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Unit I · Introduction to management and the organizational environment
11 min readConcept sheetOften a 10-mark answer

Evolution of management thought and Fayol's principles

Management thought grew from classical ideas on efficient work, to behavioural ideas on people, to quantitative tools, and then systems and contingency thinking.

Father of scientific managementFrederick W. Taylor (1911)
14 principles of managementHenri Fayol (1916)
Ideal bureaucracyMax Weber
Hawthorne studiesWestern Electric, 1924-1932; Elton Mayo

The main perspectives

PerspectiveKey peopleMain idea
Classical: scientific managementFrederick W. Taylor; Frank and Lillian Gilbreth; Henry GanttStudy work scientifically to find the one best way to do each job
Classical: general administrative theoryHenri Fayol; Max WeberWhat managers do and how to structure the whole organization (principles, bureaucracy)
BehaviouralRobert Owen, Hugo Munsterberg, Mary Parker Follett, Chester Barnard; Elton Mayo (Hawthorne)People and groups matter: attitudes, group norms and motivation shape output
QuantitativeOperations research after World War II; W. Edwards Deming and Joseph Juran (quality)Use statistics, models and simulations to improve decisions
Contemporary: systemsSystems theoristsThe organization is an open system of inputs, transformation, outputs and feedback
Contemporary: contingencySituational writersNo one best way: the right method depends on the situation

Taylor's four principles of scientific management

  • Develop a science for each element of a job, replacing the old rule-of-thumb method.
  • Scientifically select, train and develop each worker.
  • Cooperate with workers so that work is done by the scientific method.
  • Divide work and responsibility almost equally between managers and workers.

Fayol's 14 principles of management

No.PrincipleIn short
1Division of workSpecialization raises output.
2Authority and responsibilityThe right to give orders goes with responsibility for results.
3DisciplineEmployees obey and respect the rules.
4Unity of commandEach employee takes orders from only one superior.
5Unity of directionOne head and one plan for activities with the same objective.
6Subordination of individual interestThe organization's interest comes before any one person's.
7RemunerationFair pay for services.
8CentralizationFind the right balance of decision power at the top and lower down.
9Scalar chainA line of authority from top to bottom; a 'gang plank' allows quick sideways contact.
10OrderPeople and materials in the right place at the right time.
11EquityManagers treat employees with kindness and fairness.
12Stability of tenureLow staff turnover; planned replacement.
13InitiativeAllow employees to suggest and carry out plans.
14Esprit de corpsTeam spirit builds harmony and unity.

Weber's ideal bureaucracy

  • Division of labour: clearly defined, specialized jobs.
  • Authority hierarchy: offices arranged in a clear chain of command.
  • Formal selection: people chosen and promoted on qualifications.
  • Formal rules and regulations: written rules for consistency.
  • Impersonality: rules applied the same way to everyone.
  • Career orientation: managers are professional officials, not owners.

The behavioural approach and the Hawthorne studies

The Hawthorne studies took place at the Western Electric Company's Hawthorne Works near Chicago, from 1924 to 1932. Engineers first tested how lighting affected output, but output rose in both the test group and the control group. Elton Mayo of Harvard later joined the work. The studies concluded that social norms, group standards and the attention workers received affected output more than pay or lighting. This launched the human relations movement and gave us the term Hawthorne effect: people change their behaviour when they know they are being observed.

Systems and contingency approaches

Systems approachAn organization is an open system. It takes in inputs (people, money, materials, information), transforms them, and produces outputs (goods, services, profit). Feedback and the environment link the parts, so a decision in one department affects the others.
Contingency approachThere is no one best way. The right action depends on the situation. Key variables: organization size, routineness of task technology, environmental uncertainty and individual differences. In short: it depends.

Modern managers combine ideas from every school, choosing what fits the situation.

In Sri Lankan business

Sri Lankan apparel factories, such as those of MAS and Brandix, use classical tools like work study, standard minutes and line balancing on sewing lines. They also run welfare, recognition and team programmes for workers, which reflect the behavioural lessons of Hawthorne.

Exam angle

Short answer: “What is the Hawthorne effect?” Workers change their behaviour and output because they know they are being observed and are receiving attention.

Essay: “Explain Fayol's fourteen principles of management.” Introduce Fayol and general administrative theory, then all 14 principles, one line and an example each, and close on their relevance today.

Essay: “Trace the evolution of management thought.” Classical (Taylor, Fayol, Weber), behavioural (Follett, Barnard, Hawthorne), quantitative (operations research, quality), contemporary (systems, contingency): key idea and one limitation of each.

Remember it

Order of schools: Classical → Behavioural → Quantitative → Contemporary: 'Ceylon Businesses Quietly Change'. Fayol gave Fourteen principles; Taylor found the one best way using Time study.