The Evolution of Management

Theory

CHAMARA DE ZOYSA
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Learning Objectives
To understand how management theories
develop
To understand the impact of the environment
to management thinking
To gain insights into new management
approach
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The Evolution of Management Theory
(Comprehensive Analysis of Management)
Systems Theory
Contingency Approach
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Management Approaches
and the Environment
GENERAL
ENVIRONMENT
OPERATING
ENVIRONMENT
INTERNAL
ENVIRONMENT
SOCIAL
ECONOMIC
POLITICAL
LEGAL
TECHNOLOGY
NEW ENTRANTS
SUPPLIER
SUBSTITUTES
CUSTOMER
COMPETITION
PRODUCTION
TECHNOLOGY
STRUCTURE
INPUTS
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The Classical Approach
Environment in ca1890
Industrial revolution
Autocratic management was the norm
Science" as a solution to the inefficiencies
and injustices of the period
Idea of interchangeable parts
The classical approach (ca1890) to
management is a management approach that
emphasizes organizational efficiency to
increase organizational success.
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The Classical Approach
Scientific Management
Frederick W. Taylor
Frank and Lillian Gilbreth
Henry Gantt
Bureaucratic Management
Max Weber
Administrative Management
Henri Fayol


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Taylors Four Principles of Scientific Management
1. Scientifically study each part of a task and
develop the best method of performing the task.
2. Carefully select workers and train them to
perform the task by using the scientifically
developed method.
3. Cooperate fully with workers to ensure that they
use the proper method.
4. Divide work and responsibility so that
management is responsible for planning work
methods using scientific principles and workers
are responsible for executing the work
accordingly.
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Key Characteristics of Webers Ideal Bureaucracy
Specialization of labor
Formal rules and procedures
Impersonality
Well-defined hierarchy
Career advancement based on merit
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Fayols 14 Principles of
Administrative Management
1. Division of work
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual
interest to the general
interest
7. Remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability and tenure
13. Initiative
14. Esprit de corps
Planning, Organizing, Commanding, Coordinating, Controlling
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The Behavioral Approach
The behavioral approach (ca 1910) to
management is a management approach that
emphasizes increasing organizational
success by focusing on human variables
within the organization.
Environment in ca1910
The Newtonian science that supported "the one best way" of doing
things was being strongly challenged by the "new physics" results of
Rutherford and Einstein
In the work place there were strong pressures for shorter hours and
employee stock ownership.
As the effects of the 1929 stock market crash and following depression
were felt, employee unions started to form
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Behavioral Perspective
The Hawthorne Studies
Human Relations Approach
Employee motivation
Abraham Maslow
Leadership style
Douglas McGregor
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Hawthorne Effect:
The discovery that paying special attention
to employees motivates them to put
greater effort into their jobs.
(from the Hawthorne management studies, performed
from 1924 1932 at Western Electric Companys plant
near Chicago)
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Physical Needs
Need for Security
Need for Social Relations
Need for Self Esteem
Self-Actualization
Maslows Hierarchy of
Needs
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McGregors Theory X and Theory Y
Leaders and managers who hold Theory X assumptions
believe that employees are inherently lazy and lack ambition.
A negative perspective on human behavior.
Leaders and managers who hold Theory Y assumptions
believe that most employees do not dislike work and want to
make useful contributions to the organization.
A positive perspective on human behavior.
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The Management Science Approach
The management science approach (ca1940)
is a management approach that emphasizes
the use of the scientific method and
quantitative techniques to increase
organizational success.
Environment in ca1940
Application of OR in solving complex problems in warfare
(WWII)
Significant technological and tactical breakthroughs
Interest in manufacturing and selling after WWII

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The System Approach
The system approach (ca 50s-60s) to
management is a management approach
based on general system theory--the theory
that to understand fully the operation of an
entity, the entity must be viewed as a system.
This requires understanding the
interdependence of its parts.
Environment in ca1950s to 60s
Growing quality consciousness
Total Quality Management

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The Contingency Approach
The contingency approach (ca 70s) to
Management is a management approach that
Emphasizes that what managers do in
practice depends on a given set of
circumstances--a situation.
Environment in ca1970s
Emergence of new companies Apple
Emergence of new products, IBM PC
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Triangular Management
Triangular management is a management
approach that emphasizes using information
from the classical, behavioral, and manage-
ment science schools of thought to manage
the open management system.
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Triangular
Management Model
BEHAVIORALLY BASED INFORMATION
GENERAL
ENVIRONMENT
OPERATING
ENVIRONMENT
SOCIAL
ECONOMIC
POLITICAL
LEGAL
TECHNOLOGY
NEW ENTRANTS
SUPPLIER
SUBSTITUTES
CUSTOMER
COMPETITION
PLANNING, ORGANIZING,
INFLUENCING, CONTROLLING
INPUT PROCESSOUTPUT
GENERAL
ENVIRONMENT
OPERATING
ENVIRONMENT
SOCIAL
ECONOMIC
POLITICAL
LEGAL
TECHNOLOGY
NEW ENTRANTS
SUPPLIER
SUBSTITUTES
CUSTOMER
COMPETITION
PLANNING, ORGANIZING,
INFLUENCING, CONTROLLING
INPUT PROCESSOUTPUT
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Chaordic Organization (Chaos Theory)
(Hock, Dee,1999)
Chaos theory (ca 90s) in management recognizes
that events indeed are rarely controlled. Blending
chaos with order

Environment in ca1990s
Start of Internet age
Highly competitive environment
Emergence of communications technologies
Emergence of new work practices (virtual teams, network
organizations)


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Chaordic Organizations
Purpose
Principles, People, and Concept
Structure and Practice
Clarity of purpose and
shared values
Operate through
network of equals, not
hierarchies
From Birth of the Chaordic Age by Hock, D. 1999
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The Learning Organization Approach
The learning organization approach to
management is the management approach based
on an organization anticipating change faster than
its counterparts to have an advantage in the
market over its competitors.

From The Fifth Discipline by Peter Senge, 1990
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Managerial Approach to Learning
Organization
Managers must create an environment conducive to learning
Managers encourage the exchange or information among
organization members
Managers promote
systematic problem solving
Experimentation
learning from experiences and past history
learning from experience of others
transferring knowledge rapidly throughout the organization
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Building a
Learning
Organization
System thinking
Personal mastery
Team Learning
Learning Organization Approach
Shared Vision
Challenging of
Mental models
(Systems Approach)
(Chaordic Organization)
(Classical/Management
science)
(Theory Z/Behavioral)
(Theory Z/Behavioral)
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THANK YOU..
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