Management

Stephen P. Robbins

Management History
How management has evolved and continues
to adapt to new challenges…..

2–1
Overview of Management
Theories, Practices, and
History
Management Thought
&
Approaches to
Management
 Management Thought
• The practice of management is as old as human
civilization. The ancient civilizations of Egypt
(the great pyramids), Greece (leadership and
war tactics of Alexander the great), and Rome
displayed marvelous results of good
management practices
• The origin of management as a discipline was
developed in the late 19th century. Over time,
management thinkers have sought ways to
organize and classify the voluminous information
about management that has been collected and
disseminated.
 Management Thought

• These attempts at classification have resulted in

the identification of management approaches.
The approaches of management are theoretical
frameworks for the study of management.
• Each of the approaches of management are
based on somewhat different assumptions about
human beings and the organizations for which
they work.
Exhibit 2–1 Major Approaches to Management

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 Evolution of Management Thought
Historical Context

•Industrial Revolution: (1700-1800’s) :

•Reasons for Industrial Revolution ?

•Labors /workers moved from Farms- to- Factories

•Small shops to Large companies

•How Growth has emerged ?

•Power (Hydro power, electricity)

•Machinery Innovations (Production capacity) i.e. cotton
plant
•Transportation Facilities
2–8
 Emerging Issues & Problems
o Large groups of labor employees
o People working with machinery
o Increasing pace of Industries
o Effective solutions for company

• The shift from agrarian economies to industrial ones in

the 18th and 19th centuries led to the emergence of
large factories. This gave rise to the need for systematic
management practices to control production processes
and ensure efficiency.

• To solve all the above problems came the three

scientists with their approaches which are known as
Classical Theories

1. Taylor – Scientific Management 2–9

2. Fayol – Administrative Management

 Classical Approaches (1911-1947)

•Scientific Management (Late 19th and Early 20th

Centuries): Pioneered by Fredrick Winslow Taylor, this
approach focuses on applying science to work , saw
customized , self styled work as a serious problem,
optimizing work processes, time & motion studies, and
efficiency. Taylor's principles emphasized standardization,
labor division, and the importance of training workers.
•Administrative Management (1940): Developed by
Fayol this theory focused on the broader aspects of
Henri Fayol,
organizational management. Fayol proposed five key
functions of management (planning, organizing,
commanding, coordinating, and controlling) and 14
principles, such as unity of command and division of work.
•Bureaucratic Management (1920): Max Weber
introduced the concept of bureaucracy, advocating for an
organization structured by clearly defined hierarchies, rules,
2–10
Scientific Management Theory
 Definition

According to Fredrick Taylor management is

“knowing exactly what you want your men to
do, and then see to it that they do it in the
best and cheapest way”
 Points for Efficiency in Firm
1. Define work specifically & develop best
methods.
2. Select the right man for the right job.
3. To give the best training to selected workers.
4. To fix standards of work.
5. To provide incentives for those who surpass
standards.
 Scientific Principles of Management
(As Given by Taylor)
• Replacement of Old Rule of Thumb Method
• Scientific Selection and Training of Workers
• Maximum Output
• Equal Division of Responsibility
• Mental Revolution
• Harmony, not Discord
• Development of Every Person to Greatest
Efficiency and Prosperity
• Subordination of Individual Interests to General
Interest.
 The Classical School
The scientific Management
• Henry Gantt, an associate of Taylor developed
the Gantt chart, a bar graph that measures
planned and completed work along each stage
of production.
• Based on time instead of quantity, volume, or
weight, this visual display chart has been a
widely used planning and control tool since its
development in 1910.
 General Administrative Theory
• Henri Fayol
 Father of Modern Management, 1916
 Book entitled “Industrial and general
Management” gave 14 principles of
Management
 Believed that the practice of
management was distinct from other
organizational functions
 Developed principles of
management that applied to all
organizational situations

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 The classical School
Bureaucratic Management
(Weber’s Bureaucracy Theory)

• Bureaucracy : (Domination)

• Can be defined as, “ A system for controlling

or managing a country or organization, that is
operated by a large number of officials
employed to follow rules”
• i.e. IPS, IAS officers
 The classical School
(Weber’s Bureaucracy Theory)

• Max Weber
• In the late 1800s, Max Weber disliked that many
European organizations were managed on under
Traditional authority of particularism , in todays time
we call it as favoritism towards gender/individual
• He believed that organizations should be managed
impersonally and that a formal organizational
structure, where specific rules were followed, was
important.
 The classical School
Bureaucratic Management
(Weber’s Bureaucracy Theory)
• Max Weber
German Sociologist of 1864
Before Weber , organizations were based on
particularism or favoritism (traditional authority)
For the better growth and development of the
organizations Weber saw strong need to remove this
traditional authority he introduced the Bureaucratic
Theory.
Saw three dominant powers exists in the organizations :
• Domination Charismatic (Exceptional performance)
• Traditional Domination (Belong to a particular Class)
• Rational Domination (By rule & law)
 The classical School
(Weber’s Bureaucracy Theory)
• Max Weber contributed:
A well‐defined hierarchy with defined chain of
command & authorities
Rational & legal rules of decision making
Division of labor and specialization
Rules and Regulations
Coordination between managers and
employees
Competence
Records
Exhibit 2–4 Weber’s Bureaucracy

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2–25
Understanding Organizational
Behavior
• Organizational Behavior (OB)
 The study of the actions of people at work; people are
the most important asset of an organization
• Early OB Advocates
 Robert Owen
 Hugo Munsterberg
 Mary Parker Follett
 Chester Barnard

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Exhibit 2–6 Early Advocates of OB

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 Behavioural Approach (1700- 1950)

•Human Relations Movement (1920s-1930s):

Triggered by the famous Hawthorne Studies
conducted by Elton Mayo, this movement shifted
focus to the social aspects of work, recognizing that
employee satisfaction and interpersonal relationships
affect productivity.

•Theories of Motivation and Leadership:

•Abraham Maslow’s hierarchy of needs and Douglas
McGregor’s Theory X and Theory Y introduced key
ideas about employee motivation, suggesting that
management styles need to reflect the underlying
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assumptions about human behavior.
 Hawthorne Experiments
• The Human Relations Movement began with the
Hawthorne Experiments.
• They were conducted at Western Electrical Works in
USA, b/w 1924-1932.
• It was initially designed by Western Electric
Industrial engineers
Four Parts of Hawthorne Studies /
Experiments
• Part I - Illumination Experiments (1924-27)
• Part II - Relay Assembly Test Room Study
(1927-1929)
• Part III - Mass Interviewing Programme (1928-
1930)
• Part IV - Bank Wiring Observation Room
Experiment (1932)
 Part I - Illumination Experiments
(1924-27)
• These experiments were performed to find out
the effect of different levels of illumination
(lighting) on productivity of labour.
• The brightness of the light was increased and
decreased to find out the effect on the
productivity of the test group. Surprisingly, the
productivity increased even when the level of
illumination was decreased.
• It concluded the fact that people will modify
their behavior simply because they are being
observed.
Part II - Relay Assembly Test Room
Study (1927-1929)
• Under these test two small groups of six female
telephone relay assemblers were selected. Each
group was kept in separate rooms. From time to
time, changes were made in working hours, rest
periods, lunch breaks, etc.
• They were allowed to choose their own rest periods
and to give suggestions. Output increased in both
the control rooms.
• Researchers hypothesized that choosing one's own
coworkers, working as a group, being treated as
special (as evidenced by working in a separate
room), and having a sympathetic supervisor were
the real reasons for the productivity increase.
 Part III - Mass Interviewing
Programme (1928-1930)
• 21,000 employees were interviewed over a
period of three years to find out reasons for
increased productivity.

• It was concluded that productivity can be

increased if workers are allowed to talk freely
about matters that are important to them.
The Hawthorne Studies
•A series of productivity experiments conducted
at Western Electric from 1924 to 1932
•https://youtu.be/fei2WVqEykM?si=uqijRyYWtdmN-LJu

•Experimental findings
Productivity unexpectedly increased under imposed
adverse working conditions.
The effect of incentive plans was less than
expected.
Research conclusion
Social norms, group standards and attitudes more
strongly influence individual output and work behavior
than do monetary incentives.
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2–35
 Quantitative Approach (1940- 1950)

•Operations Research and

Management Science (WWII Era):
This approach emerged during and
after World War II and applied
mathematical models, statistics, and
simulations to solve complex
management problems, especially in
logistics and decision-making.

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 Quantitative Approach to
Management
• Quantitative Approach
 Also called operations research or management
science
 Evolved from mathematical and statistical methods
developed to solve WWII military logistics and quality
control problems
 Focuses on improving managerial decision-making by
applying:
 Statistics, optimization models, information models,
and computer simulations

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Exhibit 2–5 What Is Quality Management?
Intense focus on the customer
Concern for continual improvement
Process-focused
Improvement in the quality of everything
Accurate measurement
Empowerment of employees

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 Contemporary Approaches
(1960 – till date)

•Systems Theory (1960s-1970s): This

approach views organizations as open systems
interacting with their environments. It
emphasizes the interrelationship between
different organizational components and
external factors.

•Contingency Approach: This suggests there

is no one-size-fits-all approach to management.
Instead, the best management practices
depend on situational variables such as the2–39
Exhibit 2–7 The Organization as an Open
System

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 Contemporary approaches
( Systems Approach)
• System Defined
 A set of interrelated and interdependent parts
arranged in a manner that produces a unified whole.
• Basic Types of Systems
 Closed systems
 Are not influenced by and do not interact with their
environment (all system input and output is internal).
 Open systems
 Dynamically interact to their environments by taking in
inputs and transforming them into outputs that are
distributed into their environments.
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 Implications of the Systems
Approach
• Coordination of the organization’s parts is
essential for proper functioning of the entire
organization.
• Decisions and actions taken in one area of the
organization will have an effect in other areas of
the organization.
• Organizations are not self-contained and,
therefore, must adapt to changes in their
external environment.
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 The Contingency Approach
• Contingency Approach Defined (“if,then”)
 Also sometimes called the situational approach.
 There is no one universally applicable set of
management principles (rules) by which to manage
organizations.
 Organizations are individually different, face different
situations (contingency variables), and require
different ways of managing.

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Exhibit 2–8 Popular Contingency Variables

• Organization size
• As size increases, so do the problems of coordination.
• Routineness of task technology
• Routine technologies require organizational structures,
leadership styles, and control systems that differ from
those required by customized or non-routine
technologies.
• Environmental uncertainty
• What works best in a stable and predictable environment
may be totally inappropriate in a rapidly changing and
unpredictable environment.
• Individual differences
• Individuals differ in terms of their desire for growth,
autonomy, tolerance of ambiguity, and expectations.
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 Modern Management

•Globalization and Diversity:

•Modern management deals with global
challenges, workforce diversity, and
technological advancements, requiring leaders
to adopt flexible strategies and cultural
sensitivity.

•Innovation and Ethics:

•In the 21st century, emphasis has been placed
on ethical management, sustainability, and
corporate social responsibility, alongside
innovation-driven practices that help 2–45
 Terms to Know
• division of labor (or job • quantitative approach
specialization) • organizational behavior
• Industrial Revolution (OB)
• scientific management • Hawthorne Studies
• therbligs • system
• general administrative • closed systems
theory • open systems
• principles of management • contingency approach
• bureaucracy

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