Evolution of mgmt thought


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Evolution of mgmt thought

  1. 1. The Evolution of Management Theory
  2. 2. Scientific Management TheoryScientific Management is defined as the systematic study of the relationships between people and tasks for the purpose of redesigning the work process for higher efficiency.Fredrick W.Taylor is known as the father of Scientific Management.
  3. 3. Scientific ManagementDefined by Frederick Taylor in the late1800’sWanted to replace “rule of thumb”Sought to reduce the time a workerspent on each task by optimizing theway the task was done.
  4. 4. Four Principles Of Scientific ManagementEvery job be broken into its elements and ascientific method established to perform eachelement.Specialization of labor- Workers should bescientifically selected with right attitudes & abilityand properly trained to perform the work.Management should cooperate with workers tothat all work is performed with scientificprinciples.
  5. 5. Scientific distribution of work betweenmanagers and workers.
  6. 6. Causes of CriticismEmphasized on rationality, efficiency andstandardization and ignored the role ofindividual and groups in the organization.The basic assumption of this approachwas that most of the people are motivatedby economic rewards and did not considerjob satisfaction and self actualization of anemployee.
  7. 7. Administrative Management TheoryAdministrative Management The study of how to create an organizational structure that leads to high efficiency and effectiveness.
  8. 8. Administrative Management TheoryMax Weber  Developed the concept of bureaucracy as a formal system of organization and administration designed to ensure efficiency and effectiveness.
  9. 9. Weber’s Principles of Bureaucracy
  10. 10. Rules, SOPs and NormsRules – formal written instructions thatspecify actions to be taken under differentcircumstancesStandard Operating Procedures (SOPs)– specific sets of written instructions abouthow to perform a certain aspect of a taskNorms – unwritten, informal codes ofconduct that prescribe how people shouldact in particular situations
  11. 11. Fayol’s Principles of ManagementDivision of Labor: allows for job specialization. jobs can have too much specialization leading to poor quality and worker dissatisfaction.Authority and Responsibility both formal and informal authority resulting from special expertise.Unity of Command Employees should have only one boss.
  12. 12. Line of Authority  A clear chain of command from top to bottom of the firm.Centralization  The degree to which authority rests at the top of the organization.Unity of Direction  A single plan of action to guide the organization.
  13. 13. Equity - The provision of justice and the fair andimpartial treatment of all employees.Order - The arrangement of employees wherethey will be of the most value to the organizationand to provide career opportunities.Initiative - The fostering of creativity andinnovation by encouraging employees to act ontheir own.
  14. 14. Discipline Obedient, applied, respectful employees are necessary for the organization to function.Remuneration of Personnel An equitable uniform payment system that motivates contributes to organizational success.Stability of Tenure of Personnel Long-term employment is important for the development of skills that improve the organization’s performance.
  15. 15. Subordination of Individual Interest to theCommon Interest The interest of the organization takes precedence over that of the individual employee.Esprit de corps This is the principle of “union of strength” & extension of unity of command for establishing team work.
  16. 16. Behavioral Management TheoryMary Parker Follett  Concerned that Taylor ignored the human side of the organization Suggested workers help in analyzing their jobs If workers have relevant knowledge of the task, then they should control the task
  17. 17. Behavioral Management TheoryThe Hawthorne Studies of Elton Mayo: Hawthorne studies were conducted at Western Electric’s Hawthorne plant near Chicago to determine the effect of better physical facilities on worker output. This studies discovered that when workers were given special attention by management, the productivity increased irrespective of actual changes in the working conditions.
  18. 18. Theory X and Theory YDouglas McGregor proposed the two different sets of assumptions about workers. Theory X  Theory X assumes the average worker is lazy, dislikes work and will do as little as possible. Managers must closely supervise and control through reward and punishment.
  19. 19. Theory Y  Theory Y assumes workers are not lazy, want to do a good job and the job itself will determine if the worker likes the work. Managers should allow workers greater latitude, and create an organization to stimulate the workers.
  20. 20. Management Science TheoryAn approach to management that uses rigorous quantitative techniques to maximize the use of organizational resources.  Quantitative management — utilizes linear programming, modeling, simulation systems and chaos theory.  Operations management —techniques used to analyze all aspects of the production system.
  21. 21.  Total Quality Management (TQM) — focuses on analyzing input, conversion, and output activities to increase product quality. Management Information Systems (MIS) — provides information vital for effective decision making.
  22. 22. Organizational Environment TheoryOrganizational Environment – The set of forces and conditions that operate beyond an organization’s boundaries but affect a manager’s ability to acquire and utilize resources
  23. 23. The Open-Systems ViewOpen System  A system that takes resources for its external environment and converts them into goods and services that are then sent back to that environment for purchase by customers.
  24. 24. Contingency Theory “There is no “one best way” to organize” The idea that the organizational structures and control systems manager choose depend on—are contingent on— characteristics of the external environment in which the organization operates.
  25. 25. Type of Structure Mechanistic Structure Authority is centralized at the top. (Theory X) Employees are closely monitored and managed. Can be very efficient in a stable environment.
  26. 26. Organic Structure  Authority is decentralized throughout the organization. (Theory Y)  Control is much looser  Reliance on shared norms is greater  Works best when environment is unstable and rapidly changing