THE EVOLUTION OF MANAGEMENT THEORY

SCIENTIFIC MANAGEMENT SCHOOL

• The concept was introduced by F.W.TAYLOR in USA in the beginning of 20th

century.

• Scientific management theory arose in part from the need to increase Productivity.

• Scientific management was concerned with operational efficiency at the production

level.

• This concept was further carried on by Frank & Lillian Gilbreth, Henry Gantt,

Geoge Breth etc.

PRINCIPLES OF SCIENTIFIC MANAGEMENT

• Replacement rule of thumb with science :- 1) Scientific management, organized knowledge should be applied instead

of rule of thumb 2) Scientific method denote precision in determining any aspect of work,

rule of thumb emphasis estimation.

• Harmony in group action :- Mutual give & take situation. Harmony in group rather than discord.

• Co-operation:- 1) Mutual understanding & change in thinking. 2) Discourage chaotic individualism

DIFFERENTIAL RATE SYSTEM

• This system is called as compensation system.

• This system involving the payment of higher wages to more efficient workers

HANERY L.GANTT

• Hanery L. Gantt is one of the follower of Taylor’s intensive system.

• He come up with the idea, every worker who finished a day’s assigned work load would win a 50 percent bonus. Then he added a second motivation. The supervisor would earn a bonus if all the workers reached it. This, Gantt reasoned, would spur supervisors to train their workers to do a better job.

GILBRETH

• Gilbreth focus on motion activity & fatigue and ways of promoting the individual worker’s welfare.

• By this study worker’s morale would increase.

LIMITATIONS OF SCIENTIFIC MANAGEMENT

• Aggressive mechanical view of production & sidelined human aspect. This created aggressive attitude among workers.

• High degree of authoritarian approach workers were not allowed to raise their voice even for genuine grievances.

• Standards were made without considering the Factors affecting it.

CLASSICAL MANAGEMENT SCHOOL

• Classical organization theory grew out of the need to find guidelines for managing such complex organization as factories.

• Henri Fayol was founder of the Classical Management School.

• Fayol was interested in total organization & given importance to top management.

• This concept was further carried on by Max Weber, Mary Parker Follett & Chester I. Barnard.

GENERAL PRINCIPLES MANAGEMENT

1. DIVISION OF LABOUR – The more people specialize ,the more efficiently they can perform their work,

2. AUTHORITY AND RESPOSIBILITY-Authority may come from official (Position) & personal (Qualities) factors responsibility comes from assignment of work.

3. DISCIPLINE – Members in an organization need to respect the rules & agreements that govern the organization .

4. UNITY OF COMMAND – Each employee must receive instructions from only one person, to avoid conflicts in instructions & confutation of authority.

• UNITY OF DIRECTION –Each group of activity with same objective and one plan ( provides better co-ordination in organization)

• SUBORDINATION OF INDIVIDUAL TO GENERAL INTEREST -In any undertaking, the interest of employees should not take importance over the interest of the organization as whole.

• REMUNERATION OF PERSONNEL – Compensation for work done should be fair and satisfactory to both employees and employers.

• CENTRALISATION- This term refers to the degree to which subordinates are involve in decision making .

• SCALAR CHAIN/HIERARCHY – Authority should move from higher to lower. communication must have flow.

ORDER – Materials and people should be in the right place and right time.

EQUITY –Managers should be kind and fair to their subordinates..STABILITY OF STAFF - Managers should provide orderly

personnel planning & ensure that replacements are available to fill the vacancies.

INITIATIVE –Subordinates should be given the freedom to conceive and carry out their plans ,even though some mistake may result.

ESPRIT DE CROPS – Promoting team spirit will build harmony & unity within the organization.

BUREAUCRACY

• Max Weber ( 1864-1920) developed a theory of bureaucratic management (Formal structure).

• Stressed strictly defined hierarchy governed by Cleary defined regulation & line of authority.

ZERO OF INDIFFERENCE(AREA OF ACCEPTANCE)

• According to Barnard individual & organizational purposes could be kept in balance if managers understood an employee’s Zone of Indifference (What the employee would do without questioning the manager’s authority).

THE BEHAVIOUR SCHOOL

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

HUMAN RELATIONSHIP APPROACH

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

• How manager interact with other employees or recruits.

• THE HAWTHORNE EXPERIMENT-The possibility that workers who receive special attention will perform better simply because they received that attention.

MASLOW THEORY

• According to maslow, the needs that people are motivated to satisfy fall into a hierarchy.

• Physical and safety needs are at the bottom of the hierarchy, and at the top are ego and self-actualizing needs.

• In general maslow said lower level needs must be satisfied before higher level needs can be met.

THE SYSTEM APPROACH

• View of the organization as a unified, directed system of interrelated parts.

• A system is identified because it has a boundary.

• Two types of system – open and closed

• Subsystems: Those parts making of whole system.

• Synergy: In organizational terms, synergy means that departments that interact cooperatively are more productive than they would be if they operated in isolation.

• Open & Closed System: A system is considered an open system if it interacts with its environment; A system is considered a closed system if it does not interacts with its environment.

• Feedback: The part of system control in which the results of actions are returned to the individual, allowing work procedure to be analyzed and corrected .

THE CONTINGENCY APPROACH

• The view that the management technique that best contributes to the attainment of organizational goals might vary in different types of situations or circumstances

• According to the contingency approach, the manager’s task is to identify which technique will, in a particular situation, under particular circumstances, and at a particular time, best contribute to the attainment of management goal.

• Take action as per the situation.

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