History of Management

Thoughts
 The Classical Theory
The Classical Theory
The oldest and widely accepted
viewpoint . This theory emphasizes
that there is “one best way” to
manage by following definite
instruction.
 Bureaucratic Management
( Max Weber 1864-1920)
“ the exercise of control on the
basis of knowledge”
 Bureaucratic management focuses on
the use of rules, dividing organizations
into hierarchies an evident division of
labor and thorough procedures to
guarantee efficiency and effectiveness.
-Advantages.
1. Rules serve as a norm for guiding or
directing actions or conduct of
employees in the workplace and
provide the discipline which the org.
requires to attain its goals and
objectives.
2. Impersonality provides equity and
fairness for all employees by not
consenting to subjective personal or
emotional reflections during
evaluation procedure.
3. Division of labor is the clear
splitting and defining of work based
specializations and personal
experiences
4. Hierarchical structure categorized
jobs based on the authority.
Authority or the right to decide
increases at each level to the top of
hierarchy.
5. Authority structure refers to “who
has the right to decide”
3 Levels of authority
- Traditional authority is founded
on custom, ancestry, gender, birth
order and the like.
- Charismatic authority is visible in
a leader whose mission and vision in
life encourage others.
- Rational-legal authority is based
on the uniform application of
established laws and rules.
6. Commitment to lifelong job is the
visualization of employee and the
organization as being loyal to each
other over the span of the working
life of the employee.
7. Rationality is attaining the
organizational goals the most
efficient way
Scientific Management
( Frederick Taylor 1856-1915 )
“ scientific management means
knowing exactly what you want men to
do and seeing that they do it in the best
and cheapest way” It is based on the
following four principles:
1. Develop a science for each element of
work by studying , analyzing and
determining the “ one best way” to do
work.
2. Scientifically select, train, teach and
develop workers to assist them
achieve their full potential.
3. Cooperate with employees to
guarantee execution of the scientific
principles.
4. Divide the work and the
responsibility evenly among
management and workers
Specialization as the only source of
authority is one of the highlight of
scientific management. No single
foreman could be an expert in all of the
assignments supervised. Each foreman
has a specific task of specialization
which made him the authority in that
field. He also believed that money was
the motivating factor for employees to
work to their capacity.
Administrative Management
( Henry Fayol 1841-1925 )
The manager and his basic
functions is the heart of
administrative management. He
strongly believed that
management could and should
be taught to others.
 Fourteen Principles - Fayol
1. Division of work indicates dividing
each job into small and specialized
tasks and assigning responsibilities to a
specialist of it.
2. Authority signifies the right to give
order and power while responsibilities
to a specialist of it.
3. Discipline is making expectations
understandable at every level in every
organization. Discipline could be in
terms of obedience, applications and
respect to superiors.
4. Unity of command means a
subordinate should receive order from
only one boss or superior.
5. Unity of direction connotes that all the
works of an organization must perform
jointly to achieve a common objective
under one plan and head.
6. Subordination of individual
interest to common interest means
workers prioritizes the common
interest of organization rather than
himself as an individual.
7. Remuneration both financial and
no- financial incentives should be
fair and adequate.
8. Centralization designates that there
should be one central point in
organization which exercises general
direction and control of all the parts.
9. Scalar chain is the chain or line of
command and communication from
superior to subordinate s.
10. Order provides jobs and materials in
place or in proper order for an efficient
management and organization’s
direction.
11. Equity creates loyalty and devotion
among the employees through fair
discipline and order.
12. Stability of tenure personnel
provides security of job for an
employee in an organization which
is very significant and a requirement
condition. Retaining industrious
employee must constantly be a
higher priority of management.
13. Esprit de corps means
management must promote a
harmony of interest and appropriate
understanding among workers by
working as a team.
14. Initiative suggest that a manager
must encourage employees under
him to act on their own in support
of the organizational objective
using creative means.
Neo-Classical Theory
( referred to as behavioral science
approach)
-it gives importance to human and
social aspects of the worker and his
relation in the organization.
• Robert Owen – increased
profitability for the firm and reduced
hardship for workers ar e the positive
result of showing concern for workers.