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History and Evolution of Management Thought

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Presentation on theme: "History and Evolution of Management Thought"— Presentation transcript:

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

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