July 28, 2014

Evolution of Management Thought and Theory - Review Notes

Scientific Management

Scientific management - Taylor

F.W. Taylor identified that efficiency of processes is not getting adequate attention of the managers. He focused his attention on using machine tools in machines shops more efficiently by employing higher cutting speeds, feeds and depths of cut. For that purpose he conducted number of experiments and from the data, he developed the laws of economic machining.

From the success, that he has achieved in improving the efficiency of use of machine tools, Taylor's attention moved to other production processes.  Taylor recognized the importance of man's effort in man-machine systems and he came to the conclusion that completing an activity in less time leads to efficiency. That insight led to the development of time study. Taylor developed the technique of time study and starting doing time studies of various ways of doing the same work. That helped in identifying the most efficient method of doing that element of the work and Taylor advocated that management train all the operators doing that activity in the most efficient method. Time study also allowed study of various operators doing the same activity and helped in identifying the most efficient method and in training all other operators in that method. Using time study as the foundation, Taylor varied sizes and shapes of various hand tools used by workmen and came out with identifying the best tools to be used in an activity.

Thus, management has to take care of efficiency,  is the first major development in modern management thought. Taylor being an engineer, advocated the teaching of principles of efficiency to engineers through a subject named industrial engineering.

General management - Fayol

Fayol is the CEO and Chairman of a mining company. He brought out the fact that management is not being taught as a subject. He advocated that management can be taught as a subject.

He presented a paper outlining the content that can be taught. Fayol discussed the ideas of Taylor in his paper and advocated that Taylor's ideas are applicable in many more work systems.

Contribution of Behavioral school

The behavioral school identified more variable capable of increasing productivity apart from the technology or process improvement and financial incentives identified and advocated by Taylor, other proponents of scientific management and industrial engineering.  They found that the improvement in productivity is also due to such social factors as morale, satisfactory interrelationships between members of  work group (a sense of belonging), and effective management - a kind of managing that takes into account human behavior, especially group behavior and maintains a climate where the worker feels psychologically and socially satisfied.

In terms of scholars and managers who contributed to the behavioral school, Hugo Munsterberg published Psychology and Industrial Efficiency in 1912. Lillian Gilbreth published Psychology of Management in 1914. Elton Mayo, F.J. Roethlisberger and others undertook famous Hawthorne experiments during 1927 to 1932.

Quantitative School

The contributors from this school converted many management problems into mathematical models and solved them for coming out with optimal decisions. Decisions that will provide maximum profits for the given or assumed situation or minimum costs.

Systems Approach

Systems approach in one way is an extension of mathematical approach whereby, the entire working of an organization is modeled and its working over a period of time is visualized through repeated cycles. Many times the outputs of the system feed into the system as inputs for the next period and system behavior can change based on these inputs. For example, profits are ploughed back and capital of the organization increase enabling the organization to grow. Customer happiness or unhappiness becomes an input for the next period. Similarly job satisfaction of the employees is also a variable which is an output in one period and becomes input for the next period.  Government,  general public and media may also become stakeholders and have their impact on the organization.

See what this lecture on A Systems Approach to Airport Systems Planning, Design and Management explains the approach


MIT Systems Design Management Course Video
Prof Richard de Neufville

Management Timeline - From Ancient Days


Approaches to Management Analysis
(List given by Heinz Weihrich, Mark V. Cannice and Harold Koontz)

Empirical or Case Approach

Managerial Roles Approach

Contingency or Situational Approach

Mathematical or Management Science Approach

Decision Theory Approach

Reengineering Approach

Systems Approach

Sociotechnical Systems Approach

Cooperative Social Systems Approach

Group Behavior Approach

Interpersonal Behavior Approach

McKinsey's 7-S Framework

Total Quality Management Approach

Management Process or Operational Approach

Koontz and O'Donnell now  Weirich, Cannice and Koontz integrate and discuss the important ideas of all  the above approaches and present it under the

Management process framework  - Planning - Organizing -Staffing - Leading - Controlling


Management: A Global and Entrepreneurial Perspective
Henry Weihrich, Mark V. Cannice and Harold Koontz
13 Edition, 2010
McGraw Hill

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