1. TOPIC: EVOLUTION OF MANAGEMENT THOUGHT

TOPIC: EVOLUTION OF MANAGEMENT THOUGHT
Specific Objectives
By the end of this sub-module unit, the trainee should be able to:
a) discuss the evolution of schools of management thought
b) explain the systems approach to management
c) explain the modern management approaches
EARLY CONTRIBUTORS TO MANAGEMENT
Management is as old as civilization. Evidences of management exist in:-
1. Management of antiquity (ancient history)
a) Babylon
It has been shown that ancient Babylon practices management in various ways:-
➢ i) They had financial control inform of stone tablets
➢ ii) They had concepts of managerial responsibilities as evidenced in the code of
Hammurabi. The code stipulated what was expected from the cities of Babylon
b) Egypt
Ancient Egyptians practiced management in the following ways:-
➢ They practiced some management in their skill of construction of pyramids. The
building required a lot of planning and organization of both material and people.
➢ They had well-organized systems of leadership i.e. the pharaoh, priests and
common people.
➢ They demonstrated some planning in their farming of the Nile valley and
irrigating it through the ages.
2. The roman empire
The Roman Empire practiced management in: -
➢ Keeping records; the empire was very large and thus required complex
administration
➢ Existence of the judiciary; the existence of magistrates created a system to
control human behaviour.
Roman Catholic Church
The existence of the Roman Catholic Church in Rome shows some degree of
management:-
➢ The existence of the popes seat at the Vatican as its headquarters whose some
form of centralization of authority
➢ The spreading of the gospel through missionary required some organization of
human and physical resources
➢ The existence of the pope as the head of the church (leadership)
➢ Hierarchy of authority – the pope at the top the bishops and priests and the
congregation at the bottom
3. Military Organization
The success of the war generals in their conquest efforts was based in their ability to
organize their men.
E.g. Napoleon, Alexander the great, Hitler Williamkamau14@gmail.com fb:William kamau
4. The Bible
Examples of the bible of existence of management include:-
(i) In the book of exodus
➢ Moses led his people form captive in Egypt (leadership)
➢ He chose able men to be rulers over others (delegation of duty)
➢ Rulers judged all seasons, but difficult/complex cases were taken to Moses
(hierarchy of authority)
5. Cameralites
These were a group of German and Austrian public administrators in the (16th to the 18th
who held the believe that:-
➢ To enhance the position of the state it was necessary to maximize material
wealth.
➢ The same qualities needed to acquired individual wealth have to be applied to
the state and other departments
➢ They emphasized specialization of functions that is a person to what he is best
in
➢ They advocated for simplification of administrative procedure (policies and
procedures)
➢ They called for control techniques – how well we have achieved what we
planned to do.
PERIOD OF MANAGERIAL AWAKENING
The period around 18th century industrial revolution of management took a more defined
direction as the study was geared towards maximizing production. Pioneers of this period
include: -
1. CHARLES BABBAGE
He was a professor of mathematics at the Cambridge University. Through visiting
industrial in UK and France. He found that manufacturers were unscientific and used
guesswork in production.
He felt that science and mathematical methods should be used in operations of factories.
He advocated for
(i)
Factories should have data/information which is obtained through research
(ii)
Determine the precise cost of every process
(iii)
Paying workers fairly and bonus when the produce is high to motivate them.
2. JAMES WATT & MATHEW BOLTON
They were sons of the distinguished inventor of the steam engine. They used the
following management techniques:-
• Market research and forecasting
• Planned machine layout to facilitate better flow of work
• Production planning and standardization of product components
• Elaborate statistical records and advanced control systems.
• Maintenance of advanced reports and cost accounting data3. ROBERT OWEN
He was a manager of textile firm in Scotland. He believed that workers performance is
influenced by total environment/working conditions. He came up with the idea of human
relation in management. He emphasized on:-
➢ Short working hours
➢ Better housing facilities
➢ Training and workers hygiene
➢ Education and scholarship for workers children
➢ Provision of canteen and rest places in work place
N/B the extend to which these principles are practiced will depend on management
perception, nature of competition, attitudes and employees perceptions, size of the
business organization, rate of employee turnover, government policies and societal
influenced.
THEORIES OF MANAGEMENT
Groups of assumptions have been formulated to explain productivity in business
organizations. Due to forces such as technological forces, social forces, economical,
political etc.
The study of theories enables managers to do the following:-
➢ Avoid making mistakes of the past
➢ Compare the past and present in order to make rational decisions
➢ Approach problems systematically
➢ Compare their business organization with other businesses
➢ Come up with quality goods and survive the market competitions and retain
their customers
➢ It enables manager to maximize profit, which is the major aim of business
organizations
➢ Make predictions for better achievement of organizational goals
Williamkamau14@gmail.com fb:William kamauDEVELOPMENT OF MANAGEMENT PRINCIPLES
Over the last century management has evolved in several faces. They can be summarized
as:-
(i) The classical theory (1900s)
(ii) Human relations theory (developed 1930s)
(iii) Behavioural Science theory
(iv) Modern Management theories
THE CLASSICAL THEORY
The classical theory was based on the assumption that people are rational and economic
oriented. According to this theory people consider the opportunities available and do
anything necessary to achieve highest gains. It argues that an incentive given to the
employee leads to better work.
This theory has three schools of thought
➢ Scientific management theory
➢ Administrative management theory
➢ Bureaucratic management
SCIENTIFIC MANAGEMENT THEORY
The major advocate of scientific management is one Fredrick Taylor. He alleged that
individuals could be programmed to be efficient as machines. The key to scientific
management is the concept “man as a machine” Taylor believed that workers who were
motivated by money and limited by physiology needed constant directions. He studied
scientific management in four main areas.
1) Standardization
2) Time and task study
3) Systematic selection and training
4) Pay incentives
5)
TAYLOR’S PRINCIPLES OF SCIENTIFIC MANAGEMENT
1. Financial incentives
High pay should be tied to successful completion of work. Loss incase of failure should
be personally costly. No work no pay
2. Standard conditions
A worker should be given standard conditions and appliances in order to accomplish the
task with certainty
3. Workers must be scientifically selected and trained so as to be more productive
4. Separation between planning and doing.
There should be specialization of task whereby the management does all the planning and
workers are only instructed what to do.
5. Each task must be scientifically designed so as to replace the old rule of thumb method
each person should have a clearly designed daily task which should require a full day’s
effort to complete.
6. Bringing scientifically designed jobs and workers together so that there will be a match
between them.
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7. Bilateral mental revolution. There should be a complete mental revolution on both
management and workers to effect that they must take their eyes off the profits and
together concentrate on increasing productions so that profits were so large that didn’t
have quarrels about sharing them.
CONTRIBUTIONS OF SCIENTIFIC MANAGEMENT
(i)
Promotes Expertise in the organization.
(ii)
Enabled workers to be paid by result and take the advantage of incentive
payments.
(iii)
Contributed towards standardization of tools equipments, materials and work
method. Thus work could be accomplished with a higher degree of certainty
(iv)
Minimized wastage of time, material and energy thus advocated for better se
of resources
(v)
Its emphasis of scientific selection and training enabled the right people to
occupy the right jobs
(vi)
It has established harmonious relationships between worker and managers
through the advocating of elimination of rule of thumb.
(vii) It has led to proper achievement of equal division of responsibilities between
workers and management.
(viii) It gives detailed instruction and constraint guidelines for worker which
management use.
LIMITATION OF SCIENTIC MANAGEMENT
• It reduces workers to mere role of rigid adherence to methods (mindless
machines)
• It puts planning and control in the hand of management and ignores worker thus
lowering their morale
• It assumes that everything can be scientifically be quantified.
• It rules out any realistic bargain on wages rates, since every job was measured,
timed and rated.
• There is no room for initiative
• Scientific methods overlooks human desire for job satisfaction (job conditions are
often the cause of strikes)
• It overlooked the social needs of workers since it assumed that people are rational
and therefore motivated by material gains.
ADMINISTRATIVE MANAGEMENT THEORY
Around the same time when scientific management theory was in action, a similar view
of classical organization theory evolved. This new theory was referred to as
administrative organizational theory.
It concentrated on the broad problem of departmentation, division of labour and
coordination.
For Taylor and the scientific managers concentrated on individual worker upwards, the
administrative manager worked from the managing director downwards.Williamkamau14@gmail.com fb:William kamau
Henry Fayol was the main advocate of this view.
He first divided industrial undertaking into six separate activities: -
1. Technical (production and manufacturing)
2. Commercial (buying and selling)
3. Financial (search for capital)
4. Security (protection of properties and persons)
5. Accounting (stocktaking, balance sheets etc)
6. Managerial (planning, organizing etc)
According to Fayol managerial activities were the most important and deserved the most
attention. He divided his approach of studying management into three parts.
➢ Managerial qualities and training
➢ Principles of management
➢ Element of management
Managerial qualities and training
The following are managerial qualities according to Fayol.
1. Good physical health
2. Good mental health – ability to understand and learn, make sound judgment
(intelligence and wisdom)
3. Upright morals – willing to accept responsibilities with initiative, loyalty, tact and
dignity.
 
Moral qualities help the manger to respect him/herself, his decision and also others
4. General education - a manager should have general acquaintance with matter not
belong to the function performed.
5. Special knowledge – that is knowledge peculiar to the function performed.
6. Experience. That is knowledge arising from work itself. Fayol held that
managerial abilities should be acquired in the same way one acquires technical
ability. That is first in school and later in the workshop.
GENERAL PRINCIPLES OF MANAGEMENT
Fayol’s principles of administrative management may be summarized as:-
1. Division of work
According to this principle, work should be divided at every stage and employees
assigned particular task to perform and in the essence become specialized. This will
lead in turn to efficient labour utilization.
2. Authority and responsibility
Fayol suggested that there should be parity between authority and responsibility. The
right to give orders should be accompanied by authority.
1. Discipline
Workers should have respect to both fellow workers and to the management. There
should also be respect for agreements between employees and employers
2. Unity of command
An employee should receive commands form one superior only3. Unity of direction
Activities of the same nature aimed at achieving same goals should be put under one
command. That is on leader.
6. Remuneration of personnel
Remunerations should be fair and satisfactory to both the employees and the
employer. Workers should be paid for wages to motivate them in their work.
7. Centralization
The decision for centralization or decentralization depends on interest of
organizational purpose, quality of workers, size of the organization and nature of
work to be accomplished.
8. Scalar chain
Taylor suggests that there should be clear lines of authority from the top to bottom of
the organization, and employees should be encouraged to follow the proper hierarchy
of command. However this can be short circuited when strictly following it would be
detrimental.
9. Order
There should be a place for everything and everything in its place. The right man
in the right place is also part of this principle. Order should be maintained all
through the organization
10. Subordination of individual interests to the general interest
According to this principle, the interest of the organization should super side that of
the individual. The interests of an individual or one group in the organization should
not prevail over the general interests of the organization.
11. Equity.
This principle states that management should exercise a combination of justice and
fairness towards employees (kindness)
12. Stability of tenure of personnel
A worker should not feel threatened in his/her position. They should be given time to
settle in their jobs.
13. Initiative
This principles state that mangers should allow workers to exercise initiative by
scarifying personal vanity (within the limits of authority and discipline)
14. Esprit de corps
This is the principles that in “union there is strength” in other words harmony is a great
strength to an organization and team work should be encouraged. This principles
emphasizes the need for team work in the organization
Williamkamau14@gmail.com fb:William kamauElements of management
Fayol regards elements of management as the managerial functions i.e.
➢ Planning – looking ahead and making provisions
➢ Organizing – arrangement of resources
➢ Coordination – harmonizing efforts
➢ Commanding – giving orders and instruction
➢ Control – verifying whether the result conform to the plan adopted.
BUREAUCRATIC THEORY
Max Weber formulated this theory. He was a German Sociologist who was very sensitive
to the abuse of power by people in managerial positions.
In order to reduce these abuses Weber proposed an organizational system that had a
hierarchal structure based on formal authority.
From the above analysis, bureaucracy can be defined as a photo type form of
organization that emphasizes order, systems rationality, uniformity and consistence.
According to Weber consistent performance can be achieved because organizational
members are guided by a set of rational rules and regulations rather than the actions of
position holders.
SALIENT FEATURES OF BUREACRACY
1. Clear Division of Labour. (By Functional Specialization)
Job responsibilities and levels of authority are clearly defined for each employee thus
there are no overlaps of responsibilities between jobs.
2. A Well Defined Hierarchy Of Authority
Each position in the organization is controlled by and reports to a single position one
level up in the hierarchy.
3. Maintenance of Written Records
There should be a written record of organization activities that keeps rules and
regulations visible to all participants. It also allows for evaluation of past decision and
activities and adds to the organizational memory.
4. A System of Rules And Regulations
There should be laid down rules and regulations to ensure rational and consistent
organization behaviors.
Rules and regulations allow organizations activities to be performed in a predictable and
routine manner.
5. Impersonal Approach to all Interpersonal Activities.
This principle emphasizes equality in dealing with employees, customers or clients so as
to eliminate favourism.
Williamkamau14@gmail.com fb:William kamau6. Merit Based Employment
Selection and promotion within the organization should be based on qualification, ability
and performance (technical competence and not family relationships, friendship or
political reasons.
7. Autonomous Decisions by Office Bearers.
Employees must not use their rights and privileges of their jobs to enrich themselves.
Power dos not belong to an individual but its part of the office.
8. Centralization of Authority
For bureaucracy to operate, efficiently authority should be centralized so as to coordinate
the different specialized functions.
ADVANTAGES OF BUREACRACY
1. Leads to consistent employees’ behaviour. This makes management easier.
2. Assists managers to achieve and maintain quality because of strict adherence to
procedures.
3. It eliminates conflicting job duties because duties and responsibilities are clearly
defined.
4. Lead to maximum utilization of human resource (clear division of labour)
5. It minimizes dissatisfaction because promotion is based on merit and expertise.
6. Division of labour leads to specialization which in turn may increase production
7. Helps to minimize wastage of the organization scarce resources
8. Maintenance of written records makes planning easier.
9. Organizational goals may be achieved with ease.
DISADVANTAGES OF BUREAUCRACY
1. Rules and procedures when many affects efficiency
2. Bureaucracy makes organization rigid especially as concerns decision making
3. Its very expensive as it involves a lot of paperwork
4. Its time consuming especially when decisions are needed urgently. (Tall
organizational structure)
5. Does not give room to participative management thus kill initiative?
6. It’s likely to cause resistance and dissatisfaction on the part of the employees
because of its lack of flexibility.
LIMITATION OF THE CLASSICAL THOUGHT
• It ignores the psychological aspects as man is seen to be motivated purely by
economical incentives and nothing else
• Much emphasis has been drawn to structures and attainment of organizational goals.
While peoples needs are ignored.
• There is no room for participative management, which may cause poor morale among
the employees.
• The theory has been criticized as a case of the past when organizations were relatively
stable and environment being predictable
• Social aspects and group dynamics receive very little attention
• The classical theory principles are too general for today’s complex organizations.
Williamkamau14@gmail.com fb:William kamauTHE HUMAN RELATIONS THEORY
This movement developed as a reaction to the classical models. It’s associated with
people like Mary Follet and Elton Mayo.
Mary believed that the fundamental problem in all organizations was in developing and
maintaining dynamic and harmonious relationships she believed that conflicts in
organizations were not necessarily wasteful outbreak of incompatibility but a normal
process through which socially valuable differences register for the enrichment of all
concerned.
Elton Mayo and the Hawthorne Studies
These studies were carried out in several stages over several years.
The emphasis was on the worker rather than work itself. The studies were concerned with
studying people in terms of their social relations at work. The conclusions gave rise to the
ideal of social man and to the importance of human relationships.
1. The first stage of the experiment was to study the effect of lighting on output.
Two groups of workers were selected for study. One group has a consistent level of light
while the experimental group had its light varied form better to worse.
The significant result was that the output increased in both groups. Obviously some
factors other than pure physical conditions were at work in the situation. Thus Elton
Mayo was invited at this stage to carry on the studies.
2. The next stage was the Relay assembly test room.
The objective of this study was to determine the effect of the physical conditions on
productivity.
Six women form the relay assembly section were segregated and segmented to numerous
changes in the working conditions e.g.
➢ Rest pauses were introduced and varied
➢ Lunch breaks were varied in length and timing
➢ Alteration of the working week
Once again regardless of whether the conditions were improved or worsened,
productivity always increased.
At the end of the experiment the researchers realized that they were not only studying the
relationship between physical working conditions fatigue, monotony and productivity but
had entered into the study of employee attitudes and values.
The women were responding to the attention of the researchers and saw themselves as a
special group. These behaviors has been called the Hawthorne’s effect
3. Third stage consisted of interview programs to establish employees’ attitudes towards
working conditions, job and supervision.
The interviews were first structured and lasted 30 min eventually the pattern became
relatively unstructured and lasted longer.
The conclusion made was that relationships with people were in important factors in
attitudes of employees.
4. The forth stage was referred to as the Bank Wiring observation room.
Fourteen men from the Bank working plant were moved to a separate room with more
less the same working conditions as those in the main wiring room.
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It was discovered that the group was developing its own rules, standards and behaviors.
They restricted production according to their norms and protect its own interests against
those of the company. The group had developed its own un official organization/informal
organization.
5. Final stage took the form of personnel counseling in which employees were able to
discuss their work problems. The result was improved relationships between workers,
supervisors and the management and general personal adjustment.
Main conclusion of Hawthorne studies
➢ Organization is a social system. This social system defines individual roles and
establishes norms that may differ from those of the formal organization.
➢ Social and psychological factors exercise a greater influence on the behaviour of
workers. Therefore managers should adopt a sound human approach to all
organizational problems.
➢ Informal groups at work exercises strong influence over behaviors of workers
➢ There is emergence of informal leadership in the organization. This informal
leadership enforces group norms.
➢ Group dynamics – in organization members do not react as individuals but as
members of a group.
➢ Money is not the only motivator of human behaviour, social and psychological
need of workers is very strong. E.g. praise, status etc.
➢ Conflicts can arise between group goals and organizational goals. Conflicts
should be handled properly so as not to harm the interests of workers.
BEHAVIOURAL SCIENCE APPROACH
This approach emphasizes on behaviors of individuals and people in groups. It draws
its concepts from psychology and sociology.
 
According to this approach, management is getting things done through people
hence managers should understand human behaviors and relationships. It is
concerned with human relationships and how managers can utilize the relationships
for the good of the organization, the manager as a leader and the leadership style,
group dynamics and motivation in management and how to improve employee’s
morale. The approach focuses on how the understanding of individual behaviors and
relationship influences the leadership style and general motivation at work.
Proponents of this approach include people like Abram Maslow, Mc Gregor, Fiedler,
Herzburg, and Chaster Barnard.
 
Theories that explain human behaviors and motivation will be discussed in later
chapters.
SYSTEMS APPROACH
The approach is based on the generalization that an organization is a system and its
components are interrelated and interdependent.
A system is a set of interrelated items, which work together for a common goal. The
basis of systems theory in management is the limitations of the classical theory. Each Williamkamau14@gmail.com