2. Evolution of Management Theories

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The Evolution of

Management TheoryChapter 2

Management by Stoner

Lecture

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Md. Shahriar Jahan Hossain, AssistantProfessor, Dept. of IPE, BUET

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Scientific Management School(1890-1940)

Frederick W. Taylor

Described scientific management

as a method of scientifically

finding the one best way to do ajob

Scientific selection of worker

scientific education and

development. Intimate and friendly cooperation

between management and labor.


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Limitations

Working harder and faster would

exhaust whatever work available.

Pressure on employee to workfaster

More worker joined unions and

mistrust and suspicion is

reinforced.



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Henry L. Gantt

Introduced a second motivation

Work progresses should rated

and recorded publicly. The Gilbreths

Used motion picture camera to

find most economical motion for

each task to upgradeperformance and reduce fatigue



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Henri Fayol Believed that the practice of management was distinct from

accounting, finance, production, distribution and other typical

business functions

Developed principles of management that applied to all

organizational situations

Max Weber Developed a theory of authority structures and relations based on an

ideal type of organization he called a bureaucracy.

Emphasized rationality, predictability, impersonality, technical

competence, and authoritarianism

Classical Organization Theory


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Fayols 14 Principles of Management

1. Division of labor

2. Authority

3. Discipline4. Unity of command

5. Unity of direction

6. Subordination ofindividual interests

to the general

interest

7. Remuneration

8. Centralization

9. Hierarchy

10. Order

11. Equity

12. Stability of staff13. Initiative

14. Esprit de corps


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Webers Bureaucracy


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Behavioral Approaches(1920-1990)


Maslaws Need Theory Needs that people are

motivated to satisfy fall into a

hierarchy. Lower level need must be

satisfied before higher level

need is met.

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McGregors Theory Distinguished two basic assumption about people

and their approach to work.

Theory X managers assumed that people mustconstantly be motivated to do their work.

Theory Y managers assume that, people are

eagerly approach their work and opportunity to

develop their creative capacity.

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The Hawthorne StudiesA series of productivity experiments conducted at Western Electric

from 1924 to 1932.

Experimental findings Productivity increased with increasing light level, butsurprisingly output also increased with decreasing light level

until reduced to that of a moonlit night.

The effect of incentive plans was less than expected.

Research conclusion Social norms, group standards and attitudes more strongly

influence individual output and work behavior than do

monetary incentives.


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Quantitative techniques (Operations Research) were used to

improve decision making.

It was evolved from mathematical and statistical solutions

developed for military problems during World War II. It gained popularity through two postwar phenomena. First,the

development of high-speed computers. Second,Robert

McNamara implemented this approach at Ford Motor Company.

This approach contributes directly to management decisionmaking in the areas like budgeting, queuing, scheduling, quality

control, etc.

Management Science School

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Systems Approach

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System Defined

A set of interrelated and interdependent parts arranged

in a manner that produces a unified whole.

Basic Types of Systems Closed systems

Are not influenced by and do not interact with their environment

(all system input and output is internal).

Open systems Dynamically interact to their environments by taking in inputs

and transforming them into outputs that are distributed into

their environments.


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The Organization as an Open System


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Organization is made up of independent factors,

including individuals, groups, attitudes, motives,

formal structure, interactions, goals, status, and

authority.This means that as managers coordinatework activities.

Decisions and actions in one organizational area will

affect other areas.

Organizations are not self-contained. They rely on

their environment for essential inputs and outlets to

absorb their outputs.

Systems Approach


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Contingency Approach

Sometimes called the situational approach.

There is no one universally applicable set of

management principles (rules) by which to manage

organizations.

Organizations, employees and situations are different

and require different ways of managing.

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Popular Contingency Variables

Organization size

As size increases, so do the problems of coordination.

Routineness of task technology

Routine technologies require organizational structures,

leadership styles and control systems that differ from

those required by customized technologies.


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Popular Contingency Variables

Environmental uncertainty

What works best in a stable and predictable

environment may be totally inappropriate in a

rapidly changing and unpredictable environment.

Individual differences

Individuals differ in terms of their desire for growth,

autonomy, tolerance of ambiguity and expectations.


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Dynamic Engagement Approach

New organizational environments

Ethics & social responsiveness

Globalization & management

Inventing & reinventing organizations Cultures & multiculturalism

Quality

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