EVOLUTION OF MANAGEMENT THOUGHT

The practice of management is as old as human civilization. The ancient civilizations

of Egypt (the great pyramids), Greece (leadership and war tactics of Alexander the great)
and Rome displayed the marvelous results of good management practices.
The origin of management as a discipline was developed in the late 19 th century.
Over time, management thinkers have sought ways to organize and classify the voluminous
information about management that has been collected and disseminated. These attempts
at classification have resulted in the identification of management approaches. The
approaches of management are theoretical frameworks for the study of management. Each
of the approaches of management are based on somewhat different assumptions about
human beings and the organizations for which they work.
The different approaches of management are
a) Classical approach,
b) Behavioral approach,
c) Quantitative approach,
d) Systems approach,
e) Contingency approach.
The formal study of management is largely a twentieth-century phenomenon, and to some
degree the relatively large number of management approaches reflects a lack of consensus
among management scholars about basic questions of theory and practice.

a) THE CLASSICAL APPROACH:

The classical approach is the oldest formal approach of management thought. Its roots pre-
date the twentieth century. The classical approach of thought generally concerns ways to
manage work and organizations more efficiently. Three areas of study that can be grouped
under the classical approach are scientific management, administrative management, and
bureaucratic management.
(i) Scientific Management.
Frederick Winslow Taylor is known as the father of scientific management. Scientific
management (also called Taylorism or the Taylor system) is a theory of management that
analyzes and synthesizes workflows, with the objective of improving labor productivity. In
other words, Traditional rules of thumb are replaced by precise procedures developed after
careful study of an individual at work.
(ii) Administrative Management.
Administrative management focuses on the management process and principles of
management. In contrast to scientific management, which deals largely with jobs and work
at the individual level of analysis, administrative management provides a more general
theory of management. Henri Fayol is the major contributor to this approach of
management thought.
(iii) Bureaucratic Management.
Bureaucratic management focuses on the ideal form of organization. Max Weber
was the major contributor to bureaucratic management. Based on observation, Weber
concluded that many early organizations were inefficiently managed, with decisions based
on personal relationships and loyalty. He proposed that a form of organization, called a
bureaucracy, characterized by division of labor, hierarchy, formalized rules, impersonality,
and the selection and promotion of employees based on ability, would lead to more efficient
management. Weber also contended that managers' authority in an organization should be
based not on tradition or charisma but on the position held by managers in the
organizational hierarchy.

b) THE BEHAVIORAL APPROACH:

The behavioral approach of management thought developed, in part, because of
perceived weaknesses in the assumptions of the classical approach. The classical
approach emphasized efficiency, process, and principles. Some felt that this emphasis
disregarded important aspects of organizational life, particularly as it related to human
behavior. Thus, the behavioral approach focused on trying to understand the factors that
affect human behavior at work.
(i) Human Relations.
The Hawthorne Experiments began in 1924 and continued through the early 1930s.
A variety of researchers participated in the studies, including Elton Mayo. One of the major
conclusions of the Hawthorne studies was that workers' attitudes are associated with
productivity. Another was that the workplace is a social system and informal group influence
could exert a powerful effect on individual behavior. A third was that the style of supervision
is an important factor in increasing workers' job satisfaction.
(ii) Behavioral Science.
Behavioral science and the study of organizational behavior emerged in the 1950s
and 1960s. The behavioral science approach was a natural progression of the human
relations movement. It focused on applying conceptual and analytical tools to the problem of
understanding and predicting behavior in the workplace.
The behavioral science approach has contributed to the study of management
through its focus on personality, attitudes, values, motivation, group behavior, leadership,
communication, and conflict, among other issues.

c) THE QUANTITATIVE APPROACH:

The quantitative approach focuses on improving decision making via the application
of quantitative techniques. Its roots can be traced back to scientific management.
(i) Management Science (Operations Research)
Management science (also called operations research) uses mathematical and
statistical approaches to solve management problems. It developed during World War II as
strategists tried to apply scientific knowledge and methods to the complex problems of war.
Industry began to apply management science after the war. The advent of the computer
made many management science tools and concepts more practical for industry
(ii) Production And Operations Management.
This approach focuses on the operation and control of the production process that
transforms resources into finished goods and services. It has its roots in scientific
management but became an identifiable area of management study after World War II. It
uses many of the tools of management science.
Operations management emphasizes productivity and quality of both manufacturing
and service organizations. W. Edwards Deming exerted a tremendous influence in shaping
modern ideas about improving productivity and quality. Major areas of study within
operations management include capacity planning, facilities location, facilities layout,
materials requirement planning, scheduling, purchasing and inventory control, quality
control, computer integrated manufacturing, just-in-time inventory systems, and flexible
manufacturing systems.

d) SYSTEMS APPROACH:
The simplified block diagram of the systems approach is given below.
 The systems approach focuses on understanding the organization as an open
system that transforms inputs into outputs. The systems approach began to have a strong
impact on management thought in the 1960s as a way of thinking about managing
techniques that would allow managers to relate different specialties and parts of the
company to one another, as well as to external environmental factors. The systems
approach focuses on the organization as a whole, its interaction with the environment, and
its need to achieve equilibrium

e) CONTINGENCY APPROACH:
The contingency approach focuses on applying management principles and
processes as dictated by the unique characteristics of each situation. It emphasizes that
there is no one best way to manage and that it depends on various situational factors, such
as the external environment, technology, organizational characteristics, characteristics of
the manager, and characteristics of the subordinates. Contingency theorists often implicitly
or explicitly criticize the classical approach for its emphasis on the universality of
management principles; however, most classical writers recognized the need to consider
aspects of the situation when applying management principles.

MANAGEMENT
Beginning Dates Emphasis
APPROACHS

CLASSICAL APPROACH
 Traditional rules of thumb are replaced by precise
Scientific procedures developed after careful study of an
1880s
Management individual at work.

Gives idea about the primary functions of

Administrative
1940s management and The 14 Principles of
Management
Administration

Bureaucratic Replaces traditional leadership and charismatic

1920s
Management leadership with legal leadership

BEHAVIORAL APPROACH

Human
1930s workers' attitudes are associated with productivity
Relations

Behavioral Gives idea to understand human behavior in the

1950s
Science organization.

QUANTITATIVE APPROACH

Management
Science Uses mathematical and statistical approaches to
(Operation 1940s
solve management problems.
research)

Production and This approach focuses on the operation and

Operations control of the production process that transforms
1940s
Management resources into finished goods and services

RECENT DEVELOPEMENTS

Considers the organization as a system that

SYSTEMS transforms inputs into outputs while in constant
1950s
APPROACH interaction with its' environment.
 Applies management principles and processes as
CONTINGENCY dictated by the unique characteristics of each
1960s
APPROACH situation.

CONTRIBUTION OF FAYOL AND TAYLOR

F.W. Taylor and Henry Fayol are generally regarded as the founders of scientific
management and administrative management and both provided the bases for science and
art of management.

Taylor's Scientific Management

Frederick Winslow Taylor well-known as the founder of scientific management was the first
to recognize and emphasis the need for adopting a scientific approach to the task of
managing an enterprise. He tried to diagnose the causes of low efficiency in industry and
came to the conclusion that much of waste and inefficiency is due to the lack of order and
system in the methods of management. He found that the management was usually
ignorant of the amount of work that could be done by a worker in a day as also the best
method of doing the job. As a result, it remained largely at the mercy of the workers who
deliberately shirked work. He therefore, suggested that those responsible for management
should adopt a scientific approach in their work, and make use of "scientific method" for
achieving higher efficiency. The scientific method consists essentially of
(a) Observation
(b) Measurement (c) Experimentation and (d)
Inference.
He advocated a thorough planning of the job by the management and emphasized the
necessity of perfect understanding and co-operation between the management and the
workers both for the enlargement of profits and the use of scientific investigation and
knowledge in industrial work. He summed up his approach in these words:

• Science, not rule of thumb

• Harmony, not discord
• Co-operation, not individualism
• Maximum output, in place of restricted output
• The development of each man to his greatest efficiency and prosperity.
Elements of Scientific Management: The techniques which Taylor regarded as its
essential elements or features may be classified as under:
1. Scientific Task and Rate-setting, work improvement, etc.
2. Planning the Task.
3. Vocational Selection and Training
4. Standardization (of working conditions, material equipment etc.)
5. Specialization
6. Mental Revolution.
1. Scientific Task and Rate-Setting (work study): Work study may be defined as the
systematic, objective and critical examination of all the factors governing the operational
efficiency of any specified activity in order to effect improvement.
Work study includes.
(a) Methods Study: The management should try to ensure that the plant is laid
out in the best manner and is equipped with the best tools and machinery. The
possibilities of eliminating or combining certain operations may be studied.
(b) Motion Study: It is a study of the movement, of an operator (or even of a
machine) in performing an operation with the purpose of eliminating useless motions.
(c) Time Study (work measurement): The basic purpose of time study is to
determine the proper time for performing the operation. Such study may be conducted
after the motion study. Both time study and motion study help in determining the best
method of doing a job and the standard time allowed for it.
(d) Fatigue Study: If, a standard task is set without providing for measures to eliminate
fatigue, it may either be beyond the workers or the workers may over strain themselves to
attain it. It is necessary, therefore, to regulate the working hours and provide for rest pauses
at scientifically determined intervals.
(e) Rate-setting: Taylor recommended the differential piece wage system, under which
workers performing the standard task within prescribed time are paid a much higher rate
per unit than inefficient workers who are not able to come up to the standard set.

2. Planning the Task: Having set the task which an average worker must strive to perform
to get wages at the higher piece-rate, necessary steps have to be taken to plan the
production thoroughly so that there is no bottlenecks and the work goes on
systematically.
3. Selection and Training: Scientific Management requires a radical change in the
methods and procedures of selecting workers. It is therefore necessary to entrust the
task of selection to a central personnel department. The procedure of selection will also
have to be systematised. Proper attention has also to be devoted to the training of the
workers in the correct methods of work.
4. Standardization: Standardization may be introduced in respect of the following.
(a) Tools and equipment: By standardization is meant the process of bringing about
uniformity. The management must select and store standard tools and implements which
will be nearly the best or the best of their kind.
(b) Speed: There is usually an optimum speed for every machine. If it is exceeded, it is
likely to result in damage to machinery.
(c) Conditions of Work: To attain standard performance, the maintenance of standard
conditions of ventilation, heating, cooling, humidity, floor space, safety etc., is very
essential. (d) Materials: The efficiency of a worker depends on the quality of materials and
the method of handling materials.
5. Specialization: Scientific management will not be complete without the introduction of
specialization. Under this plan, the two functions of 'planning' and 'doing' are separated in
the organization of the plant. The `functional foremen' are specialists who join their heads to
give thought to the planning of the performance of operations in the workshop. Taylor
suggested eight functional foremen under his scheme of functional foremanship.
(a) The Route Clerk: To lay down the sequence of operations and instruct the workers
concerned about it.
(b) The Instruction Card Clerk: To prepare detailed instructions regarding different
aspects of work.
(c) The Time and Cost Clerk: To send all information relating to their pay to the
workers and to secure proper returns of work from them.
(d) The Shop Disciplinarian: To deal with cases of breach of discipline and
absenteeism. (e) The Gang Boss: To assemble and set up tools and machines and to
teach the workers to make all their personal motions in the quickest and best way.
(f) The Speed Boss: To ensure that machines are run at their best speeds and proper
tools are used by the workers.
(g) The Repair Boss: To ensure that each worker keeps his machine in good order and
maintains cleanliness around him and his machines.
(h) The Inspector: To show to the worker how to do the work.

6. Mental Revolution: At present, industry is divided into two groups – management and
labour. The major problem between these two groups is the division of surplus. The
management wants the maximum possible share of the surplus as profit; the workers want,
as large share in the form of wages. Taylor has in mind the enormous gain that arises from
higher productivity. Such gains can be shared both by the management and workers in the
form of increased profits and increased wages.

Henry Fayol's 14 Principles of Management:

The principles of management are given below:
1. Division of work: Division of work or specialization alone can give maximum
productivity and efficiency. Both technical and managerial activities can be performed in the
best manner only through division of labour and specialization.
2. Authority and Responsibility: The right to give order is called authority. The
obligation to accomplish is called responsibility. Authority and Responsibility are the two
sides of the management coin. They exist together. They are complementary and mutually
interdependent.
3. Discipline: The objectives, rules and regulations, the policies and procedures must
be honoured by each member of an organization. There must be clear and fair agreement
on the rules and objectives, on the policies and procedures. There must be penalties
(punishment) for non-obedience or indiscipline. No organization can work smoothly without
discipline - preferably voluntary discipline.
4. Unity of Command: In order to avoid any possible confusion and conflict, each
member of an organization must received orders and instructions only from one superior
(boss).
5. Unity of Direction: All members of an organization must work together to
accomplish common objectives.
6. Emphasis on Subordination of Personal Interest to General or Common
Interest: This is also called principle of co-operation. Each shall work for all and all for
each. General or common interest must be supreme in any joint enterprise.
7. Remuneration: Fair pay with non-financial rewards can act as the best incentive or
motivator for good performance. Exploitation of employees in any manner must be
eliminated. Sound scheme of remuneration includes adequate financial and nonfinancial
incentives.
8. Centralization: There must be a good balance between centralization and
decentralization of authority and power. Extreme centralization and decentralization must
be avoided.
9. Scalar Chain: The unity of command brings about a chain or hierarchy of command
linking all members of the organization from the top to the bottom. Scalar denotes steps.
10. Order: Fayol suggested that there is a place for everything. Order or system alone
can create a sound organization and efficient management.
11. Equity: An organization consists of a group of people involved in joint effort. Hence,
equity (i.e., justice) must be there. Without equity, we cannot have sustained and adequate
joint collaboration.
12. Stability of Tenure: A person needs time to adjust himself with the new work and
demonstrate efficiency in due course. Hence, employees and managers must have job
security. Security of income and employment is a pre-requisite of sound organization and
management.
13. Esprit of Co-operation: Esprit de corps is the foundation of a sound organization.
Union is strength. But unity demands co-operation. Pride, loyalty and sense of belonging
are responsible for good performance.
14. Initiative: Creative thinking and capacity to take initiative can give us sound
managerial planning and execution of predetermined plans.