The Evolution of

Group
2 : Rahmawati,Theory
Anis, Sivia, Tyana,
Management
Mahardika
Class D

Scientific Management theory

Modern management began in the late
19th century

Satisfy customer needs

Machinery
Increase the efficiency

Job specialization
Adam Smith, 18th century
economist, found firms
manufactured pins in two ways
Smith found that the factory
method had much higher
productivity
Breaking down the total job
allowed for the division of labor.

Evolution of Management
Theory
Scientific Management

Administrative Management
Behavioral Management
Management Science
Org. Environment

Scientific Management
Defined by Frederick Taylor, late
1800s.
the relationships between
people and tasks

The 4 Principles to increase

efficiency
1. Study the way the job is
performed
2. Codify the new method into rules
3. Select workers whose skills match
4. Establish a fair level of
performance

Problems of Scientific
Management

Managers often implemented

only the increased output side
of Taylors plan.
Workers could purposely
under-perform
Management responded with
increased use of machines.

Frank and Lillian Gilbreth refined

Taylors methods
Time and motion studies:
1.

Break down each

2.

Find better ways

3.

Reorganize each action

Administrative Management
Max Weber developed the
concept of bureaucracy

Bureaucratic Principles
Written
Written Rules
Rules

System of taskA Bureaucracy Hierarchy of

authority
relationships should have

Fair evaluation
and reward

Key points of Bureaucracy

Authority
performance
Position duties are clearly identified.
Lines of authority
Rules, Standard Operating Procedures
(SOPs), & Norms

Fayols Principles
1. Division of Labor
2. Authority and Responsibility
3. Unity of Command.
4. Line of Authority
5. Centralization

Fayols Principles
6. Unity of Direction
7. Equity
8. Order
9. Initiative
10. Discipline

Fayols Principles
11. Remuneration of Personnel
12. Stability of Tenure
13. General interest over
individual interest
14. Esprit de corps

Behavioral Management
Mary Parker Follett: an
influential leader in early
managerial theory

The Hawthorne Studies

Study of worker efficiency at
the Hawthorne Works of the
Western Electric Co. during
1924-1932

Theory X and Y
Douglas McGregor proposed the
two different sets of worker
assumptions
Theory X
Theory Y

Theory X vs Theory Y
Theory X

Theory Y

Employee is
lazy

Employee is
not lazy

Managers
must
closely
supervise

Must create
work setting
to build
initiative

Create strict
rules &
defined
rewards

Provide
authority to
workers

Theory Z
William Ouchi researched the
cultural differences between Japan
and USA

Theory Z combines parts of both the

USA and Japan structure.

Management Science
Uses rigorous quantitative

techniques to maximize resources.

Quantitative management
Operations management
Total Quality Management (TQM):
Management Information Systems
(MIS)

Organization-Environment
Theory
Considers relationships inside and
outside the organization.
Systems theory considers the impact
of stages:
Input
Conversion
Output

Systems Considerations
An open system interacts with the
environment. A closed system is
self-contained.
Synergy: performance gains of the
whole surpass the components.

The Organization as an Open System

Input Stage

Conversion
Stage

Output
Stage

Raw
Materials

Machines

Goods
Services

Human skills

Sales of outputs
Firm can then buy inputs

Contingency Theory
Assumes there is no one best
way to manage
Technological environments
change rapidly, so must
managers.

Structures
Mechanistic: Authority is
centralized at the top.
(Theory X)
Organic: Authority is
decentralized throughout
employees. (Theory Y)

-=:THANKS FOR YOUR

ATTENTION :=-