Unit 1: Foundations and evolution of management thought
Foundations of Management notes · PTU syllabus (MBA 101-18)
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Unit summary
Management is the art and science of getting things done through people. This unit covers the definition, nature, scope and functions of management, managerial roles and skills, the classical, neo-classical, quantitative, behavioural, systems and contingency approaches, and the contributions of Taylor, Fayol, Follett, Barnard, Weber, Drucker, the Gilbreths, Gantt, Maslow, Herzberg and McGregor.
After this unit you can
- Explain the nature, scope and functions of management
- Explain managerial roles and skills
- Trace the schools of management thought
- Summarise the contributions of major management thinkers
PTU syllabus topics
- Definition
- nature
- scope and functions of management
- managerial roles and skills
- classical/neo-classical/quantitative/behavioural/systems/contingency approaches
- contributions of Taylor
- Fayol
- Follett
- Barnard
- Weber
- Drucker
- the Gilbreths
- Gantt
- Maslow
- Herzberg and McGregor
Classical
Taylor, Fayol, Weber: efficiency, structure
Neo-classical
Mayo, Follett, Barnard: people and cooperation
Quantitative
Models and operations research
Behavioural
Maslow, Herzberg, McGregor
Systems
Interrelated parts and environment
Contingency
It depends on the situation
Topic 1
Meaning and functions of management
Management is the process of getting things done through and with people in formally organised groups (Harold Koontz). Henri Fayol defined it as "to forecast and plan, to organise, to command, to coordinate and to control".
Nature of management
- Goal-oriented — exists to achieve objectives.
- Universal — needed in all organisations, profit or non-profit.
- Continuous process — functions are repeated in a cycle.
- Group activity — achieves results through people.
- Intangible — seen only in its results.
- Both art and science — systematic knowledge applied with personal skill; an emerging profession.
- 1. Planning: Deciding in advance what to do
- 2. Organising: Arranging tasks, people and resources
- 3. Staffing: Filling positions with the right people
- 4. Directing: Leading, motivating and communicating
- 5. Controlling: Measuring performance and correcting deviations
Exam tip
Coordination is called the essence of management — it runs through all functions rather than being a separate step.
Levels of management
- Top level
Board, CEO, MD — objectives, policies, strategy
- Middle level
Departmental heads — implement policies, coordinate
- Lower (operational) level
Supervisors, foremen — direct workers, maintain quality
Topic 2
Managerial roles and skills
Mintzberg's ten managerial roles (1973)
Interpersonal
Figurehead, leader, liaison
Informational
Monitor, disseminator, spokesperson
Decisional
Entrepreneur, disturbance handler, resource allocator, negotiator
Katz's managerial skills
| Skill | Meaning | Most needed at |
|---|---|---|
| Technical | Knowledge of methods, techniques and tools of a specialised field | Lower level |
| Human (interpersonal) | Ability to work with, understand and motivate people | All levels |
| Conceptual | Ability to see the organisation as a whole and think abstractly | Top level |
A fourth skill, design skill (Koontz), is the ability to solve problems in ways that benefit the enterprise.
Topic 3
Evolution of management thought
- 1Classical approach (1880s–1920s)
Scientific management, administrative theory, bureaucracy
- 2Neo-classical approach (1920s–1950s)
Human relations, behavioural science
- 3Modern approaches (1950s onwards)
Quantitative, systems, contingency
Classical approach
- Scientific management (F.W. Taylor): science not rule of thumb, harmony not discord, cooperation not individualism, development of each worker to greatest efficiency. Techniques — time, motion and fatigue study, standardisation, functional foremanship, differential piece-rate system.
- Administrative management (Henri Fayol): 14 principles — division of work, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual interest, remuneration, centralisation, scalar chain, order, equity, stability of tenure, initiative, esprit de corps.
- Bureaucracy (Max Weber): hierarchy, rules, impersonality, division of labour, selection on merit.
Neo-classical approach
- Human relations (Elton Mayo — Hawthorne experiments, 1924–32): social and psychological factors (attention, group norms) affect productivity more than physical conditions.
- Behavioural science: Maslow, McGregor (Theory X and Y), Herzberg — motivation, leadership, group dynamics.
Modern approaches
- Quantitative (management science): operations research and mathematical models for decisions.
- Systems approach: organisation as an open system of interrelated parts — inputs, transformation, outputs, feedback.
- Contingency approach: there is no one best way; the right practice depends on the situation (environment, technology, size).
Perspective
Shop-floor (worker level)
Top management
Focus
Productivity of workers
Administration of the whole organisation
Basis
Experimentation and observation
Personal experience
Known as
Father of scientific management
Father of general (modern) management
Topic 4
Contributions of major thinkers
| Thinker | Key contribution |
|---|---|
| F.W. Taylor | Scientific management — time and motion study, functional foremanship, differential piece rate |
| Frank and Lillian Gilbreth | Motion study, therbligs (17 basic motions), fatigue study |
| Henry Gantt | Gantt chart for scheduling; task and bonus wage plan |
| Henri Fayol | 14 principles of management; five functions (POCCC) |
| Max Weber | Bureaucracy — hierarchy, rules, impersonality, merit |
| Mary Parker Follett | Constructive conflict (integration), power "with" not "over", law of the situation |
| Chester Barnard | Organisation as a cooperative system; acceptance theory of authority; informal organisation |
| Elton Mayo | Hawthorne studies — social man, human relations |
| Abraham Maslow | Need hierarchy theory of motivation |
| Frederick Herzberg | Two-factor (hygiene–motivator) theory |
| Douglas McGregor | Theory X and Theory Y assumptions about people |
| Peter Drucker | Management by objectives, knowledge workers, "the purpose of business is to create a customer" |
Exam tip
For a "contributions" question, write one paragraph per thinker with a key term each (therbligs, acceptance theory, law of the situation) — specific terms earn marks.
Key terms
- Management
- Getting things done through people to achieve goals
- Conceptual skill
- Ability to see the organisation as a whole
- Scientific management
- Taylor's systematic study of work
- Systems approach
- Organisation as interrelated parts interacting with the environment
- Contingency approach
- Best practice depends on the situation
Quick revision
- Functions: planning, organising, staffing, directing, controlling; coordination is the essence.
- Roles (Mintzberg) and skills (Katz).
- Classical → neo-classical → quantitative → systems → contingency.
- Thinkers: Taylor, Fayol, Weber, Follett, Barnard, Mayo, Maslow, Herzberg, McGregor, Drucker, Gilbreths, Gantt.
Important exam questions
Practice questions written to the PTU exam pattern for this unit's syllabus: short answers (Section A style) and long answers (Sections B and C style).
Short-answer questions
- Q1.Define management.
- Q2.What are Katz's managerial skills?
- Q3.State any four of Fayol's principles.
- Q4.What is the contingency approach?
- Q5.What is Barnard's acceptance theory?
- Q6.What are therbligs?
Long-answer questions
- Q1.Explain the nature, scope and functions of management.
- Q2.Explain managerial roles and skills.
- Q3.Trace the evolution of management thought.
- Q4.Discuss the contributions of major management thinkers.
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