Full list of schools of management thought for Principles of Management class of MBA

1. Schools of Management
Thought
Management Theory & Practice
Nimal C Namboodiripad

2. Schools of Management Thought
• Ancient Era
• Pre-scientific Management Era
• Classical School
– Scientific Management School(1)
– Classical Organisation Theory(2)
• Transitional School
• Human Relations/Behavioural School(3)
• Management Science/Quantitative
Management School(4)

3. Schools of Management Thought
• Systems School
• Contingency School
• Modern Era

4. Persons behind the schools
• Ancient Era
– Machiavelli
– Chanakya
– Sun Tzu
• Pre-Scientific Management
– Robert Owen
– Charles Babbage

5. Persons behind the schools
• Scientific Management
– Frederick W.Taylor
– Henry L Gantt
– Frank B Gilbreth & Lillian M.Gilbreth

6. Persons behind the schools
• Classical Organisation
– Henri Fayol
– Max Weber
• Transition School
– Mary Parker Follett
– Chester I Barnard

7. Persons behind the schools
• Human Relations/Behavioural School
– Elton Mayo, Fritz J Roethlisberger, William J
Dickson – Hawthorne Experiment
– Abraham Maslow, Douglas McGregor
• Modern Era
– Peter Drucker, Tom Peters, Edwards Deming

8. Sun Tzu
• Book on Art of War written 2000 years
back
• Some of his dictums include
– When enemy advance we retreat
– When the enemy halts we harass
– When the enemy seeks to avoid battle we attack
– When the enemy retreats we pursue

9. Chanakya
• Also called Kautilya, lived in Pataliputra in
ancient India
• Famous book being Arthashastra also called
‘Chanakya Sutra’
• It is a treatise on politics, economics and
public affairs
• Chandragupta Maurya, founder of the
Mauryan Empire was his disciple and used
his theories extensively.

10. Machiavelli
• Principles in “Discourses” written in 1531
• The Florentine’s principles includes
– Organisation will do better if members have
autonomy
– The organisation is lasting if many are in
charge of it
– A weak manager cannot follow another and
maintain authority
– Even in change should include some of the
ancient customs

11. Robert Owen
• ‘World’s’ first enlightened (and first personnel)
manager(1771-1858)
• Post Industrial Revolution
• Stopped employing children below 10
• Reduced working hours from 14 to 10
• Built houses for workers with proper sanitation
• Nursery for children
• Showed higher wages increased profits through
higher productivity
• Unique incentive schemes
• Informal workers participation in management

12. Charles Babbage
• Englishman who first came up with the idea
of division of labour(contemporary of
Robert Owen)
• Each factory operation should be isolated
and given to different people to increase
productivity
• Modern assembly line is based on his ideas

13. Frederick W Taylor
• Taylor(1856-1915) based his philosophy on
4 principles(Scientific Management, 1911)
– Development of science of management to get
best method of work
– Scientific selection of workers to find the best
fit
– Scientific education and development of worker
– Intimate, friendly relations between
management and labour

14. Frederick W Taylor
• Using time study as his base he broke each
job into component parts and designed
quickest and best methods of performance
• Pay more to more productive workers to
motivate them- differential rate system
• People feared that the jobs would be
exhausted
• Managers exploited workers

15. Henry Gantt
• Worked(1861-1919) with Taylor, but later
reconsidered his system
• Each person who finished his quota will get
a bonus
• So also the supervisor under whom he is
working
• If all workers under a supervisor attained
quota he will get additional bonus

16. Henry Gantt
• Each worker’s job was publicly graded
black when achieved standard, red when not
• Originated a charting system for production
scheduling
• Forms basis of CPM of DuPont and PERT
of Navy

17. The Gilbreths
• Frank B(1868-1924) and Lillian M(1878-1972) a
husband-wife team came up with fatigue and
motion studies
• Based on the study way’s for promoting worker’s
welfare was planned out
• Increase morale because of physical benefits as
well as proof of management’s concern
• From Gilbreths come the term Therbligs(17 basic
movements from lifting, moving etc.)

18. Henri Fayol
• First (French Executive, 1841-1925) to
systematize managerial behaviour
• Aimed at top management than shop floor
• Sound management has certain patterns which can
be analysed
• Unlike Taylor who was interested in the functions
he was interested in total organisation
• Management could be taught they need not be
born

19. Henri Fayol
• He came up with 14 Principles of
Management
– Division of labour
– Authority
– Discipline
– Unity of Command
– Unity of Direction
– Common good over individual interest

20. Henri Fayol
– Remuneration
– Centralisation
– Heirarchy
– Order
– Equity
– Stability of staff
– Initiative
– Espirit de corps

21. Max Weber
• He, a German(1864-1920) came up with the
theory of bureaucratic management
• Ideal organisation is one in which activities
and objectives are rationally thought out
and division of labour clearly spelt out
• Although it became a success through such
organisations as Ford, now it has been
discredited

22. Mary Parker Follett
• She(1868-1933) felt that no one could be a
whole person except as member of a group
• She said that management is the art of
getting things done through people
• She is considered the first democratic and
dynamic manager
• She was interested in the welfare of the
people but was at the same tough in matters
of attaining company objectives

23. Mary Parker Follett
• Her holistic model of control also took into
account effects of politics, economy and
biology – paving way for study of extenal
environment
• While supporting Taylor on management
and labour sharing common purpose she
also maintained that artificial differences
between management and labourers should
be removed

24. Chester I Barnard
• Bernard(1886-1961) who became president
of New Jersey Bell in 1927 said people
come together in formal organisations to
achieve objectives they cannot accomplish
working alone
• Hence organisation’s goals should be kept
in balance with individual’s
• For this the employee’s zone of indifference
has to be identified – what the employees
would do without questioning authority

25. Chester I Barnard
• He talked of ethical commitment to society
– instilling moral values in employees
• He also emphasised people working
together in groups – setting the tone for
team thinking

26. Hawthorne Experiments
• To help managers deal more effectively
with people – better human relations
improves morale and productivity
• Series of studies conducted at Western
Electric Company’s Hawthorne plant from
1924-33 near Chicago
• Began as an attempt to investigate relation
between level of lighting in workplace and
productivity

27. Hawthorne Experiments
• Test groups lighting was changed that of
control group kept constant.
• Surprisingly there were erratic increase of
productivity with changes in lighting
• New set of experiments where a set of
people were placed in separate room and
tested on several parameters.
• Wages increased, different rest periods
given, workday and work week shortened.

28. Hawthorne Experiments
• Again got erratic results
• In between Elton Mayo(1880-1949) and his
Harvard associates Fritz J Roethlisberger and
William J Dickson became involved
• Consequent tests also proved something – groups
singled out for attention developed a sense of
pride and performed better
• Sympathetic supervision helped in this cause
• This is the Hawthorne effect

29. Hawthorne Experiments
• Control group performed better because of
the special attention of the researchers
themselves
• Informal workgroups have a positive effect
on productivity

30. Abraham Maslow
• Called father of humanist psychology(1908-
1970)
• More sophisticated view of human beings
and their drives
• Scientific investigation into the study of
how people behaved in organisations
• Heirarchy of needs – physical, safety, love,
esteem, self actualisation
• When one is achieved he goes into other

31. Abraham Maslow
• His ideas on management included
• Democracy at work place
• Synergy – originally developed by Ruth
Benedict – both people gain
• Characteristics
– Everyone to be trusted
– Everyone wants to improve his work
– People aim at perfection

32. Abraham Maslow
– Good attitude towards work
– Love and respect for boss
– Looks for appreciation in public
– Love their tools and materials
• Need heirarchy may change with country
• Sweden quality of life is ranked most
important
• Japan and Germany security ranked highest

33. Douglas McGregor
• Two alternate assumptions about people and
their work(1906-1964)
• Theory X states that managers believe that
employees are inherently lazy and must be
constantly coaxed to do the job properly
• Theory Y managers on the other hand
believe that people relish work and eagerly
approach their work

34. Herbert Simon(1916-)&
James March
• In 1950s they developed hundreds of propositions
for scientific investigation, about patterns of
behaviour, especially with regards to
communication in organisations
• Herbert Simon is the first management thinker to
win a Nobel Prize in 1978
• His book administrative behaviour is a classic
• He says it is not rational
• Saw great potential in the computer for decision
making

35. Management Science Approach
• It was found that management problems can
be solved by mathematical formulas
• Management consists of Planning,
Implementation and Control. Especially
useful in control function
• Operations Research started with the second
world war in England
• Later Americans used it
• Still later it was used in management

36. Management Science Approach
• In this system for solving a problem
information is got from the different areas
• Using this information a mathematical
model is formed
• Robert McNamara who used this in Ford is
the pioneer.
• He later became Secretary of Defense in US

37. Systems Approach
• This takes a wholistic view of the
organisation
• Each organisation consists of a number of
sub systems which when working together
creates a synergy

38. Contingency Approach
• This is also called situational approach
• Any one school doesn’t work in all situation
• According to situation the management
technique has to change
• The question to be answered is what will
work best in this situation here