Evolution of Management

Thoughts
 Evolution of Management
Thoughts
Introduction

The study of management theories can be useful to
nursing leaders in creating their own management
style.
No single management theory is sufficient in itself to
guide the nursing leaders in every situation.
Selecting from the most applicable theory, they may be
able to develop their own individual management style
& most effective in their situation leaders in every situation.
Selecting from the most applicable theory, they may be able to develop their own individual management
style & most effective in their situation
 Major categories of Management
thought evolution Eras

 Pre-classical Era
 Classical Management era (1880s-1920s)
 Neo-classical Management era (1920s-
1940s
Modern Management era (1940s-till date)
 Pre-Classical/SCIENTIFIC
Contributions/ERA
A number of individuals in the pre-classical

period of the middle and late 1800s offered
ideas that laid the groundwork for
management.
Among the principal pre-classical
contributors Robert Owen, Charles Babbage
and Henry R. Towne are their can be listed
 Pre-Classical
ROBERT OWEN (1771-1858): A successful British
entrepreneur

Advocated concerns for the working and living
conditions of workers
CHARLES BABAGE (1792-1871): An English
mathematician is widely known as the father of
modern computing
Built the first practical mechanical calculator and a
prototype of modern computers: explore new ways
of doing things
predicted the specialization of mental work:
suggested profit sharing
 Pre-Classical
Henry R. Towne: Outlined the importance

of management as a science and called for
the development of management
principles.
Adam Smith: talks about division of labour
in his book Wealth of Nations written in
the year 1776.
 Classical Theory of Management
Developed during the Industrial Revolution when

new problems related to the factory system began
to appear
• The Industrial Revolution results a major turning point
in human history;
• The Revolution that changed the world forever
• Industrial Revolution – a change from
making things by hand to making them
in factories
 Classical Theory of Management
• This leads to
✓ Economic transformation:

– Previously – family farms, small workshops.
– After Industrial Revolution – large
organizations, requiring management skills .
✓ New demands on management:
– Need for professional managers (as opposed
to owners)
– Need to plan, structure, and schedule
activities.
– Need for worker training and socialization to
factory work.
 Classical Theory of Management
This school of thought is made up of
three branches: /formulations
a) Scientific Management (FW Taylor)
b) Administrative Management (Henry
Fayol)
c) Bureaucratic Management (Max
Weber)
 Classical Theory of Management
a) Scientific Management: Frederick Taylor
(1856-1915) 
▪ Frederick Taylor was an American mechanical
engineer who wanted to improve industrial
efficiency.
▪ He is considered as the father of scientific
management.
• Worked at Midvale Steel (beginning as a common
worker, chief engineer, in 6 years)
• Started with time study and motivation plans.
• Taylor wanted to reduce the time a worker spent on
each task by optimizing the way the task was done
 Classical Theory of Management
• Scientific Management as defined by Frederick
Taylor:

• The systematic study of the relationships
between people and tasks to redesign the work
for higher efficiency
Taylor believed that organizations should study
tasks and develop precise procedures
 Classical Theory of Management
Four/4 Principles to increase
efficiency: 
1. Study the way the job is performed
now & determine new ways to do it.
2. Organize the new method into rules.
3. Select workers whose skills match the
rules set in Step 2.
4. Establish a fair level of performance
and pay for higher performance
 Classical Theory of Management
• Contributions:

– Pay for performance.
– Careful examination of job tasks.
– Importance of training and selection.
• But……..* Problems
– Assumed workers were robot without
social needs or human needs.
– Assumed all individuals were the same
 Classical Theory of Management
b) Administrative Principles Theory:

The emphasis is on the development of managerial principles
rather than work methods
Henry Fayol (1841–1925)
• Henri Fayol (1841- 1925) was a French
mining engineer.
• He was one of the most influential
contributors to modern concepts of
management.
 Classical Theory of Management

• Focus:

– Organization rather than the
individual.
– described the management functions
of planning, organizing,
coordinating, and controlling
 Classical Theory of Management
Fayol’s Principles

• Henri Fayol, developed a set of 14
principles:
1. Division of work: allows for job
specialization.
2. Authority and Responsibility:
3. Unity of Command: Employees should have
only one boss.
4. Line of Authority: a clear chain from top to
bottom of the firm.
5. Centralization: the degree to which authority
rests at the very top.
 Classical Theory of Management
6. Unity of Direction: One plan of
action to guide
the organization.
7. Equity: Treat all employees fairly in
justice and respect.
8. Order: Each employee is put where
they have the most value.
9. Initiative: Encourage innovation.
10. Discipline: respectful employees
needed
 Classical Theory of Management
11. Compensation of Employees : The
payment system contributes to
success. 
12. Stability of Employees : Long-
term employment is important.
13. General interest over individual
interest: The organization takes
priority over the individual.
14. Common spirit: Share enthusiasm
or loyalty to the organization.
 Classical Theory of Management
c/ Bureaucratic Management (Max
Weber) 
 Focuses on use of rules, set hierarchy for job positions,
division of work and allocation of authority. —
 Max Weber is the major contributor of Bureaucratic
management and he identified 3 types of organisation
depending on exercise of authority
1. Charismatic Authority Structure
2. Traditional Authority Structure- temples
3. Rational-Legal Authority Structure
 Classical Theory of Management

 FEATURES OF IDEAL BUREAUCRATIC

ORGANISATION
1. Specialisation

2. Hierarchy of Authority
3. Rules
4. Impersonality
5. Trained Manager
 NEO-CLASSICAL
A/ Behavioral Management School
• It stands from classical theory ignored

employee motivation and behavior
• Focuses on the way a manager should
personally manage to motivate employees.
• Behavioral management theory is often
called the human relations movement
because it addresses the human dimension
of work.
• 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 .
 NEO-CLASSICAL
Behavioral theorists believed that a better

understanding of human behavior at
work, such as motivation, conflict,
expectations, and group dynamics,
improved productivity.
 NEO-CLASSICAL
b/ Theory X and Y

 Douglas McGregor proposed the two different sets of
worker molds.

 Theory X - Classical Theory :

1. Assumes the average worker is lazy,
dislikes work and will do as little as
possible.
2. Managers must closely supervise
and control through reward and
punishment.
 NEO-CLASSICAL
 Theory Y- Human relationships
Theory 
1. Assumes workers are not lazy, want to
do a good job and the job itself will
determine if the worker likes the work.
2. Managers should allow the workers feel
freedom, and exercise initiative and self-
direction
 NEO-CLASSICAL

c/ Maslow’s Hierarchy-of-Needs Theory


Abraham Maslow ) 1908-1970).
• Father of Humanistic Psychology.
• Maslow's hierarchy of needs theory is a
motivational theory in psychology
containing a five level model of human
needs, often shown as hierarchical levels
within a pyramid.
 NEO-CLASSICAL
Theory of human needs had three assumptions:


a) Human needs are never completely satisfied.
b) Human behavior is purposeful and is motivated
by the need for satisfaction.
c) Needs can be classified according to a hierarchical
structure of importance, from the lowest to highest.
Maslow broke down the needs hierarchy into five
specific areas

 Modern Management era
1/ Quantitative management :


– Uses mathematical techniques, like linear
programming, modeling, simulation and
chaos theory
– Quantitative management utilises the
techniques given by following disciplines
A. Operations management :
– provides managers a set of techniques
they can use to analyze any aspect of an
organization’s production system to
increase efficiency
 Modern Management era
B/ Total quality management :


– focuses on analyzing an organization’s
input, conversion, and output activities to
increase product quality
C/ Management information systems :
– help managers design systems that
provide information that is vital for
effective decision making
 Modern Management era
2/ 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:
a) Inputs- material or human resources
b) Transformation processes- technological and managerial
processes
c) Outputs- products or services
d) Feedback- reactions from the environment
 Modern Management era
 The systems theory encourages managers to look at the
organization from a broader perspective
 Systems can be 
✓ Closed: An organization that interacts little with its
external environment (outside environment) and therefore
receives little feedback from it.
✓ open system: in contrast, interacts continually with its
environment.
✓ Therefore, it is well informed about changes within its
surroundings and its position relative to these change
 Modern Management era
✓Subsystem is any system that is part
of a larger one. 
✓ Entropy is the tendency of systems
to deteriorate or break down over
time.
✓ Synergy is the ability of the whole
system to equal more than the sum of
its parts
Modern Management era


 Modern Management era
3/ Contingency School of Management
/Theory 
✓ Believes that Management is dependent on
environment. —
✓ Managers under this approach won’t
prescribe a standard solution rather will ask
questions- Which method will be most
appropriate under given situation?
✓ It uses the synthesis of classic, neo classical
and system approach as per requirement.
 Modern Management era
✓ 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

Alemnew
