Evolution of Management Theories: From Taylor to Modern Era

[music] >> Good morning, everyone. On behalf of Department of Hospital Administration,

Armed Forces Medical College, Pune, I welcome you all for the course on Foundations of Management and

Organizational Behavior. The course will be covered under the modules as flashed. Evolution of

Management Theories, Styles and Functions of Management, Organizational Behavior in Healthcare, Systemic

Approach to Hospital Management. I, Dr. Kiran Kumar Bandamodi, from Department of Hospital Administration,

AFMC, Pune, will be covering the first module, Evolution of Management Theories.

My scheme of presentation will be intro, little bit about the evolution and the history, the principles and

theories of the management, and management as a social system, and some of the prominent key thinkers.

Frederick Winslow Taylor, a renowned American mechanical engineer, known as father of scientific management, defined

management is the art of knowing what you want to do, and then seeing that it is done in the best and cheapest way.

He's one of the first management consultants. Mary Parker Follett, she's an American

management consultant, social worker, philosopher, and pioneer in organizational theory and behavior.

She's also considered as mother of modern management. She defined management is the art of

getting things done through people. Harold Koontz, an American organizational theorist and professor of

business management, he defined management is a process of designing and maintaining an environment in which

individuals working together in groups efficiently accomplish selected aims. Harold Koontz is also known for

developing the management theory jungle concept highlighting the confusion caused by multiple overlapping

management theories. Historical evolution of the management theories from the early 1900s to 2010s,

it highlights major thinkers and their key contributions under different schools of thought.

Starting with scientific management, the focus is on the efficiency, productivity, and systemic management.

The key contributors during this scientific management era were Frederick Winslow Taylor, who introduced the

scientific management, and Henri Fayol, who developed management functions, planning, organizing, commanding,

coordinating, and controlling. From 1930 to 1960, there was a human relations management.

The focus was on human behavior, motivation, and social aspects of work. The contributors during this era were

Mayo, who conducted Hawthorne studies, Chester Barnard, who proposed the social system theory,

Maslow, who introduced the hierarchy of needs, and McGregor, who developed theory X and

theory Y. From 1960 to 2000, the focus shifted from human behavior to organization

structure, learning, and adaptation to change. The key contributors during this era were Mintzberg, who identified

organizational structures, Peter Senge, who introduced the concept of learning organization,

Christensen, who coined disruptive change, that is, innovation. From 2000 to 2010 and beyond,

the focus shifted completely towards sustainability, ethics, and social responsibility in management.

The key contributors during this era in 2010 were Colman and Farrington who advocated sustainable development by

balancing economic, social, and environmental goals. Just to take the evolution through the

historical eras, during the pre-industrial pre-industrial revolution, management seen in the

ancient empires, agriculture, and early commerce. It was completely based on experience, authority, and tradition.

Whereas in industrial revolution, it was rise of factories and other large organizations where the birth of formal

management theory entered. That is Taylor, Taylor's scientific management, and Fayol's

principles of management. The 20th century, the focus was shifted completely towards the human,

psychological, [clears throat] and social aspects of work. The development of human relations and behavioral

science was also approached. In the modern era, management theory is recognized as a unique discipline.

It introduced the concepts like management by objectives MBO and knowledge work.

To get through the emergence of management thoughts in the scientific management, the first major work started

by father of scientific management, Frederick [clears throat] Winslow Taylor. His major works were The

Principles of Scientific Management in 1911 and Testimony before the Special House Committee in 1912.

His key contribution introduced the scientific management applying scientific methods to work processes.

He emphasized use of science over rule-of-thumb methods and maximum output and shared prosperity

and systematic selection and training of workers. In 1901, Henry L. Gantt, his major work

was Work, wages, and profits. His key contributions were uh he advocated for scientific selection

of workers for suitable task, and he promoted harmonious cooperation between labor and management.

And he developed a vital tool, which is a visual tool for planning and scheduling the work, that is Gantt

chart, and emphasized worker training and motivation through performance-based

rewards. He supported the idea that management has a moral responsibility for worker

development. Frank and Lillian Gilbreth, their major work was motion study and applied motion

study. Frank, his key contributions were he pioneered

time and motion studies to identify the most efficient ways to perform a task, and he focused on reducing the worker

fatigue and improving the productivity. Whereas, Lillian Gilbreth, she's one of the first industrial organization

psychologist. She emphasized the human side of management, motivation, satisfaction, and worker well-being. She

studied personality, needs, and ergonomics to improve the workplace design.

Both of them, they jointly contributed to the development of scientific management by integrating technical

efficiency with the human factors. So, scientific management it emerged during the industrial revolution when

the large-scale mechanist production replace the small-scale craftsmanship.

The key objective during that time was to achieve the maximum output with the minimum effort by applying scientific

methods to work processes. In 18th century, Adam Smith is a economist.

He has studied how firms manufactured pens in two ways. One was craft style and production

style. In the craft style, each worker completed all steps independently. In

the production style, each worker specialized in a single step. So, the finding in this was job

specialization, that is, dividing the task, led to much higher efficiency and productivity.

So, the concept introduced was the job specialization and division of labor, whereby breaking down complex works into

smaller tasks, workers become highly skilled in specific operations. This division of labor increased output

and laid the foundation for modern industrial and management practices. Taylor has given four principles of

scientific management. Study, codify, select, and establish. He says, first, analyze how jobs are

currently performed by using the time and motion studies, and convert the new and efficient

methods into standard rules and procedures, and choose workers whose skills and

abilities best standard best standard methods. Thereby, you can set fair performance

standards and reward high productivity. But, there were some problems with the scientific management as well.

Unequal benefits, where managers focused mainly on the increasing output, ignoring the worker

welfare. So, workers did not get the share in the productivity gains, which were leading to dissatisfaction.

There was monotony and boredom, where the job specialization actually made work very repetitive and dull.

So, workers became disinterested and also distrusted on the scientific management.

And, there was also worker resistance, where some deliberately underperformed to resist the pressure.

So, management responded by increasing use of mechanized, uh, that is, conveyors of belts or machines, so to

reduce the worker autonomy. Frank and Lillian Gilbreth, their contributions, they expanded the

F.W. Taylor's scientific management principles. They introduced and perfected the time and motion studies to

improve the efficiency. Their work laid the foundation for industrial engineering and human factors

in the management. Administrative management theory, the key contributor during this time was

Max Weber. He has developed the concept of bureaucracy as an ideal organizational

model. He has proposed that efficiency and effectiveness are achieved through clear division of labor,

hierarchy of authority, formal rules and procedures, impersonality in decision-making,

merit-based selection and promotion. The goal was to ensure consistency, discipline, and coordination in large

organization through structured administration. He has described an ideal type of

bureaucracy designed to ensure efficiency, predictability, and fairness in the organizations. The key features

include division of labor, authority hierarchy, formal selection,

formal rules and regulations, impersonality, and career orientation. He viewed bureaucracy as a rational and

efficient structure where roles, not the individuals, where roles hold authority, thereby ensuring order, discipline, and

fairness in administration. Coming on to 14 principles of management by Henri Fayol.

He has given 14 principles. Division of work, authority and responsibility, discipline, unity of

command, unity of direction, subordination of individual interest to

the common interest, remuneration of personnel, centralization, scalar chain,

order, equity, stability of tenure of personnel, initiative, and esprit de corps.

He has given 14 principles explaining each principle of management. Moving ahead to the behavioral

management given by Mary Parker Follett. She was an early and influential thinker in the management of organizational

Her key idea was to promote a horizontal view of power and authority, thereby emphasizing collaboration over the

hierarchy. And she believed that the worker should participate in analyzing and improving

their own jobs. She suggested that person doing the work often knows how to improve it best.

Her contribution was she pioneered the concepts of participative management, empowerment,

and shared leadership, which are the foundation of modern organizational behavior.

Behavioral management is defined as the study of how managers should behave to motivate employees, enhance performance,

and foster [clears throat] commitment to organizational goals. The core idea was effective management

depends on motivation, communication, and leadership, not just structure or rules.

The goal was to create a positive work environment that encourages employees to work efficiently and willingly

contribute to the organizational success. Moving ahead to the Douglas McGregor

theory X and Y. He identified two contrasting views of the human nature and management styles,

theory X and theory Y. In theory X, he assumes that the average worker is lazy, and dislikes the work,

and avoids the responsibility. So, the managers need to be relying on the authority, rewards, and punishment kind

of a style to ensure that the performance is not hampered. He reflects this theory X managers rely

styling as autocratic or authoritative management style. Whereas theory Y, he assumes that the workers are

self-motivated, enjoy the work, and seek responsibility. The job itself can be motivating for

them as it provides satisfaction and meaning to the employees. The managers can just trust the

employees, allow autonomy, and encourage the participation. This kind of a manager managing style reflects a

democratic or empowering management approach. Management science theory,

the def- it is defined as a management approach that uses quantitative, mathematical, and analytical techniques

to optimize organizational decision making and resource utilization. The key components included in this

management science theory are quantitative management, where linear programming, modeling, and

simulations are used to improve the planning and controlling. Operations management, where analytical techniques

are applied to enhance the production efficiency and process performance. The total quality management, where it

is completely focused on continuous improvement and maintaining high quality standards across all the organizational

processes. Management information system, where managers with the reliable and timely

information for the better decision making and coordination. The goal was to achieve data-driven

decisions, efficiency, and optimal performance across all organizational levels.

Organizational environment theory, it is defined as the set of external forces and the

conditions that exist outside the organization boundaries, but influence its operations and managers this way.

The types of forces can be external, can be internal. The external can be economical, technological, social,

political, and competitive. Whereas the internal can be the culture, employees relations, and the internal

processes. So, the managers must adapt strategies and structures to

respond effectively to the changes in the environment, whether it is internal or external.

So, the goal over here is to achieve the organization stability and competitiveness despite the external

uncertainties. Moving ahead to the contingency theory, it proposes that there is no single best

way to manage. So, effective management depends upon the specific situation and the external

environment. It assumes that there is no one best way to manage. So, the environment impacts

the firm, and the managers must be flexible to react to environmental changes.

The essence of this is effective management is situational, and the success it depends on the

aligning management style, structure, and strategy with the environment.

In stable environments, it can be centralized and structured systems may work the best. And in dynamic, the

managers need to be used flexible decentralized structures, which we'll be seeing in the next slide.

As the core idea was, there is no one best way to organize. So, the organization structure and control

systems must fit the characteristics of the external environment. The key concepts over here is, if it is a stable

one, organizations they need to adapt for the mechanistic structure.

The features of that structure are it is a centralized authority, vertical communication, strict rules and

procedures. The main goal for that organization where it chooses the mechanistic

structure is to maintain the efficiency, control, and the predictability. Whereas in the dynamic environment, the

organization need to adopt an organic structure. It is a decentralized authority,

horizontal communication, cross-departmental collaboration. The goal is to enable the flexibility,

innovation, and the rapid response to the change. The design of this organization should

be contingent on its environment, whether it is a stable or it is not favoring, whether it is dynamic.

Coming on to management as social system, it is fundamentally a social system that

integrates human relationships, informal interactions, and formal structures to achieve the objectives. So, it views the

organization as cooperative systems where the individuals unite for collective goals unattainable alone.

The key elements that include are group activity, goal orientation, social responsibility, authority chains, and

dynamic adaptations to the environments. The core characteristics are social processes, human-centric, and critic to

the classical models. Coordination, communication, and willingness to contribute are the social

processes with the motivation beyond the finances, that is beyond pride, belonging.

Equilibrium between the individual and the organizational efforts, participation. This will be coming under

the human-centric, and the critic where rigid hierarchies ignore the human needs, and there's shift to organic

structures with the less formality, more democracy, and the adaptability of technology and certainty

is needed. Chester Barnard, the key concepts,

acceptance theories of authority, where authority stems from subordinates' willingness to accept the orders, not

impose. Executive functions were maintaining communication, securing the services,

and defining the goals. Equilibrium dynamic balance influenced by the societal changes, and the informal

versus the formal where the informal groups that build cohesion and formal structures coordinate

activities. This perspective promotes participatory flexible structures over rigid ones aligning with behavioral

sciences for better human relations and adaptability. Now, we'll see some of the prominent key

thinkers. Niccolo He has advocated pragmatic, sometimes

devious leadership in the prince. And it has influenced political management

styles. Henri Fayol He developed administrative management

with 14 principles, which you have seen. And focus on planning, organizing, commanding, coordinating, controlling.

F.W. Taylor, father of scientific management, the principles for task optimization, worker selection, and

incentives, and the time and motion studies for efficiency. Max Weber, he introduced a bureaucratic

model with a hierarchy, rules, and impersonality. He viewed as

rational legal authority, but warned of iron cage domination. Mary Parker Follett, she has promoted

the democratic cooperation, power with over power over. And Abraham Maslow

introduced a hierarchy of needs as the foundation for motivational theories emphasizing fulfillment and creativity.

And Douglas McGregor about theory X and theory Y, and shifted focus to self-motivated workers.

Peter Drucker, he created management as a discipline, principles like setting objectives, MBO

management by objective. And Geert Hofstede cultural dimensions showed management

varies by culture. And Henry Mintzberg, he described managerial work as fragmented and

advocated emergent strategy and people-focused leadership. And Peter Senge, he has given learning

organization with five disciplines and promotes adaptability and collective learning.

To conclude, early 20th century the focus on mechanistic,

efficiency-driven approach, that is Taylor's scientific management and Fayol's administrative principles. There

was Then there was a shift in focus. It transitioned towards a human-centered adaptive systems.

Then the social system view where Chester Barnard has highlighted the organizational social system where

requiring cooperation, communication, and balance between the individual and the collective goals.

And effective management builds trust, voluntary participation is needed, and adaptation to environmental changes for

the sustainability. And the key thinkers during the time, Taylor, Fayol, Follett, who has uh

integrated the efficiency with the human elements. And Peter Drucker, who introduced the MBO, management by

objectives. And Peter Senge, who advocated for learning organizations to promote continuous improvement.

In the modern perspective, management adapts to technological and societal transformations, incorporates

AI-driven tools, real-time analytics, and personalized coaching to enhance decision-making and organizational

agility. With that, we have come to conclude the first module.

These are my references. Thank you.