(CL-4) Emergence of Management Thought

The emergence of management thought is a reflection of the evolution of ideas and practices
about how organizations can be structured, operated, and led effectively. Management as a
discipline has developed over time, influenced by changes in society, industry, and technology.
The progression of management thought can be broadly divided into Classical, Behavioral, and
Modern schools of thought.

1. Classical Management Thought

The Classical School of Management emerged during the late 19th and early 20th centuries as
industrialization increased the scale and complexity of organizations. Managers began seeking
ways to improve efficiency, productivity, and organizational structure. This school of thought
focuses primarily on formal structures and rational approaches to management.

Key management approaches are discussed below:

A. Scientific Management

Frederick Winslow Taylor is known as the father of Scientific Management. His approach
emphasized improving worker productivity by applying scientific methods to the analysis of
work. Taylor believed that management could be improved by studying tasks scientifically and
applying standardized methods. It emphasized the following key aspects:

• Systematic study of tasks

• Measurement and standardization of work

• Scientific selection and training of workers

• Clear division of responsibilities between workers and management

B. Administrative Management

Henri Fayol, a French industrialist, contributed to the development of Administrative

Management. Administrative Management focuses on the broader principles of managing an
organization rather than just improving efficiency at the operational level, as seen in Scientific
Management. This approach emphasizes the overall organization and its administrative
functions, with a focus on developing general principles that can be applied to any type of
organization to improve management effectiveness.

Fayol developed 14 principles of management. He also identified five management functions:

planning, organizing, commanding, coordinating, and controlling (which later became the P-O-
L-C framework: planning, organizing, leading, and controlling).
C. Bureaucratic Management

Max Weber, a German sociologist, developed the Bureaucratic Management model to address
inefficiencies and disorder in organizations. Weber's bureaucratic management model provides a
framework for organizing and managing complex organizations through clear rules, roles, and
authority structures.

Key Features of Bureaucratic Management includes: Division of Labor, Hierarchy of

Authority, Formal rules and procedures, Centralized decision-making.

2. Behavioral Management Thought

The Behavioral School of Management emerged in response to the perceived limitations of the
classical approach, particularly its neglect of human and social factors. This school emphasizes
the importance of understanding human behavior in organizations, including motivation, group
dynamics, and leadership. The behavioral approach is also called the Human Relations
Movement. Key management approaches are discussed below:

A. Hawthorne Studies

• Elton Mayo and his colleagues conducted the famous Hawthorne Studies in the 1920s
and 1930s at the Western Electric Company. These studies demonstrated that workers'
productivity increased when they felt valued and had positive social relationships at
work, even when physical working conditions remained unchanged.

• This finding led to the realization that social factors, group dynamics, and human
relations significantly affect organizational performance. The approach highlights that
workers are not just motivated by money but also by social needs and job satisfaction.

B. Human Relations Movement

The Human Relations Movement, which developed from the Hawthorne Studies, argued that
managers should focus on improving employee relationships, job satisfaction, and motivation
rather than just concentrating on task efficiency. Key contributors include Elton Mayo, Chester
Barnard, and Mary Parker Follett.

C. Maslow’s Hierarchy of Needs

• Abraham Maslow introduced the Hierarchy of Needs, which suggested that employees
are motivated by a range of needs, starting from basic physiological needs to higher-level
psychological needs like self-esteem and self-actualization.

• According to Maslow, when managers understand these needs and address them, they can
motivate workers to higher levels of performance and satisfaction.
D. McGregor’s Theory X and Theory Y

• Douglas McGregor introduced Theory X and Theory Y to explain contrasting managerial

views of workers.

• Theory X assumes that workers are inherently lazy and need strict supervision and
control.

• Theory Y assumes that workers are motivated, capable of self-direction, and enjoy their
work when given the right conditions.

• These contrasting views of human nature have significant implications for leadership
style and organizational culture.

E. Herzberg’s Two-Factor Theory

• Frederick Herzberg developed the Two-Factor Theory, which distinguishes between:

o Hygiene factors (e.g., salary, job security, working conditions), which prevent
dissatisfaction but do not necessarily motivate employees.

o Motivators (e.g., achievement, recognition, responsibility), which create job

satisfaction and drive employees to perform better.

• This theory emphasizes the importance of creating work environments that not only
eliminate dissatisfaction but also actively promote job satisfaction and engagement.

3. Modern Management Thought

The Modern School of Management builds on both classical and behavioral approaches,
integrating new perspectives such as systems thinking, contingency theory, and the impact of
globalization and technology. This school of thought acknowledges the complexity and
dynamism of modern organizations. Key approaches includes:

A. Systems Theory

• The Systems Approach views organizations as open systems that interact with their
environments. It views an organization as a cohesive system made up of interrelated parts
or subsystems.

• All parts of the organization are interconnected. Changes in one area affect others,
creating a need for coordination.

B. Contingency Theory
 • Contingency Theory suggests that there is no one-size-fits-all approach to management.
Instead, the most effective management practices depend on situational factors, such as
the external environment, organizational size, and technology.

• According to this theory, managers must analyze the specific context in which they
operate and adapt their strategies and structures accordingly.

Taylor’s Principles of Scientific Management

Taylor's scientific management is based on four fundamental principles which are discussed
below:

1. Develop a Science for Each Element of Work

Instead of relying on informal, intuitive, or traditional methods of performing tasks, Taylor

argued that every task should be studied scientifically to identify the most efficient way to
perform it. This involves breaking down each job into its components, analyzing the time and
effort needed for each part (time study), and then developing standardized procedures (work
standardization) for workers to follow.

Example: In a factory, instead of allowing workers to use their own methods to assemble
products, a time-and-motion study could be used to determine the fastest and most efficient way
to complete each step of the assembly process. This standardized method would then be
implemented across the entire workforce.

2. Scientifically Select, Train, and Develop Workers

Taylor emphasized that management should take responsibility for selecting workers who are
best suited for specific tasks, based on their skills and capabilities. Once selected, workers should
be scientifically trained to perform their tasks according to the established best practices. The
goal is to develop workers to their full potential by providing the right training and guidance.

Example: Instead of hiring workers arbitrarily or based on experience alone, managers would
use tests and observations to match workers to roles that align with their abilities. Workers would
then be trained in the most efficient methods identified in the first principle.

3. Cooperation between Management and Workers

There should be close collaboration and cooperation between management and workers. Taylor
emphasized that management must work side by side with workers to ensure that tasks are
performed according to the scientific methods developed. This cooperation eliminates conflicts
between management and labor, as both parties work toward the same goal of improved
efficiency.
Example: Management should not simply dictate work processes from a distance; instead, they
should actively engage with workers to provide guidance, feedback, and support in executing
tasks. Managers should also ensure that workers understand and are motivated to follow the new
standardized procedures.

4. Division of Work and Responsibility

Taylor believed that there should be a clear division between the responsibilities of management
and workers. Managers should take on the responsibility for planning, organizing, and
supervising work, while workers focus on executing tasks. This division allows each party to
focus on what they do best, with managers using their knowledge to plan, and workers using
their skills to perform.

Example: In a factory setting, managers would be responsible for determining production

schedules, designing workflows, and monitoring performance, while workers would concentrate
on carrying out the tasks assigned to them according to the established procedures.

Patterns of Management Analysis

Patterns of Management Analysis refer to the different perspectives and methods used to
understand, evaluate, and improve management practices within organizations. Two primary
approaches to management analysis are the Rational Approach and the Behavioral Approach.
These approaches offer different insights into how management functions can be optimized for
efficiency, effectiveness, and human well-being.

1. Rational Approach

The Rational Approach to management, also known as the Classical Approach, is grounded in
logic, structure, and efficiency. It emphasizes the use of reason and systematic procedures in
decision-making and organizational operations. This approach is characterized by formal
structures, clear hierarchies, and the application of quantitative techniques to improve
performance.

Key Characteristics:

• Focus on Efficiency: The rational approach prioritizes the efficient use of resources
(labor, capital, time) to achieve organizational goals. It emphasizes the scientific study of
tasks and processes to maximize productivity.

• Structure and Formality: Organizations are seen as systems with formal hierarchies,
defined roles, and clear responsibilities. The rational approach advocates for the division
of labor and centralized decision-making.
 • Objective Decision-Making: Decisions are based on data, analysis, and logic rather than
emotions or subjective judgment. Managers are expected to use objective criteria to make
informed choices.

• Standardization and Control: The rational approach relies on standardization of work

processes and control mechanisms to ensure consistency, predictability, and high-quality
output.

• Clear Rules and Procedures: A formal set of rules, guidelines, and operating procedures
governs the actions of managers and employees. This ensures order and minimizes
ambiguity.

Key Theories Associated with the Rational Approach:

• Scientific Management (Frederick Taylor)

• Administrative Management (Henri Fayol)

• Bureaucratic Management (Max Weber):

2. Behavioral Approach

The Behavioral Approach to management focuses on the human element within organizations,
emphasizing the psychological, social, and emotional factors that influence employee behavior.
This approach emerged as a reaction to the limitations of the rational approach, particularly its
neglect of workers’ well-being and motivation. The behavioral approach seeks to understand
how interpersonal dynamics, leadership styles, motivation, and organizational culture impact
performance.

Key Characteristics:

• Human-Centered Focus: The behavioral approach considers employees as individuals

with distinct needs, emotions, and motivations. It stresses the importance of
understanding and addressing these factors to enhance performance.

• Motivation and Engagement: Employee motivation, satisfaction, and morale are central
to this approach. Management practices are designed to engage workers and help them
feel valued, which in turn improves productivity.

• Leadership and Communication: Effective leadership and open communication are

critical to creating a positive organizational environment. The behavioral approach
highlights the importance of leadership styles that support and motivate employees.
 • Teamwork and Collaboration: This approach values the social nature of work,
promoting teamwork, collaboration, and positive group dynamics to achieve
organizational goals.

• Psychological Insights: Behavioral management draws from psychology to better

understand how individuals and groups behave within organizations. It uses this
knowledge to shape management strategies that promote both organizational success and
employee well-being.

Key Theories Associated with the Behavioral Approach:

• Hawthorne Studies (Elton Mayo)

• Maslow’s Hierarchy of Needs (Abraham Maslow)

• Theory X and Theory Y (Douglas McGregor)

Comparison: Rational Approach vs. Behavioral Approach

Aspect Rational Approach Behavioral Approach

Human motivation, psychology,

Focus Efficiency, productivity, formal structure
interpersonal relationships

Maximizing efficiency through formalized Enhancing employee satisfaction

Key Objective
processes and engagement

Decision- Subjective, considers human

Objective, data-driven, logical
Making emotions and motivation

Management Decentralized, participative

Centralized, top-down control
Style leadership

View of Employees as individuals with

Workers as resources to be optimized
Employees distinct needs

Scientific Management, Bureaucratic

Primary Human Relations Movement,
Management, Administrative
Theories Maslow’s Hierarchy, Theory X & Y
Management

Leadership Authoritarian, task-oriented Democratic, people-oriented

Aspect Rational Approach Behavioral Approach

Style

Employee motivation, job

Strengths Clear structure, predictability, control
satisfaction, creativity

Inflexibility, stifles innovation, ignores Less emphasis on short-term

Weaknesses
human aspects efficiency

Both the Rational and Behavioral approaches to management analysis offer valuable insights into
organizational success. While the rational approach provides a structured, efficient, and data-
driven framework for managing tasks and processes, the behavioral approach recognizes the
importance of human factors, such as motivation, teamwork, and leadership, in enhancing
productivity and creating a positive work environment. In modern management, a balanced
integration of both approaches is often necessary.