Introduction to Management

Week 2
EVOLUTION OF MANAGEMENT
THOUGHT

Dr Daniel Osei Yeboah

 Learning Objectives
By the end of this lecture, students should be able to:
▪ Understand the historical development of management theories.
▪ Identify key classical, behavioural, and modern management
approaches.
▪ Recognize the contributions of major management thinkers.
▪ Apply management theories to contemporary business practices.
Introduction to Management Theories
▪ Management thought has evolved over time to address organizational
challenges.
▪ Theories help in understanding and improving managerial practices.
▪ Three major categories: Classical, Behavioral, and Modern Theories.
 Classical Management Theories
1. Scientific Management (Frederick Taylor)
o Focus on efficiency and productivity.
o Standardized work procedures and performance incentives.
2. Administrative Theory (Henri Fayol)
o Emphasized managerial functions (planning, organizing, leading, controlling).
o Developed 14 principles of management.
3. Bureaucratic Management (Max Weber)
o Structured hierarchy and clear rules.
o Emphasized rational decision-making and efficiency.
Behavioral Management Theories
1.Hawthorne Studies (Elton Mayo)
o Showed the impact of social and psychological factors on productivity.
o Led to the development of human relations management.
2.Maslow’s Hierarchy of Needs
o Explained motivation through five levels of needs.
3.Douglas McGregor’s Theory X and Theory Y
o Contrasting views on employee motivation and management style.
Modern Management Approaches
1.Systems Theory
o Organizations function as interrelated parts of a whole.
2.Contingency Theory
o No single management approach applies to all situations.
3.Total Quality Management (TQM)
o Focus on continuous improvement and customer satisfaction.
4.Lean & Agile Management
o Efficiency, flexibility, and responsiveness in modern organizations.
Introduction to Scientific Management
• Developed by Frederick Winslow Taylor in the late 19th and early
20th centuries.
• Focused on improving efficiency and productivity in industrial work.
• Advocated for systematic study of work processes to optimize
performance.
Principles of Scientific Management
▪ Science, Not Rule of Thumb
▪ Replacing traditional work methods with scientifically proven techniques.
▪ Scientific Selection of Workers
▪ Hiring and training employees based on skills and job fit.
▪ Scientific Training and Development
▪ Providing systematic training to enhance worker efficiency.
Principles of Scientific Management Cont’d
▪ Cooperation Between Management and Workers
▪ Encouraging collaboration to ensure productivity and minimize conflicts.
▪ Equal Division of Work and Responsibility
▪ Managers plan and train while workers execute tasks efficiently.
Contributions of Frederick Taylor

• Introduced Time and Motion Studies to analyze and improve work

efficiency.
• Developed the concept of Task Specialization to increase productivity.
• Advocated for Incentive-Based Pay Systems to motivate workers.
• Established Standardized Work Practices to enhance organizational
efficiency.
 Criticisms of Scientific Management
▪ Overemphasis on Efficiency – Ignores human creativity and
autonomy.
▪ Dehumanization of Workers – Treats employees as machines rather
than individuals.
▪ Resistance from Workers – Led to dissatisfaction and strikes in early
industrial settings.
▪ Lack of Flexibility – Not adaptable to complex, dynamic
environments.
▪ Limited Application to Knowledge Work – Best suited for repetitive
tasks rather than modern intellectual labor.
Introduction to Administrative Theory
• Developed by Henri Fayol, a French mining engineer and
management theorist.
• Emphasized organizational structure and the functions of
management.
• Stressed the importance of managerial principles for improving
efficiency and effectiveness.
Fayol’s 14 Principles of Management
▪ Division of Work – Specialization increases efficiency.
▪ Authority and Responsibility – Managers must have the right to give orders.
▪ Discipline – Compliance and respect for rules ensure order.
▪ Unity of Command – Employees should receive orders from only one superior.
▪ Unity of Direction – One head, one plan, for a group of activities.
▪ Subordination of Individual Interest to General Interest – The organization’s
goals should come first.
▪ Remuneration – Fair compensation motivates employees.
▪ Centralization and Decentralization – Balance between decision-making at
different levels.
Fayol’s 14 Principles of Management Cont’d
▪ Scalar Chain – A clear hierarchy facilitates communication.
▪ Order – Everything should have its proper place.
▪ Equity – Fairness in treatment of employees.
▪ Stability of Tenure of Personnel – Job security promotes efficiency.
▪ Initiative – Employees should be encouraged to take initiative.
▪ Esprit de Corps – Team spirit leads to organizational success.
Fayol’s Five Functions of Management

▪ Planning – Setting objectives and determining how to achieve them.

▪ Organizing – Arranging resources to carry out plans.
▪ Commanding (Leading) – Directing and motivating employees.
▪ Coordinating – Ensuring all activities align with objectives.
▪ Controlling – Monitoring progress and making adjustmen
Criticisms of Administrative Theory

▪ Too Rigid – Overemphasis on structure may limit innovation.

▪ Lack of Human Focus – Less emphasis on employee motivation
compared to behavioral theories.
▪ One-Size-Fits-All Approach – May not adapt well to dynamic
environments.
▪ Slow Decision-Making – Hierarchical structure can cause bureaucratic
delay
Introduction to Bureaucratic Management

▪ Developed by Max Weber, a German sociologist and economist.

▪ Aimed at creating a structured, efficient, and rational organization.
▪ Focuses on formalized hierarchical structures, clear rules, and
impersonal relationships.
Features of Bureaucratic Management

▪ Formal Hierarchical Structure – A clear chain of command.

▪ Rules and Regulations – Standardized procedures guide operations.
▪ Impersonality – Decisions are made based on rules, not personal
relationships.
▪ Employment Based on Technical Qualifications – Hiring is based on
competence and expertise.
▪ Specialization and Division of Labor – Tasks are divided to increase
efficiency.
▪ Career Orientation – Employees have structured career paths based
on merit
Advantages of Bureaucratic Management

▪ Efficiency and Predictability – Standardized rules ensure consistency.

▪ Clear Authority and Responsibility – Reduces ambiguity in roles.
▪ Fairness and Impartiality – Objective decision-making minimizes
favoritism.
▪ Career Development Opportunities – Employees progress based on
merit.
▪ Organizational Stability – Bureaucracy provides long-term structural
stability
Disadvantages of Bureaucratic Management

▪ Rigid and Inflexible – Strict adherence to rules may hinder

innovation.
▪ Slow Decision-Making – Multiple layers of hierarchy cause delays.
▪ Excessive Paperwork – Focus on documentation can reduce
efficiency.
▪ Lack of Employee Motivation – Impersonal approach may decrease
engagement.
▪ Resistance to Change – Hard to adapt to dynamic business
environments.
Relevance of Bureaucratic Management in
Modern Organizations
▪ Government institutions – Public sector organizations still rely on
bureaucracy.
▪ Large corporations – Structured policies help maintain order and
consistency.
▪ Healthcare and Education – Standardized procedures ensure fairness
and efficiency.
▪ Challenges in the digital age – Bureaucracy struggles to keep up with
fast-changing industries.
Introduction to the Hawthorne Studies

▪ Conducted at Western Electric’s Hawthorne Works in Chicago (1924-

1932).
▪ Led by Elton Mayo and his research team.
▪ Aimed to study the relationship between work environment and
productivity.
▪ Unexpected findings led to the development of the Human Relations
Movement.
Phases of the Hawthorne Studies

▪ Illumination Studies – Examined the effect of lighting on worker

productivity.
▪ Relay Assembly Test Room Studies – Investigated how changes in
work conditions affected performance.
▪ Bank Wiring Observation Room Study – Analyzed social interactions
and informal group influence on productivity.
Key Findings of the Hawthorne Studies

▪ Illumination Studies – Examined the effect of lighting on worker

productivity.
▪ Relay Assembly Test Room Studies – Investigated how changes in
work conditions affected performance.
▪ Bank Wiring Observation Room Study – Analyzed social interactions
and informal group influence on productivity.
Key Findings of the Hawthorne Studies

▪ The Hawthorne Effect – Workers improve performance when they

feel observed and valued.
▪ Social Factors Matter – Employee productivity is influenced by social
relationships and group dynamics.
▪ Workplace Culture Influences Performance – Informal groups set
their own work norms.
▪ Recognition and Attention Boost Morale – Management interest in
employees enhances motivation.
Contributions of Elton Mayo

▪ Challenged the classical view that money and physical conditions

were the main productivity drivers.
▪ Highlighted the importance of social and psychological factors in the
workplace.
▪ Pioneered the Human Relations Movement, shifting management
focus to employee well-being.
Introduction to Maslow’s Hierarchy of
Needs
• Developed by Abraham Maslow in 1943.
• A psychological theory of motivation based on human needs.
• Suggests that people are motivated to fulfill basic needs before
moving on to higher-level needs.
• Presented as a five-level pyramid.
The Five Levels of Maslow’s Hierarchy of Needs

1.Physiological Needs – Basic survival needs (food, water, shelter,

sleep).
2.Safety Needs – Security, stability, and protection (financial security,
health, safe environment).
3.Social Needs – Love, belonging, relationships, and social interactions.
4.Esteem Needs – Respect, self-esteem, recognition, and achievement.
5.Self-Actualization – Personal growth, creativity, and reaching one’s
full potential.
Explanation of Each Level

• Physiological Needs: Essential for survival, must be met first.

• Safety Needs: Once basic needs are met, individuals seek stability and
security.
• Social Needs: Relationships and social connections become a priority.
• Esteem Needs: Individuals desire respect, recognition, and self-
confidence.
• Self-Actualization: The highest level, where a person seeks personal
fulfillment and potential.
Application in Management & Motivation

• Understanding Employee Needs: Managers must recognize and

address different levels of employee needs.
• Workplace Motivation: Providing incentives, security, and growth
opportunities enhances performance.
• Leadership Strategies: Encouraging teamwork, recognition, and
personal development.
• Employee Engagement: Creating a positive and motivating work
environment.
Strengths of Maslow’s Theory

1.Simple and Intuitive: Easy to understand and apply.

2.Highlights Employee Motivation: Emphasizes human-centered
management.
3.Flexible in Appl****ication: Can be adapted to different work
settings.
4.Encourages Holistic Development: Focuses on both material and
psychological needs.
Criticisms of Maslow’s Theory

▪ Needs May Overlap: People may seek multiple needs simultaneously.

▪ Cultural Differences: The hierarchy may not apply universally across
different societies.
▪ Not Always Sequential: Individuals may prioritize higher needs before
lower ones.
▪ Difficult to Measure: Self-actualization is subjective and varies from
person to person.
Introduction to Douglas McGregor

• Douglas McGregor (1906-1964) was an American social psychologist.

• Introduced Theory X and Theory Y in his book The Human Side of
Enterprise (1960).
• His theories describe two contrasting views of workforce motivation
and management styles.
Overview of Theory X and Theory Y

• Theory X: Assumes employees are lazy, need strict supervision, and

avoid responsibility.
• Theory Y: Assumes employees are self-motivated, seek responsibility,
and enjoy their work.
• These theories help managers shape leadership approaches and
workplace policies.
Theory X vs. Theory Y in Modern Management

• Most organizations use a combination of both approaches.

• Theory Y is more effective in knowledge-based and creative
industries.
• Theory X may be useful in structured, repetitive jobs requiring tight
control.
• Managers must adapt their style based on the situation and
workforce.
Criticisms of McGregor’s Theory

1.Overgeneralization – Employees don’t always fit neatly into Theory X

or Y.
2.Cultural Differences – Management styles vary across different
societies and industries.
3.Situational Factors – Some jobs require close supervision, while
others demand autonomy.
4.Lack of Empirical Evidence – Hard to measure the direct impact of
these theories.
Introduction to Systems Theory
• Definition: A multidisciplinary approach that views organizations as
complex systems composed of interrelated parts.
• Origin: Developed by Ludwig von Bertalanffy in the 1940s
• Holistic View: Organizations are more than the sum of their parts.
• Interdependence: Subsystems within an organization are
interconnected; changes in one affect others.
Introduction to Systems Theory Cont’d
•Boundaries: Distinguishing between the organization and its
environment.
•Feedback Loops: Mechanisms that allow systems to self-regulate.
: Components of a System
•Inputs: Resources such as information, materials, and energy.
•Processes: Activities that transform inputs into outputs.
•Outputs: Products or services delivered to the environment.
•Feedback: Information about outputs used to adjust inputs and processes.
 Types of Systems

•Open Systems: Exchange matter, energy, or information with their environment.

•Closed Systems: Operate in isolation with minimal interaction with the environm
Applications of Systems Theory in
Organizations

•Organizational Design: Structuring departments and roles to optimize interdependence.

•Problem-Solving: Addressing issues by considering the entire system rather than isolated parts.
•Change Management: Implementing changes with an understanding of systemic impacts.
Limitations of Systems Theory

•Complexity can make practical application challenging.

•May overlook individual components in favor of the whole.
Introduction to Contingency Theory
• Definition: A leadership theory suggesting that the optimal course of
action is contingent upon internal and external factors.
• Origin: Developed in the 1960s by Fred Fiedler.
• No Universal Leadership Style: Effectiveness depends on situational
context.
• Situational Variables: Factors such as leader-member relations, task
structure, and position power.
• Leader-Match Principle: Aligning a leader's style with the appropriate
situation
Fiedler's Contingency Model

•Leadership Styles:
•Task-Oriented: Focus on goal achievement.
•Relationship-Oriented: Emphasis on interpersonal relationships.
•Situational Favorableness: Determined by leader-member relations, task structure, and position power.
THANK YOU
Questions and answers