The evolution of management began with the Industrial Revolution which

occurred in the mid-1700. The earliest contribution to the concept of

management can be traced to Robert Owen, a British factory owner who was
concerned about the work environment of his workers and executed reforms in
the operational process. In the nineteenth century, Charles Babbage advocated
the principles of division of labor. Henry Robinson Towne, president of the Yale
and Towne manufacturing company, focused on the development of
management as a separate field of study and suggested the application of
management principles to business situations. However, the development of
management thought as a systematic study is a phenomenon of the twentieth
century.

Classical Approach The classical approach to management focused on the

development of efficient methods of managing work and organizations. This
approach can be classified into three schools of management. They are: Scientific
Management Scientific management is defined as “that kind of management
which conducts a business or affairs by facts or truths gained through systematic
observation, experiment, or reasoning.” Important proponents of this theory
included Frederick Taylor, Henry Gantt, and Frank and Lillian Gilbreth. Frederick
Winslow Taylor In 1911, F.W. Taylor published his work, “The Principles of
Scientific Management,” which proposed the application of scientific methods to
management for efficient productivity. His theory was based on four principles:
Replacement of conventional methods by scientific methods. Scientific
selection, training and development of workers. Equal distribution of work and
responsibility between the managers and the workers. Improvement of
productivity through work and motion studies, tools and incentives.

Piece-rate incentive system Taylor felt that the wage system was one of the
major reasons for soldiering. To resolve this problem, he advocated the use of a
piece-rate incentive system. The aim of this system was to reward the worker
who produced the maximum output. Under this system, a worker who met the
established standards of performance would earn the basic wage rate set by

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management. If the worker‟s output exceeded the set target, his wages would
increase proportionately. The piece-rate system, according to Taylor, would
motivate workers to produce more and thus help the organization perform
better. Time-and-motion study Taylor tried to determine the best way to perform
each and every job. To do so, he introduced a method called “time-and-motion”
study. In a “time-and-motion” study, jobs are broken down into various small
tasks or motions and unnecessary motions are removed to find out the best way
of doing a job. Then each part of the job is studied to find out the expected
amount of goods that can be produced each day. The objective of a time-and-
motion analysis is to ascertain a simpler, easier and better way of performing a
work or job.

Frank and Lillian Gilbreth After Taylor, Frank and Lillian Gilbreth made numerous
contributions to the concept of scientific management. Frank Gilbreth (1868-
1924) is considered the “father of motion study.” Lillian Gilbreth (1878-1972) was
associated with the research pertaining to motion studies. Motion study involves
finding out the best sequence and minimum number of motions needed to
complete a task. Frank and Lillian Gilbreth were mainly involved in exploring new
ways for eliminating unnecessary motions and reducing work fatigue.‟ The
Gilbreths devised a classification scheme to label seventeen basic hand motions –
such as “search,” “select,” “position,” and “hold” – which they used to study tasks
in a number of industries. These 17 motions, which they called therbligs (Gilbreth
spelled backward with the„t‟ and „h‟ transposed), allowed them to analyze the
exact elements of a worker‟s hand movements. Frank Gilbreth also developed
the micromotion study. A motion picture camera and a clock marked off in
hundredths of seconds were used to study motions made by workers as they
performed their tasks. He is best known for his experiments in reducing the
number of motions in bricklaying. By carefully analyzing the bricklayer‟s job, he
was able to reduce the motions involved in bricklaying from 18 ½ to 4. Using his
approach, workers increased the number of bricks laid per day from 1000 to 2700
(per hour it went up from 120 to 350 bricks) without exerting themselves.

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Lillian‟s doctoral thesis (published in the early 1900s as The Psychology of
Management) was one of the earliest works which applied the findings of
psychology to the management of organizations. She had great interest in the
human implications of scientific management and focused her attention on
designing methods for improving the efficiency of workers. She continued her
innovative work even after Frank‟s death in 1924, and became a professor of
management at Purdue University. Lillian was the first woman to gain eminence
as a major contributor to the development of management as a science. In
recognition of her contributions to scientific management, she received
twentytwo honorary degrees. Henry Laurence Gantt Henry L. Gantt (1861-1919)
was a close associate of Taylor at Midvale and Bethlehem Steel. Gantt later
became an independent consultant and made several contributions to the field of
management. He is probably best remembered for his work on the task-and-
bonus system and the Gantt chart. Under Gantt‟s incentive plan, if the worker
completed the work fast, i.e. in less than the standard time, he received a bonus.
He also introduced an incentive plan for foremen, who would be paid a bonus for
every worker who reached the daily standard. If all the workers under a foreman
reached the daily standard, he would receive an extra bonus. Gantt felt that this
system would motivate foremen to train workers to perform their tasks
efficiently.

Henry Laurence Gantt Henry L. Gantt (1861-1919) was a close associate of Taylor
at Midvale and Bethlehem Steel. Gantt later became an independent consultant
and made several contributions to the field of management. He is probably best
remembered for his work on the task-and-bonus system and the Gantt chart.
Under Gantt‟s incentive plan, if the worker completed the work fast, i.e. in less
than the standard time, he received a bonus. He also introduced an incentive plan
for foremen, who would be paid a bonus for every worker who reached the daily
standard. If all the workers under a foreman reached the daily standard, he would
receive an extra bonus. Gantt felt that this system would motivate foremen to
train workers to perform their tasks efficiently.

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The Gantt chart used today by many organizations is a simple chart that compares
actual and planned performances. The Gantt chart was the first simple visual
device to maintain production control. The chart indicates the progress of
production in terms of time rather than quantity. Gantt‟s charting procedures
were precursors of today‟s program evaluation and review techniques.
Limitations of scientific management Scientific management has provided many
valuable insights in the development of management thought.

In spite of the numerous contributions it made, there are a few limitations of

scientific management. They are: The principles of scientific management
revolve around problems at the operational level and do not focus on the
management of an organization from a manager‟s point of view. These principles
focus on the solutions of problems from an engineering point of view. The
proponents of scientific management were of the opinion that people were
“rational” and were motivated primarily by the desire for material gain. Taylor
and his followers overlooked the social needs of workers and overemphasized
their economic and physical needs. Scientific management theorists also ignored
the human desire for job satisfaction. Since workers are more likely to go on
strike over factors like working conditions and job content (the job itself) rather
than salary, principles of scientific management, which were based on the
“rational worker” model, became increasingly ineffective.

Administrative Theory The Administrative management theory focuses on the

principles that managers use to coordinate the organization‟s internal activities.
Henry Fayol, a French industrialist, viewed management as a process composed
of five important functions: planning, organizing, commanding, coordinating, and
controlling. He emphasized the importance of managerial activities in the overall
functioning of the organization.

Henri Fayol Fayol’s Principles of Management

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1. Division of work: Work specialization results in improving efficiency of
operations. The concept of division of work can be applied to both managerial
and technical functions.

2. Authority and responsibility: Authority is defined as “the right to give orders

and the power to exact obedience.” Authority can be formal or personal. Formal
authority is derived from one‟s official position and personal authority is derived
from factors like intelligence and experience. Authority and responsibility go
hand-in-hand. When a manager exercises authority, he should be held
responsible for getting the work done in the desired manner.

3. Discipline: Discipline is vital for running an organization smoothly. It involves

obedience to authority, adherence to rules, respect for superiors and dedication
to one‟s job.

4. Unity of command: Each employee should receive orders or instructions from

one superior only.

5. Unity of direction: Activities should be organized in such a way that they all
come under one plan and are supervised by only one person.

6. Subordination of the individual interest to the general interest: Individual

interests should not take precedence over the goals of the organization.

7. Remuneration: The compensation paid to employees should be fair and based

on factors like business conditions, cost of living, productivity of employees and
the ability of the firm to pay.

8. Centralization: Depending on the situation, an organization should adopt a

centralized or decentralized approach to make optimum use of its personnel.

9. Scalar chain: This refers to the chain of authority that extends from the top to
the bottom of an organization. The scalar chain defines the communication path
in an organization.

10. Order: This refers to both material and social order in organizations. Material
order indicates that everything is kept in the right place to facilitate the smooth

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coordination of work activities. Similarly, social order implies that the right person
is placed in the right job (this is achieved by having a proper selection procedure
in the organization).

11. Equity: All employees should be treated fairly. A manager should treat all
employees in the same manner without prejudice.

12. Stability of tenure of personnel: A high labor turnover should be prevented

and managers should motivate their employees to do a better job.

13. Initiative: Employees should be encouraged to give suggestions and develop

new and better work practices.

14. Espirit de corps: This means “a sense of union.” Management must inculcate a
team spirit in its employees.

Bureaucratic Management Bureaucratic management, one of the schools of

classical management, emphasizes the need for organizations to function on a
rational basis. Max Weber was one of the major contributors to this school of
thought. According to Weber, “a bureaucracy is a highly structured, formalized,
and impersonal organization.” He propagated the belief that an organization
should have a defined hierarchical structure managed by clearly defined
regulations and lines of authority. The major characteristics of Weber‟s ideal
bureaucracy include: Specialization of labor. Formal rules and regulations.
Impersonality in application of rules. Well defined hierarchy. Career
advancement based on merit.

Limitations of bureaucratic management and administrative theory Scholars who

emphasized the human approach to management criticized classical theorists on
several grounds. They felt that the management principles propounded by the
classical theorists were not universally applicable to today‟s complex
organizations. Some of Fayol‟s principles were in conflict with the principle of
unity of command.

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Elton Mayo: Focusing on Human Relations Elton Mayo (1880-1949), the “Father
of the Human Relations Approach,” led the team which conducted a study at
Western Electric‟s Hawthorne Plant between 1927 and 1933 to evaluate the
attitudes and psychological reactions of workers in on-the-job situations. The
study was started in 1924 by Western Electric‟s industrial engineers to examine
the impact of illumination levels on worker productivity. Eventually the study was
extended through the early 1930s. The experiments were conducted in four
phases:

a. Illumination experiments

b. Relay assembly test room experiments

c. Interview phase

d. Bank wiring observation room experiments

Contributions of Hawthorne experiments The Hawthorne experiments, which laid

the foundation for the Human Relations Movement, made significant
contributions to the evolution of management theory.

Criticism of Hawthorne studies The Hawthorne studies have received

considerable criticism. The procedures, analysis of findings, and the conclusions
reached were found to be questionable. The relationship established between the
satisfaction or happiness of workers and their productivity was too simplistic.
These studies failed to focus attention on the attitudes of employees at the
workplace.