Lecturer: Ahmednor Mohamed Jama

Course: Principles of Management(POM)

Days: Sunday & Thursday
Date: 04/04/2024

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 Chapter 2
THE EVOLUTION OF
MANAGEMENT
THOUGHT
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 Chapter Outline
Introduction
Classical Schools of Management
Behavioral Management Theory
Quantitative School of Management
Contingency School of Management
Quality School of Management
Management in the Future
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 Introduction

This chapter studies the evolution of management

thought by describing several management theories
and philosophies that have developed over the years.
Most of the evolutionary changes and new
perspectives occurred as a result of the Industrial
Revolution that transformed agricultural societies into
industrial societies. Today, management thinking
continues to evolve to meet the challenges of rapid
and dramatic societal changes.
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 Classical Schools of Management

One of the first schools of management thought,

the classical management theory, developed
during the Industrial Revolution when new problems
related to the factory system began to appear.
Managers were unsure of how to train employees
(many of them non-English speaking immigrants) or
deal with increased labor dissatisfaction, so they
began to test solutions. As a result, the classical
management theory developed from efforts to find
the “one best way” to perform and manage tasks.

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 Classical schools of Management cont..

This school of thought is made up of two branches and

they are
1. classical scientific
2. classical administrative,
The classical scientific branch arose because of the
need to increase productivity and efficiency. The
importance was on trying to find the best way to get
the most work done by examining how the work
process was actually accomplished and by analyzing
the skills of the workforce.
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 Classical Scientific Branch
The classical scientific school owes its roots to several
major contributors, including Frederick Taylor, Henry
Gantt, and Frank and Lillian Gilbreth.
Frederick Taylor is often called the “father of scientific
management.” Taylor believed that organizations should
study tasks and develop detailed procedures.
Henry L. Gantt (1864-1920), an associate of Taylor’s,
developed the Gantt chart, a bar graph that measures
planned and completed work along each stage of
production. Based on time instead of quantity, volume,
or weight, this visual display chart has been a widely
used planning and control tool since its development in
1910.
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 Classical Scientific Branch
Frank and Lillian Gilbreth, a husband-and-wife
team, studied job motions. In Frank’s early career as an
apprentice bricklayer, he was interested in
standardization and method study. He watched
bricklayers and saw that some workers were slow and
inefficient, while others were very productive. He
discovered that each bricklayer used a different set of
motions to lay bricks. From his observations, Frank
isolated the basic movements necessary to do the job
and eliminated unnecessary motions.
This was the first motion study designed to isolate the
best possible method of performing a given job.
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 Classical Scientific Branch
Thanks to these contributors and others,
the basic ideas regarding scientific management
developed. They include the following:
Developing new standard methods for doing each job
Selecting, training, and developing workers instead of
allowing them to choose their own tasks and train
themselves
Developing a spirit of cooperation between workers
and management to ensure that work is carried out in
accordance with devised procedures
Dividing work between workers and management in
almost equal shares, with each group taking over the
work for which it is best fitted
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 Classical Administrative School
Whereas scientific management focused on the
productivity of individuals, the classical administrative
approach concentrates on the total organization. The
emphasis is on the development of managerial
principles rather than work methods.
Contributors to this school of thought include Max
Weber, Henri Fayol,Mary Parker Follett, and Chester I.
Barnard. These theorists studied the flow of
information within an organization and emphasized
the importance of understanding how an organization
operated.
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 Max Weber, 1864-1920
In the late 1800s, Max Weber disliked that many European
organizations were managed on a “personal” family-like
basis and that employees were loyal to individual
supervisors rather than to the organization.
He believed that organizations should be managed
impersonally and that a formal organizational structure,
where specific rules were followed, was important. In other
words, he didn’t think that authority should be based on a
person’s personality. He thought authority should be
something that was part of a person’s job and passed from
individual to individual as one person left and another took
over. This nonpersonal, objective form of organization was
called a bureaucracy.
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 Max Weber, 1864-1920
bureaucracy is a model of organization design based on
a legitimate and formal system of authority.
Weber believed that all bureaucracies have the following
characteristics:
A well-defined hierarchy. All positions within a
bureaucracy are structured in a way that permits the
higher positions to supervise and control the lower
positions.
Division of labor and specialization. All responsibilities
in an organization are specialized so that each employee
has the necessary expertise to do a particular task.

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 Max Weber, 1864-1920
Rules and regulations. Standard operating procedures
govern all organizational activities to provide certainty and
facilitate coordination.
Impersonal relationships between managers and
employees. Managers should maintain an impersonal
relationship with employees so that favoritism and personal
prejudice do not influence decisions.
Competence. Competence, not “who you know,” should be
the basis for all decisions made in hiring, job assignments,
and promotions in order to promote ability and merit as the
primary characteristics of a bureaucratic organization.
Records. A bureaucracy needs to maintain complete files
regarding all its activities.
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 Henri Fayol 1841-1925
Henri Fayol (Istanbul, 29 July 1841 – Paris, 19
November 1925), a French mining engineer,
developed 14 principles of management based on his
management experiences. These principles provide
modern-day managers with general guidelines on
how a supervisor should organize his/her department
and manage his/her staff. Although later research has
created controversy over many of the following
principles, they are still widely used in management
theories.
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Henri Fayol’s 14 Principles Of
Management
1. Division of work: Division of work and specialization
produces more and better work with the same effort.
2. Authority and responsibility: Authority is the right
to give orders and the power to exact obedience.
3. Discipline: Good discipline requires managers to
apply sanction whenever violations become apparent.
4. Unity of command: An employee should receive
orders from only one superior.
5. Unity of direction: Organizational activities must
have one central authority and one plan of action.
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 Henri Fayol’s 14 Principles Of
Management Cont..
6. Subordination of individual interest to general interest: The
interests of one employee or group of employees are subordinate to
the interests and goals of the organization.
7. Remuneration of personnel: Salaries — the price of services
rendered by employees — should be fair and provide satisfaction both
to the employee and employer.
8. Centralization: The objective of centralization is the best
utilization of personnel. The degree of centralization varies according
to the dynamics of each organization.
9. Scalar chain: A chain of authority exists from the highest
organizational authority to the lowest ranks.
10. Order: Organizational order for materials and personnel is
essential. The right materials and the right employees are necessary
for each organizational function and activity.
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 Henri Fayol’s 14 Principles Of
Management Cont..
11. Equity: Both equity and equality of treatment
should be considered when dealing with employees.
12. Stability of tenure of personnel: To attain the
maximum productivity of personnel, a stable work
force is needed.
13. Initiative: Thinking out a plan and ensuring its
success is an extremely strong motivator.
14. Esprit de corps: Teamwork is fundamentally
important to an organization. Work teams and
extensive face-to-face verbal communication
encourages teamwork.
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 Behavioral Management Theory
As management research continued in the 20th century, questions
began to come up regarding the interactions and motivations of
the individual within organizations.
The behavioral management theory is often called the human
relations movement because it deals with the human dimension of
work. Behavioral theorists believed that a better understanding of
human behavior at work, such as motivation, conflict,
expectations, and group dynamics, improved productivity. The
theorists who contributed to this school viewed employees as
individuals, resources, and assets to be developed and worked
with — not as machines, as in the past. Several individuals and
experiments contributed to this theory.
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 Behavioral Management Theory
Elton Mayo’s contributions came as part of the
Hawthorne studies, a series of experiments that
rigorously applied classical management theory only to
reveal its shortcomings. The Hawthorne experiments
consisted of two studies conducted at the Hawthorne
Works of the Western Electric Company in Chicago
from 1924 to 1932. The first study was conducted by a
group of engineers seeking to determine the
relationship of lighting levels to worker productivity.

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 Behavioral Management Theory
A few years later, a second group of experiments began.
Harvard researchers Mayo and F. J. Roethlisberger supervised
a group of five women in a bank wiring room. They gave the
women special privileges, such as the right to leave their
workstations without permission, take rest periods, enjoy free
lunches, and have variations in pay levels and workdays. This
experiment also resulted in significantly increased rates of
productivity. In this case, Mayo and Roethlisberger concluded
that the increase in productivity resulted from the supervisory
arrangement rather than the changes in lighting or other
associated worker benefits.
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Abraham Maslow (1908-1970)
Abraham Maslow, American psychologist, developed
one of the most widely recognized need theories, a
theory of motivation based upon a consideration of
human needs. His theory of human needs had three
rules:
 Human needs are never completely satisfied.
 Human behavior is purposeful and is motivated by
the need for satisfaction.
 Needs can be classified according to a hierarchical
structure of importance, from the lowest to highest.
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Maslow’s Hierarchy of Needs
SELF-
ACTUALIZATION
NEED

ESTEEM NEEDS

LOVE, AFFECTION, AND

BELONGINGNESS NEEDS

SAFETY NEEDS

PHYSIOLOGICAL OR SURVIVAL NEEDS

 Abraham Maslow (1908-1970)
Maslow broke down the needs hierarchy into five specific areas:
Physiological needs. Maslow grouped all physical needs necessary
for maintaining basic human well-being, such as food and drink, into
this category.
Safety needs. These needs include the need for basic security,
stability, protection, and freedom from fear.
Belonging and love needs. After the physical and safety needs are
satisfied and are no longer motivators, the need for belonging and love
emerges as a primary motivator.
Esteem needs. An individual must develop self-confidence and wants
to achieve status, reputation, fame, and glory.
Self-actualization needs. Assuming that all the previous needs in
the hierarchy are satisfied, an individual feels a need to find himself.
Maslow’s hierarchy of needs theory helped managers visualize
employee motivation.
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 Douglas McGregor (1906-1964)
Douglas McGregor was heavily influenced by both the
Hawthorne studies and Maslow. He believed that two basic
kinds of managers exist. One type, the Theory X manager, has
a negative view of employees and assumes that they are lazy,
untrustworthy, and incapable of assuming responsibility. On
the other hand, the Theory Y manager assumes that
employees are not only trustworthy and capable of assuming
responsibility, but also have high levels of motivation.
An important aspect of McGregor’s idea was his belief that
managers who hold either set of assumptions can create self-
fulfilling prophecies — that through their behavior, these
managers create situations where subordinates act in ways
that confirm the manager’s original expectations.
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 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 approach to 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.
1. Management science
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.
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Quantitative School of Management

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 modelling 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.
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Quantitative School of Management
2. Operations Management
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.
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?
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 Quantitative School of Management
3. 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 “what-if” questions,
and finally, select the best alternatives based on the
answers to these questions.
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Quantitative School of Management
4. Systems management theory
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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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.
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 Quality School of Management

The quality school of management is 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.
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.
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 Quality School of Management

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.
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 Quality School of Management
Quality management involves employees in decision
making as a way to prevent quality problems. The
Kaizen (pronounced ky-zen) approach uses incremental,
continuous improvement for people, products, and
processes.
The very notion of continuous improvement suggests that
managers, teams, and individuals learn from both their
accomplishments and their mistakes.
The reengineering approach 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
it when it comes.
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Time Line of Management
Thought

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 Management in the Future
Modern management approaches respect the classical,
human resource, and quantitative approaches to
management. 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.
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 Management in the Future
Key themes to be considered, as the twenty-first 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.
■ 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.
■ Managers must excel in their leadership responsibilities to perform
numerous different roles.
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