Management thoughts

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Management thoughts

  1. 1. BUSINESS ORGANIZATION AND MANAGEMENT MANAGEMENT THOUGHTS
  2. 2. MANAGEMENT THOUGHTS <ul><li>MATHROUGH NAGEMENT THOUGHTS HAS PASSED VARIOUS STAGES TO REACH ITS PRESENT LEVEL </li></ul><ul><li>FOR THE PURPOSE OF STUDY IT IS DIVIDED INTO THREE STAGES </li></ul>
  3. 3. STAGES IN MANAGEMENT THOUGHT <ul><li>THE CLASSICAL THEORY OF MANAGEMENT </li></ul><ul><ul><li>BUREACRATIC MODEL – MAX WEBBER </li></ul></ul><ul><ul><li>SCIENTIFIC MANAGEMENT – FW TAYLOR </li></ul></ul><ul><ul><li>PROCESS MANAGEMENT – HENRY FAYOL </li></ul></ul>
  4. 4. STAGES IN MANAGEMENT THOUGHT <ul><li>NEO CLASSICAL THEORY </li></ul><ul><ul><li>HUMAN RELATIONS MOVEMENT – ELTON MAYO </li></ul></ul><ul><ul><li>BEHAVIOURAL SCIENCE MOVEMENT – A MASLOW & McGREGOR </li></ul></ul>
  5. 5. STAGES IN MANAGEMENT THOUGHT <ul><li>3 MODERN MANAGEMENT THEORIES </li></ul><ul><ul><li>QUANTITATIVE APPROACH – TAYLOR </li></ul></ul><ul><ul><li>SYSTEMS APPROACH – BOULDING, JOHNSON </li></ul></ul><ul><ul><li>CONTINGENCY APPROACH – LORSCH, LAWRENCE </li></ul></ul>
  6. 6. CLASSICAL THEORY OF MANAGEMENT <ul><li>IT WAS ONLY IN THE SECOND HALF OF 18 TH CENTURY THAT – JAMES WATT, BOULTON,ROBERT OWEN AND CHARLES BABBAGE GAVE SERIOUS THOUGHT TO PROBLEMS OF MANAGEMENT </li></ul><ul><li>THIS PERIOD IS ALSO KNOWN AS PRE-TAYLOR PERIOD. </li></ul><ul><li>IT IS ONLY WHEN MAX WEBBER INTRODUCED BUREACRATIC MODEL AROUND 1900 THAT THE FIRST SYSTEMATIC MANAGEMENT THEORY IS SAID TO HAVE EMERGED </li></ul>
  7. 7. ROBERT OWEN (1771- 1858) <ul><li>HE IS CALLED AS FATHER OF MODERN PERSONNEL MANAGEMENT </li></ul><ul><li>HE STRESSED ON </li></ul><ul><ul><li>IMPROVEMENT IN WORKING CONDITIONS </li></ul></ul><ul><ul><li>REDUCTION IN WORKING HOURS </li></ul></ul><ul><ul><li>PROVIDING NECESSITIES TO WORKERS ON SUBSIDISED RATES </li></ul></ul><ul><ul><li>FIXING MINIMUM AGE FOR CHILD WORKERS </li></ul></ul>
  8. 8. CHARLES BABBAGE (1792 – 1871) <ul><li>HIS MAIN EMPHASIS WAS ON USE OF MATHEMATICS AND SCIENCE TO THE OPERATIONS OF FACTORY </li></ul><ul><li>DIVISION OF WORK </li></ul><ul><li>ASSIGNMENT OF WORK ON THE BASIS OF SKILL OF LABOUR </li></ul><ul><li>DECISIONS BASED ON ACCURATE KNOWLEDGE </li></ul><ul><li>NEED FOR REDUCING COST BY INTRODUCING IMPROVED METHOD OF WORK </li></ul><ul><li>HE INVENTED BABBAGE CALCULATING MACHINE – CALCULATOR </li></ul><ul><li>OPTIMUM UTILISATION OF MACHINES </li></ul><ul><li>SPECIALISATION AND WAGE INCENTIVES </li></ul>
  9. 9. EXERCISE OF AUTHORITY <ul><li>HE HAS GIVEN THREE TYPES OF AUTHORITY STRUCTURES,THEY ARE </li></ul><ul><li>CHARISMATIC </li></ul><ul><li>TRADITIONAL </li></ul><ul><li>BUREACRATIC </li></ul>
  10. 10. WEBBER’S BUREACRATIC MODEL <ul><li>THE MODEL INCLUDED THE FOLLOWING: </li></ul><ul><li>SEPARATION BETWEEN SUPERIOR AND SUBORDINATE </li></ul><ul><li>DIVISION OF LABOUR BASED ON COMPETENCE & FUNCTIONAL SPECIALISATION </li></ul><ul><li>DIVORCE BETWEEN PERSONAL AND OFFICIAL MATTERS </li></ul><ul><li>SYSTEM OF RULES, REGULATIONS AND PROCEDURES </li></ul><ul><li>HIERARCHY IN POSITIONS BASED ON LEGAL AUTHORITY </li></ul>
  11. 11. SCIENTIFIC MANAGEMENT – FW TAYLOR (1856 – 1915) <ul><li>KNOWN AS FATHER OF SCIENTIFIC MANAGEMENT </li></ul><ul><li>THERE IS A SCIENCE FOR DOING EACH JOB IS THE BELIEF </li></ul><ul><li>REPLACEMENT OF SCIENTIFIC METHODS IN PLACE OF RULE OF THUMB METHODS </li></ul><ul><li>ONE BEST WAY OF DOING THINGS – FOR ANY SITUATION </li></ul><ul><li>DEFINED MANAGEMENT AS ART OF KNOWING EXACTLY WHAT YOU WANT MEN TO DO & SEE THAT THEY DO IT IN THE BEST AND CHEAPEST WAY </li></ul>
  12. 12. SCIENTIFIC MANAGEMENT – FW TAYLOR (1856 – 1915) <ul><li>ELEMENTS OF SCIENTIFIC MANAGEMENT </li></ul><ul><ul><li>WORK STUDY </li></ul></ul><ul><ul><li>STANDARDISATION OF TOOLS AND EQUIPMENTS </li></ul></ul><ul><ul><li>SCIENTIFIC SELECTION, PLACEMENT AND TRAINING </li></ul></ul><ul><ul><li>INTRODUCTION OF FUNCTIONAL FOREMANSHIP </li></ul></ul><ul><ul><li>INTRODUCTION OF COSTING SYSTEM </li></ul></ul><ul><ul><li>MENTAL REVOLUTION </li></ul></ul>
  13. 13. PROCESS MANAGEMENT – HENRY FAYOL (1841 – 1925) <ul><li>HIS CONTRIBUTIONS ARE CLASSIFIED AS THREE: </li></ul><ul><ul><li>CLASSIFICATION OF BUSINESS ACTIVITIES </li></ul></ul><ul><ul><li>FUNCTIONS OF MANAGEMENT </li></ul></ul><ul><ul><li>PRINCIPLES OF MANAGEMENT </li></ul></ul>
  14. 14. CLASSIFICATION OF BUSINESS ACTIVITIES <ul><li>TECHNICAL ACTIVITIES – PRODUCTION </li></ul><ul><li>COMMERCIAL ACTIVITIES – BUYING, SELLING & EXCHANGE </li></ul><ul><li>FINANCIAL ACTIVITIES – OPTIMUM USAGE OF CAPITAL </li></ul><ul><li>SECURITY ACTIVITIES – PRODUCTION OF PROPERTY & PERSONS </li></ul><ul><li>ACCOUNTING ACTIVITIES </li></ul><ul><li>MANAGERIAL ACTIVITIES </li></ul>
  15. 15. NEO CLASSICAL THEORY <ul><li>NEO-CLASSICAL THEORY DEALS WITH HUMAN FACTOR </li></ul><ul><li>ELTON MAYO & MARY PARKER FOLLETT ARE THE MAIN CONTRIBUTORS OF HUMAN RELATIONS APPROACH </li></ul><ul><li>IT IS THE SOURCE FOR STUDIES OF BEHAVIOURAL SCIENCE MANAGEMENT </li></ul>
  16. 16. HUMAN RELATIONS MANAGEMENT <ul><li>STUDY DEALS WITH IMPROVEMENT OF: </li></ul><ul><ul><li>WORKING CONDITIONS </li></ul></ul><ul><ul><li>LOWERING OF HOURS OF WORK </li></ul></ul><ul><ul><li>SOCIAL RELATIONS OF WORKERS </li></ul></ul><ul><ul><li>IMPROVEMENT IN PRODUCTIVITY </li></ul></ul>
  17. 17. ELTON MAYO (1880 – 1949) <ul><li>FATHER OF HUMAN RELATIONS MOVEMENT </li></ul><ul><li>A TURNING POINT IN THE DEVELOPMENT OF MANAGEMENT THOUGHT </li></ul><ul><li>HE IS KNOWN FOR HIS WORK ON THE PROJECT HAWTHORNE STUDIES </li></ul><ul><li>THE STUDIES WERE CONDUCTED TO DETERMINE THE EFFECT OF BETTER PHYSICAL FACILITIES ON WORKERS’ OUTPUT </li></ul>
  18. 18. HAWTHORNE EXPERIMENT <ul><li>PHASE – 1 INVOLVES 5 GIRLS ENGAGED IN ELECTRICAL ASSEMBLY TESTING </li></ul><ul><li>THIS EXPERIMENT CONTINUED FOR MORE THAN 1½ YEARS </li></ul><ul><li>THIS STUDY CONCENTRATED ON IMPROVEMENT ON PHYSICAL FACILITIES LIKE EXTENDED REST HOURS, ETC. AND FOUND THAT THE PRODUCTIVITY OF WORKERS WILL INCREASE WITH BETTER FACILITIES </li></ul>
  19. 19. HAWTHORNE EXPERIMENT <ul><li>PHASE – II </li></ul><ul><li>IN THIS PHASE THE EMPLOYEES WERE TOLD THAT THEY ARE IMPROVING THE FACILITIES AND THEY ARE CHOSEN FOR EXPERIMENT – THIS BOOSTED THEIR MORALE AND IMPROVED THE OVERALL PRODUCTIVITY FURTHER </li></ul>
  20. 20. HAWTHORNE EXPERIMENT <ul><li>PHASE – III </li></ul><ul><li>THE LAST OF THE EXPERIMENTS WAS ON 14 MEN AND 4 SUPERVISORS WORKING IN A BANK WIRING OBSERVATION ROOM </li></ul><ul><li>IT IS FOUND THAT THE INFORMAL RELATIONSHIPS AMONG THE WORKERS HAVE GREATER ROLE THAN THE DESIRE OF EARNING HUGE AMOUNTS AND COMPANY’S FORMAL REQUIREMENTS </li></ul>
  21. 21. HAWTHORNE EXPERIMENT <ul><li>MAIN FINDINGS: </li></ul><ul><ul><li>WORKERS ARE NOT SIMPLY COGS IN THE MACHINERY </li></ul></ul><ul><ul><li>EMPLOYEE MORALE WILL AFFECT ON THE PRODUCTIVITY </li></ul></ul><ul><ul><li>EMPLOYEES FORM AS SOCIAL GROUPS IN THE ORGANIZATION </li></ul></ul><ul><ul><li>MANAGEMENT SHOULD UNDERSTAND THE GROUP ATTITUDE AND PSYCHOLOGY </li></ul></ul>
  22. 22. MARY PARKER FOLLETT (1868 - 1933) <ul><li>EMPHASIS ON PSYCHOLOGICAL ASPECTS OF WORKERS – Vs. ELTON MAYO’S ON PHYSICAL CONDITIONS </li></ul><ul><li>PARTICIPATION OF WORKERS IN THE DECISION MAKING PROCESS IMPROVES THE RESPONSIBILITY OF THE WORKERS </li></ul><ul><li>HER MAIN CONCERN WAS EFFICIENT USE OF PEOPLE </li></ul><ul><li>SHE HAS A REPUTATION AS A PIONEER OF HUMAN RELATIONS APPROACH </li></ul>
  23. 23. BEHAVIOURAL SCIENCE MOVEMENT <ul><li>FURTHER IMPROVEMENT OF HUMAN RELATIONS MOVEMENT </li></ul><ul><li>INTRODUCED BY ABRAHAM MASLOW & DOUGLAS McGREGOR FOLLOWED BY RENSI LINKERT, CHESTER BERNARD </li></ul>
  24. 24. BEHAVIOURAL SCIENCE MOVEMENT <ul><li>IMPORTANT ASPECTS OF THIS APPROACH: </li></ul><ul><ul><li>MOTIVATION </li></ul></ul><ul><ul><li>ORGANISATION AS A SOCIAL SYSTEM </li></ul></ul><ul><ul><li>LEADERSHIP </li></ul></ul><ul><ul><li>COMMUNICATION </li></ul></ul><ul><ul><li>EMPLOYEE DEVELOPMENT </li></ul></ul>
  25. 25. ABRAHAM MASLOW <ul><li>MASLOW’S NEED HIERARCHY THEORY: </li></ul><ul><ul><li>PHYSIOLOGICAL NEEDS </li></ul></ul><ul><ul><li>SAFETY NEEDS </li></ul></ul><ul><ul><li>SOCIAL NEEDS </li></ul></ul><ul><ul><li>EGO OR ESTEEM NEEDS </li></ul></ul><ul><ul><li>SELF FULFILMENT OR ACTUALIZATION </li></ul></ul>
  26. 26. DOUGLAS McGREGOR (1906 – 1964) <ul><li>HE IS KNOWN FOR DEVELOPMENT OF THEORY ON MOTIVATION </li></ul><ul><li>HE NAMED IT AS THEORY X AND THEORY Y </li></ul>
  27. 27. DOUGLAS McGREGOR (1906 – 1964) THEORY – X THEORY – Y WORKER IS LAZY AND DISLIKES WORK PEOPLE ARE NOT LAZY BY NATURE BUT THE TREAT-MENT IN ORGANIZATION MAKES THEM SO THEY ARE UNAMBITIOUS AND AVOID RESPONSI-BILITY THEY ARE AMBITIOUS AND THEY ACCEPT RESPONSIBILITY UNDER PROPER CONDITIONS THEY ARE NOT BOTHERED ABOUT ORGANIZATIONAL OBJECTIVES – THEY SHOULD BE DIRECTED THEY WILL EXERCISE SELF CONTROL AND SELF DIRECTION – NEED NOT BE DIRECTED
  28. 28. RENSIS LIKERT (1903 – 1972) <ul><li>HE WAS OF THE VIEW THAT TRADITIONAL JOB ORIENTED SUPERVISION WAS THE CAUSE OF LOW PRODUCTIVITY AND LOW MORALE </li></ul><ul><li>HE SUGGESTED PARTICIPATIVE MANAGEMENT IN DECISION MAKING </li></ul><ul><li>HE CLASSIFIED MANAGEMENT STYLES INTO FOUR CATEGORIES </li></ul>
  29. 29. RENSIS LIKERT <ul><li>FOUR CATEGORIES </li></ul><ul><ul><li>EXPLOITATIVE AUTOCRATIC </li></ul></ul><ul><ul><li>BENEVOLENT AUTOCRATIC </li></ul></ul><ul><ul><li>PARTICIPATIVE </li></ul></ul><ul><ul><li>DEMOCRATIC </li></ul></ul>
  30. 30. RENSIS LIKERT <ul><li>1.Exploitative Autocratic: There is no participation of workers because these leaders have no confidence in them </li></ul><ul><li>2.Benevolent Autocratic: There is no proper confidence in subordinates and the relationship is that of master and servant </li></ul>
  31. 31. RENSIS LIKERT <ul><li>3.Participative: The subordinates are allowed to participate in decision involving their lives. Leaders does not have full confidence in them </li></ul><ul><li>4.Democratic: In this style the confidence in subordinates is full and they meaningfully participate in decision making </li></ul>
  32. 32. CHESTER I BERNARD (1886 – 1961) <ul><li>HE ADOPTED A SOCIOLOGICAL APPROACH </li></ul><ul><li>EMPHASISED ON THE IMPORTANCE OF LEADERSHIP AND COMMUNICATION </li></ul><ul><li>DIVIDED ORGANIZATION INTO FORMAL AND INFORMAL </li></ul><ul><li>HE DIVIDED FUNCTIONS OF EXECUTIVES IN TO THREE CATEGORIES </li></ul><ul><ul><li>PROVIDING SYSTEM OF COMMUNICATION </li></ul></ul><ul><ul><li>SECURING EFFECTS </li></ul></ul><ul><ul><li>FORMULATING AND DEFINING PURPOSE </li></ul></ul>
  33. 33. III MODERN MANAGEMENT THEORIES <ul><li>QUANTITATIVE APPROACH </li></ul><ul><li>SYSTEM APPROACH </li></ul><ul><li>CONTINGENCY APPROACH </li></ul>
  34. 34. QUANTITATIVE APPROACH <ul><li>MATHEMATICS IS RECOGNIZED AS AN IMPORTANT TOOL OFANALYSIS AND A LANGUAGE FOR EXPRESSION OF CONCEPT </li></ul><ul><li>PROBLEMS CAN BE EXPRESSED IN TERMS OF SYMBOLS AND RELATIONSHIP </li></ul>
  35. 35. FEATURES OF QUANTITATIVE APPROACH <ul><li>MANAGEMENT IS CONCERNED WITH PROBLEM SOLVING AND MUST USE MATHEMATICAL TOOLS TO SOLVE THEM </li></ul><ul><li>MATHEMATICAL SYMBOLS CAN BE USED TO DESCRIBE MANAGERIAL PROBLEMS </li></ul><ul><li>MATHEMATICAL TOOLS – OPERATIONS RESEARCH, SIMULATION AND MODEL BUILDINGS ARE USED TO FIND SOLUTIONS </li></ul>
  36. 36. LIMITATIONS OF QUANTATIVE APPROACH <ul><li>MANAGEMENT HAS MANY OTHER FUNCTIONS OTHER THAN DECISION MAKING </li></ul><ul><li>THIS APPROACH DOES NOT GIVE ANY WEIGHTAGE TO HUMAN ELEMENT </li></ul><ul><li>IN PRACTICAL LIFE – MANAGERS HAVE TO TAKE DECISIONS WITHOUT WAITING FOR DEVELOPING OF MODELS </li></ul><ul><li>THIS APPROACH PRESUMES ALL VARIABLES OF DECISION MAKING ARE MEASURABLE </li></ul>
  37. 37. SYSTEMS APPROACH <ul><li>THIS APPROACH LOOKS UPON THE MANAGEMENT AS A SYSTEM </li></ul><ul><li>FEATURES: </li></ul><ul><ul><li>AN ORGANIZATION CONSISTS OF MANY SUB-SYSTEMS </li></ul></ul><ul><ul><li>ALL SUB-SYSTEMS ARE MUTUALLY RELATED TO EACH OTHER </li></ul></ul><ul><ul><li>THE SUB-PART SHOULD BE STUDIES IN THEIR INTER RELATIONSHIP </li></ul></ul><ul><ul><li>THE ORGANIZATION PROVIDES A BOUNDARY WHICH SEPARATES IT </li></ul></ul><ul><ul><li>CHESTER BERNARD WAS THE FIRST TO SEE MANAGEMENTIN THE CONTEXT OF A SYSTEM </li></ul></ul><ul><ul><li>THIS APPROACH DOES NOT PROVIDE ANY TOOLS AND TECHNIQUES FOR EXECUTIVES </li></ul></ul>
  38. 38. CONTINGENCY OR SITUATIONAL APPROACH <ul><li>THIS APPROACH WAS DEVELOPED BY J W LORSCH & PR LAWRENCE IN 1970 WHO WERE CRITICAL OF OTHER APPROACHES PRE-SUPPOSING (ONE BEST WAY TO MANAGE) </li></ul><ul><li>FEATURES: </li></ul><ul><ul><li>MANAGEMENT IS ENTIRELY SITUATIONAL </li></ul></ul><ul><ul><li>MANAGEMENT POLICIES & PROCEDURES SHOULD RESPOND TO ENVIRONMENTAL CONDITIONS </li></ul></ul><ul><ul><li>MANAGER SHOULD UNDERSTAND THAT THERE IS NO ONE BEST WAY OF MANAGING </li></ul></ul><ul><ul><li>A MANAGER IS EXPECTED TO KNOW ALL THE ALTERNATIVE COURSES OF ACTION BEFORE TAKING ACTION IN A SITUATION – IT IS NOT ALWAYS POSSIBLE </li></ul></ul>
  39. 39. ANY QUERIES ?

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