Latest IGNOU MMPC-001 Block-1 Introduction to Management Unit-2 Management and Its Evolution Notes PDF In English | EDU-Favor

Here is Latest Latest IGNOU MMPC-001 Block-1 Introduction to Management Unit-2 Management and Its Evolution Notes PDF In English | IGNOU Study Material Notes PDF for Management Functions And Organisational Processes MMPC 001 (Block 1 Unit-2) Introduction to Management | EDU-Favor 

Table of Contents (toc)

Unit 2 Management And Its Evolution

After reading this unit, you should be able to understand:

• The evolution of management
• The foundations of management thought
• The different perspectives of management
• The philosophy and approaches of management
• The various ideas of management thinkers during their time
• The principles of Scientific management
• The contribution of the behavioral science to management
• The contingency approach, Systems approach, Decision Theory
• Approach and other approaches to management.

The evolution of management:

The evolution of management is a journey from viewing workers as "parts of a machine" to seeing them as the core drivers of an organization's success. This history is typically divided into four distinct eras.

The perspectives of management:

The perspectives of management are different ways of understanding how organizations are run. They include classical approaches (like scientific, administrative, and bureaucratic management), behavioral approaches (focusing on people and motivation), and modern approaches (systems, contingency, and contemporary practices). Each perspective highlights unique principles that shape how managers plan, organize, lead, and control.

​1. The Pre-Scientific Era (Before 1880):

​represents the time before management became a formal academic discipline. During this period, management was more of an art or a craft based on intuition and trial-and-error rather than structured theories.

Even though there were no "management textbooks," massive projects like the Great Wall of China and the Egyptian Pyramids prove that highly sophisticated organizing was happening long before the industrial age.

​1. Key Characteristics of the Era: 

• Trial and Error: Decisions were made based on personal experience and "gut feeling."
• No Formal Training: Management was passed down through apprenticeships or family inheritance (e.g., a son taking over his father’s blacksmith shop).
• ​Owner-Manager Model: The person who owned the capital (the tools and the building) was usually the same person directing the work.
• ​**Low Scalability: This worked for small workshops, but as the Industrial Revolution began to create massive factories, these "informal" methods started to fail.

​2. The Early Pioneers

​While "Scientific Management" didn't start until the late 1880s with Frederick Taylor, a few visionary thinkers began laying the groundwork during this era.

• ​Robert Owen (1771–1858): The Father of Personnel Management; Owen was a successful factory owner in Scotland who realized that employees were "vital machines."
• His Philosophy: If you maintain your metal machines, they last longer. Why not treat human workers the same way?
• His Contributions: He introduced shorter work hours (10 hours instead of 13), restricted child labor, and provided housing and education for workers' families.
• ​Charles Babbage (1792–1871): The Father of Computing & Work Analysis: ​A mathematician by trade, Babbage applied logic to factory floors.
• His Contributions: He advocated for the division of labor (breaking tasks into smaller parts) and profit-sharing (giving workers a bonus for helpful suggestions).
• ​Work Measurement: He used data to determine the precise cost of every step in a manufacturing process.
• Adam Smith (1723–1790): Division of Labor: ​In his famous book The Wealth of Nations, Smith used the example of a pin factory to show how specialized labor increases productivity.
• ​One man making a pin alone might make 20 a day.
• ​Ten men splitting the tasks (stretching the wire, cutting it, sharpening the tip) could make 48,000 pins a day.

​3. Why the Era Ended

​As the 1800s drew to a close, business became too big for "common sense" alone.

• ​The Factory System: Thousands of workers in one building required a more systematic approach to keep track of time and materials.
• Standardization: To produce parts that could be swapped between machines (interchangeable parts), managers needed precise rules, not just intuition.

This transition led directly to Frederick Taylor and the birth of the Scientific Management Era (The Classical School).

2. The Classical Era (1880 – 1930)

​Triggered by the Industrial Revolution, this era focused on efficiency and structure. Managers wanted to find the "one best way" to do every job.  There are three separate branches of the classical approach are evident- Scientific management, Administrative Theory and b

Bureaucracy. 

 

A. Scientific Management (F.W. Taylor):

Frederick Winslow Taylor in the late 19th and early 20th centuries. It shifted management from "rule-of-thumb" (working by intuition) to a rigorous, data-driven science focused on maximizing industrial efficiency.

1. The Four Core Principles: Taylor proposed four fundamental principles to transform how work was managed and executed.

• Science, Not Rule of Thumb: Replace traditional, unstandardized methods with a scientific study of each task to determine the "one best way" to do it.
• Scientific Selection and Training: Instead of letting workers choose their own tasks and train themselves, management should scientifically select, train, and develop each worker.
• Cooperation, Not Individualism: Management and workers must cooperate to ensure work is done according to the developed scientific principles.
• Division of Responsibility: Work should be divided almost equally between managers (who do the planning/thinking) and workers (who do the actual labor).

2. Key Techniques of Taylorism: To implement these principles, Taylor introduced specific tools that changed the face of modern manufacturing.

• Time and Motion Study: ​Managers used stopwatches to record the exact time it took a worker to perform specific movements. By eliminating "wasteful" motions, they could set a standard time for every task.
• Functional Foremanship: ​Taylor believed one supervisor couldn't be an expert in everything. He proposed eight specialized bosses for every worker: Planning Side: Route Clerk, Instruction Card Clerk, Time and Cost Clerk, and Disciplinarian. Execution Side: Gang Boss, Speed Boss, Repair Boss, and Inspector.
• Differential Piece Wage System: To motivate workers, Taylor suggested paying them based on their output. High Rate: For those who meet or exceed the standard. Low Rate: For those who fall below the standard. This provided a strong financial incentive for efficiency. 

3. The "Mental Revolution": Taylor argued that for Scientific Management to work, both management and labor needed a complete change in mindset. Instead of fighting over how to divide profits (the "surplus"), both sides should focus on increasing the size of the surplus through higher productivity. If the "cake" is bigger, both wages and profits can increase simultaneously.

​4. Criticisms and Limitations: While Taylorism drastically increased productivity, it faced heavy criticism:

• Dehumanization: It treated workers like "cogs in a machine," focusing purely on physical output and ignoring social or psychological needs.
• Monotony: Breaking jobs into tiny, repetitive tasks made work boring and stifled creativity.
•  Separation of Thinking from Doing: By giving all planning power to managers, workers lost their autonomy and initiative.
• Exploitation: Critics argued that the gains in productivity often benefited owners far more than the workers, leading to physical and mental strain. 

Fun Fact: Taylor once famously conducted a "shoveling experiment" where he determined that the optimum weight a first-class shoveler should lift was exactly 21 pounds. He then designed different shovels for different materials (coal vs. iron ore) to ensure this weight was always met.

B. Administrative Theory (Henri Fayol): 

F.W. Taylor focused on the "shop floor" (the bottom-up approach), Henri Fayol, a French mining executive, developed a "top-down" approach known as Administrative Theory. He is often called the "Father of General Management" because his work focused on how an entire organization should be structured and how managers should lead.

Fayol’s theory is built on two pillars: the Five Functions of Management and the 14 Principles of Management.

​1. The Five Functions of Management: Fayol identified that management is a continuous process consisting of five key activities:

• Planning: Looking ahead and charting a course of action.
• Organizing: Providing the resources (material and human) necessary for the plan.
• Commanding: Leading and overseeing employees to get the job done.
• Coordinating: Binding together and unifying all activities and efforts.
• Controlling: Checking that everything happens in accordance with the plan and rules.

​2. The 14 Principles of Management: Fayol believed these principles were flexible and could be applied to any organization (universality of management).  

1. Division of Work: Specialization increases efficiency by making workers more proficient.
2. Authority & Responsibility: Managers must have the power to give orders, but they are also accountable.
3. Discipline: Obedience and respect for agreements between the firm and its employees.
4. Unity of Command: An employee should receive orders from only one superior.
5. Unity of Direction: One head and one plan for a group of activities having the same objective.
6. Subordination of Interest: The goals of the organization come before the goals of any individual.
7. Remuneration: Fair pay for both employees and the employer to maintain loyalty.
8. Centralization: Finding the right balance between central decision-making and delegation.
9. Scalar Chain: The formal line of authority from top to bottom (hierarchy).
10. Order: "A place for everything and everything in its place" (Social and Material).
11. Equity: Managers should be kind and fair to their subordinates.
12. Stability of Tenure: Reducing employee turnover to ensure productivity.
13. Initiative: Encouraging employees to create and carry out plans.
14. Esprit de Corps: Promoting team spirit and harmony within the organization.

3. Key Innovation: The "Gang Plank": While Fayol emphasized the Scalar Chain (hierarchy), he recognized that strict adherence could cause delays. He introduced the "Gang Plank"- a shortcut that allows two employees at the same level to communicate directly in emergencies, provided their superiors are informed.

​4. Fayol vs. Taylor: At a Glance 

• Perspective: Taylor looked from the bottom-up (worker efficiency); Fayol looked from the top-down (managerial efficiency).
• Unity of Command: Fayol insisted on it (one boss). Taylor broke it with Functional Foremanship (eight bosses).
• Applicability: Taylor’s methods were often specific to manufacturing; Fayol’s principles are considered universal for all types of organizations.

C. Bureaucratic Approach (Max Weber): 

While Taylor focused on the factory floor and Fayol on the manager's role, Max Weber, a German sociologist, focused on the entire social structure of an organization. 

Weber’s Bureaucratic Theory was a response to the "nepotism" and "favouritism" common in the early 1900s. He sought to create a system that was rational, predictable, and impersonal-essentially a machine-like organization where rules, not personalities, dictated actions.

​1. The Three Types of Authority: Weber argued that for any organization to function, its members must accept the "right" of their leaders to rule. He identified three bases of authority:

1. Traditional Authority: Based on long-standing customs or "inheritance" (e.g., a King or a family-owned business passed down to a son).
2. Charismatic Authority: Based on the extraordinary personality or "vision" of a leader (e.g., a cult leader or a revolutionary).
3. Rational-Legal Authority: Based on a system of written rules and laws. This is the foundation of Bureaucracy.

​2. Six Characteristics of an "Ideal" Bureaucracy: Weber outlined six principles to achieve maximum efficiency and stability:

• Hierarchical Structure: A clear "chain of command" where each level is supervised by a higher one.
• Division of Labor: Tasks are divided into simple, routine, and well-defined categories based on functional specialization.
• Formal Rules and Regulations: Decisions are governed by a consistent set of written rules to ensure uniformity and predictability.
• Impersonality: Managers must maintain a professional distance from subordinates. Decisions should be made based on facts and rules, not emotions or personal relationships.
• Formal Selection (Merit-Based): Employees are hired and promoted based on technical qualifications, skills, and performance—never because of "who they know."
• Career Orientation: Managers are professional "career" employees (not owners of the business) who work for a fixed salary and follow a defined path.

4. Summary: The Evolution of Classical Theory: To wrap up the "Classical School" of management:

• ​Taylor (Scientific): Optimized the Task (How do we shovel coal faster?).
• Fayol (Administrative): Optimized the Manager (How do we coordinate a company?)
• Weber (Bureaucratic): Optimized the Structure (How do we ensure fairness and order?). 

3. The Neo-Classical/Behavioral Era (1930 – 1950)

​The Neo-Classical Era, also known as the Behavioral Management Movement, marked a dramatic shift in thinking. While the Classical theorists viewed workers as rational "economic tools" (like machines), the Neo-Classicals argued that workers are complex social beings with emotional and psychological needs.

This era proved that employee satisfaction and social relationships are just as important for productivity as physical tools or paychecks.

​1. The Hawthorne Studies (1924–1932): The most influential spark for this movement was a series of experiments conducted by Elton Mayo and his team at the Western Electric Hawthorne Works in Chicago. The "Illumination" Surprises

​Initially, researchers wanted to see if better lighting increased productivity.

• The Result: Productivity went up when light was increased... but it also went up when light was decreased!
• The Discovery: Workers weren't responding to the light; they were responding to the attention they were getting from the researchers. This became known as the Hawthorne Effect.

​Key Findings: 

• The Informal Organization: Within the formal structure, workers form "informal groups" with their own leaders and norms. These groups often have more influence over output than management’s rules.
• Social Man vs. Economic Man: People are motivated more by social needs (belonging, recognition) than by money alone.
• Group Dynamics: If the group decided on a specific "fair" amount of work, members would stick to that limit even if they could earn more by working faster.

​2. Key Figures and Theories:

• ​Abraham Maslow: Hierarchy of Needs: Maslow proposed that humans are motivated by a five-tier hierarchy of needs. He argued that a manager cannot motivate an employee with "social recognition" if the employee is struggling to pay for food or rent.

1. Physiological: Basic survival (salary, air, water).
2. ​Safety: Security and stability (job security, health insurance).
3. Social/Belonging: Relationships (teamwork, office culture).
4. Esteem: Status and recognition (promotions, awards).
5. Self-Actualization: Personal growth (achieving one's full potential).

Douglas McGregor: Theory X and Theory Y

​McGregor suggested that a manager's behavior depends entirely on their assumptions about human nature:

• Theory X (Classical View): Assumes people are lazy, dislike work, and must be coerced or threatened with punishment to perform.
• Theory Y (Neo-Classical View): Assumes people find work natural, seek responsibility, and are self-motivated and creative if given the right environment.

Why It Matters Today: The Neo-Classical era birthed the modern Human Resources (HR) department. It shifted the focus from "how to build a better machine" to "how to build a better team." It taught us that a happy worker is often a more productive worker.

• Human Relations Movement (Elton Mayo): Stresses the importance of social factors, teamwork, and employee morale.
• Behavioral Science Approach: Uses psychology and sociology to understand motivation, leadership, and group dynamics.

4. Modern Perspectives (1950 to Present)

The Modern Era of management (1950s to the present) acknowledges that the world is far more complex than the early theorists imagined. It moves away from "rigid rules" and toward integration, adaptability, and data.

​Modern management is generally divided into three major pillars:

1. Systems Approach: Views organizations as interconnected subsystems working toward a common goal.

• Open vs. Closed Systems: Modern organizations are Open Systems. They constantly interact with the external environment (customers, government, competitors). They take in Inputs (raw materials, info), transform them through Processes, and produce Outputs (products, profits).
• ​Synergy: The idea that the whole is greater than the sum of its parts (1 + 1 = 3). When departments work together, they achieve more than they could alone.
• ​Entropy: Without constant "input" and management, a system will naturally decline and fail.

2. Contingency Approach: ​This is often called the "It Depends" approach. Contingency theorists argue that there is no "one best way" to lead or organize.

• The Logic: The most effective management style depends on the specific situation (the contingency).
• ​If-Then Framework: If your workers are highly skilled and the task is creative, then a democratic leadership style works best. If there is a crisis and the task is dangerous, then an autocratic style might be better.
• ​Key Variables: Modern managers must analyze the environment (stable vs. turbulent), technology, and people before deciding how to manage.

3. The Quantitative Approach (Management Science): Emerging from the military strategies used during World War II, this approach uses mathematical and statistical models to make decisions.

• ​Data-Driven Decisions: Instead of relying on a "gut feeling," managers use tools like linear programming, queuing theory, and simulations.
• Operations Management: Focusing on the physical production of goods and services (e.g., inventory management, scheduling, and quality control).
• Big Data & AI: Today, this has evolved into using algorithms and Artificial Intelligence to predict consumer behavior and optimize supply chains.

​4. Emerging Modern Concepts: As we move further into the 21st century, two additional perspectives have gained ground:

• ​Chaos Theory: Recognizes that events are often unpredictable and non-linear. Small changes can lead to massive consequences (the Butterfly Effect). Managers must focus on being highly agile and resilient rather than trying to control every detail.
• Total Quality Management (TQM): A organization-wide effort to focus on continuous improvement and meeting customer needs perfectly.

Key Considerations

• Trade-off between efficiency and human needs: Classical approaches maximize productivity but may neglect employee well-being.
• Adaptability matters: Modern perspectives stress flexibility, crucial in today’s fast-changing business environment.
• Ethics and sustainability: Contemporary management increasingly integrates social responsibility and long-term impact.

Theory X and Theory Y 

Developed by social psychologist Douglas McGregor in his 1960 book The Human Side of Enterprise, Theory X and Theory Y represent two polar-opposite sets of assumptions that managers hold about their employees.

McGregor argued that a manager's leadership style is dictated by which of these "theories" they believe to be true about human nature.

At a Glance: Theory X vs. Theory Y

Feature Theory >> X (Authoritarian) >> Theory Y (Participative)

• View of Work >> Inherently disliked; avoided if possible >> As natural as play or rest; enjoyable.
• Motivation >> External (money, security, fear) >> Internal (growth, achievement, purpose).
• Responsibility >> Avoided; employees prefer to be told what to do >> Sought out; employees want to take ownership.
• Control >> High supervision and micromanagement >> Autonomy and self-direction.
• Creativity >> Thought to be limited to management >> Widely distributed among all staff.

Theory X: The "Stick" Approach

​Theory X assumes that people are naturally lazy and unmotivated. Because of this, management believes it must use a command-and-control approach to get results.

• Management Style: Autocratic and top-down.
• Tactics: Tight supervision, strict rules, and the use of "carrots and sticks" (rewards and punishments).
• Result: This often leads to a "them vs. us" culture. It can be effective in high-pressure, low-skill environments (like an assembly line), but it often stifles innovation.

Theory Y: The "Carrot" Approach

​Theory Y assumes that employees are self-motivated, enjoy challenges, and see work as a source of fulfillment. Management’s role is to remove obstacles so employees can succeed.

• Management Style: Democratic and collaborative.
• Tactics: Empowering employees, encouraging professional development, and involving them in decision-making.
• Result: This fosters a culture of trust and creativity. It is widely considered more effective for modern "knowledge work" where problem-solving is key.

Which one is better?

​While Theory Y is generally seen as more "progressive" and humane, McGregor noted that neither is "right" in every situation.

• ​Theory X might be necessary for new trainees who need clear structure or in crisis situations where quick, centralized decisions are vital.
• Theory Y is typically better for long-term retention, employee morale, and high-level creative output.

Fun Fact: McGregor’s work was heavily influenced by Maslow’s Hierarchy of Needs. He argued that Theory X only satisfies "lower-level" needs (food/security), whereas Theory Y targets "higher-level" needs like self-esteem and self-actualization.

Summary of the Evolution of Management 

The evolution of management thought evidences the contribution of multiple perspectives from the classical approach, which provided the foundations of management. The neo- classical school comprising of the perspectives of the sociologists, psychologists and business managers have contributed to the knowledge and the practice of management. The transformation process continued with the contribution to the theory and practice of management by the contemporary management thinkers and consultants across the world, thus making management an exciting field of study and enquiry for both the researchers and the managers.