Evolution of management thoughts


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Evolution of management thoughts

  3. 3. CLASSICAL APPROACHClassical management thought is divided into three separate school of thoughts Scientific Management Administrative Theory Bureaucratic Management
  4. 4. SCIENTIFIC MANAGEMENT One best way to do each job Earliest advocates of scientific management Frederick W.Taylor Frank Gilbreth Lillian Gilbreth Henry Gantt
  5. 5. Frederick Winslow Taylor Father of scientific managementSTEPS IN SCIENTIFIC MANAGEMENT: Replaced old rule of thumb methods to eliminate “soldiering” Selecting,training,teaching and developing workers Supervise employees to make sure they follow the prescribed methods for performing their jobs Continue to plan the work but use workers to actually get the work done
  6. 6. Major managerial practices that emerged from Taylor’s approach Piece-rate incentive system Time and motion study
  7. 7. FRANK and LILLIAN GILBRETH Frank Gilbreth is considered as the father of “motion study” Lillian Gilbreth was associated with the research pertaining to motion study Motion study involves finding out the best sequence and minimum number of motions needed to complete a task
  8. 8. HENRY LAURENCE GANTT Was a close associate of Taylor Developed the Gantt chart
  9. 9. LIMITATIONS OF SCIENTIFICMANAGEMENT It revolves round problems at the operational level The proponents were of the opinion that people were motivated primarily by the desire for material gain Scientific management theorists ignored the human desire for job satisfaction
  10. 10. ADMINISTRATIVE THEORY Focused on principles that could be used by managers to coordinate the internal activities of organizations Most prominent administrative theorist was Henri Fayol
  11. 11. HENRI FAYOL Prominent European management theorist Wrote General and Industrial Management Business operations of an organization could be divided into six activitiesTechnicalCommercialFinancialSecurityAccountingManagerial
  12. 12. FOURTEEN PRINCIPLES OFMANAGEMENT Division of work Authority and Responsibility Discipline Unity of Command Unity of Direction Subordination of the individual interest to the general interest Remuneration Centralization Scalar Chain Order Equity
  13. 13.  Stability of tenure of personnel Initiative Espirit de corps
  14. 14. BUREAUCRATICMANAGEMENT Max Weber – Father of Bureaucratic Management theory Theory of bureaucracy is based on a rational set of guidelines for structuring organizations Major characteristics of Weber’s ideal bureaucracy Work specialization and division of labour Abstract rules and regulations Impersonality of managers Hierarchy of organization structure Selection of employees was made on the basis of technical expertise
  15. 15. LIMITATIONS OF BUREAUCRATICMANAGEMENT AND ADMINISTRATIVETHEORY Classical theorists ignored important aspects of organizational behaviour.They stressed productivity above other aspects of management Weber’s concept of bureaucracy destroys individual creativity and the flexibility to respond to complex changes in the global environment
  17. 17. BEHAVIORAL APPROACH It emphasized on the human element Behavioral thinkers Mary Parker Follet Elton Mayo Abraham Maslow Douglas McGregor Chris Argyris
  18. 18. MARY PARKER FOLLET: Focusingon Group Influences Importance of human element in organizations Employees were influenced by the group in which they worked Organizations function on the principle of “power with” rather than “power over” Advocated the concept of integration
  19. 19. ABRAHAM MASLOW:FOCUSINGON HUMAN NEEDS His theory rested on three asumptions1. All of us have needs which are never completely fulfilled2. Through our actions we try to fulfill our unsatisfied needs3. Human needs occur in the following hierarchical manner Physiological needs Safety or security needs Social needs Esteem or status needs Self-actualization or self-fulfillment needs
  20. 20. LIMITATIONS TO MASLOW’STHEORY Human needs do not always emerge in a hierarchical manner Does not explain how a person prioritizes the needs at a particular level of hierarchy.
  21. 21. DOUGLAS McGregor: CHALLENGINGTRADITIONAL ASSUMPTIONS ABOUTEMPLOYEES Developed two assumptions about human behavior “Theory X” and “Theory Y”THEORY X Most people dislike work and they avoid it when they can Most people must be coerced and threatened with punishment before they work Most people prefer to be directed. They avoid responsibility and have little ambition
  22. 22. THEORY Y Work is a natural activity like play or rest People are capable of self direction and self control if they are committed to objectives People become committed to organizational objectives if they are rewarded in doing so Under proper conditions people learn to accept responsibility and also try to seek responsibility Most people are capable of being innovative in solving organizational problem
  23. 23. CHRIS ARGYRIS:MATCHING HUMANAND ORGANIZATIONALDEVELOPMENT Major contributions of this behavioral scientist are the maturity-immaturity theory, the integration of individual and organizational goals, Model I and Model II organization analysisModel I Employees are manipulative Not willing to take riskModel II Employees are open to learning and less manipulative Willing to take risk
  24. 24. ELTON MAYO:FOCUSING ON HUMANRELATIONS Father of Human Relations Approach Led the team which conducted a study at Western Electric’s Hawthorne Plant To examine the impact of illumination levels on worker productivity The experiments were conducted in four phase: Illumination experiments Relay assembly test room experiments Interview phase Bank wiring observation room experiments
  25. 25. ILLUMINATION EXPERIMENTS Took place between 1924 and 1927 Two group of workers (experimental or test group) and the control group Experiment involved manipulating the illuminationRelay Assembly Test Room Experiments Took place between 1927 and 1933 It included the introduction of a series of HR policy measures for the test group to study their impact on overall productivity
  26. 26. INTERVIEW PHASE 21000 people were interviewed between 1928- 1930 To determine employee attitude towards the company and their jobs.
  27. 27. Bank Wiring Observation Room Experiments Conducted during 1931- 1932 It was undertaken by researchers to test some of the ideas they had gathered during the interviews
  28. 28. Criticism of Hawthorne studies The procedures, findings and conclusions reached were questionable Researchers considered themselves as social engineers The relationship made between the satisfaction or happiness of workers and their productivity was too simplistic
  29. 29. Limitations of Human Relations Approach The human relations theorists are of the opinion that by removing fear, people would perform effectively It does not provide enough focus on theory It does not understand the economic implications of organizational problems. Human relations theory also tends to be very vague