Unit - 2 principles of management

 UNIT–2: EVOLUTION OF MANAGEMENT THOUGHT

(VERY IMPORTANT – almost guaranteed long questions)

This unit explains how management ideas developed over time to solve organizational problems.

📌 Why Study Evolution of Management Thought?

To understand why modern management works the way it does

To learn from past successes and failures

To apply right theory to right situation

Helps in better decision-making

🧭 Classification of Management Theories

Management thought evolved in three major phases:

Classical Approach

Neo-Classical Approach

Modern Approach

1️⃣ CLASSICAL APPROACH (1900–1930)

👉 Focus: Work efficiency, structure, productivity

Main Assumption:

Employees are economically motivated and work best under clear rules and supervision.

🔹 (A) Scientific Management Theory

(Father: Frederick Winslow Taylor)

🔸 Meaning

Scientific Management means analyzing work scientifically to improve efficiency.

Taylor believed:

“Work should be done using the one best method.”

🔸 Principles of Scientific Management

Science, not rule of thumb

→ Replace old methods with scientific study

Harmony, not discord

→ Cooperation between workers and management

Mental revolution

→ Change in attitude of both workers and managers

Scientific selection and training

→ Right man for right job

Maximum output

→ Focus on productivity

🔸 Techniques of Scientific Management

Time study

Motion study

Standardization

Differential piece wage system

Functional foremanship

📌 Exam Tip: Write principles + techniques for full marks.

🔸 Criticism of Scientific Management

Ignored human emotions

Treated workers like machines

Led to monotony

Resistance from workers

🔹 (B) Administrative Management Theory

(Father: Henri Fayol)

👉 Focus: Overall management, not just workers

🔸 Fayol’s 14 Principles of Management

(VERY IMPORTANT – learn names + meaning)

Division of work

Authority and responsibility

Discipline

Unity of command

Unity of direction

Subordination of individual interest

Remuneration

Centralization

Scalar chain

Order

Equity

Stability of tenure

Initiative

Esprit de corps

📌 Exam Tip:

Write any 7–10 with explanation

Diagram of scalar chain gives extra edge

🔸 Contribution of Fayol

Defined management functions

Applicable at all levels

Foundation of modern management

🔹 (C) Bureaucratic Theory

(By Max Weber)

🔸 Meaning

Bureaucracy is a system based on:

Rules

Hierarchy

Impersonality

🔸 Features of Bureaucracy

Clear hierarchy

Written rules

Division of labor

Formal selection

Impersonal relations

🔸 Merits

Discipline

Stability

Predictability

🔸 Demerits

Red tape

Rigidity

Slow decision-making

2️⃣ NEO-CLASSICAL APPROACH (1930–1950)

👉 Focus: Human relations, motivation, social needs

This approach arose because classical theory ignored human behavior.

🔹 Human Relations Theory

(Led by Elton Mayo)

🔸 Hawthorne Experiments (VERY IMPORTANT)

Conducted at Western Electric Company, USA

Experiments:

Illumination experiment

Relay assembly test room

Interviewing program

Bank wiring room

🔸 Findings:

Workers are motivated by social factors

Informal groups affect productivity

Attention to workers increases performance

📌 This effect is called Hawthorne Effect

🔸 Contributions

Importance of human relations

Recognition of informal organization

Emphasis on communication

🔸 Limitations

Overemphasis on social needs

Ignored economic factors

Not universally applicable

3️⃣ MODERN APPROACH (1950–Present)

👉 Focus: Complex organizations, adaptability

🔹 (A) Systems Approach

Organization is viewed as a system made of interrelated parts.

Components:

Input → Process → Output → Feedback

📌 Example: Raw material → Production → Product → Customer feedback

Features:

Holistic view

Interdependence

Dynamic nature

🔹 (B) Contingency Approach

👉 “No one best way to manage.”

Management depends on:

Situation

Environment

Technology

People

📌 Example: Leadership style changes in crisis vs normal situation

Importance:

Flexible

Practical

Realistic

🔹 (C) Quantitative / Management Science Approach

Focuses on:

Mathematical models

Statistics

Operations research

Used in:

Inventory control

Decision making

Scheduling

📊 COMPARISON SUMMARY (Exam Gold)

Approach

Focus

Classical

Structure & efficiency

Neo-Classical

Human relations

Modern

Systems & situations