it is ppt prepared to conduct MBA lecture to University of Jaffna

1. Evolution of Management
Dr.T.Mangaleswaran
Senior Lecturer
Vavuniya Campus

2. Learning Outcomes
• Understand how historical forces influence
the practice of management
• Identify and explain major developments in
the history of management thoughts
• Describe the components of classical,
humanistic, quantitative, & recent perspective
• Identify Contemporary management
challenges
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3. Why study Evolution?
• It has been the fastest growing discipline both
in content and application over the last 50
years.
• People who ignore the past are destined
(intended) to relive (remember) it.
• A person unaware of mistakes made by others
is likely to repeat them.
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4. Who contribute to Management
discipline?
• Engineers
• Sociologists
• Psychologist
• Anthropologists
• Lawyers
• Economists
• Accountants
• Mathematician
• Political scientists
• Philosophers
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5. Management Perspectives
• Classical Perspective
• Humanistic Perspective
• Quantitative Perspective
• Recent Perspectives
– Systems Thinking
– Contingency View
– Qualitative approach
– Technological driven workplace
– Innovative Management Thinking
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7. Classical Perspective: 3000 B.C.
• Rational, scientific approach to management
– make organizations efficient operating
machines
● Scientific Management
● Bureaucratic Organizations
● Administrative Principles
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8. Scientific Management
Contributors: Taylor, Frank and Gilbreth, and Henry L Gantt
Frederick Winslow Taylor 1856-1915
“Taylor’s theory that labour productivity could be improved by
scientifically determined management practices earned him
the status of Father of Scientific Management”.
General Approach
• Developed standard method for performing each job.
• Selected workers with appropriate abilities for each job.
• Trained workers in standard method.
• Supported workers by planning work and eliminating interruptions.
• Provided wage incentives to workers for increased output.812/29/14 PGDM1131-Contemporary Management

9. Scientific Management cont…
Contributions
• Demonstrated the importance of compensation for
performance.
• Initiated the careful study of tasks and jobs.
• Demonstrated the importance of personnel and their training.
Criticisms
• Did not appreciate social context of work and higher needs of
workers.
• Did not acknowledge variance among individuals.
• Tended to regard workers as uninformed and ignored their
ideas
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10. The 4 PrinciplesThe 4 Principles
1. Study the way the job is performed now &
determine new ways to do it.
– Gather detailed, time and motion information.
– Try different methods to see which is best.
2. Codify the new method into rules.
– Teach to all workers.
3. Select workers whose skills match the rules
set in Step 2.
4. Establish a fair level of performance and pay
for higher performance.
– Workers should benefit from higher output.
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11. Bureaucratic Organizations
• Max Weber 1864-1920
• Prior to Bureaucracy Organizations
– European employees were loyal to a single
individual rather than to the organization or its
mission
– Resources used to realize individual desires rather
than organizational goals
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12. Max Weber (German Sociologist)
• He described goal oriented large organization as
bureaucracy -- defined as an administrative system
which is deliberately designed for accomplishment of
large scale tasks through coordination of individual
efforts in a rule bound, fair and efficient manner.
• It is characterized by clear division of labor, well
trained personnel appointed on the basis of their
competence, hierarchy, rules and regulations, rational
power and impersonal relationships.
• Bureaucracy has been popularized for referring to
government organizations.
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13. 13
Bureaucracy Organizations
Positions organized
in a hierarchy of authority
Managers subject to
Rules and procedures
that will ensure reliable
predictable behavior
Personnel are selected
and promoted based
on technical
qualifications
Administrative acts
and decisions recorded
in writing
Management separate
from the ownership
of the organization
Division of labor
with Clear definitions of
authority and responsibility
Exhibit 2.3, p. 49
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14. Administrative Principles
• Contributors: Henri Fayol , Mary Parker, and Chester
I. Barnard
• Henri Fayol – (1841-1925) broken the myth that
‘Managers are Born and not made. He insisted that
management is a skill which can be taught.
• Focus:
– Organization rather than the individual
– Define the management functions of planning,
organizing, commanding, coordinating, and
controlling
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15. Fayol’s 14 PrinciplesFayol’s 14 Principles
1. Division of Labor: allows for job specialization.
– Fayol noted firms can have too much specialization
leading to poor quality and worker involvement.
2. Authority and Responsibility: Fayol included both formal
and informal authority resulting from special expertise.
3. Unity of Command: Employees should have only one
boss.
4. Line of Authority: a clear chain from top to bottom of the
firm.
5. Centralization: the degree to which authority rests at the
very top.
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16. Fayol’s Principles cont…Fayol’s Principles cont…
6. Unity of Direction: One plan of action to guide the
organization.
7. Equity: Treat all employees fairly in justice and
respect.
8. Order: Each employee is put where they have the
most value.
9. Initiative: Encourage innovation.
10. Discipline: obedient, applied, respectful employees
needed.
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17. Fayol’s Principles cont…Fayol’s Principles cont…
11. Remuneration of Personnel: The payment
system contributes to success.
12. Stability of Tenure: Long-term employment is
important.
13. General interest over individual interest: The
organization takes precedence over the
individual.
14. Esprit de corps: Share enthusiasm or devotion to
the organization.
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18. 18
Humanistic Perspective
Emphasized understanding human behavior,
needs, and attitudes in the workplace
●Human Relations Movement
●Human Resources Perspective
●Behavioral Sciences Approach
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19. Human Relations Movement
•Emphasized satisfaction of employees’
basic needs as the key to increase worker
productivity.
•Contributor: Elton Mayo established
relationship between social environment
and work output
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20. Hawthorne Studies
(Western Electric Co. 1924 – 33)
• Ten year study
• Four experimental & three control groups
• Five different tests
• Test pointed to factors other than illumination for
productivity
• 1st
Relay Assembly Test Room experiment, was controversial,
test lasted 6 years
• Interpretation, money not cause of increased output
• Factor that increased output, Human Relations
• These studies established that employees were different from
the machines and would need to be treated differently and
deferentially (respectfully). 2012/29/14 PGDM1131-Contemporary Management

21. 21
Human Resource Perspective
•Suggests jobs should be designed to meet
higher-level needs by allowing workers to use
their full potential.
•Worker Participation and considerate
leadership
•Contributors: Maslow and Douglas McGregor
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22. 22
Physiological
Safety
Belongingness
Esteem
Self-
actualization
Abraham Maslow’s
Hierarchy of Needs
Based on needs satisfaction
1908-1970
l
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23. 23
• Dislike work –will avoid it
• Must be coerced,
controlled, directed, or
threatened with
punishment
• Prefer direction, avoid
responsibility, little
ambition, want security
• Do not dislike work
• Self direction and self
control
• Seek responsibility
• Imagination, creativity
widely distributed
• Intellectual potential
only partially utilized
Douglas McGregor
Theory X & Y
Theory X Assumptions Theory Y Assumptions
1906-1964
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24. Behavioral Sciences Approach
• Applies social science in an organizational
context
• Draws from economics, psychology, sociology,
anthropology, and other disciplines
– Understand employee behavior and interaction in
an organizational setting
– Organization Development (OD)
24
Sub-field of the Humanistic Management Perspective
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25. Quantitative Perspective
• Emerged after World War II
• Applied mathematics, statistics, and other
quantitative techniques to managerial
problems
Operations Research – mathematical modeling
Operations Management – specializes in physical
production of goods or services
Information Technology – reflected in management
information systems
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26. Systems Thinking
• An organized enterprise does not exist in vacuum
and is dependent on external environment.
• Two basic types of systems are closed and open
• An open system interacts with the
environment.
• A closed system is self-contained (independent)
• Synergy: performance gains of the whole
surpass the components.
– Synergy is only possible in a coordinated
system.
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28. Contingency View
• Early management contributors gave us principles
of management and organization that they
generally assumed to be universally acceptable.
Later research have found exceptions.
• Management, like life itself, is not based on
simplistic principles. Contingency approach is a
product of the integration of various management
theories modulated by the situational variables.
• Since organizations are diverse, one size does not
fit all. Four important variables are, Organization
size, Routineness of Task Technology,
Environmental Uncertainty and individual
differences.
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29. 29
Contingency View of Management
Exhibit 2.6, p. 59
Successful resolution of organizational problems is thought to
depend on managers’ identification of key variations in the
situation at hand
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30. Qualitative Approach
• Quality school is the most current and is
worldwide
• The quality movement is strongly associated
with Japanese companies.
• Degree of excellence of a product or service
provides.
• Contributors: Juran, Philip Crosby &Deming.
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31. Total Quality Management (TQM)
• During 1980s and into 1990s, TQM focuses on
managing the total organization to deliver better
quality to customers.
• Elements: employee involvement, focus on
customer, benchmarking and continuous
improvement
• TQM is the integration of all functions and
processes within an organization in order to
achieve continuous improvement of the quality
of goods and services.
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32. Technology –Driven workplace
• Popular recent trend
1) Customer Relationship Management (CRM)
2) Outsourcing
3) Supply Chain Management
• Techniques are related to the shift to
technology –driven workplacec.
• Today , many employees perform much of
their work on computers, virtual teams,
connected electronically.
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33. Innovative Management
• Managers are looking for new techniques and
approaches that adequately respond to
customers needs and the demands of the
environment.
• Managers tend to look for fresh ideas to help
them cope during difficult times.
• Recent challenges: tough economy, volatile
stock market, environmental and
organizational crises, war and terrorism etc…
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34. Contemporary Management Challenges
• Erratic (unpredictable) economy
• Management of Diversity (variety)
• Technological Advancement
• Globalization
• Ethics and social responsibility
• Quality
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35. Conclusions
In view of the discussions so far, management has
started to become less based on the
conceptualization of classical theory of
management and the typical military command and
control, and more on facilitation and support of
collaborative activity. Now management deals with
the complexities of human interaction to achieve
organizational or group goals in an effective and
efficient manner.
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36. Thank you
• Question and Discussion
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