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❖ Management has been practiced by early civilizations in Egypt , China

and Mesopotamia.

❖ The industrial revolution brought new issues: big factories, specialized

work, etc. As there was no established science of management,
managers were struggling to find answers to the complex problems they
were confronted to.

❖ Since the late 1800’s, engineers started to develop methods and

theories to have more efficient ways of manufacturing goods, to
maximize productivity, to bring down costs, and increase profitability.
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❖ The formal study of management began early in the 20th

century. The first studies of management, often called
the classical approach, emphasized rationality and
making organizations and workers as efficient as
possible.

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❖ A branch of management theory that was introduced during the

Industrial Revolution when new problems related to the factory
system began to appear.
❖ Managers were unsure of how to improve productivity within
factories.
❖ While less common in today’s society, this type of management may
still provide benefits for some organizations.
❖ Three subfields:
1. Scientific management
2. Bureaucratic organizations
3. Administrative principles

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Fredrick Taylor (1856–1915) is the ‘Father of Scientific Management’.

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❖ Science Not the rule of thumb to improve labor efficiency .

❖ Time and motion study (broking work into simple movements and
analyzing them to determine how to perform them in a minimum of
time).

❖ Work must be conducted in a specific and standardized sequence

(‘the one best way’ to do the job).

❖ Instead of doing the whole work by one worker, each one or two
movements are performed by a different worker (division of labor).
By repeating the same tasks the worker become a master of that
specific task.
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❖ For Taylor, the most productive workers should be paid more (piece-
rate pay system).

❖ Taylor’s ideas have radically shaped methods of mass production

❖ Ford was the first company to apply scientific management principles

in the auto industry. Ford had managed to bring the average time of car
production from 12 hours to 93 minutes.

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❖ Taylorism resulted in a better utilization of resources and huge increase in

productivity and profit for organizations. But, these benefits were short
term, as workers were psychologically demotivated and stressed. It also
resulted in :
❖ Treating people like robots and deskilling them: workers were trained
to execute the easiest and quickest method of work.
❖ Limiting worker scope for promotion as there are fewer opportunities
to demonstrate higher capabilities
❖ Taylorism continue to be relevant and effective in certain high-volume
production like the auto industry, the computer manufacturing plants, the
fast -food industry, etc.
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Max Weber (1864-1920) a German sociologist

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❖ Max Weber disliked that many organizations were managed on

a “personal” family‐like basis. He believed that organizations
should be managed impersonally and that the behavior of
employees should be regulated through a set of clear rules. This
non-personal, objective form of organization was called
a bureaucracy.

❖ For Max Weber, Bureaucracy ensure better efficiency and

consistent execution of work than traditional personal or familial
structures.

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❖ A well‐defined hierarchy. Reporting relationships are carefully

defined. This clear chain of command facilitates control and
order.
❖ Specialization of labor. Tasks are well-defined so that workers
know what is expected of them and become very competent at
their particular tasks.
❖ Rules and regulations. Standard written procedures govern all
organizational activities.
❖ Impersonal relationships. Rules, procedures, and sanctions
are applied equally regardless of personal considerations so that
favoritism do not influence decisions.
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Although bureaucracy made positive contributions to management

thought, it also has many limitations:

❖ Slowness in handling problems, rigidity and weak communication due

to the many hierarchical layers.

❖ Hierarchies form barriers between employees and restricts their ability

to come up with innovative ideas.

❖ As they have no opportunity to express their opinion or influence

decision making, employees may be demotivated and may get
annoyed.

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Henri Fayol (1841-1925), a French engineer

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❖ While taylorism focuses on workers and bureaucracy on the whole

organization, the administrative approach focuses on how managers

coordinate the activities of diverse groups and units across the

organization. Fayol developed 14 universal principles that provide

managers with general guidelines on how to organize their department

and manage their staff. Many still used today. He also divided a

manager’s job into 4 functions planning, organizing, directing and

controlling.

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❖ Classical school was not useful in dealing with many situations

and failed to explain employees behavior and motivations.

❖ The behavioral school suggests that we can improve

productivity and satisfaction through a better understanding of
human behavior at work, such as motivation, expectations,
conflict and group dynamics.

❖ It perceives employees as resources to be developed and

worked with — not as machines, as in the past.

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➢ Behavioral school include:

1. Hawthorne studies (Elton Mayo)

2. Maslow’s theory of human needs

3. McGregor’s Theory X and Theory Y

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❖ Elton Mayo's contributions came as part of the Hawthorne studies, a

series of experiments that applied classical management approach
only to reveal its shortcomings.

❖ Mayo tested the impact of working conditions (length of rest pause,

length of working days, etc.) on productivity. No consistent relationship
found.

❖ Instead, workers reacted more to the psychological and social

conditions at work such as individual recognition, and participation in
decision making.

❖ Employees performed better when managers treated them positively.

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➢ For Maslow, human behavior is purposeful and is motivated by the

satisfaction of needs. A need is a physiological or psychological
deficiency a person feels.

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2. Maslow’s Theory of Human Needs

➢ Needs have a hierarchical structure of importance. A need is not an
effective motivator unless those lower in the hierarchy are satisfied. A
satisfied need is not a motivator.

❖ Maslow’s ideas suggest that employee motivation is more complex

than was assumed by the scientific management approach, which
focused strictly on pay.

❖ Maslow assumed that pay can motivate only lower-level needs, and
once those are satisfied it loses its power to shape employee behavior.
Instead, nonmonetary factors such as praise, recognition, and job
characteristics motivate human behavior.

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The style of management is a function of the manager’s assumptions about

human nature and behavior.

➢ Theory X assumes that ➢ Theory Y assumes that

workers: workers :
❖ Willing to work
❖ Dislike work
❖ Capable of self control
❖ Lack ambition
❖ Willing to accept
❖ Are irresponsible responsibility
❖ Resist change ❖ Imaginative and creative

❖ Prefer to be led ❖ Capable of self-direction

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❖ Modern management theories include:

✓ Systems theory

✓ Contingency theory

✓ Learning organization approach

❖ Each of these contemporary viewpoints builds

on the work of earlier management thinkers.
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❖ The previous approaches studied management by dividing it into

elements such as tasks, motions, functions, needs and attitudes.

All these elements were studied separately, while in reality they

interact with each other. System theorists warned against this

“reductionism” as it may lead to simplistic prescriptions.

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❖ The organization is seen as behaving like a living system. In the

same way that biological mechanisms adapt to changes in their
environment, so organizations, as open systems, adapt to the
changing external environment.

❖ It focuses on the relations between the parts and how they work
together as a whole. The parts of the system (subsystems) are
highly interdependent so that a minor event in one part may
amplify into serious unplanned consequences elsewhere in the
organization.

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❖ While the previous approaches assume that management

principles are universally applicable, the contingency approach
suggest that:
✓ There is no “one best way” to manage.
✓ Organizations are different, face different situations, and require
different ways of managing.
✓ The style used to manage and solve organizational problems
should depend on the circumstances.
✓ A manager should identify the contingency, then select the
management practice that best fits the situation.
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❖ The degree of environmental change is an example of contingency.

When the environment is turbulent, managers are likely to select a
decentralized structure where authority is pushed to lower levels so
that decisions can be made rapidly. When the environment is stable
and predictable, managers select a centralized structure in which
decisions are made on a top-down basis to have more efficient control
over resources. Other contingencies include organization culture,
industry structure, products and process or manufacturing

technologies.

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❖ Organizations that can “learn” faster have an advantage over competitors

in the marketplace. Organizations need to anticipate change so they can
satisfy their customers’ future needs.

❖ A learning organization tries to institutionalize continuous learning. This

means that knowledge is shared rather than controlled by a small group of
people.

❖ Organizational structures should facilitate the quick sharing of information.

Flat structures with few management layers and crossfunctional teams
that bring together people from different disciplines help to break down
barriers that keep people from sharing information and learning from each
other.
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❖ Although each management school has limitations, each one

also offers valuable insights that can broaden a manager's
options in solving problems and achieving organizational
goals.

❖ Modern management approaches recognize that people are

complex and variable. Employee needs change over time;
people possess a range of talents and capabilities that can be
developed. Managers, therefore, should respond to individuals
with a wide variety of managerial strategies.

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