MPOB

Evolution of
Management
Recapitulation:
Managerial functions of Management :

Planning :Planning is the process used by managers to identify and select

appropriate goals and courses of action for an organization

Organizing: The managers create the structure of working relationships between

organizational members that best allows them to work together and achieve goals

Staffing :Staffing is the process of filling positions/post in the organization with

adequate and qualifies personnel

Directing :Directing is a complex function that includes all those activities which
are designed to encourage subordinates to work effectively and efficiently in both
the short and long term.

Controlling :managers evaluate how well the organization is achieving its goals
and take corrective action to improve performance
.
 Learning Outcomes
S.No LEARNING OUTCOMES PO KL CO
1. To understand the Evolution of management PO1 K4 CO1
thought

2. Approaches of Management such as Classical – PO1 K4 CO1

Taylor, Fayol , Neo Classical and Human
Resource Approaches
Content
• The Evolution of management
• Approaches of Management :
• Classical – Taylor, Fayol , Neo Classical
• Human Resource Approaches
.
 Evolution of Management

The history of modern management can be traced to the industrial revolution in England and
other European countries during the 18th and 19th centuries. The inventions during the industrial
revolution, rise of factory system, growth of trade unionism, expansion of industrial trade, rise
of consumerism etc. have led to the development of different schools of management thought.
The divergent directions of management thoughts have caused, Harold Koontz to call the
resulting array “ management theory jungle “
Reference videos
https://www.youtube.com/watch?v=EobeHwOw3S4
https://www.youtube.com/watch?v=kNrvxh8R1KU -video
 78%
of companies now advertise solely on social media.
 Classical Approach
It is one of the oldest Approaches to management and is also known by the names such as,
Functional, Management process and Administrative Management approach. It Concentrates on
organization structure and their management. All writers of classical theory placed emphasis on work
planning, the technical requirements, principles of management, formal structure and the assumptions
of rational and logical behavior.

Scientific Administrative
Management or Functional
( F.W. Taylor ) Management
( Henry Fayol )
Max Weber introduced F. W. Taylor insisted on Henry Fayol suggested
rational structure application of scientific 14 principles of
called bureaucracy methods to problems of management and their
which is by division of labor, management. universal application.
Specialization, rationality,
personnel competency, etc.
 Contributions to Classical Approach

• It concentrates on the study of formal organizations which emphasis on division of labor,

specialization, structure, scalar chain, functional processes and span of control.
• Management is the study of managerial experiences.
• Writers emphasized organization structure for coordination of various activities. They ignored the
role of Human element.
• The relationship between workers and manager is formal, defined tasks and accountability and
formalized procedures and practices to minimize conflict between them.
• The worker is essentially an economic man who can be motivated basically by economic reward.
• The efficiency of the organization can be increased by making each individual efficient.
• It is based on centralization of authority.
• There is no conflict between the individuals and the organization. In case of any conflict, the
interests of the organization should prevail.
Scientific Management
F. W. Taylor recognized for the first time the need of a scientific approach to the task of managing an
enterprise. He is called the father of the Scientific Management.
• On the basis of his observations and experiments, Taylor suggested that the management should
follow a scientific approach in their work and apply scientific method in tackling all problems
relating to efficiency. It comprises observation, measurement, experimentation and inference. He
emphasized on condensing the knowledge and experience by classifying, tabulating and reducing
the knowledge to rules, laws and formulae.
• Using scientific methods to define the “one best way” for a job to be done:
• Putting the right person on the job with the correct tools and equipment.
• Having a standardized method of doing the job.
• Providing an economic incentive to the worker.
.
Four Principles of F W Taylor
.
.
 Techniques of Scientific Management

• Functional Foremanship
• Standardization and Simplification
• Method Study
• Motion Study
• Time Study
• Fatigue Study

https://www.youtube.com/watch?v=kNrvxh8R1KU&t=5s
Administrative Management

.
Administrative Management

.
 2. Neo- Classical / Human relations Approach

Elton Mayo is generally recognized as the father of Human Relations school. It was he who led the team conducting the
study at Western Electric’s Hawthorne Plant (1927-1932) to evaluate the attitudes and psychological reactions of
workers in on – the - job situations.
This approach gave birth to Human Relations movement.
Elton Mayo and his associates came to the following conclusions.
(1)An organization is not only a techno-economic system but also a psycho-social system.
(2)Workers forms small informal groups.
(3)Workers act or react not as individuals but as a member of group.
(4)Physical conditions influence worker’s morale and productivity
(5)Informal leaders play an important role in setting and enforcing group norms.
(6)Workers not only reacts to economic reward, they also respond for work design, recognition, participation, etc.
.
The human relations approach was born out of the classical
approach and during the last seven decades, a lot of literature
on human relations has been developed.

The essence of the contributions is contained in two points:

Organizational situation should be viewed in social terms
as well as in economic and technical terms.
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The Hawthorne plant of General Electric Company, Chicago, was manufacturing
telephone system bell.
It employed about 30,000 employees at the time of experiments.

In respect of material benefits to workers, this was the most progressive

company with pension and sickness benefits and other recreational facilities,
there was great deal of dissatisfaction among the workers and productivity was
not up to the mark.

After the utter failure of an investigation conducted by efficiency experts, in

1924, the company asked for the assistance form the national academy of
sciences to investigate the problems of low productivity.
A team was constituted led by Elton Mayo (psychologist), Whitehead and Roethlisberger(sociologists
and company representative, William Dickson. The researchers set out to study the relationship
between productivity and physical working conditions.

The four phases:

 Experiments to determine the effects of changes in illumination on productivity, illumination
experiments (1924-27)

 Experiments to determine the effects of changes in hours and other working conditions on
productivity, relay assembly test room experiments(1927-28)

Conducting plant-wide interviews to determine worker attitudes and sentiments, mass interviewing
programme(1928-30)

 Determination and analysis of social organization at work, bank wiring observation room
experiments(1931-32)
.
 Illumination Experiment

This was undertaken to find out how varying levels of illumination(amount of light at the
workplace, a physical factor) affected the productivity.

The hypothesis was that with higher illumination, productivity would increase.
 Relay Assembly Room Test Room Experiments:

The experiment were designed to determine the effect of changes in various

job conditions on group productivity as the illumination experiment could
not establish relationship between intensity of illumination and production.

For this purpose, the researchers set up a relay assembly test room.
 The major outcomes:
 The incentive system was increased.

The rest period was increased to five minutes but the frequency increased. The
productivity slightly decreased and the girls complained that frequent rest intervals
affected the rhythm of the work.

The number of rest was reduced to two of ten minutes each, but in the morning, coffee
or soup was served along with sandwich and in the evening, snack was provided. The
productivity increased.

 Changes in working hours and workday were introduced such as cutting an hour off the
end of the day and eliminating Saturday work. The girls were allowed leave at 4:30pm
instead of the usual 5:00pm and later at 4:00pm. The productivity increased. Absenteeism
decreased, morale increased and less supervision was required.
 Mass Interviewing Programme:

During the course of experiments, about 20,000 interviews were conducted between 1928
and 1930 to determine employees’ attitudes towards company, supervision, insurance
plans, promotions, and wages.
 Major Findings:
A complain is not necessarily an objective recital of facts; it is a symptom of personal
disturbance the cause of which may be deep seated.

 The position or status of a worker in the company is reference from which the work
assigns meaning and value to the events, objects, and features of his environment such as
hours of work, wages, etc.

 The social organization of the company represents a system of values from which the
worker derives satisfaction or dissatisfaction according to the perception of his social
status and expected social rewards.

 The social demands of the worker are influenced by social experience in groups both
inside and outside the work plant.
 Bank Wiring Observation Room Experiments:

There experiments were carried on between November 1931 and may 1932 with a view to
analyze the functioning of small group and its impact on individual behavior
The reasons for this output:

 Fear of unemployment:
Fear of raising the standards
Protection of slower workers
Satisfaction on the part of management

The study suggested that informal relationships are an important factor in determining the
human behavior. During the course of experiments, workers were counseled for good
human relations in the company's plant. The counseling was in regard to supervision ,
employee relations, personal adjustments and management of employee relations.
 Implications of the Hawthorne Experiments

 Social factors in output

Group Influence

Conflicts

Leadership

 Supervision

 Communication
The reasons for this output:

 Fear of unemployment:
Fear of raising the standards
Protection of slower workers
Satisfaction on the part of management

The study suggested that informal relationships are an important factor in determining the
human behavior. During the course of experiments, workers were counseled for good
human relations in the company's plant. The counseling was in regard to supervision ,
employee relations, personal adjustments and management of employee relations.
 Conclusion
• All writers of classical theory placed emphasis on work planning, the technical
requirements, principles of management, formal structure and the assumptions of
rational and logical behavior.
 Sources

Chhabra T. N., Management Process and

Organizational Behaviour
Stoner, Freeman & Gilbert, Management.
Thank You