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THE EVOLUTION OF MANAGEMENT THINKING - Coggle Diagram
THE EVOLUTION OF MANAGEMENT THINKING
THE HISTORICAL
STRUGGLE
MAPPING THE EVOLUTION
Organizations adapt to social, political, and economic changes over time
Political Forces
Economic Force
Social Forces
THE GREAT HISTORICAL STRUGGLE
Things of Production ↔Humanity of Production
Things of Production: Efficiency, structure, workflow, control
Humanity of Production: Human needs, motivation, engagement, effectiveness.
CLASSICAL PERSPECTIVE
SCIENTIFIC MANAGEMENT
BUREAUCRATIC ORGANIZATIONS (Max Weber)
Example: Government agencies
Clear hierarchy
Formal procedures
Specialized roles
Contributions
Systematic & consistent operations
Clear roles & responsibilities
Better control & coordination
Supports large organizations
Key Features
Formal rules & procedures
Clear hierarchy & authority
Specific division of labor
Professional employee selection
Objective & rational management
.
Developed by Frederick W. Taylor, using scientific methods to find the most efficient way of working and improve labor productivity.
Example: Bethlehem Steel: productivity increased from 12.5 → 47.5 tons/day through improved movements, tools and work sequence.
Wage incentives
Plan work and reduce interruptions
Select & train suitable workers
Standard methods for each job
WHY DID WE NEED
A NEW APPROACH?
Factories grew rapidly, creating more complex management challenges. Traditional methods were no longer enough
ADMINISTRATIVE PRINCIPLES
Difference between 3 classical theories
Taylor - Science Management - Production & Engineering - Specialized organizations
Fayol - General Management - Managerial Functions - Universally
Weber - Bureaucratic Management - Organization Structure - Government sectors & large organizations
Definition
Focuses on the whole organization
Emphasizes 5 management functions: Planning – Organizing – Commanding – Coordinating – Controlling
Henri Fayol
Proposed 14 Principles of Management
Major contributor
5 main functions of management
THE CLASSICAL PERSPECTIVE
(19TH – LATE 20TH CENTURY)
A rational and systematic approach to improve organizational efficiency and productivity.
MANAGEMENT SCIENCE
Quantitative Perspective (math, statistics, IT), originating from WWII military operations research.
Three Main Subsets
Operations Research: Mathematical models for decision-making.
Operations Management : Production of goods and services.
Information Technology: MIS systems for digital transformation.
Example: Amazon– uses OR algorithms to optimize OM warehousing and delivery, powered by IT systems to cut delivery times by 30% and operational costs by 15%.
SYNTHESIZE THE CLASSICAL PERSPECTIVE
Synthesis and Core Principles
Scientific Management (Taylor): Precise worker efficiency & procedures
Bureaucratic Organizations (Weber): Impersonal rules & clear hierarchy
Management Science: Quantitative data & mathematics
Administrative Principles (Fayol): The 5 macro-functions of management
Key Takeaway
Management theories evolved from improving individual efficiency to managing organizations through structure, functions, and data