Development of Management ThoughtPresentation 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.
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 Principles
Division of work
Rules and Regulations
Hierarchy of Authority
LegitimateAuthority Traditional Rational Charismatic
+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 FunctionalForemanship
C) Administrative TheoryHenry Fayol (1841-1925)Father of Adminstrative Management His Contributions…
6 Business Activities
5 Management Functions
Business Activities Technical Commercial Financial Operating activities of business Accounting Security ManagerialActivity Most Neglected
14 Principles Division of Work Authority and Responsibilty Discipline Unity of Command Unity of Direction Subordiantion of Individualinterest to generalinterest Remuneration of personnel Centralisation Scalar Chain Order (Materialorder + Social order) Equity Stability of tenure Initiative 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.
Human Relations Movement
Behavioural Sciences Thinking
A) HawthroneExperimentsGeorge Elton Mayo (1880-1949)Father of Neo-ClassicalApproach Experimentsconductedat a plant at Western Electric Company.
Relay Assembly Test room studies
Bank wiring observation room study
Conclusion- 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.
Contributions- 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.
Contibutions- 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. Features- 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. Features 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.. Confusion No theoriticalfoundation Does not incorporate all aspects of systemstheory Reactivestrategyratherthan proactive theory.