, and managers
should behave as coaches and facilitatorsnot as monitors and supervisors. In making this
statement, Follett anticipated the current interest in selfmanaged teams and empowerment.
She also recognized the importance of having managers in different departments
communicate directly with each other to speed decision making. She advocated what she
called cross-functioning: members of different departments working together in cross-
departmental teams to accomplish projectan approach that is increasingly utilized today.
Fayol also mentioned expertise and knowledge as important sources of managers authority,
but Follett went further. She proposed that knowledge and expertise, and not managers
formal authority deriving from their position in the hierarchy, should decide who would lead at
any particular moment. She believed, as do many management theorists today, that power is
fluid and should flow to the person who can best help the organization achieve its goals.
Follett took a horizontal view of power and authority, in contrast to Fayol, who saw the formal
line of authority and vertical chain of command as being most essential to effective
management. Folletts behavioral approach to management was very radical for its time.

The Hawthorne Studies and Human Relations: Probably because of its radical nature, Folletts
work was unappreciated by managers and researchers until quite recently. Instead,

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researchers continued to follow in the footsteps of Taylor and the Gilbreths. One focus was on
how efficiency might be increased through improving various characteristics of the work
setting, such as job specialization or the kinds of tools workers used. One series of studies was
conducted from 1924 to 1932 at the Hawthorne Works of the Western Electric Company. This
research, now known as the Hawthorne studies, began as an attempt to investigate how
characteristics of the work settingspecifically the level of lighting or illuminationaffect
worker fatigue and performance. The researchers conducted an experiment in which they
systematically measured worker productivity at various levels of illumination. The experiment
produced some unexpected results. The researchers found that regardless of whether they
raised or lowered the level of illumination, productivity increased. In fact, productivity began
to fall only when the level of illumination dropped to the level of moonlight, a level at which
presumably workers could no longer see well enough to do their work efficiently. The
researchers found these results puzzling and invited a noted Harvard psychologist, Elton
Mayo, to help them. Subsequently, it was found that many other factors also influence worker
behavior, and it was not clear what was actually influencing the Hawthorne workers behavior.
However, this particular effectwhich became known as the Hawthorne effectseemed to
suggest that workers attitudes toward their managers affect the level of workers
performance. In particular, the significant finding was that a managers behavior or leadership
approach can affect performance. This finding led many researchers to turn their attention to
managerial behavior and leadership. If supervisors could be trained to behave in ways that
would elicit cooperative behavior from their subordinates, then productivity could be
increased. From this view emerged the human relations movement, which advocates that
supervisors be behaviorally trained to manage subordinates in ways that elicit their
cooperation and increase their productivity. The importance of behavioral or human relations
training became evens leaner to its supporters after another series of experimentsthe bank
wiring room experiments. In a study of workers making telephone switching equipment,
researchers Elton Mayo and F.J. Roethlisberger discovered that the workers, as a group, had
deliberately adopted a norm of output restriction to protect their jobs. Workers who violated
this informal production norm were subjected to sanctions by other group members. Those

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who violated group performance norms and performed above the norm were called rate
busters; those who performed below the norm were called chiselers. The experimenters
concluded that both types of workers threatened the group as a whole. Rate busters
threatened group members because they revealed to managers how fast the work could be
done. Chiselers were looked down on because they were not doing their share of the work.
Work-group members disciplined both rate busters and chiselers in order to create a pace of
work that the workers (not the managers) thought was fair. Thus, a work groups influence
over output can be as great as the supervisors influence. Since the work group can influence
the behavior of its members, some management theorists argue that supervisors should be
trained to behave in ways that gain the goodwill and cooperation of workers so that
supervisors, not workers, control the level of work-group performance. One of the main
implications of the Hawthorne studies was that the behavior of managers and workers in the
work setting is as important in explaining the level of performance as the technical aspects of
the task. Managers must understand the workings of the informal organization, the system of
behavioral rules and norms that emerge in a group, when they try to manage or change
behavior in organizations. Many studies have found that, as time passes, groups often develop
elaborate procedures and norms that bond members together, allowing unified action either
to cooperate with management in order to raise performance or to restrict output and thwart
the attainment of organizational goals. The Hawthorne studies demonstrated the importance
of understanding how the feelings, thoughts, and behavior of work-group members and
managers affect performance. It was becoming increasingly clear to researchers that
understanding behavior in organizations is a complex process that is critical to increasing
performance. Indeed, the increasing interest in the area of management known as
organizational behavior, the study of the factors that have an impact on how individuals and
groups respond to and act in organizations, dates from these early studies.

Theory X and Theory Y: Several studies after the Second World War revealed how assumptions
about workers attitudes and behavior affect managers behavior. Perhaps the most influential
approach was developed by Douglas McGregor. He proposed that two different sets of

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assumptions about work attitudes and behaviors dominate the way managers think and affect
how they behave in organizations. McGregor named these two contrasting sets of
assumptions Theory X and Theory Y .THEORY X According to the assumptions of Theory X, the
average worker is lazy, dislikes work, and will try to do as little as possible. Moreover, workers
have little ambition and wish to avoid responsibility. Thus, the managers task is to counteract
workers natural tendencies to avoid work. To keep workers performance at a high level, the
manager must supervise them closely and control their behavior by means of the carrot and
stickrewards and punishments. Managers who accept the assumptions of Theory X design
and shape the work setting to maximize their control over workers behaviors and minimize
workers control over the pace of work. These managers believe that workers must be made
to do what is necessary for the success of the organization, and they focus on developing
rules, SOPs, and a well-defined system of rewards and punishments to control behavior. They
see little point in giving workers autonomy to solve their own problems because they think
that the workforce neither expects nor desires cooperation. Theory X managers see their role
as to closely monitor workers to ensure that they contribute to the production process and do
not threaten product quality. Henry Ford, who closely supervised and managed his workforce,
fits McGregors description of a manager who holds Theory X assumptions.

THEORY Y In contrast, Theory Y assumes that workers are not inherently lazy, do not naturally
dislike work, and, if given the opportunity, will do what is good for the organization. According
to Theory Y, the characteristics of the work setting determine whether workers consider work
to be a source of satisfaction or punishment; and managers do not need to control workers
behavior closely in order to make them perform at a high level, because workers will exercise
self-control when they are committed to organizational goals. The implication of Theory Y,
according to McGregor, is that the limits of collaboration in the organizational setting are not
limits of human nature but of managements ingenuity in discovering how to realize the
potential represented by its human resources. It is the managers task to create a work
setting that encourages commitment to organizational goals and provides opportunities for
workers to be imaginative and to exercise initiative and self-direction. When managers design

32

the organizational setting to reflect the assumptions about attitudes and behavior suggested
by Theory Y, the characteristics of the organization are quite different from those of an
organizational setting based on Theory X. Managers who believe that workers are motivated
to help the organization reach its goals can decentralize authority and give more control over
the job to workers, both as individuals and in groups. In this setting, individuals and groups are
still accountable for their activities, but the managers role is not to control employees but to
provide support and advice, to make sure employees have the resources they need to perform
their jobs, and to evaluate them on their ability to help the organization meet its goals. Henri
Fayols approach to administration more closely reflects the assumptions of Theory Y, rather
than Theory X.
14. MANAGEMENT SCIENCE THEORY

Management science theory is a contemporary approach to management that focuses on the
use of rigorous quantitative techniques to help managers make maximum use of
organizational resources to produce goods and services. In essence, management science
theory is a contemporary extension of scientific management, which, as developed by Taylor,
also took a quantitative approach to measuring the workertask mix in order to raise
efficiency. There are many branches of management science; each of them deals with a
specific set of concerns:

Quantitative management utilizes mathematical techniquessuch as linear and nonlinear
programming, modeling, simulation, queuing theory, and chaos theoryto help managers
decide, for example, how much inventory to hold at different times of the year, where to
locate a new factory, and how best to invest an organizations financial capital.

Operations management (or operations research) provides managers with a set of
techniques that they can use to analyze any aspect of an organizations production system to
increase efficiency.


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Total quality management (TQM) focuses on analyzing an organizations input, conversion,
and output activities to increase product quality.

Management information systems (MIS) help managers design information systems that
provide information about events occurring inside the organization as well as in its external
environmentinformation that is vital for effective decision making. All these subfields of
management science provide tools and techniques that managers can use to help improve the
quality of their decision making and increase efficiency and effectiveness.

The emergence of management and organization theory had two forms: Fayols principles and
elements of management. Webers rationalized organization structure for efficiency. Fayol
stressed: planning and organizing, and education for management. Weber sought leadership
based on rational-legal authority, not tradition or charisma.

15. ORGANIZATIONAL ENVIRONMENT THEORY
An important milestone in the history of management thought occurred when researchers
went beyond the study of how managers can influence behavior within organizations to
consider how managers control the organizations relationship with its external environment,
or organizational environmentthe set of forces and conditions that operate beyond an
organizations boundaries but affect a managers ability to acquire and utilize resources.
Resources in the organizational environment include the raw materials and skilled people that
an organization requires to produce goods and services, as well as the support of groups
including customers who buy these goods and services and provide the organization with
financial resources. One way of determining the relative success of an organization is to
consider how effective its managers are at obtaining scarce and valuable resources. The
importance of studying the environment became clear after the development of open-systems
theory and contingency theory during the 1960s.

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The Open-Systems View: One of the most influential views of how an organization is affected
by its external environment was developed by Daniel Katz, Robert Kahn, and James Thompson
in the 1960s. These theorists viewed the organization as an open system a system that takes
in resources from its external environment and converts or transforms them into goods and
services that are then sent back to that environment, where they are bought by customers. At
the input stage, an organization acquires resources such as raw materials, money, and skilled
workers to produce goods and services. Once the organization has gathered the necessary
resources, conversion begins. At the conversion stage, the organizations workforce, using
appropriate tools, techniques, and machinery, transforms the inputs into outputs of finished
goods and services such as cars, hamburgers, or flights to Hawaii. At the output stage, the
organization releases finished goods and services to its external environment, where
customers purchase and use them to satisfy their needs. The money the organization obtains
from the sales of its outputs allows the organization to acquire more resources so that the
cycle can begin again. The system just described is said to be open because the organization
draws from and interacts with the external environment in order to survive; in other words,
the organization is open to its environment. A closed system, in contrast, is a self-contained
system that is not affected by changes that occur in its external environment. Organizations
that operate as closed systems, that ignore the external environment and that fail to acquire
inputs, are likely to experience entropy, the tendency of a system to lose its ability to control
itself and thus to dissolve and disintegrate. Management theorists can model the activities of
most organizations by using the open-systems view. Manufacturing companies like Ford and
General Electric, for example, buy inputs such as component parts, skilled and semiskilled
labor, and robots and computer-controlled manufacturing equipment; then, at the con-version
stage, they use their manufacturing skills to assemble inputs into outputs of cars and
computers. As we discuss in later chapters, competition between organizations for resources
is one of several major challenges to managing the organizational environment. Researchers
using the open-systems view are also interested in how the various parts of a system work
together to promote efficiency and effectiveness. Systems theorists like to argue that the

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parts are more than the sum of the whole; they mean that an organization performs at a
higher level when its departments work together rather than separately. Synergy, the
performance gains that result when individuals and departments coordinate their actions, is
possible only in an organized system. The recent interest in using teams comprising people
from different departments reflects systems theorists interest in designing organizational
systems to create synergy and thus increase efficiency and effectiveness.

Contingency Theory: Another milestone in management theory was the development of
contingency theory in the 1960s by Tom Burns and G.M. Stalker in the United Kingdom and
Paul Lawrence and Jay Lorsch in the United States. The crucial message of contingency theory
is that there is no one best way to organize: The organizational structures and the control
systems that managers choose depend onare contingent oncharacteristics of the external
environment in which the organization operates. According to contingency theory, the
characteristics of the environment affect an organizations ability to obtain resources. To
maximize the likelihood of gaining access to resources, managers must allow an organizations
departments to organize and control their activities in ways most likely to allow them to
obtain resources, given the constraints of the particular environment they face. In other
words, how managers design the organizational hierarchy, choose a control system, and lead
and motivate their employees is contingent on the characteristics of the organizational
environment. structure. Supervisors make all important decisions; employees are closely
supervised and follow well-defined rules and standard operating procedures. In contrast,
when the environment is changing rapidly, it is difficult to obtain access to resources, and
managers need to organize their activities in a way that allows them to cooperate, to act
quickly to acquire resources (such as new types of inputs to produce new kinds of products),
and to respond effectively to the unexpected.

In an organic structure, authority is decentralized to middle and first-line managers to
encourage them to take responsibility and act quickly to pursue scarce resources.
Departments are encouraged to take a cross-departmental or functional perspective, and, as

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in Mary Parker Folletts model, authority rests with the individuals and departments best
positioned to control the current problems the organization is facing. In an organic structure,
control is much looser than it is in a mechanistic structure, and reliance on shared norms to
guide organizational activities is greater. Managers in an organic structure can react more
quickly to a changing environment than can managers in a mechanistic structure. However, an
organic structure is generally more expensive to operate, so it is used only when needed
when the organizational environment is unstable and rapidly changing. To facilitate global
expansion, managers at Philips (a Dutch electronics company) were forced to change from a
mechanistic to an organic structure, and their experience illustrates the different properties of
these structures.

16. HUMAN RELATIONS IN CONCEPT AND PRACTICE
Extensions of Human Relations Teachings: The Committee on Human Relations in Industry (the
Chicago group) with Burleigh Gardner, William Whyte, Lloyd Warner, and David Moore. The
Tavistock Institute (London) influenced by Lewin. The Harvard Group influenced Chester
Barnard and vice versa. Center for Group Dynamics of Kurt Lewin, later moved to the
University of Michigan as Likerts Institute for Social Research.
Organized Labor and Human Relations: Critics, such as Mary B. Gilson, suggested human
relations had an anti-labor bias. The National Labor Relations Act of 1935 was followed by a
spurt in union membership. Feelings, sentiments, and collaboration became the theme in
contrast to scientific investigation. This is the major difference between the human relations
era and organizational behavior.
Landsberger identified four separate areas of criticism: The Mayoists view of society as one
characterized by anomie, social disorganization, and conflict.
Landsbergers criticism continued: Their acceptance of managements views of the worker and
managements willingness to manipulate workers for managements ends. Their failure to

37

recognize other alternatives for accommodating industrial conflict, such as collective
bargaining Their specific failure to take unions into account as a method of building social
solidarity.
Daniel Bells criticisms that the Mayorists saw themselves as social engineers and assumed
that happy workers were productive ones (cow sociology). Further, the counseling
program, according to Bell, did not address the underlying problems in industry but only
intended to make people feel better about their situation. Bell foresaw human relations
supervision replacing efforts to improve work itself. William Foxs expressed criticism that
human relations would become the goal rather than the means for furthering attainment of
organizational objectives. In summary those who challenged human relations assumptions
did so on these bases: That workers could be manipulated. That cooperation and collaboration
overlooked other, more complex, issues. That means were confused with ends. Alex Carey
noted that the measurement had changed in reporting the results of comparing the Mica
Splitters with the second Relay Assembly group. In so doing, the researchers concluded that
supervision, not incentives, led to the increases and Carey says this is an erroneous conclusion.
Carey also criticized the claim of friendly supervision. Output did not increase until two
operatives were replaced with more cooperative ones.
Franke and Kaul concluded that it was neither supervision nor incentives but discipline, the
economic hard times, and relief from fatigue that led to increased productivity. Recall that
Clair Turner rejected this latter point as a cause. Toelle noted that Franke and Kaul treated the
Relay Assemblers as one group when in fact there was the original group and the change of
operatives that created a second group. He agreed with Schlaifer that the passage of time
explained most of the increased output. The passage of time argument, that is, that it took a
while for the group to coalesce and for trust to be built with the observer-supervisor, is also
supported by the recollections of the participants. The Hawthorne Studies advanced the idea
of improving human relations in organizations.


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Accepted findings of Hawthorne: Human relations is a toll for understanding organization
behavior, not an end in itself. Trust is crucial in building interpersonal relationships to bind the
needs of people and organizations. Financial incentives are important but not the only
incentives. Selecting facts to fit preconceived ideas should be avoided.

17. THE SOCIAL PERSON ERA IN RETROSPECT
The Economic Environment: The 1920s were a period of prosperity, rising real wages, and low
unemployment. The unemployment rate in 1929 was 3 percent. Although the stock market
crashed in 1929, the impact on employment came more slowly and the peak was not reached
in 1933. Darby corrected data was used to gauge how federal and state unemployment relief
programs reduced the reported number of unemployed by about 5 percent. Will Rogers made
an observation that the automobiles bought during the prosperous 1920s were used to look
for work in the 1930s. Keynesian economics ran counter to the Protestant ethic notion of
thrift.
The New Technologies: Joseph Schumpeters (1883-1950) ideas about innovation and
economic development are noteworthy. Economic development came from innovation.
Creative Destruction. He favored supply side economics, not the Keynesian approach.
Transportation, communication, and entertainment progress was apparent in automobiles,
aircraft, radio, television, etc. Developments in main frame computers, dry copying, polio
vaccine, antibiotics, DNA, etc. Public sector projects led to atomic energy; dam, road, and
bridge building; the Tennessee Valley Authority, etc.
The Social Environment: The Lynds study of Middletown found workers of the 1920s were
guided by economic motives. This supports, on a limited basis, the pros and cons of incentives
during the Hawthorne studies. Social values were in transition, shifting from the Protestant
work ethic to a social ethic. More collective action and turning to groups for security
consistent with an emphasis in management thought during this time on social needs. Dale
Carnegie getting along solution of How to Win Friends and Influence People. William G.

39

Scotts use of fictional literature to show the shift in social values toward more emphasis on
the group and the social person.

18. QUANTITATIVE SCHOOL OF MANAGEMENT

During World War II, mathematicians, physicists, and other scientists joined together to solve
military problems. The quantitative school of management is a result of the research
conducted during World War II. The quantitative approachto management involves the use of
quantitative techniques, such as statistics, information models, and computer simulations, to
improve decision making. This school consists of several branches, described in the following
sections.
The management science school emerged to treat the problems associated with global
warfare. Today, this view encourages managers to use mathematics, statistics, and other
quantitative techniques to make management decisions.
Managers can use computer models to figure out the best way to do something
saving both money and time. Managers use several science applications.
Mathematical forecasting helps make projections that are useful in the planning process.
Inventory modeling helps control inventories by mathematically establishing how and
when to order a product.
Queuing theory helps allocate service personnel or workstations to minimize customer
waiting and service cost.
Operations management is a narrow branch of the quantitative approach to management. It
focuses on managing the process of transforming materials, labor, and capital into useful
goods and/or services. The product outputs can be either goods or services; effective
operations management is a concern for both manufacturing and service organizations. The
resource inputs, or factors of production, include the wide variety of raw materials,

40

technologies, capital information, and people needed to create finished products. The
transformation process, in turn, is the actual set of operations or activities through which
various resources are utilized to produce finished goods or services of value to customers or
clients.
Operations management today pays close attention to the demands of quality, customer
service, and competition. The process begins with attention to the needs of customers: What
do they want? Where do they want it? When do they want it? Based on the answers to these
questions, managers line up resources and take any action necessary to meet customer
expectations.
Management information systems (MIS) is the most recent subfield of the quantitative school.
A management information system organizes past, present, and projected data from both
internal and external sources and processes it into usable information, which it then makes
available to managers at all organizational levels. The information systems are also able to
organize data into usable and accessible formats. As a result, managers can identify
alternatives quickly, evaluate alternatives by using a spreadsheet program, pose a series of
whatif questions, and finally, select the best alternatives based on the answers to these
questions.

The systems management theory has had a significant effect on management science. A
system is an interrelated set of elements functioning as a whole. An organization as a system is
composed of four elements:
Inputs material or human resources
Transformation processes technological and managerial processes
Outputs products or services
Feedback reactions from the environment

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In relationship to an organization, inputs include resources such as raw materials, money,
technologies, and people. These inputs go through a transformation process where they're
planned, organized, motivated, and controlled to ultimately meet the organization's goals.
The outputs are the products or services designed to enhance the quality of life or productivity
for customers/clients. Feedback includes comments from customers or clients using the
products. This overall systems framework applies to any department or program in the overall
organization.
Systems theory may seem quite basic. Yet decades of management training and practices in
the workplace have not followed this theory. Only recently, with tremendous changes facing
organizations and how they operate, have educators and managers come to face this new way
of looking at things. This interpretation has brought about a significant change in the way
management studies and approaches organizations.
The systems theory encourages managers to look at the organization from a broader
perspective. Managers are beginning to recognize the various parts of the organization, and,
in particular, the interrelations of the parts.
Contemporary system theorists find it helpful to analyze the effectiveness of organizations
according to the degree that they are open or closed. The following terminology is important
to your understanding of the systems approach:

An organization that interacts little with its external environment (outside environment)
and therefore receives little feedback from it is called a closed system.
An open system, in contrast, interacts continually with its environment. Therefore, it is
well informed about changes within its surroundings and its position relative to these
changes.
A subsystem is any system that is part of a larger one.
Entropy is the tendency of systems to deteriorate or break down over time.

42

Synergy is the ability of the whole system to equal more than the sum of its parts.

19. CONTINGENCY SCHOOL OF MANAGEMENT

The contingency school of management can be summarized as an it all depends approach.
The appropriate management actions and approaches depend on the situation. Managers with
a contingency view use a flexible approach, draw on a variety of theories and experiences, and
evaluate many options as they solve problems.
Contingency management recognizes that there is no one best way to manage. In the
contingency perspective, managers are faced with the task of determining which managerial
approach is likely to be most effective in a given situation. For example, the approach used to
manage a group of teenagers working in a fastfood restaurant would be very different from
the approach used to manage a medical research team trying to find a cure for a disease.
Contingency thinking avoids the classical one best way arguments and recognizes the need
to understand situational differences and respond appropriately to them. It does not apply
certain management principles to any situation. Contingency theory is a recognition of the
extreme importance of individual manager performance in any given situation. The
contingency approach is highly dependent on the experience and judgment of the manager in
a given organizational environment.

20. QUALITY SCHOOL OF MANAGEMENT

The quality school of management is a comprehensive concept for leading and operating an
organization, aimed at continually improving performance by focusing on customers while
addressing the needs of all stakeholders. In other words, this concept focuses on managing
the total organization to deliver high quality to customers.

43

The quality school of management considers the following in its theory: Organization
makeup. Organizations are made up of complex systems of customers and suppliers. Every
individual, executive, manager, and worker functions as both a supplier and a customer.
Quality of goods and services. Meeting the customers' requirements is a priority goal and
presumed to be a key to organizational survival and growth.
Continuous improvement in goods and services. Recognizing the need to pinpoint internal
and external requirements and continuously strive to improve. It is an idea that says, the
company is good, but it can always become better. Employees working in teams. These
groups are primary vehicles for planning and problem solving. Developing openness and
trust. Confidence among members of the organization at all levels is an important condition
for success.
Quality management involves employees in decision making as a way to prevent quality
problems. The Kaizen (pronounced kyzen) approach uses incremental, continuous
improvement for people, products, and processes. The reengineering approach focuses on
sensing the need to change, seeing change coming, and reacting effectively to it when it
comes. Both approaches are described in the following sections.
The very notion of continuous improvement suggests that managers, teams, and individuals
learn from both their accomplishments and their mistakes. Quality managers help their
employees gain insights from personal work experiences, and they encourage everyone to
share with others what they have learned. In this way, everyone reflects upon his or her own
work experiences, including failures, and passes their newfound knowledge to others. Sharing
experiences in this manner helps to create an organization that is continuously discovering
new ways to improve.
Kaizen is the commitment to work toward steady, continual improvement. The best support
for continuous improvement is an organization of people who give a high priority to learning.
In this process, everyone in the organization participates by identifying opportunities for
improvement, testing new approaches, recording the results, and recommending changes.

44

The reengineering approach to management focuses on creating change big change and
fast. It centers on sensing the need to change, seeing change coming, and reacting effectively
to change when it comes.
Reengineering the radical redesign of business processes to achieve dramatic
improvements in cost, quality, service, and speed requires that every employee and
manager look at all aspects of the company's operation and find ways to rebuild the
organizational systems to improve efficiency, identify redundancies, and eliminate waste in
every possible way. Reengineering is neither easy nor cheap, but companies that adopt this
plan have reaped remarkable results.
Reengineering efforts look at how jobs are designed, and raise critical questions about how
much work and work processes can be optimally configured. Although many people believe
that reengineering is a euphemism for downsizing or outsourcing, this is not true. Yes,
downsizing or outsourcing may be a byproduct of reengineering. However, the goal of
reengineering is to bring about a tight fit between market opportunities and corporate
abilities. After organizations are able to find this fit, new jobs should be created.

21. RECENT CONTRIBUTORS TO MANAGEMENT THOUGHT
21.1 Mintzbergs Management Roles
Mintzbergs Management Roles are a complete set of behaviors or roles within a business
environment. Each role is different, thus spanning the variety of all identified management
behaviors. When collected together as an integrated whole (gestalt), the capabilities and
competencies of a manager can be further evaluated in a role-specific way. The core of

45

Mitzberg's Ten Managerial Roles is that managers need to be both organizational generalists
and specialists. This is due to three reasons: Authority disputes which upset even basic
routines.
21.2 The Managerial Roles Approach
The ten roles, therefore, can be applied to any managerial situation where an examination of
the levels to which a manager uses each of the ten 'roles' at his or her disposal is required. The
ten roles explored in this theory have extensive explanations which are briefly developed here:
Figurehead:
All social, inspiration, legal and ceremonial obligations. In this light, the manager is
seen as a symbol of status and authority.
Leader:
Duties are at the heart of the manager-subordinate relationship and include structuring
and motivating subordinates, overseeing their progress, promoting and encouraging
their development, and balancing effectiveness.
Liaison:
Describes the information and communication obligations of a manager. One must
network and engage in information exchange to gain access to knowledge bases.
Monitor: Duties include assessing internal operations, a department's success and the
problems and opportunities which may arise. All the information gained in this capacity
must be stored and maintained.
Disseminator:
Highlights factual or value based external views into the organization and to
subordinates. This requires both filtering and delegation skills.
Spokesman:

46

Serves in a PR capacity by informing and lobbying others to keep key stakeholders
updated about the operations of the organization.
Entrepreneur:
Roles encourage managers to create improvement projects and work to delegate,
empower and supervise teams in the development process.
Disturbance handler:
A generalist role that takes charge when an organization is unexpectedly upset or
transformed and requires calming and support.
Resource Allocator:
Describes the responsibility of allocating and overseeing financial, material and
personnel resources.
Negotiator:
Is a specific task which is integral for the spokesman, figurehead and resource allocator
roles.
As a secondary filtering, Mintzberg distinguishes these roles by their responsibilities towards
information. Interpersonal roles, categorized as the figurehead, leader and liaison, provide
information. Informational roles link all managerial work together by processing information.
These roles include the monitor, the disseminator and the spokesperson. All the remaining
roles are decisional, in that they use information and make decisions on how information is
delivered to secondary parties.
21.3 McKinsey's 7-S Approach
The 7-S framework of McKinsey is a Value Based Management (VBM) model that
describes how one can holistically and effectively organize a company. Together these factors
determine the way in which a corporation operates. The outstanding feature of the 7-S model

47

is that it has been tested extensively BY McKinsey consultants in their studies of many
companies. At the same time, this framework has been used by respected business
school, such as Harvard and Stanford. Thus, theory and practice seem to support each other
in the study of management.

Shared Value. The interconnecting center of McKinsey's model is: Shared Values. What
does the organization stands for and what it believes in.
Strategy. Plans for the allocation of firms scarce resources, over time, to reach
identified goals.
Structure. The way the organizations units relate to each other: centralized,
functional divisions (top-down); decentralized (the trend in larger organizations);
matrix, network, holding, etc.

48

System. The procedures, processes and routines that characterize how important work
is to be done: financial systems; hiring, promotion and performance appraisal
systems; information systems.
Staff. Numbers and types of personnel within the organization.
Style. Cultural style of the organization and how key managers behave in achieving the
organizational goals.
Skill. Distinctive capabilities of personnel or of the organization as a whole.
Identifying key aspects of management system and showing the interrelatedness of the
variables is a positive contribution to management theory. A simple, easy-to-remember
framework, such as suggested by McKinsey, is certainly as effort to be welcomed by practitioners
and academicians.

21.4 The Operational, or Management Process Approach
The operational approach to management theory and science draws together the
pertinent knowledge of management by relating it to the managerial job-what managers
do. Like other operational sciences, it tries to integrate the concepts, principles and techniques
that underlie the task of managing. The operational approach recognizes that there is a central
core of knowledge about managing that is pertinent only to the field of management. Such
matters as line and staff, departmentation, managerial appraisal and various managerial
control techniques involve concepts and theories found only in situations involving managers.
Those who subscribe to the operational approach do so with the hope of developing science
and theory that have practical application to managing and yet are not so broad as to apply to
everything that might have any relationship to the managerial task. They recognize that
managing is a difficult task with an immense aging, which deals with production and marketing
of anything from bread to money.
This operational approach has been found useful to and understandable by practicing
managers. It also furnishes a means of distinguishing between managerial knowledge and the

49

special knowledge and expertise of such managerial fields as marketing and production. With
religion and with government services, can never be isolated from the physical, biological,
or social environment. But they also recognize that some partitioning of knowledge is
necessary and that some boundaries must be set if meaningful progress is to be made there or
in any other field. In addition, it is a way of integrating into management useful and pertinent
knowledge from all schools and approaches.

22. MANAGEMENT IN THE FUTURE

Modern management approaches respect the classical, human resource, and quantitative
approaches to management. However, successful managers recognize that although each
theoretical school has limitations in its applications, each approach also offers valuable
insights that can broaden a manager's options in solving problems and achieving
organizational goals. Successful managers work to extend these approaches to meet the
demands of a dynamic environment.
Modern management approaches recognize that people are complex and variable. Employee
needs change over time; people possess a range of talents and capabilities that can be
developed. Organizations and managers, therefore, should respond to individuals with a wide
variety of managerial strategies and job opportunities.

Key themes to be considered, as the twentyfirst century progresses, include the following:
The commitment to meet customer needs 100 percent of the time guides organizations
toward quality management and continuous improvement of operations. Today's global
economy is a dramatic influence on organizations, and opportunities abound to learn new
ways of managing from practices in other countries.

50

Organizations must reinvest in their most important asset, their people. If organizations
cannot make the commitment to lifelong employment, they must commit to using attrition to
reduce head count. They will not receive cooperation unless they make it clear that their
people will not be working themselves out of a job. Managers must excel in their leadership
responsibilities to perform numerous different roles.

23. CONCLUSION
Many writers and practitioners have contributed to the development of management thought.
As the pattern of managing men changed, the concept of management shifted into the
organizational affairs more, keeping the industrial revolution as a yard stick. The here reflects
the movement of the management thoughts of the former vertical, dealing mainly with the
organization and its work force and its credence to execute in their respective areas. In fact
management nurtures on the concept of `necessity is the mother of inventions ' where the
lack of mechanized records during the pre-industrial revolution era pushed it to refine the
complexities of the perpetual journey of the changing management principals through its
school of thoughts. Many current management concepts and practices can be traced to early
20th century management theories.
Some of the main approaches to management were the scientific management approach, the
general administrative approach and the human relations approach. Some of the exponents of
the early theories were Frederick Taylor, Max Weber, Elton Mayo, Chester Barnard, Mary
Parker Follett and Henri Fayol. Taylor was one of the proponents of scientific management,
which is defined as the use of scientific methods of research to determine the one best way
to get a job done. A series of research studies in the late 1920s also played a major part in the
development of the human relations approach. Henry Gantt developed the Gannt hart. He
focused on the selection of workers and cooperation between labor and management. Frank
Gilbreth is known for his time and motion studies, While Lillian Gilbreth focused on the human
aspects of work.

51

Henri Fayol, the father of modern management theory, formulated fourteen principles
of management. While Fayol and Taylor focused on practical problems of managing, Weber
was more concerned with enterprise structure, ideally a bureaucratic structure. He focused on
dividing organizations into hierarchies, establishing impersonal relationships, strong lines of
authority and control and suggested that organizations develop detailed standard operating
procedures for all tasks in order to attain goals efficiently. The level of control and
coordination exhibited by Fayol and Webers administrative principles were very useful for
managers as small businesses expanded into large corporations. Hugo Muntsberg applied
psychology to industry and management.
Many current management concepts and practices can be traced to early 20
th
century
management theories. These practices have been developing in many well-run factories today.
Analysis of basic work tasks, hiring the best worker for a job and incentives based on
productivity are all principles of Scientific Management which are incorporated into
modern organizations. Mary Parker Follett and Chester Barnard stand out as two supporters
of the human relations approach. The operational, or management process, approach draws
from various schools and systematically integrates them. So we can say that many writers
and practitioners have contributed to the development of management thought and the
patterns of management analysis.

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The Evolution Of Management Thought

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