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Unit Objectives

After completing this unit, you should be able to:

• Explain the classical management theory.

• Explain the scientific management theory.

• Highlight at least three assumptions underlying the scientific management theory.

• Evaluate the contribution of the scientific management theory.

• Explain the basic pillars of the human relations theory or school of thought.

• Identify three main contributors to the human relations school of thought or theory.

• Examine two main lessons from the Hawthorne Experiments.

What Are Management Theories?

• Management theories are concepts and frameworks guiding how organizations are structured, led, and operated to achieve their goals effectively.

• These theories represent a collection of ideas that recommend general rules for managing an organization or business.

• They assist managers in understanding workplace dynamics, improving decision-making, and enhancing productivity.

• Management theories have evolved over time to address various aspects of business and employee management.

Types of Management Theories

• Classical Management Theories (Early 20th Century)

• Human Relations Theory

• System Management Theory

• Contingency Management Theory

• Management Science School of Thought

• Contributions of Henri Fayol and the Contributions of Management Theories or School of Thought

Classical Management Theory

• The classical school of thought of management was the first school to focus on organizational structure and purpose.

• Key contributors to this school include:

  • Frederick W. Taylor

  • Henri Fayol

  • Frank and Lillian Gilbreth

  • Henry Gantt

• The theorists developed management principles applicable to various businesses and situations.

• The classical management theory concluded that tasks must be divided into constituent parts to achieve mass production economically.

• Proponents argued that organizational efficiency could only be achieved through organizational restructuring.

Primary Characteristics of Classical Management Theory

• Organizations exist to achieve economic and production-related objectives.

• Optimal techniques to organize for production can be determined through methodical, scientific investigation.

• Division of labor and specialization maximize production.

• People and organizations behave in a logical economic manner.

Sub-groups of the Classical Management Theory

• The two main sub-groups of classical management theory are:

  1. Scientific Management Theory

  2. Administrative Management Theory

Scientific Management Theory

• Focuses on:

  • Improving efficiency

  • Enhancing productivity

  • Labor management through systematic study and scientific methods.

• Considered one of the earliest management theories, it played a crucial role in shaping modern industrial practices.

• Key figures in developing the scientific management theory include Frank and Lillian Gilbreth, Henry L. Gantt, and Frederick W. Taylor.

Key Principles of Scientific Management

1. Time and Motion Studies

   • Taylor analyzed work processes to identify the most efficient ways to complete tasks.

   • Eliminated unnecessary movements to improve productivity.

2. Work Standardization

   • Developed standardized procedures for performing tasks to ensure consistency.

   • Encouraged the use of specialized tools and methods.

3. Scientific Selection and Training of Workers

   • Emphasized hiring the right people for the right jobs.

   • Provided proper training to enhance worker skills and efficiency.

4. Division of Labor and Specialization

   • Tasks were split into smaller, specialized roles to increase productivity.

   • Workers focused on specific tasks, becoming more skilled in their duties.

5. Differential Piece-Rate System

   • Introduced a performance-based wage system where efficient workers earned higher wages.

   • Encouraged employees to work harder and be more productive.

6. Separation of Planning and Execution

   • Managers were responsible for planning, while workers focused on execution.

   • This division improved organizational structure and efficiency.

Contribution of Frederick W. Taylor (1856 - 1915) - Taylorism

• Frederick Winslow Taylor, known as the "Father of Scientific Management," developed Taylorism.

• Taylorism is a systematic approach to improving industrial efficiency, laying the groundwork for modern management practices focused on productivity, work standardization, and labor efficiency.

Key Contributions of Taylor to Scientific Management

1. Time and Motion Studies

   • Analyzed the most efficient ways to perform tasks.

   • Example: Studied steelworkers' shoveling techniques and redesigned tools to improve efficiency.

2. Division of Labor and Specialization

   • Advocated for splitting tasks into smaller roles to enhance efficiency.

   • Example: Applied in assembly lines where each worker performs a specific function.

3. Standardization of Work

   • Developed standardized methods for performing tasks for consistency and efficiency.

4. Differential Piece-Rate System

   • Introduced performance-based pay where workers were compensated based on their output, incentivizing higher productivity.

5. Scientific Selection and Training of Workers

   • Advocated for scientifically selecting workers based on skills and ensuring they received proper training.

6. Management’s Role in Planning and Decision-Making

   • Proposed a clear separation between planning and execution, promoting defined roles for managers and workers.

Additional Contributions of Frederick W. Taylor

• Components of Taylor's thoughts:
  a. Each person's task should be decomposed into component parts and carried out methodically.
  b. Workers should be chosen and trained for jobs using scientific analysis.
  c. Cooperation between management and employees is essential.
  d. A division of labor between managers and employees is necessary.

Impact of Taylorism on Modern Management

• Led to assembly line production (e.g., Henry Ford’s automobile manufacturing).

• Increased efficiency and productivity in industrial operations.

• Introduced scientific management principles that remain relevant in modern businesses.

• Influenced the development of Lean Manufacturing and Total Quality Management (TQM).

Criticism of Taylorism

• Overemphasis on efficiency resulted in worker dissatisfaction and lack of creativity.

• Treated workers as machines, neglecting human motivation and social factors.

• Caused job monotony, leading to worker burnout and resistance to strict work procedures.

Contribution of Henry L. Gantt to Scientific Management Theory

• Henry L. Gantt (1861–1919) contributed significantly to Scientific Management Theory, particularly in work scheduling, productivity measurement, and employee motivation.

• Worked closely with Frederick W. Taylor to refine many of his principles.

• Emphasized the importance of worker psychology and morale in productivity.

• Developed the terminology for the CPM (Critical Path Method) and PERT (Programme Evaluation & Review Technique).

Key Contributions of Henry Gantt to Scientific Management

1. Gantt Chart – A Project Management Tool

   • Developed the Gantt Chart as a visual tool for scheduling and tracking tasks in projects.

   • Displays tasks, duration, and progress over time.

   • Still widely used in project management today (e.g., construction, manufacturing).

2. Task and Bonus System (Performance-Based Pay)

   • Proposed a system where workers received a daily wage and an additional bonus for completing tasks efficiently, fostering both productivity and fairness.

3. Worker Training and Development

   • Emphasized the importance of training and skills development for workers.

   • Advocated for managers to guide and assist employees to enhance performance.

4. Humanizing Scientific Management

   • Recognized the importance of worker satisfaction alongside efficiency, advocating managerial responsibility for employee well-being.

5. Industrial Efficiency and Social Responsibility

   • Believed businesses should serve society, not just focus on profits, promoting ethical practices and worker-friendly policies.

Impact of Gantt’s Contributions

• The Gantt Chart continues to be used in modern project management processes.

• His task and bonus system established foundations for performance-based incentives.

• Shifted focus from purely efficiency to include worker motivation and development.

• Contributed to humanizing Scientific Management, adapting it to modern workplace needs.

Contribution of Frank and Lillian Gilbreth (1868 - 1924 and 1878 - 1972)

• Frank Bunker Gilbreth and Lillian Moller Gilbreth focused on improving work efficiency and worker well-being, expanding on Taylor’s principles.

• They emphasized motion study, ergonomics, and human factors in management.

• Conducted studies on motion and worker fatigue.

• Developed a three-position promotion scheme aimed at staff development and morale boosting:

  1. A worker does the job.

  2. Prepares for promotion.

  3. Trains a successor.

Key Contributions of Frank and Lillian Gilbreth

1. Motion Study – Reducing Unnecessary Movements

   • Analyzed worker movements to eliminate unnecessary actions and improve overall efficiency.

   • Developed