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Lesson 3 EVOLUTION OF MANAGEMENT THOUGHTS Organized endeavors, directed by people, responsible for planning, organizing, leading and controlling activities have been in existence for thousands of years. The pyramids are particularly interesting examples. The construction of a single pyramid occupied more than 1,00,000 workers for 20 years. Who told each worker that what did one do? Who ensured that there would be enough stones at the site to keep the workers busy? The answer is Managers, regardless of what managers were called at that time. He had to plan what was to be done, organize people and material to do it, lead and direct the workers, and impose some controls to ensure that everything was done as planned. This example from the past demonstrates that organizations have been around for thousands of years and that management has been practices for an equivalent period. However, two pre-twentieth-century events played significant roles in promoting the study of management. First is Adam Smith’s contribution in the field of management and second is influence of Industrial Revolution in management practice. CONTRIBUTION OF LEADING THINKERS 1-Classical School: The classical development of management thoughts can be divided into- the scientific management, the organizational management, the behavioural management and the quantitative management. The first two (scientific management school and organizational) emerged in late 1800s and early 1900s were based on the management belief that people were rational, economic creatures choose a course of action that provide the greatest economic gain. These schools of management thoughts are explained as below: (A) Scientific Management School: Scientific management means application of the scientific methods to the problem of management. It conducts a business or affairs by standards established by facts or truth gained through systematic observation, experiments, or reasoning. The followings individuals contribute in development of scientific management school of management thoughts. They dedicated to the increase in efficiency of labour by the management of the workers in the organization’s technical core. (B) Organizational School: The organizational school of management placed emphasis on the development of management principles for managing the complete organization. (C) Behavioural School: The school of behavioural management theory involved in recognition on the importance of human behaviour in organization. Quantitative School: With the revolutionary change in the application of information technology came the quantitative school of thoughts, which finds its foundation in decision theory, the application of statistics in decision making and the evolution of mathematical/econometric models that are nurtured by computer technology. This approach is based upon the assumption that mathematical techniques can help the manager in solution of problems. 2- Integration School In recent years, an attempt has been made to integrate the classical theories with the modern behavioural and quantitative theories into an overall framework that use the best of each approach. These approaches assumed that there is no best way to manage, and all theories have application to the practice of management. 2-1-Contingency Theory: It is based on the notion that the proper management technique in a given situation depends upon the nature and conditions of that situation. 2-2- Systems Theory: It has been explained later in this lesson. 3- Contemporary School The contemporary school of management thoughts outlines the framework for studying the more recent trends in management practices, such as the impact of global business, Theory Z concepts, McKinsey 7-S approach, the search for excellence, and the concern for quality and productivity.