Introduction to Management 11e John Schermerhorn Chapter 2 History of Management Thought 1.
Chapter 3= Management Thought
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Transcript of Chapter 3= Management Thought
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Management Thought
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Schools of Management Thought
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Schools of Management ThoughtThe Classical School
The Human Relations School
The Decision Theory School
The Management Science School
The System Theory School
The Contingency Theory School
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Classical SchoolThe Scientific Management School
The Management Process School
The Bureaucracy Theory School
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Propounded by Frederick W. Taylor –
Father of Scientific Management (1856-1917)
“that kind of management which conducts a
business or affairs by standards established
by facts or truths gained through systematic
observation, experiment, or reasoning.”
Scientific Management
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Scientific ManagementUse of Scientific Method applied to work
Replace “rule of the thumb”
Observation, Measurement, Experimentation,
Analysis, Rationality and Reasoning are key
instruments for developing managerial systems
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Scientific ManagementBasic Components of Scientific Management
Determination of standards of performance
Functional foremanship
Responsibilities of management
Differential piecework of wage payment
Mental revolution
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Scientific Management
Determination of Standards of Performance
Famous ‘time & motion’ study
Involves analysis of all the operations and motions involved in each job
and then the motions are times with a stopwatch.
Standards of performance are determined on the basis of time taken on the
performance of each element of the job together with the time needed for
rest and avoidable delays.
An analysis of motions involved in each operation leads to the
identification and elimination of wasteful motions
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Scientific Management
Functional Foremanship
Separation of planning from doing
Each functional foreman is a specialist in only one kind of work
Functional foremen should plan various aspects of each worker’s job and
issue instructions on their specialty
This shifted the planning function formerly performed by workers and
supervisors to functional specialists like industrial engineers, qualitycontrol experts, safety experts etc.
This increased the cost of managing but reduced the cost of operations
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Scientific Management
Responsibilities of ManagementManagers should accept the responsibility for planning, directing and
organizing and perform them in a scientific way.
Management should analyze all the operations and develop scientific
methods of operations.
Workers should be scientifically selected and trainedJob specifications - clear, simple and distinct
Develop optimum physical environment
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Scientific Management
Differential Piecework System of Wage Payment
piece rate systems of pay
establishment of daily output targets for all workers, with monetary
rewards for exceeding targets and penalties for shortfalls
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Scientific Management
Mental Revolution
Complete mental revolution in the attitudes of managers toward their
fellowman, workers and the ways in which they handle their daily
problems.
Without this complete mental revolution on both sides scientific
management does not exist
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The Management Process SchoolRegards management as a process
Developed by Fayol
5 functions of management; Planning, organizing ,command, coordination and control
14 principles of management regarded as universal
principles applicable in all organizations.
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Bureaucracy Theory School of
Management Propounded by Max Weber
1. There should be a continuing body of rules and all
organizational work should be performed in accordancewith these rules.
2. Specific areas of competence should be determined onthe basis of division of labor, and adequate authority
should be delegated to incumbents for the performanceof organizational work
3. A hierarchy of positions should provide for thesupervision of each office by a higher authority
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Bureaucracy Theory School of
Management
4. Appointments and promotions should be made on thebasis of universalistic criterion of demonstrated
competence. Further people placed in supervisorypositions should be trained in the rules andrequirements of positions.
5. All administrative acts, actions and decisions shouldbe recorded in writing so as to provide for futurescrutiny and permanent record.
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Limitations of Classical TheoriesView organizations as a machine subject to certain
laws
Assume that employees can be motivated by financialincentives alone, and ignore their social and
psychological needs
They are based on the assumption that productivity is
the only criterion of efficiencyOverall approach is mechanistic
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The Human Relation School
Also termed as neo-classical
It emphasises on the human dimension
of management
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The Human Relation School
Hawthorne Studies
Moved thinking from “economic man” to “social man.”
Increased awareness about employee attitudes and groupattitudes
New hypothesis: motivation to work, morale, andproductivity are related to social relations among theworkers and between the workers and the supervisor , and
not to the physical conditions at work The workers perceived themselves as a work group
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The Human Relation School
Hawthorne Studies
The group had developed “norms” relating to production
as well as personal conduct among themselves and with the
supervisor
Organization are more than formal structures of positions
and authority responsibility relationships they are indeed
“social system” a system of elite, informal status system,
rituals and a mixture of logical and non logical behavior
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The Decision Theory SchoolPropounded by Simon
Focuses on the decision, the decision making process ,
the decision maker and the environment of the decisionmaker
Looks at management through this keyhole and include
in it the entire field of enterprise operation and its
environmentDecision making is though central to managing, is only
an aspect of management and not the totality of
management
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The System Theory SchoolSystem: a collection of parts operating
interdependently to achieve a common
purpose.
General systems theory: an interdisciplinary
area of study based on
the assumption that everything is part of a larger,interdependent arrangement.
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The System Theory SchoolOpen System
A system that takes resources for its external
environment and converts them into goods and servicesthat are then sent back to that environment for purchase
by customers.
Inputs: the acquisition of external resources.
Conversion: the processing of inputs into goods andservices.
Output: the release of finished goods into the
environment.
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The System Theory School
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Rejects the universality thesis and emphasis that there is no
best way to manage.
Focuses on the inter-relationships within and among thesubsystems as well as between the organization and its
environment
Emphasizes the multivariate nature of organizations and
attempts to understand how organizations operate undervarying conditions and in specific situations
Regards management as situational
The Contingency Theory School