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.
The main perspectives
| Perspective | Key people | Main idea |
|---|---|---|
| Classical: scientific management | Frederick W. Taylor; Frank and Lillian Gilbreth; Henry Gantt | Study work scientifically to find the one best way to do each job |
| Classical: general administrative theory | Henri Fayol; Max Weber | What managers do and how to structure the whole organization (principles, bureaucracy) |
| Behavioural | Robert Owen, Hugo Munsterberg, Mary Parker Follett, Chester Barnard; Elton Mayo (Hawthorne) | People and groups matter: attitudes, group norms and motivation shape output |
| Quantitative | Operations research after World War II; W. Edwards Deming and Joseph Juran (quality) | Use statistics, models and simulations to improve decisions |
| Contemporary: systems | Systems theorists | The organization is an open system of inputs, transformation, outputs and feedback |
| Contemporary: contingency | Situational writers | No 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. | Principle | In short |
|---|---|---|
| 1 | Division of work | Specialization raises output. |
| 2 | Authority and responsibility | The right to give orders goes with responsibility for results. |
| 3 | Discipline | Employees obey and respect the rules. |
| 4 | Unity of command | Each employee takes orders from only one superior. |
| 5 | Unity of direction | One head and one plan for activities with the same objective. |
| 6 | Subordination of individual interest | The organization's interest comes before any one person's. |
| 7 | Remuneration | Fair pay for services. |
| 8 | Centralization | Find the right balance of decision power at the top and lower down. |
| 9 | Scalar chain | A line of authority from top to bottom; a 'gang plank' allows quick sideways contact. |
| 10 | Order | People and materials in the right place at the right time. |
| 11 | Equity | Managers treat employees with kindness and fairness. |
| 12 | Stability of tenure | Low staff turnover; planned replacement. |
| 13 | Initiative | Allow employees to suggest and carry out plans. |
| 14 | Esprit de corps | Team 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
Modern managers combine ideas from every school, choosing what fits the situation.
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.
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.
Order of schools: Classical → Behavioural → Quantitative → Contemporary: 'Ceylon Businesses Quietly Change'. Fayol gave Fourteen principles; Taylor found the one best way using Time study.