HI6005: Exploring the Paradigm Shift in Management Theories Today

This report explores the paradigm shift in management theories, tracing the evolution from the scientific management era to the modern humanistic approach. It highlights the limitations of early theories that focused solely on production and efficiency, neglecting the psychological and social needs of employees. The shift was driven by research questions raised by management leaders and researchers, leading to an increased emphasis on employee motivation, satisfaction, and overall well-being. The report references key figures like Maslow and Mary Parker Follet, whose work underscored the importance of human psychology in the workplace, ultimately shaping contemporary management practices. Modern management theories now prioritize employee engagement and happiness as vital factors in enhancing organizational efficiency and productivity. The analysis includes contributions and limitations of quantitative management, the transition to human relations, and the impact of behavioral science on management practices.

Management theories –
Management Yesterday &
Today
Aim- To Study the Paradigm shift in management theories &
the key reasons that led to the shift

INTRODUCTION
• Several management principles find wide
application in history
• However, it was only in the 19th century that these
management principles took the form of well
structured Theories
• Progress over time led to management experts &
leaders pointing out several shortcomings with the
existing management theories
• Key research questions presented by them led to
steady paradigm shift in the way these
management theories were applied then & now
• What were these questions & How they led to the
paradigm shift in management theories is the key
focus of this presentation

Evolution of management
theories
1910 -Scientific Management Theory
1920 -Administrative Management
Theory
1930 – 1970 Behavioural
Management Theory
1940-Management Science Theory
1950 - Organisational Environment
Theory

Scientifi c Management School has given
way to quantitative management
• Quantitative Management finds it origin during the
world war II where scientists, mathematicians and
physicist solved military problems using a
mathematical, statistical & Computational
Approach
• Research questions such as their relevance in the
modern society & application to various domain led
to the paradigm shift in modern management
• In the present era, these concepts encourage
modern management leaders to make efficient use
of quantitative management skills to enhance
productivity, profitability and overall efficient
Mathematical Computational
Statistical

Quantitative Management – It’s
Contributions & Limitations
Contribution
Has been highly useful in making key decisions in large scale
industries such as market research & Consulting
Has made it possible to make sense of exhaustive amount of data &
their Implications
Limitation
Model neglects factors that cannot be quantified
Requires specific skillset, the lack of which could lead to inefficiency
Not suited for unpredictable & Non routine management decesions

Scientifi c Management Schools has given way
to Human Relations School of Management
• Conventional management school did not
usually consider the human aspect of workers
in an organizational setup
• The scientific approach was found to be
highly ineffective in organizations which
heavily relied on humans for their daily
operations
• This led to research questions regarding the
psychological & social needs of employees at
workplace
• Ultimately leading to the paradigm shift in
meeting their psychological demands .

MASLOW HIERARCHY OF NEEDS CHART
Maslow's hierarchy of needs
clearly points out the
physiological & psychological
needs of an individual & their
Importance

Human Relation school of management
has given way to behavioral Science
School of Management
• Conventional Scientific management was heavily
production oriented
• Efforts of management leaders like Mary Parker
Follet questioned the lack of human psychology &
behavioural aspect in the conventional theories
• This led to a paradigm shift in the late 19th
century with several management practises
focused on aspects like employee motivation &
Satisfaction at workplace .
• Since then management theories give vital
importance to humanistic behaviour and actions
Mary Parker
Follet – Pioneer in
Behavioural
Science school of
Management

CONCLUSION
• Scientific Management Theories have
projected a paradigm shift in the last 100
years
• Conventional management thoughts were
more production & Efficiency oriented, thus
lacking humanistic approach in their
application
• Taylor’s work time theory, weber’s
hierarchy theory were widely prevalent in
classical management
• Efforts made by leaders & researchers like
Maslow & Mary Follet questioned the
shortcomings and lack of humanistic
approach in traditional management

CONCLUSION
• This led to key emphasis on modern management theories to be more
humanistic in their approach, giving vital importance to human psychology
& motivation.
• Management theories then & now, thus have evolved significantly over the
past few decades.
• Employee motivation, satisfaction & happiness are now considered to be
vital factors to enhance efficient management along with productive
output

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