CHAPTER TWO
EMERGENCY AND
DEVELOPMENT OF
MANAGEMENT THOUGHT
Management is as old as human
civilization.
Since the day when people first
attempted to accomplish goals by
working together in a group
management was effectively utilized.
- Examples
i. In Construction of Egypt pyramid
ii. In the rise of Romans empire
(reorganization, levels of
management, delegation of authority)
iii. In the commercial success of 14 th
EARLY MANAGEMENT CONTRIBUTORS
Althoughthe management practice go back
several thousand years, development of
management as field of knowledge is
recent; it starts with the industrial
revolution (in the early 1800 s)
Pre classical Contributors
1. Robert Owen (1771-1858)
He was a British industrialist and owner-
manager of cotton mills in Scotland.
At that time working and living conditions
for employees were very poor.
Workers were treated as tools and
machine.
Changes that he made
i. Reduced working hrs from 13 to 10
hrs/day.
ii. Set minimum hiring age 10 years.
iii. Provided meal, housing, and shopping
facilities for employees.
iv. Improved working condition in the
factory
For his contribution Robert Owen called
2. Charles Babbage (1792-1871)
He built the first practical
mechanical calculator and a
prototype of modern computers
because of this he is called “The
father of modern computing”.
From the contributions of Babbage to
management
i. The use of mathematics to
efficiently use facilities and
materials.
ii. Economies of scale in manufacturing.
iii. Profit sharing system (bonus
for suggestion and part of wage that
depends on the company profit).
iv. Division of labor (improve the
skill of workers and reduce training
costs)
v. Importance of good
relationship between
3. Adam Smith
He contributed to the development of
management thought by writing
about division of labor in his book
“The wealth of nation”.
He indicated that specialization
could increase efficiency by
-Minimizing the loss of time
-Increasing speed
-helping invention of
machinery
EVOLUTION OF MANAGEMENT
There are three management
theories(thought)
1. The classical approach:- focus on
developing universal principles for
use in various management practice.
2. The neo-classical approach:- focus
on human need, work group and
the role of social factors in the work
place,
3. The modern approach:- focus on the
system view of organization,
contingency thinking in a dynamic
and complex environment &
THEORY
Classical management theory emerged
during the industrial revolution.
The classical viewpoint emphasize on
finding ways to manage work and
organizations more efficiently.
Itis made up of three different
approaches:
1. Scientific Management Theory -
Contributor is Frederick W. Taylor.
2. Process management or
Administrative Management theory-
Contributor is Henry Fayol
3. Bureaucratic Management Theory-
Contributor is Max Weber
1. SCIENTIFIC MANAGEMENT THEORY
This theory emphasize on the scientific
study of work methods in order to
improve worker efficiency.
The major contributor of scientific
management is Fredric W. Taylor
(father of scientific management)
Fredric W. Taylor wrote a book called
“principle of scientific management”. The
four principles included are
1. Replace the rule of thumb method by
scientific method (science, not rule
of thumb)
2. Heartily cooperate with the workers
(Harmony, not discord)
3. Scientifically select, train and
develop workers
4. Equal division of work and
responsibility between worker and
managers.
Weaknesses of scientific
management
1. It misread the human element
It equated people with machine.
It saw no other motivator other
than money
2. It was relevant to solve only the
problem of lower level managers (not
considered the whole organization)
3. Its application was not smooth
4. The human desire for job satisfaction
was overlooked.
2. PROCESS MANAGEMENT THEORY
(ADMINISTRATIVE MANAGEMENT THEORY)
This theory focused on the
management of the entire
organization unlike the scientific
management theory which focuses
on production.
Henri Fayol was the first to
develop this theory.
MANAGEMENT
1. Division of labor- specialization (make each
task simpler and results in greater efficiency.)
2. Authority and responsibility
Authority is the right of a superior to give orders to
subordinates
Responsibility is obligation with respect to the
performance and achieving goal.
3. Discipline:- respect rules and regulations of
an organization
4. Unity of command- employee should receive
order and be accountable to one and only one
superior.
5. Unity of direction- the effort of all members
of the organization should be directed towards
common goals. One plan of action to guide
the organization.
6. Subordination of individual interest to
the general interest- give priority for
organizational interest over the interest of
individual.
7. Centralization- amount of authority or
power concentrated at the top.
8. Remuneration of personnel:- the
payment system should be fair and
reasonable.
It should be decided based on achieved
result, cost of living, financial potion of
the organization.
9. Scalar chain/chain of command- There
should be a clear line of authority from top
to bottom level managers. It is the path of
10. Order- resources should exist in the right
place at the right time. All resources are put
where they have the most value.
11. Equity:- treat all employees fairly in justice
and respect.
12. Stability of tenure of personnel: long term
employment helped employees develop the skill
they need to make contribution to the
organization.
13. Initiative- encourage workers to act on their
own, to take initiative that benefits the
organization.
14. Esprit de corps- In union there is strength.
MANAGEMENT
The German sociologist Max Weber(1864-
1920) develop this theory.
Bureaucracy refers to:
Organization with legalized formal and
hierarchical structure.
A formal system of organization and
administration is important to ensure
effectiveness and efficiency.
2. Neo-classical management theory:-
Elton Mayo(1880-1949)
Human relation school
Recognized employees as individuals
with tangible human needs as parts of
work group and as members of a larger
society.
Focus on:- human dimensions of
organization.
Objective:- to identify factors that affect
productivity of employees.
Emphasized on:- satisfaction of the social
or psychological needs of employees’ is
the key to increased workers
productivity.
HAWTHORNE STUDY
The study was aimed at determining the effect of
illumination on productivity.
But it failed to establish a consistent
relationship between illumination and
productivity.
Elton Mayo began his experiment to find out
real factors other than working condition that
influence output.
It is the Study of workers efficiency at the
hawthorn works of the western electric company
during 1924-32.
Workers productivity was measured at various
level of light illumination.
Researchers found that regardless of whether
the light level were raised or lowered
productivity rose.
Actually, it appears that the workers enjoyed
the attention they received as part of the
study and were more productive.
If employees have opportunity to interact
with each other then high moral and
productivity will result.
It emerged from these researches that
productivity, motivation to work and morale
are related to the social organization of
work and psychological factors and not the
physical factors.
Mayo concluded that;
i. Individual behavior and feelings are
closely related
ii. Group influences significantly affected
individual behavior.
iii. Group standards established individual
output.
iv. Money was less a factor in determining
output.
v. Group standards, group feelings and
security provided by groups were
responsible for higher productivity.
Behavioral science approach
Behavioral scientists began
studying people at work. Their
approach was distinct from the
Human relation approach
They applied the scientific approach
to the study of human behavior.
They concentrated on the nature of the
work itself and the degree to which
it can fulfill the human need to use
skills and abilities.
3. MODERN THEORY OF MANAGEMENT
The modern approaches to
management considers the
external environment.
3.1. System Approach
A system is an organized, unitary
whole composed of two or more
interrelated and interdependent
parts, components, set of
elements or sub systems
functioning as a whole to achieve
a common goal.
Change in one department affect
Organizational system has four major
components
1. Input- resources that help to
produce goods or service.
2. Transformation process- ability to
convert input to output
3. Output- the product or the service.
4. Feedback-information about
results and organizational status.
TYPES OF SYSTEM
There are two types of systems
1. Open system- there is continual
interaction with the environment.
From the characteristics of open system
- Synergy- “the whole is greater than
the sum of it’s parts”.
- Steady state- balanced input and
output (dynamic equilibrium or
adapting to the environment
regularly)
2. Closed system- few or no
interaction with the environment.
3.2. Contingency/Situational theory
This theory depend on the variables
of the situations.
This theory states that, there is no
single plan, universal principle,
organizational structure,
leadership style that will fit all
situations.
Assumes there is no one best way
to manage
- The environment impact the
organization and mangers must be
flexible to react to environmental
3.3.Quantitative/management science
approach
It uses mathematical and statistical
techniques, mathematical
programming, modeling, and computer
science to solve complex operational
and strategic issues and to make
optimal decision.
This will lend exactness to
4. The decision theory/approach
Look up on the management process as a
decision making process.
According to this theory, the entire field of
management can be studied from the
study of the decision making process.
THE END
