Development of Management Thought
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Development of Management Thought






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Development of Management Thought Development of Management Thought Presentation Transcript

  • 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 yrsago, was running a mid-sizedfirm.
    13 people helpedhimpaint, 20 in carving and 200 helped in building the library.
    He used to personally select, train, and assignthem teams.
    Kept a detailedemployment records of names, daysworked and wages of everyemployee, everyweek.
    He wasjust a trouble-shooting manager with us evenbeforeIndustrialrevolution.
  • IndustrialRevolution..??
    The advent of machine power, mass production and efficient transportation begun in the late 18th century in Great Britain.
  • ClassicalApproach
    The termisused to describe the hypotheses of the scientific management theorists and the general administrative theorists.
    • Inter-relatedfunctions
    • Based on experience of managers
    • Based on basic truths and facts
    • Managers weredeveloped by formaleducation and training
    • People are motivated by incentives and penalities.
    • No conflictwithinindividuals, if any, interest of orgn prevails
  • A) BureaucracyMax Weber (1864-1920) A German Social Scientist
    • Division of work
    • Rules and Regulations
    • Hierarchy of Authority
    • TechnicalCompetence
    • Record Keeping
    • Impersonal Relations
  • +ves & -ves
  • B) Scientific ManagementFredrick Winslow Taylor (1856-1915)Father of Scientific Management
    • Grew out to increaseproductivity
    • In 20th century, skilled labour in US were short in supply, soneccessary to increaseefficiency.
    • Providescientific basis for designing and performing jobs.
    • Managers to followscientific and systematicapproach to managerialproblems in place of rule of thumb
  • Principles
    Science – No rule of thumb.
    Harmony, not discord.
    Co-operation not Individualism.
    Maximum output not restricted.
    Development of each man to his best capacity and ability.
    Maximum prosperity of employees, coupledwith maximum prosperity of Orgn.
    ‘Mental Revolution’
    Eyes off division of surplus, rather focus on increasing the size of surplus
  • Techniques..
    Time Study (workMeasurement)
    Motion Study
    Method Study
    Fatigue Study
    Differentialwage rate system
    Scientifictask planning
    Standardization + Simplification
  • C) Administrative TheoryHenry Fayol (1841-1925)Father of Adminstrative Management
    His Contributions…
    • 6 Business Activities
    • 5 Management Functions
    • 14 Principles
    Business Activities
    Financial Operating activities of business
    ManagerialActivity Most Neglected
  • 14 Principles
    Division of Work
    Authority and Responsibilty
    Unity of Command
    Unity of Direction
    Subordiantion of Individualinterest to generalinterest
    Remuneration of personnel
    Scalar Chain
    Order (Materialorder + Social order)
    Stability of tenure
    Espirit de corps (Unity of efforts throughharmony of interests)
  • Neo-ClassicalApproach
    A classicalapproachled to efficient orgn, but failed to recognize the overwhelmingrole of people in management.
    People began to resistformal and impersonaltreatment.
    The resistance and the need to securewillingco-operation of workersled to the development of neo-classicalapproach.
    • HawthroneExperiments
    • Human Relations Movement
    • Behavioural Sciences Thinking
  • A) HawthroneExperimentsGeorge Elton Mayo (1880-1949)Father of Neo-ClassicalApproach
    Experimentsconductedat a plant at Western Electric Company.
    • Illumination Experiment
    • Relay Assembly Test room studies
    • Mass Interview
    • Bank wiring observation room study
    A work group- not a techno economic unit but a social system
    Workers not only rational economicbeingsmotivated by money, but alsorespond to work conditions
    Social+Psychologicalfactorsexercisegreater control on employeebehaviour.
  • B) Human Relations Approach
    • Pertains to motivating people in orgn to develop team workwhicheffectivelyfulfillstheirneeds and leads to achievingorganisational goals.
    Moral Justification
    Satisfysocial and psychologicalneeds to increaseproductivity.
    Highlights the people side of orgn.
    A trueconcern for workers
    Focuses attention on inter-personal relations + Dynamics
    Stressed on training of people management skills and managerial styles.
  • C) Behavioural Science Approach
    Belief thathumanis more complexthan the ‘economic man’ description of classicalapproach and the ‘Social man’description of the Human relations approach.
    • Concentrates on the nature of workitself and degree to whichitcanfulfill the humanneed to use skills and abilities.
    More use of teams to accomplish goals, focus on training and development and the use of innovativereward and incentivesystems.
  • Systems Approach
    Attempts to explainorganisationalbehaviour by analysing the structure of orgn.
    It was a result of thoseorgnsthatweretrying to adapt to the rapid change in business environment.
    Unified and purposeful system
    Each inter-related parts and subsystems.
    Each system has a boundary- Internal or External
    Open system Vs. Closedsystems
    A business enterprise as a open system
    (Draws Inputs- convertinto output- sends to environment)
  • ContigencyApproach
    Wasdeveloped by managers, consultants and researcherwhotried to apply the concept of earlierapproaches 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’
  • Best solution is one whichis responsive to the pecularities of a given situation.
    Mgt issituational.
    Should match or fit itsapproach to the requirements of a particular situation.
    Mgt’ssuccessdepends on itsability to copewithitsenv, itshouldsharpenitsdiagonisticskillsso as to anticipate and comprehend the environmental change.
    Mgrs shouldunderstandthatthereis no best way to manage.
  • 4 SequentialSteps
    Analyze and understand the situation
    Study and examine the validity of various concepts, principles and techniques to situation.
    Make the right choice by matching the technique to the situation.
    Implement the choice.
  • Practical Utility of Approach
    • Clearview of the realities of managerial job.
    • Suggests situation specific solutions.
    • Common sense value and widenspractical utility
    • Integrateclassicalapproach + apply contingent to situation
    • Organisations environment are dynamic to bealwayseffectivelymanaged in the samemanner.
    • No golden rule – Applicable in all situations.
  • Negatives..
    No theoriticalfoundation
    Does not incorporate all aspects of systemstheory
    Reactivestrategyratherthan proactive theory.
  • Queries… ???
    Ms. Amanpreet Kaur