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EVOLUTIONS OF MANAGEMENT
THOUGHTS
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Definitions of Management
Harnold koontz defined management as the the process of designing
& maintaining the environment in which individuals, working together in
groups, efficiently accomplish selected aims
David l kurtz defined management as the use of people & other
resources to accomplish objectives
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Management ?
Management is a set of activities including planning & decision making,
organizing, leading & controlling, directed at an organizations
resources ( physical, financial, human & information ) with the aim ofachieving organizational goals in efficient & effective manner.
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Evolution of the Management Thought
Modern managers use many of the practices, principals, andtechniques developed from earlier concepts and experience.
In 1975, Raymond E. Miles wrote Theories of Management :Implications for organizational behavior and development.
In it, he evaluated management includes classical, humanrelations, and human resources management.
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The development of management thought has been evaluated in
nature under the following four parts:
1. Classical management Era (1880-1930)
2. Neo-classical Management Era (1930-1950)
3. Modern Management era(1950-on word)
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Classical Management: includes1. Scientific Management approach
2. Administration Management approach3. Bureaucracy Management.
Neo- classical Management: includes1. Human relation approach
2. Behavioral Management approach
Modern Management: includes1. Quantitative Management school
2. System Management school
3. Contingency Management school
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Scientific Management Frederick w.taylor ( 1856- 1915 )
A worker and then a supervisor in steel company
Carried experiments to increase efficiency of the workers
Published many books and papers
Studied M.E (Masters of Engineering)
His experiments are divided into
Elements and tools of scientific management
Principles of scientific management.
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Elements and tools of scientificmanagement
Separation of planning & doing supervisor plans, workers only
carries out the task.
Functional foremanship 4 types of supervisors for planningaspect , while 4 for supervision aspect of the work.
Job analysis best way to do the job.
Standardization of process, period & amount of work, working
conditions, tools used etc.
Scientific selection & training of workers. Financial incentives.
Economy optimum utilization of resources & reduce wastage.
Mental revolution cooperation between workers & management.
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Principles of scientific management
Replacing rule of thumb with science
Harmony in group actions
Cooperation
Maximum output
Development of workers
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Critical Analysis of ScientificManagement
Relevant from engineering point of view rather than management
point of view
Human aspect of the work was sidelined workers gotaggressive, resulted in unhealthy competition
Increased authoritarian approach in industries strict
supervision
Financial incentives exploited the workers ( differential piece rate
system )
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Administrative Management HenryFayol (1841-1915 )
Henry Fayol French Industrialist
Used the term Administration instead of Management
Divided industrial organization into 6 groups :
Technical
Commercial
Financial
Security
AccountingManagerial
Identified qualities of a manager
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Managerial Qualities and training-according to Fayol
Physical Health
Mental - ability to learn, judge, think, plan
Moral - loyalty, firmness, tact, dignity
Educational - acquaintance to subjects not related to
functions performed
Technical - pertaining to the function performed, eg. production
Experience - arising through work
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Fayols 14 principles of Management
1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity in command
5. Unity of direction
6. Subordination of individual, to general interest
7. Centralization
8. Remuneration
9. Scalar chain
10. Order
11. Equity
12. Stability of Tenure
13. Initiative
14. Esprit de corps
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BureaucraticApproach to Management-
Max Weber (1864 -1920)
Max weber analyzed functioning of church, government, military
& business organization.
He believed that bureaucracy was the most efficient form of a
business structure for any type of business organization
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Features ofBureaucracy Theory
Administrative class :
This class exists in a bureaucratic organization
The employees are full time & look after coordination among activities
Hierarchy :
It is a system of ranking
Strict rules for authority & responsibility
Serves lines of communication & delegation of authority
Division of work :
Organization divided in various departments
Each department will have a specific function
Clear definition of work
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Official Rules :Administrative process covered by rules
Provides stability & uniformity
Impersonal Relationships :Official relationships free from personal involvement, emotions &
sentiments
Decisions are based on rational ranking
Official Record :Maintenance of official records
Beneficial for future experience
Filing system used extensively
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The human relations approach -Elton Mayo
Conducted the famous Hawthorne Experiments carried out at
the Western Electric Company, in the United States ofAmerica
that started in the early1920s. In the approaches by Taylor and Fayol, the human element in
the organization was not stressed upon.
The elements in these approaches were not giving evoking
positive results.
The Western Electric Company, Chicago had Hawthorne plant
that manufactured telephone bell system.
The company was progressive, with sickness and pension
benefits.
In spite of this, there was a dissatisfaction among workers.
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Salient Features
Focus on individual, his needs and behavior
Highlight interpersonal relations
Emphasis on motivation and jobsatisfaction
Conflict in an organization is always destructive
and should be always avoided.
Based on Hawthorne experiments.
People behavior as a individual may be different
than his behavior in a group
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Emphasis on improving the working condition,
interpersonal relation, supervisory styles and
communication systems.
People working in the organization may have
different goals but it is the work of management
to guide them toward the common goal.
People working in the organization form their own
informal groups and these groups have a significant
influence on the attitude and values of people.
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Focuses on the way a manager should personally manage
to motivate employees.
Mary Parker Follett: an influential leader in early
managerial
theory.
Suggested workers help in analyzing their
jobs for improvements.
The worker knows the best way to improve
the job.
If workers have the knowledge of the task,
then they should control the task.
Behavioral Management
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Quantitative Approach
Characterized by its use of mathematics, statistics,
and other quantitative techniques for management
decision making and problem solving. This approach has four basic characteristics:
1. A decision-making focus
2. Development of measurable criteria
3. Formulation of a quantitative model
4. The use of computers
Decision-Making FocusThe primary focus of the quantitative approach is on
problems or situations that require direct action, or a
decision, on the part of management
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Measurable CriteriaThe decision-making process requires that the decision
maker select some alternative course of action.
The alternatives must be compared on the basis of
measurable criteria.
Quantitative ModelTo assess the likely impact of each alternative on the
stated criteria, a quantitative model of the decisionsituation must be formulated.
ComputersComputers are quite useful in the problem-solving process.
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Contributions of Quantitative Approach
In Production Management -
Focus is on manufacturing technology and the
flow of material in plants.
In Operation Management-
Focus is on organization such as hospitals,
banks, government & the military.
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The Systems Approach
System Defined as
A set of interrelated and interdependent parts arranged
in a manner that produces a unified whole.
An approach to problem solving based on an
understanding of the basic structure of systems.
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The Systems Approach
Basic Types of Systems
Closed systems
Are not influenced by and do not interact with their
environment (all system inputs and outputs are internal).
Open systems
Dynamically interact to their environments by taking
in inputs and transforming them into outputs that are
distributed into their environment.
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The ContingencyApproach
ContingencyApproach
1. Also sometimes called the situational approach.
2. There is no one universally applicable set of managementprinciples (rules) by which to manage organizations.
3. Organizations are individually different, faces different
situations (contingency variables), and require different
ways of managing.
4. Asserts that managers are responsible for determining
which managerial approach is likely to be most effective
in a given situation.
5. This requires managers to identify the key contingencies
in a given situation