Chapter-1

History and Evolution of Management Thought

Introduction

Early Approaches to management

Robert Owen: Human Resource Management Pioneer

Charles Babbage: Inventor and Management Scientist

Andrew Ure and Charles Dupin: Management Education Pioneers

Henry Robinson Towne (1844 – 1924)

Classical Approach Classical Management can be divided

into three separate schools:Scientific ManagementAdministrative ApproachBureaucratic approach

Scientific Management Some of the earliest advocates of

scientific management were:Fredrick Winslow TaylorFrank and Lillian Gilbreth Henry Gantt

Frederick Winslow Taylor Known as “father of

scientific management

Soldiering Problem: An Insight

Workers indulge in

soldiering for three main reasons:

1. Fear of loss of job incase of increased productivity

2. Faulty wage systems 3. Outdated methods of

working

Cont.. Major Managerial practices that

emerged from Taylor’s Approach:Piece-rate systemTime-and-motion study

Frank and Lillian Gilbreth Frank Gilbreth –

“Father of motion study”

Lillian Gilbreth associated with research pertaining to motion study

Motion study: The way of finding

best sequence and minimum no. of motions.

- Classification Scheme

- Micro Motion Study

Henry Gantt (1861-1919)

Task-and-bonus system

Gantt Chart

Limitations

These principles focus on solutions of problems from engineering point of view

Motivated primarily by desire for material gains

Ignore human desire for job satisfaction

Administrative Theory

Focus: coordination of internal activities of organizations

Henry Fayol (1841-1925)

Developed general theory of

management.

Business Operations of an Organisation

Acc. To Fayol, business operations of an organization could be divided into 6 activities:

Technical – Producing and manufacturing products Commercial - Buying, selling , exchange Financial – Search for optimal use of capital Security Activities - Protecting employees and

property Accounting Activities - Recording and taking stock

of cost, profits and liabilities Managerial Activities - Planning, Organizing,

Commanding, Coordinating, Controlling

Managerial Activities

Principles of management Division of work Authority Discipline Unity of command Unity of direction Subordination of individual interest Remuneration

Centralization Scalar chain Order Equity Stability of tenure Initiative Esprit de corps

Bureaucratic Management Emphasized the need for

organizations to function on a rational basis

Observed practice of nepotism and condemned it.

Identified characteristics of Bureaucracy.

Bureaucracy derived from German word buro, meaning office.

A highly structured, formulized and impersonal organization.

Characteristics of Weber’s Bureaucracy

Work specializationAbstract rules and regulationsImpersonality of ManagersHierarchy of organization structure

Advantages of Bureaucratic Management

Help remove ambiguities and inefficiencies that characterize many organizations.

Undermine the culture of patronage that he saw in conflict with the principle of unity if control

Limitations of Bureaucratic Management and Administrative

theory Principles inapplicable to today's complex

organizations. Fayol’s principle of specialization in conflict with

principle of unity of control. Principle characteristics of bureaucracy destroy

creativity and flexibility to respond to complex changes in global environment.

Classical Theorists ignored important aspects of organizational behavior.

Failed to consider impact of external and internal environment upon employee behavior in organizations.

Behavioral Approach

Emphasis on Human Element

Mary Parker Follet: Focus on Group Influences

Human Element Groups Power Sharing Integrity

Elton Mayo: Focus on Human Relations

Hawthorne Experiment: four phases

Illumination Experiments

Relay Assembly Test Room Experiment

Interview Phase Bank wiring

observation room experiment

Contributions of the Experiment

PrejudgmentsJob performance depends on the

individual workerFatigue is the main factor affecting

outputManagement sets production

standards

Findings The group is the key factor in job performance Perceived meaning and importance of the

work determine output Workplace culture sets its own production

standard

CriticismsAnalysis supported by little evidenceRelationship between satisfaction

and productivity- too simplisticFailed to focus attention on the

attitudes of employees

What is Human Relations Approach?

LimitationsThe approach says very little about

positive motivationIt does not provide enough focus on

workIt tends to be very vague

Abraham Maslow Three assumptions: Needs are never

completely fulfilled Through over actions

we satisfy our unsatisfied needs

Hierarchical of needs 1. Physiological Needs 2. Safety or security

needs 3. Social Needs 4. Self Fulfillment

Needs

Maslow’s Hierarchy of Needs

Douglas McGregor

Challenging Traditional

Assumptions about Employees

Theory X and Theory Y

Chris Argyris: Matching Human and Organizational Development

Three major

contributions: Maturity-

Immaturity Theory Integration and

Organizational Goals

Model I and Model II

Quantitative Approach

Quantitative ApproachEmerged during World War IIIncludes:Application of statisticsOptimization modelsInformation ModelsComputer Simulations

Branches of quantitative approach:

Management ScienceOperations ManagementManagement Information System

Management Science Need for management science???

Areas of usage: Capital Budgeting and cash flow management Production Scheduling Development of product strategies Planning for human resource development

programs Maintenance of optimal inventory levels Aircraft Scheduling

Operations ManagementOperations Management: Applied form of management

science.Concerned with:Inventory ManagementWork SchedulingProduction PlanningFacilities, location and designQuality assurance

Management Information System

Focus: Designing and implementing computer

based information system

Modern Approaches To Management

Modern Approaches To Management System Theory This system approach gives manager a

new way of looking at an organization as a whole and as a part of the larger, external environment

Two types of systems: Open System- which interacts with its

environment Closed System – which does not interact

with its environment

Contingency theoryAlso known as situational theory.According to this theory, there is no

one best way manage all situationsDeveloped by managers, consultants

and researchers who tried to apply the concepts of the major schools of management thought to real life situation.

Emerging Approaches in Management Thought

William Ouchi,

conducted research on both American and Japanese management approaches and outlined a new theory called theory Z.

Theory Z Involves providing job security to

employees. Ensures job rotation of employees to

develop their cross-rotational skills. Advocates participation of employees in

the decision making process Emphasizes on use of informal control in

organization. Shows concern for employee’s wellbeing Lays emphasis on their training and

development

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