OSM   – Prof. Rajesh Satpathy
ManagementTheoriesAdministrative Management:Henri Fayol (1841-1925) is the prominent advocate ofadministrative management....
ManagementTheoriesAdministrative Management: 2. Authority and responsibility- Authority is the right to giveorders and the...
ManagementTheoriesAdministrative Management:4. Unity of command- An employee should receive orders fromonly one superior. ...
ManagementTheoriesAdministrative Management:7. Remuneration of Personnel- Salaries are the price of servicesrendered by em...
ManagementTheoriesAdministrative Management:9. Scalar chain- A chain of authority exists from the highestorganizational au...
ManagementTheoriesAdministrative Management:11. Equity- In organizations equity is a combination of kindlinessand justice....
ManagementTheoriesAdministrative Management:13. Initiative- Thinking out a plan and ensuring its success is anextremely st...
ManagementTheoriesThe Behavioral Management School:Behavioral management emerged in the 1920s and dealt with thehuman aspe...
ManagementTheoriesThe Behavioral Management School:Management principles developed during the classical period werenot abl...
ManagementTheoriesThe Behavioral Management School:One prominent pioneer of the behavioral school was Elton Mayo(1880 - 19...
ManagementTheoriesThe Behavioral Management School:One prominent pioneer of the behavioral school was Elton Mayo(1880 - 19...
ManagementTheoriesThe Human Resources Management School:The human resources school that emerged in the early 1950srepresen...
ManagementTheoriesThe Management Science School:During World War II the United Kingdom was faced with manycomplex problems...
ManagementTheoriesThe ‘Management science’ school, by its use of computers andquantitative analysis, has made it possible ...
ManagementTheoriesKey points:>> Management is often described as "oldest of the arts andyoungest of sciences".>> Industria...
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Osm cl6 mgmt theories administrative

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Osm cl6 mgmt theories administrative

  1. 1. OSM – Prof. Rajesh Satpathy
  2. 2. ManagementTheoriesAdministrative Management:Henri Fayol (1841-1925) is the prominent advocate ofadministrative management. He spent his entire working careerwith a mining company, where he rose from an apprentice toGeneral Manager. As a result of his long management career, Fayoldeveloped fourteen management principles:1. Division of Work- Division of work, specialization, producesmore and better work with the same effort. It focuses effort whilemaximizing employee efforts. It is applicable to all work includingtechnical applications. There are limitations to specialization whichare determined by its application.
  3. 3. ManagementTheoriesAdministrative Management: 2. Authority and responsibility- Authority is the right to giveorders and the power to exact obedience. Distinction must bemade between a managers official authority deriving from officeand personal authority created through individual personality,intelligence and experience. Authority creates responsibility.3. Discipline- Obedience and respect between a firm and itsemployees based on clear and fair agreements is absolutelyessential to the functioning of any organization. Good disciplinerequires managers to apply sanctions whenever violations becomeapparent.
  4. 4. ManagementTheoriesAdministrative Management:4. Unity of command- An employee should receive orders fromonly one superior. Employees cannot adapt to dual command.5. Unity of direction- Organizational activities must have onecentral authority and one plan of action.6. Subordination of Individual Interest to General Interest- Theinterests of one employee or group of employees are subordinateto the interests and goals of the organization and cannot prevailover it.
  5. 5. ManagementTheoriesAdministrative Management:7. Remuneration of Personnel- Salaries are the price of servicesrendered by employees. It should be fair and provide satisfactionboth to the employee and employer. The rate of remuneration isdependent on the value of the services rendered as determined bythe employment market.8. Centralization- The optimum degree of centralization variesaccording to the dynamics of each organization. The objective ofcentralization is the best utilization of personnel.
  6. 6. ManagementTheoriesAdministrative Management:9. Scalar chain- A chain of authority exists from the highestorganizational authority to the lowest ranks. While needlessdeparture from the chain of command should be discouraged,using the "gang plank" principle of direct communication betweenemployees can be extremely expeditious and increase theeffectiveness of organizational communication.10. Order- Organizational order for materials and personnel isessential. The right materials and the right employees arenecessary for each organizational function and activity.
  7. 7. ManagementTheoriesAdministrative Management:11. Equity- In organizations equity is a combination of kindlinessand justice. The desire for equity and equality of treatment areaspirations to be taken into account in dealing with employees.12. Stability of Tenure of Personnel- In order to attain themaximum productivity of personnel, it is essential to maintain astable work force. Management insecurity produces undesirableconsequences. Generally the managerial personnel of prosperousconcerns is stable, that of unsuccessful ones is unstable.
  8. 8. ManagementTheoriesAdministrative Management:13. Initiative- Thinking out a plan and ensuring its success is anextremely strong motivator. At all levels of the organizationalladder zeal and energy on t he part of employees are augmentedby initiative.14. Esprit de Corps- Teamwork is fundamentally important to anorganization. Creating work teams and using extensive face-to-faceverbal communication encourages this.
  9. 9. ManagementTheoriesThe Behavioral Management School:Behavioral management emerged in the 1920s and dealt with thehuman aspects of organizations. It has been referred to as theneoclassical school because it was initially a reaction to thelimitations of the classical approaches to management.The Behavioral management movement began with the HawthorneStudies which were conducted from 1924 to 1933 at theHawthorne Plant of the Western Electric Company in Cicero,Illinois.
  10. 10. ManagementTheoriesThe Behavioral Management School:Management principles developed during the classical period werenot able to deal with many management situations and explain thebehavior aspect of individual employees. It ignored the influence ofhuman behavior in workplaces.The growth of behavioral school was the result of debates andresearches on behavioral aspect.
  11. 11. ManagementTheoriesThe Behavioral Management School:One prominent pioneer of the behavioral school was Elton Mayo(1880 - 1949), an Australian psychologist who joined the HarvardBusiness School faculty in 1926. The proponents of this schoolexplained that that increased worker satisfaction would lead tobetter performance.They established that viewing employees as just extensions ofmachines is completely absurd. The human relations and socialneeds of employees are very important.
  12. 12. ManagementTheoriesThe Behavioral Management School:One prominent pioneer of the behavioral school was Elton Mayo(1880 - 1949), an Australian psychologist who joined the HarvardBusiness School faculty in 1926. The proponents of this schoolexplained that that increased worker satisfaction would lead tobetter performance.They established that viewing employees as just extensions ofmachines is completely absurd. The human relations and socialneeds of employees are very important.
  13. 13. ManagementTheoriesThe Human Resources Management School:The human resources school that emerged in the early 1950srepresented a substantial advancement from the BehavioralManagement Theory.The behavioral approach did not always increase productivity.Thus, motivation and leadership techniques became a topic ofgreat interest. The human resources school advocated thatemployees are very creative and competent, and their talent islargely untapped by their employers. Employees want to workmeaningfully, contribute, and participate in decision making andleadership functions.
  14. 14. ManagementTheoriesThe Management Science School:During World War II the United Kingdom was faced with manycomplex problems. Operational research teams composed ofmathematicians, physicists & other scientists were set up. Theseteams pooled their knowledge to solve problems.After the war these ideas were applied to industrial problemswhich could not be solved by conventional means. With thedevelopment of the electronic computer, these procedures becameformalized into a ‘management science’ school.
  15. 15. ManagementTheoriesThe ‘Management science’ school, by its use of computers andquantitative analysis, has made it possible to consider the effect ofa number of variables in an organization which may otherwise havebeen overlooked.This approach to management uses precise quantitative techniques like:>> Quantitative Management—utilizes linear programming, modeling,simulation systems.>> Operations Management—techniques to analyze all aspects of theproduction system.>> Total Quality Management (TQM)—focuses on improving quality throughoutan organization.>> Management Information Systems (MIS)—provides information about theorganization.
  16. 16. ManagementTheoriesKey points:>> Management is often described as "oldest of the arts andyoungest of sciences".>> Industrial revolution had sown the seeds of modernmanagement.>> Disagreement exists as to the exact number of managementschools.>> The Classical Management School, The Behavioral ManagementSchool, The Human Resources Management School and TheManagement Science School are the four major schools ofmanagement thoughts.
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