INTRODUCTION

THE KEY POINTS

• THE CHANGING ENVIRONMENT - BUSINESS, SOCIAL & ORGANIZATIONAL.

• HISTORICAL BACKGROUND.

• RESEARCH METHODOLOGY.

• KNITTING THE VARIOUS THEORETICAL FRAMEWORKS.

EARLY THINKING ABOUT MANAGEMENT

• MACHIAVELLI - “DISCOURSES” (1531)

– AN ORGANIZATION IS MORE STABLE IF MEMBERS HAVE THE RIGHT TO EXPRESS THEIR DIFFERENCES AND SOLVE THEIR CONFLICTS WITHIN IT.

CONTINUED...

• WHILE ONE PERSON CAN BEGIN AN ORGANIZATION, “it is lasting when it is left in the care of many and when many desire to maintain it”.

CONTINUED...

• A weak manager can follow a strong one, but not another weak one, and maintain authority.

• A manager seeking to change an established organization “should retain at least a shadow of the ancient customs”.

ANOTHER CLASSIC WORK

CHINESES PHILOSOPER - SUN TZU wrote a book more than 2000 years

ago - THE ART OF WAR.

SUN TZU’S DICTUMS:

• When the enemy advances, we retreat!

• When the enemy halts, we harass!

• When the enemy seeks to avoid battle, we attack!

• When the enemy retreats, we pursue!

WHY STUDY MANAGEMENT THEORY

• Because it provides a stable focus for understanding what we experience.

• It enables to communicate efficiently.

• Theories make it possible to keep learning about our world.

THE EVOLUTION OF MT

• Scientific Management School: Classical Organization Theory School.

• The Behavioural School.• Management Science.• The Systems Approach.• The Contingency Approach.• Dynamic Engagement Approach.

SCIENTIFIC MGMT. SCHOOL

• FREDERICK W. TAYLOR & OTHERS FORMULATED BETWEEN 1890-1930.

• THE PURPOSE WAS TO DETERMINE SCIENTIFICALLY THE BEST METHODS FOR PERFORMING ANY TASKS, AND FOR SELECTING, TRAINING AND MOTIVATING WORKERS.

FREDERICK W. TAYLOR: DIFFERENTIAL RATE SYSTEM

• BASED HIS PHILOSOPHY ON 4 BASIC PRINCIPLES:– The development of a true science of

management.– The scientific selection of workers.– The scientific education and

development of the worker.– Intimate, friendly co-operation between

management and labour.

HENRY L. GANTT

• Taylor’s differential rate system seemed to have too little motivational impact. Therefore, he came up with the idea,– Every worker who finished a day’s assigned

workload wins 50% bonus.– The supervisor would earn a bonus for

each worker who reached the daily standard plus an extra bonus if all the workers reached it.

THE GILBRETHS

• FRANK B. & LILLIAN M. GILBRETH collaborated to Fatigue and Motion Studies.

• FOCUS: Ways of promoting the individual worker’s welfare.

• According to them motion study would raise worker morale because of 2 reasons:– Obvious physical benefits and– Demonstrated management’s concern for

workers

CLASSICAL ORGANIZATION THEORY SCH.

• HENRY FAYOL: To underlie the principles and skills that underlie effective management. MANAGERS ARE MADE NOT BORN. MANAGEMENT IS A SKILL.

• TAYLOR’S CONCERN: Organizational Functions.

• FAYOL’S CONCERN :Total Organization focussed on Management

MARY PARKER FOLLETT

• Believer in the POWER OF THE GROUP.• Management for her meant, “ the art of

getting things done through people.”

• Follett’s holistic model of control took into account not just individuals and groups but the effects of environmental factors, i.e. politics, economics, biology etc.

CHESTER I. BARNARD

• AN ENTERPRISE CAN OPERATE EFFICIENTLY AND SURVIVE ONLY WHEN THE ORGANIZATION GOALS ARE KEPT IN BALANCE WITH THE AIMS AND NEEDS OF THE INDIVIDUALS WORKING FOR IT.– ZONE OF INDIFFERENCE: What the

employees would do without questioning the manager’s authority.

THE BEHAVIOURAL SCH.

• THE ORGANIZATION IS PEOPLE

• A group of management scholars trained in sociology, psychology, and related fields who use their diverse knowledge to propose more effective ways to manage people in organizations.

THE HUMAN RELATIONS MOVEMENT

• HUMAN RELATIONS: How managers interact with other employees.

• The Human Relations Movement arose from early attempts to systematically discover the social and psychological factors that would create effective human relations.

THE HAWTHORNE EXPERIMENTS

• Experiments done at Western Electric Company mostly at Hawthorne Plant near Chicago.

• HAWTHORNE EFFECT - The possibility that workers who receive special attention will perform better simply because they received that attention - Elton Mayo and his colleagues.

FROM HUMAN RELATIONS TO BEHAVIORAL SCIENCE APPROACH

• More sophisticated view of human beings and their drives - Douglas McGregor (Theory X and Theory Y), Maslow (Self-Actualization).

• Scientific investigation of people’s behaviour in organizations.

THE MANAGEMENT SCIENCE SCHOOL

APPROACHING MANAGEMENT PROBLEMS THROUGH THE USE OF MATHEMATICAL TECHNIQUES FOR THEIR MODELING, ANALYSIS AND SOLUTION.

THE SYSTEMS APPROACH

• Views organization as a UNIFIED, DIRECTED SYSTEM OF INTER-RELATED PARTS.

• Some Key Concepts:– Subsystem– Synergy– Open and closed system– Feedback

THE CONTINGENCY APPROACH

According to it,– A manager’s task is to identify which

technique in a particular situation, under particular circumstances, and at a particular time, best contribute to the attainment of management goals.

AN ERA OF DYNAMIC MGMT.

THE CHANGING TIME AND HUMAN RELATIONSHIPS ARE FORCING MANAGEMENT TO RETHINK TRADITIONAL APPROACHES IN THE FACE OF CONSTANT RAPID CHANGE.

A COMPANY OF BUSINESS PEOPLE

• Twentieth century organizations – 1. Owners and managers run the Company. 2. Workers would follow the directions.

• Twenty-first century organizations – Company of Businesspeople– Everyone is free to think like an owner and this

attitude becomes a part of everyday life. CHANGED MIND SET.