Evolution of Management Theory

1. Human Relations Movement

1.1. Based on the idea that truly effective control comes from within an individual worker rather than a strict authorisation control. Hawthorne effect - Special attention to a person or a group may increase productivity and motivation.

2. Systems Movement

2.1. Views organisations as a unified, purposeful, system composed of inter related parts. input ---> process --> output.

3. Situational Contingency Approach

3.1. There cannot be one best way of management but rather different techniques, tools, structures and styles of management which best suits the different situations.

4. Classical Approach - how management was used from 1800s to 1900s where it stresses a manager's role in formal hierarchy focus and accomplished the task.

4.1. Scientific Management Theory Focuses on the Improvement of Operational efficiencies through the systematic and scientific study. Key Contributors F.W Taylor (1856 - 1915) Frank Gilbreth (1868 - 1924)

4.2. Administrative Management Theory Focuses on the improvement and productivity of the entire organisation. Activities of an Organisation Technical Activities Commercial Activities Financial Activities Accounting Activities Security activities

4.3. Bureaucratic Management Theory This is a strictly designed hierarchy Key Contributor Max Weber (1864 - 1920) Characteristics of Bureaucratic Organisation Impersonal and Logical rules. Division of labour. Positions arranged in a hierarchy. Clearly defined authority. Selection Based on Technical qualifications.

5. Behavioural Approach

5.1. Importance of Understanding Human Behaviour, Needs and attitudes in a work place as well as social interaction.

6. Japanese Approach Theory Z

6.1. Theory Z focuses on increasing employ loyalty to the company by providing a job for life with a strong focus on the wellbeing of the employ, both on and off the job