Development of Management Thought
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Transcript of Development of Management Thought
Development of Management Thought
Ms. Amanpreet Kaur
Michelangelo…
The lonely genius trapped between agony and ecstacy, isolated on his back on a scaffold, single handedly painting the ceiling of Sistine Chapel –
A Myth….!!!!!
Reality…• Some 480 yrs ago, was running a mid-sized firm.
• 13 people helped him paint, 20 in carving and 200 helped in building the library.
• He used to personally select, train, and assign them teams.
• Kept a detailed employment records of names, days worked and wages of every employee, every week.
• He was just a trouble-shooting manager with us even before Industrial revolution.
Industrial Revolution..??
• The advent of machine power, mass production and efficient transportation begun in the late 18th century in Great Britain.
Classical Approach
The term is used to describe the hypotheses of the scientific management theorists and the general administrative theorists.Inter-related functionsBased on experience of managersBased on basic truths and factsManagers were developed by formal education and trainingPeople are motivated by incentives and penalities.No conflict within individuals, if any, interest of orgn prevails
A) Bureaucracy Max Weber (1864-1920) A German Social Scientist
Principleso Division of worko Rules and Regulationso Hierarchy of Authorityo Technical Competenceo Record Keepingo Impersonal Relations
Legitimate Authority
Charismatic
Rational
Traditional
+ves & -ves
Positives Negatives
Specialisation Rigid
Structure Goal Displacement
Rationality Impersonalisation
Predictability Paper Work
Democracy Empire Building
Red Tape
B) Scientific ManagementFredrick Winslow Taylor (1856-1915)Father of Scientific Management
o Grew out to increase productivityo In 20th century, skilled labour in US were short in supply, so
neccessary to increase efficiency.
Objectiveso Provide scientific basis for designing and performing jobs.
o Managers to follow scientific and systematic approach to managerial problems in place of rule of thumb
Principles1. Science – No rule of thumb.2. Harmony, not discord.3. Co-operation not Individualism.4. Maximum output not restricted.5. Development of each man to his best capacity and ability.6. Maximum prosperity of employees, coupled with
maximum prosperity of Orgn.
‘Mental Revolution’Eyes off division of surplus, rather focus on increasing the size of
surplus
Techniques..
•Time Study (work Measurement)•Motion Study•Method Study•Fatigue Study•Differential wage rate system•Scientific task planning•Standardization + Simplification•Functional Foremanship
8 Supervisors
4 Planning in office
Route Clerk
Time & Cost Clerk
Instruction Card Clerk
Disiplinarians
4 Executing at Shop Floor
Gang Boss
Speed Boss
Repair Boss
Inspector
C) Administrative TheoryHenry Fayol (1841-1925)Father of Adminstrative Management
His Contributions…o 6 Business Activitieso 5 Management Functionso 14 PrinciplesBusiness Activities1. Technical2. Commercial3. Financial Operating activities of business4. Accounting 5. Security6. Managerial Activity Most Neglected
14 Principles1.Division of Work2.Authority and Responsibilty3.Discipline4.Unity of Command5.Unity of Direction6.Subordiantion of Individual interest to general interest7.Remuneration of personnel8.Centralisation9.Scalar Chain10.Order (Material order + Social order)11.Equity12.Stability of tenure13.Initiative14.Espirit de corps (Unity of efforts through harmony of interests)
Neo-Classical Approach
• A classical approach led to efficient orgn, but failed to recognize the overwhelming role of people in management.
• People began to resist formal and impersonal treatment.• The resistance and the need to secure willing co-operation
of workers led to the development of neo-classical approach.
Hawthrone Experiments Human Relations Movement Behavioural Sciences Thinking
Experiments conducted at a plant at Western Electric Company. Illumination Experiment Relay Assembly Test room studies Mass Interview Bank wiring observation room study
Conclusion-1. A work group- not a techno economic unit but a social system2. Workers not only rational economic beings motivated by money, but
also respond to work conditions3. Social+Psychological factors exercise greater control on employee
behaviour.
A) Hawthrone ExperimentsGeorge Elton Mayo (1880-1949)Father of Neo-Classical Approach
B) Human Relations Approach
Pertains to motivating people in orgn to develop team work which effectively fulfills their needs and leads to achieving organisational goals.
Contributions-1. Moral Justification2. Satisfy social and psychological needs to increase
productivity.3. Highlights the people side of orgn.4. A true concern for workers5. Focuses attention on inter-personal relations + Dynamics6. Stressed on training of people management skills and
managerial styles.
C) Behavioural Science ApproachBelief that human is more complex than the ‘economic man’
description of classical approach and the ‘Social man’ description of the Human relations approach.
Concentrates on the nature of work itself and degree to which it can fulfill the human need to use skills and abilities.
Contibutions-More use of teams to accomplish goals, focus on training and development and the use of innovative reward and incentive systems.
Systems Approach• Attempts to explain organisational behaviour by
analysing the structure of orgn.• It was a result of those orgns that were trying to
adapt to the rapid change in business environment.Features-1. Unified and purposeful system2. Each inter-related parts and subsystems.3. Each system has a boundary- Internal or External4. Open system Vs. Closed systems5. A business enterprise as a open system
(Draws Inputs- convert into output- sends to environment)
3. Throughput
1. Environment
4. Output
5. Feedback
2. Input
Contigency Approach
• Was developed by managers, consultants and researcher who tried to apply the concept of earlier approaches to real life situations.
‘ There is no best way to tackle the problem of management. The application of management principles and practices is contingent upon the
environment’
Environment Managerial Concepts
Principles + Techniques
Best solution is one which is responsive to the pecularities of a given situation.
Features1. Mgt is situational.2. Should match or fit its approach to the requirements of a
particular situation.3. Mgt’s success depends on its ability to cope with its env, it
should sharpen its diagonistic skills so as to anticipate and comprehend the environmental change.
4. Mgrs should understand that there is no best way to manage.
4 Sequential Steps
1.Analyze and understand the situation2.Study and examine the validity of various concepts, principles and techniques to situation.3.Make the right choice by matching the technique to the situation.4.Implement the choice.
Practical Utility of Approach
• Clear view of the realities of managerial job.• Suggests situation specific solutions.• Common sense value and widens practical utility• Integrate classical approach + apply contingent to
situation• Organisations environment are dynamic to be
always effectively managed in the same manner.• No golden rule – Applicable in all situations.
Negatives..• Confusion
• No theoritical foundation
• Does not incorporate all aspects of systems theory
• Reactive strategy rather than proactive theory.
Queries… ???
Ms. Amanpreet Kaur