1. History and Evolution of Management Thought

2. Development of Major Management Theories
Pre-classical
contri-
butions
Classical
theorists
Behavioral
approach
Quantitative
Modern
Integrative
approaches
Scientific
management
General
administrative
Hawthorne
studies
Theory X & Theory Y
Maslow’s
Needs Theory
Operations
Management
Information
System
The
Systems
Theory
Contingency
Bureaucratic
Model
Group
Influences
Model I versus Model II Values
Science
Emerging
Approaches:
Theory Z and
Quality

3. The Classical Perspective
Began around 1900 and continued into the 1930s
Traditional or classical management focuses on efficiency
Focuses on ways to improve the performance of individual workers
One of the major contributors was F.W. Taylor

4. Scientific Management
Taylor’s four principles
Develop a science for each element of work
Scientifically select, train, teach, and develop the worker
Cooperate with the workers to ensure that all work is done as per principles
Divide work and responsibility equally between management and workers

5. Administrative Management
Henri Fayol was the first to identify the five management functions-
Planning
Organizing
Leading
Coordination
Controlling

6. Administrative Management
Fayol’s 14 Principles of Management
Division of work
Authority
Discipline
Unity of command
Unity of direction
Subordination of the individual
interests to the general interests
Remuneration
Centralization
Scalar Chain
Order
Equity
Stability of tenure of personnel
Initiative
Esprit de Corps (unity is strength)

7. Bureaucratic Model
Max Weber ( ), analyzed bureaucracy as the most logical and rational structure for large organizations
Bureaucracies are founded on legal or rational authority, which is based on law, procedures, rules

8. The Behavioral / Neo-classical Perspective
Emerged in the 1920s and dealt with the human aspects of organizations
How people in the workplace interact together
Interactions between workers affected productivity and hence should be used to positively influence the same

9. The Behavioral Perspective
The Hawthorne Studies by Elton Mayo
Significant because they demonstrated the important influence of human factors on worker productivity
Mayo concluded that individual and social relationships played a major role in shaping workers attitudes and behavior at work

10. The Behavioral Perspective
Thus a manager's concern for workers will lead to their increased satisfaction and improved performance
Includes the need theories of motivation, such as Maslow's hierarchy of needs, and McGregor's Theory X and Theory Y

11. The Behavioral Perspective
Behavioral Scientists focused on human behavior and the study of
motivation
leadership
group dynamics
participative management

12. The Quantitative Perspective
Management science focuses specifically on the development of mathematical models which help organizations experiment with computers and identify the best way to do things, saving money and time

13. The Quantitative Perspective
Operations Management is an applied form of management science that helps organizations develop techniques to produce their products and services more efficiently

14. The Quantitative Perspective
Management Information System converts raw data into information and provides the needed information to each manager at the right time, in the needed form

15. Integrating Perspectives
The Systems Approach
That nothing exists in a vacuum-- that each level of a company affects each other
And that each company exists in a system
And each system exists in a larger system

16. The Nature of Systems A System in Interaction with its Environment
Sources of energy,
materials, information, Human Resources
Transforming mechanism
Outputs
Inputs
Users
External Interface Feedback Mechanisms
Internal Interface Feedback Mechanisms

17. Integrating Perspectives
The Contingency Approach
Contingency perspective argues that universal theories cannot be applied to organizations because each is unique
Evaluate your situation, select the best
approach for that situation - and make
your personal style compatible with the
approach

18. Integrating Perspectives
The Contingency Approach
Emphasizes the fit between organization processes and the characteristics of the situation
Calls for fitting the structure of the organization to various possible or chance events

19. Modern Management Thought
Contributors:
Peter Drucker - MBO
William Ouchi - Theory Z
Michael Porter - Competitive Strategy
Blake & Mouton - Managerial Grid
McKinsey’s S Framework
Boston Consulting Group (BCG) - Matrix