Evolution Of Management Thoughts

 Scientific Approach: Principles, Time Study , Motion Study.

 Human Behavior Approach: Informal Organisation, Hierarchy of Needs,
Theory X & Theory Y .
 Classical Management (general) Principles.
 System Approach
 Contingency Approach .

Recommended Books :
1) Principles of Management by : B.S Moshal
2) Management by : Stephen Robbins & Mary Cotler.
3) Human Resource Management by : K.Aswathappa .
 Evolution of Modern Management
 Began in the industrial revolution in the late 19Th century as:
-- Managers of organisations began seeking ways to satisfy customer
needs.
-- Social problems developed in the large groups of workers employed
under factory system.
-- Managers began to focus on increasing the efficiency of the worker–
task mix.
Evolution of management thought/ theory :
1) Scientific Management Theory ( 1890-1940 )
2) Administrative Management Theory. (1980)
3) Behavioral Management Theory (1980-1990)
4) Management Science Theory (1990)
5) Organisational Management Theory (1990- 2000 till date)
 Skeleton /Division of Various Approaches.
 In order to get a proper and balanced perspective of the theory and practice
of management , all developments and changes taking place since the
beginning of 20Th century till now may be placed under three main
categories:

Classical Management Behavioral

Modern Approach
Approach Approach

1) Scientific Management . 1) Human Relation Approach . 1) Quantitative Approach.

2) Administrative Theory 2) Behavioral Science Approach. 2) System Approach.
of Management. 3) Contingency Approach.
3) Bureaucratic Organisation. 4) Attributes of Excellence.
What is Management ????
 Management involves coordinating and over seeing the work
activities of others so that their activities are completed efficiently
and effectively.
Efficiency (means) Effectiveness (ends)

Resource Usage Goal Attainment

Low Waste High Attainment

Management strives for:

Low Resource Waste(high efficiency)
High Goal Attainment (high effectiveness)
 Classical Management
 The classical approach to management focused on the development of
efficient methods of managing work and organisations. This approach
can be classified into three schools of management:
--- Scientific management .
--- Administrative Management.
( focuses on the principles that managers use to coordinate the
organisations internal activities .Eg: planning, organizing, commanding,
coordinating & controlling)
--- Bureaucratic Management.
( Highly structured, formalized structure managed by clearly defined
regulations and lines of authority.)
 Scientific Management
 The systematic study of the relationships between people and tasks
for the purpose of redesigning the work process for higher efficiency.
 Defined by Fredrick Taylor in the late 1800’s .
 Taylor sought to reduce the time a worker spent on each task by
optimizing the way the task was done.

 Principles Of SCIENTIFIC MANAGEMENT:

1)Science , not a thumb rule.
2)Harmony, not discord.
3)Cooperation and not individualism.
4)Maximum output in place of restricted output.
5)Maximum development of each employee.
 Time & Motion Studies
Any discussion of the theory of modern management thought starts with
the scientific management movement .
Time & motion study are the elements of scientific management.
1) TIME STUDY:
-- The time required for finishing a specific job is not the same for
different people.
-- The purpose of time study Is to determine proper (standard time ) for
performing the operation . In words of Kimball, “time study may be
defined primarily as the art of observing and recording the time required
to do each detailed element of an industrial operation.”
--- Time study thus helps us in economizing upon the time spent in
particular operation.
--- The study when done with motion study , helps in determining the best
method of doing a job , determining the standard quantity of one day’s
work (standard task to be done by average worker) and rating the work.
 Motion Study
 It is the study of the movement of an operator ( or a machine) in
performing an operation for the purpose of eliminating useless
motions.
 For conducting motion studies, workers are studied at their jobs and
their all movements are noted.
 Further , the observations are analyzed and useless motives are
eliminated .
 Thus a less time consuming and more efficient system of operations is
developed.
Conclusion:
1) Today time & motion studies are conducted to find out the efficiency
of individuals as well as the machines. Labor and time are saved by
analyzing motion studies so that essential movements can be isolated
and concentrated upon.
 Human Behaviour Approach
 This approach is based on the conviction that efficient
management depends on the manager ‘s ability to understand
work as well as people who have different backgrounds , needs ,
personality etc. Thus the main focus or main factor is human .
 The important contribution made towards this approach was from
Elton Mayo , who conducted the famous Hawthorne Experiment .
 Also, Mary Parker Follet & Douglas Mc Gregor have been the main
contributors to this movement.

 This approach can be studied in two parts:

1) Human Relation Movement.
2) Behavioral science approach / Organisational behaviour
approach.
 Contd…….
 The human relations movement focused to make managers more sensitive to
the needs of employees.
 Apart from economic needs , employees have other social and psychological
needs such as appreciation, self-respect, dignity etc.
 There should be no conflicts in organization. If it happens so, then it must be
resolved for the smooth functioning of organisation.
 Informal communication should be there between employers or managers and
employees.
 Motivating desire or factor of each employee should be studied.
Conclusion:
1) This approach aims at providing a sense of satisfaction and motivation
through improved working conditions, proper supervision and building
sense of security.
2) Satisfied employees will not be much inclined towards union .
3) Managers should recognise the importance of psychological and social
factors of workers , along with social , emotional needs.
 Behavioral Science Approach

 The term “behavioral science approach” may be defined as a systematic as well as scientific
analysis of human behaviour to determine the causes of the working behaviour of an
individual.

 The approach is based on following assumptions:

1) Socio-Technical System.
2) Integration of Individual and Organisational Goals.
3) Conflict & Cooperation.
4) Individual Difference.
5) People are the key to productivity.
6) Contribution of Authors.

Comparison & Conclusion:

The human relation approach seems to be more limited in scope and
areas, as is deals with economic, social & psychological needs, working
conditions, for improving the efficiency of employees.
On the other hand, behaviour approach is more concerned about the
technological aspects w.r.t. job design, communication, motivation, leadership ,
that provide a broad base to this approach.
 Hierarchy Of Needs
 H.A Maslow, was the pioneer in contributing to the systematic scheme of
need of hierarchy .
 He arrived at a conclusion , after a proper research that, there are
certain perceived needs of the employees and when they join
organisation they somehow believe that the needs can be better
satisfied by doing so.
 Thus , they have a perceived expectation from organisation .
 If the needs are satisfied according to their expectation they feel
satisfied and motivated .
 On other hand if there is a gap between these , they become slow or
refuse to work.
 Contd…………
Abraham Maslow’s Hierarchy of Needs :
S
e
l
f
 Contd….

 Physiological Needs :
---- At the lowest level of hierarchy of needs are physiological needs and
very powerful motivator too.
---- These are the needs which must be satisfied to maintain life.
---- Food , air ,water , rest , recreation etc. are included in this.
---- These needs must be satisfied partially or to some level before
moving on to next level.
 Safety Needs :
---- These are often called as security needs.
---- Are concerned with physical and financial security . Physical security
implies the freedom from bodily threat and financial security with
security on job.
---- Thus , employee needs sufficient wage to feed , shelter and protect
him and his family .
----Also attempts to secure safe working environment, before going for
next level of need.
 Contd….

 Social Needs:
----- These refer to the need of comfort from dear ones and social
security.
---- Affection and association are the two things desired in this.
---- Though these needs are strongly felt by an individual, it also
affects his work environment and working behaviour.
 Esteem Needs:
----Employees who perceive themselves worthwhile are said to have
esteem needs.
-----Self respect is the key to such needs.
----.They include self- confidence, achievements , competence,
knowledge, self – respect & freedom.
----Status, prestige and self-respect are the three main needs.
 Contd:
 Self- Realisation Needs:
---These are also known as self-accomplishment needs. These are the
individual’s needs for realising his/her own potentialities , opportunity
for creativity and for continual development of the individual’s skills
and powers.

Evaluation :
1) This concept has been a landmark in field of motivation, by suggesting
the priority and nature of needs.
2) This hierarchy of needs is not rigid and fixed in order and not same for
all individuals.
 Theory X & Theory Y
 Douglas McGregor has contributed this theory to the field of
management.
 The managements action of motivating human beings in the
organisation , involves certain assumptions , generalization and
hypothesis relating to human behavior and human nature .
 McGregor has characterised these assumptions in two points:
--- Theory X &
--- Theory Y.

 Theory X :
 This is the traditional theory of human behavior, with assumptions
made by McGregor as,
 The average employee in an organisation is lazy , dull , self – centered ,
resists change and does not want to share responsibility.
 He has needs to some extent, especially security needs.
 The average employee lacks responsibility and has little ambition.
 Theory X contd...
 Managers have to use coercive power to get their work done from
workers and that they must be threatened and punished.
 To get the work done, McGregor suggested rigid, bureaucratic and a
rules-based organisation.
 A narrow span of management ,one-way communication, close
supervision , highlighting monetary incentives and centralised
managerial authority should be followed.
 It was also necessary to guide, direct and control employees in
strict manner .

Conclusion:
 The assumptions about human nature are negative in their
approach, however much organisational processes have developed
on these assumptions.
 Theory Y
Work is as natural as play or rest for workers.

The average employee or worker likes work, is capable of assuming responsibilities &
accepting challenges.

He is ambitious , achievement – oriented and capable of exercising self- control.

He has economic and non- economic needs.

He has a large imagination and creativity that can be applied to job.

The role of management is to develop employees potential and help them to achieve
common objectives.

The organisational structure should be marked by open communication , flexibility and

decentralised authority.

The approach of management should include participative management , supportive

supervisory style .
 Theory Y
 Conclusion :
 The assumptions in this theory suggest a new approach in
management . It emphasis on co-operative endeavor of
management and employees. The attempt is thus to get maximum
output from minimum amount of control & direction.
 Classical Management (General )Principles.
The classical principles of general management is a huge contribution by Henri Fayol .
 He believed that a manager’s job could be divided into various functions .
 There are in all 14 principles of general management as given by Henri Fayol:
 Division of work
 Authority and responsibility .
 Discipline.
 Unity of command.
 Unity of direction.
 Subordination of individuals interest to the organisation.
 Remuneration.
 Centralisation.
 Scaler chain.
 Order.
 Equity .
 Stability of tenure of personnel.
 Initiative .
 Esprit-de-corps.
 System Approach
 The system approach of management represent new thinking and latest
development that occurred in the field of organisation.

 Basically, this approach aims at identifying and analysing the nature of

the relationship among various components or sub- systems of
organisation.

 The term “system” may be defined as a set of interrelated and

interacting components assembled in particular sequence so as to
produce some results.

 Every system has certain boundaries and within these there lies the
internal environment , which mainly consists of internal and
controllable variables .

 Also there exists an external environment which is outside the control

of system.
 System Approach contd…
Eg: An individual firm is a sub- system of an industry , which is sub--
system of business, which is further a sub system of larger economic
system .

 The system approach defines an organisation as a complete whole

consisting of mutually interdependent and interacting parts which are
viewed as a sub- system .
Internal environment

Socio-economic,
legal, political,
technology factors Business

Industry

production distribution
 Input- Process Out put Chart .

society

Inputs:
Land, capital, Conversion process Output :
machine,mgnt, Management goods & services
technology process
 System approach contd..

 The organisation is basically an input- process – output system.

 It obtains various inputs , both physical and human such as land,

capital, building , raw material , machines, technology , labor &
management from the society , which is a larger system.

 These inputs are thus processed, converted and finally some goods and
services are produced.

 This is the output and is to be supplied to the society .

 Through the feedback process , the organisation gets valuable information

that helps in adjusting the system and making it more responsible to the
needs of society.
 Contd…
 To study an organisation as a system , various system approaches have
been developed , and socio- technical theory is considered relevant.

 According to this approach, while designing , managing & performing

the work , the impact of both social and technical system of organisation
should be taken into account.

 An organisation is an open adaptive system & has following

assumptions:
1) interaction.
2) Input- process- output model.
3) Integration of sub-system.
4) Multiplicity of objectives.
5) Sub-systems.
 Evaluation of System Approach

 Encourages analysis of organisation and its sub system and thus helps
in their management .
 Managers must take into account interdependencies, interactions
among various components at the time of decision making.
 Contingency Approach
 This approach is related to the system approach, but discounts the
concept of universal application of managerial principles .

 According to this approach, the application of principles is subject to

appropriateness of the situation.

 Managers , instead of applying the principles to every situation, should

analyse and diagnose the situation , understand requirement and
prepare techniques to deal with it effectively.

 Thus it is clear that it is not feasible to rely much on preconceived

assumptions , but that the difference in situation should be understood
and then implement suitable management package.

.
 The various guidelines for managers are :
1) It is situation oriented .
2) After analysis of the situation, managers should prepare
inventories of management theory, principles , techniques and
concepts.
3) In order to tackle situation efficiently , the validity and
applicability of management tools and techniques is to be
examined and prepare final package of tools and techniques.
 Evaluation of Contingency Approach

Very specific
Very general

Contingency Purely situational

System view
view view

Relationship
Everything is
between
made of Every situation is
management
systems with totally unique
techniques and
common
situation can be
characteristics
categorised
 Contd….
 The contingency approach of management and organisation based on
an analysis of situational variables was first proposed by Fred . E
Fiedler.
 He gave the following 4 main contingencies to be taken care of by
managers:

1) The authority structure of an organisation must match demand of its

environment .
2) The authority structure of an organisation must coincide with the
technical system or technology.
3) Individual sub- systems such as systems , departments, work
groups , units must match their particular work environment .
4) The leadership behaviour of managers in the organisation and sub-
systems must be appropriate to situational demands.
Thank You..