Evolution of management

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Evolution of management

  1. 1. Pre Historic Era • The practice of management has existed since the earliest time. Mesopotamia, Greece, and Rome • Management practice in business, government and the church remained quite stable through the centuries until the mid 18th century.
  2. 2. Industrial Revolution • Substitution of machine power for man power. • Mass production • Improved transportation and communication system. • Centralization of production activities. • Establishment of new employer employee relationships.
  3. 3. Problems • Short supply of skilled labor. • Losses, Wastage • Corruption • Favourism • Nepotism, • Laziness • Difficult to maintain efficiency and effectiveness
  4. 4. SCIENCETIFIC MANAGEMENT THEORY • Focuses on worker and machine relationships. • increasing the efficiency of production processes. • concerned with creating jobs that economize on time, human energy, and other productive resources.
  5. 5. Contributors. • F.W.Taylor (father of scientific management) • Frank and Lillian Gilbreth • Henry L. Gantt
  6. 6. FREDERICK TAYLOR (1856-1915) • He was finding more efficient methods and procedures for coordination and controlling work. • Principles of Scientific Management in which he proposed work methods designed to increase worker productivity. • Taylor broke the job down into its smallest constituent movements, timing each one with a stopwatch. The job was redesigned with a reduced number of motions as well as effort and the risk of error
  7. 7. Four basic principles for increasing efficiency. 1. The development of a true science for each persons work. 2. The scientific selection, training, and development of workers 3. Intimate friendly cooperation with the workers to ensure work is carried out in a prescribed way. 4. The division of work and responsibility between mgt. and the workers.
  8. 8. He believed that • There is a best machine for each work. • It is a best working method by which the workers should undertake • All work process should be analyzed into separate tasks by scientific method. • Each job was broken into component parts, each part timed and part rearranged into most efficient method of working. • Then it was possible to find the one best method to perform each task. • Employees can be motivated by highest possible wages through working in the most efficient and productive way. • Emphasis on fair day work.(differential rate systems). • He was a believer in the rational economic needs component of motivation.
  9. 9. Criticism • Emphasis on optimizing the level of worker productivity. • Workers require little skills. So they were found boring and monotonous. • Workers retained unfriendly. • Workers were regarded as machines and from a engineering point of view. • One best method is not always the best method for every worker. • Reduction of some physical movements is not always beneficial and some wasteful movements are essential to maintaing the overall rhythm of the work.
  10. 10. Criticism cont. • Operation managers gave a dangerous high level of power. • Workers were regarded as rational economic being motivated only by monitory incentives. • They were viewed as isolated individuals handled almost in the same way as machines. • He did not so much concern complexity of individuals and human behavior, importance of individuals own feelings, group working.
  11. 11. FRANK (1868-1924) AND LILLIAN GILBERTH (1878-1972) • Fatigue and motion studies to finding the ways of promoting the individual workers welfare. • Using motions cameras found the most economical motions and then upgrade performance and reduce fatigue. • Raise worker moral
  12. 12. HENRY L GANTT (1861-1919) • Reconsider the Taylors incentive system • Worker who finished the day’s assignment would win a 50% bonus. • Supervisor would earn a bonus for each worker who reach the daily standard, and extra bonus if all the workers reached it. • Workers progress was rated publicly. • Recorded and displayed in charts.
  13. 13. CLASSICAL ORGANIZATION THEORY • Scientific mgt. deals with the job of the individual workers classical organizational theory focuses on managing the total organization as a whole. Primary Contributors. • Henry Fayol • Max Webber. • Chester I Bernard.
  14. 14. HENRI FAYOL (1841--1925), • Father of Modern Management, a French industrialist who developed a framework for studying management. • Wrote the book General and Industrial Management. 1. Technical – producing and manufacturing 2. Commercial – buying and selling 3. Financial – acquiring using capital 4. Security – protecting employees and property 5. Accounting – recording transactions 6. Management •
  15. 15. Fourteen Principles • Division of labour The more people specialize the more efficiently they can perform their work. • Authority Managers have the right and the authority to give orders to get things done. • Discipline Members of an organization need to respect the rules and regulations that governed by the organization. • Unity of commands Each employee should receive instructions from only one supervisor. • Unity of direction Operations with similar objectives should be directed by one manager using one plan. • Subordination of individual interests to common goal. Individual interests should not be placed before the organizational goals.
  16. 16. • Remuneration Should be fair to both employees and the organization • Centralization. Power and authority should be centralized to the upper level to the possible extent. • Scalar Chain. The chain of authority should extent from top to bottom. • Order Human and materials should be placed at the required place at required time. • Equity Managers should be fair and kind to subordinate. • Stability Employee stability. • Initiative Employees should be given to enough freedom for initiative • Espirit De Corps Teamwork, team spirit and sense of unity and togetherness should be fostered and maintained.
  17. 17. BUREAUCRATIC MANAGEMENT - MAX WEBBER (1864-1920) • 1. Division of labour • 2. Authority and responsibility are clearly defined • 3. Rules and regulations. • 4. Procedures to deal with various situations. • 5. Selections are based purely on qualifications. • 6. Promotions are based on seniority and merits. • 7. Separation of official work from personal work. • 8. Extensive record keeping.
  18. 18. CHESTER BARNARD (1886-1961) • He developed the concepts of strategic planning and the acceptance theory of authority. • Three top functions of the executive (l) establish and maintain an effective communication system, (2) hire and retain effective personnel, and (3) motivate those personnel.
  19. 19. Acceptance Theory of Authority • Managers only have as much authority as employees allow them to have. • Barnard believed that each person has a zone of indifference or a range within each individual in which he or she would willingly accept orders without consciously questioning authority.
  20. 20. HUMAN RELATION APPROACH / (BEHAVIORAL THEORY) Contributors • Elton Mayo • Abraham Maslow • Douglas McGregor • Hertzberg
  21. 21. ELTON MAYO 1924 AND 1927 • Experiment in illumination. Varied lighting • Relay Assembly test room Experiment. Wage, rest periods, work day and work week, Refreshments Hawthorne effect-possibility that workers who receive special attention will perform better.
  22. 22. • Mass Interviewing. to determine worker attitudes and sentiments on supervision and general conditions of work. found that the work group as a whole determine the production output of individual group members by enforcing an informal norms.
  23. 23. • Bank Wiring Room Experiment. This phase was to determine and analysis of social organizations at work. concluded that the work group set their fair rates for each of its members. wage incentive plan was less important in determining individual workers output, than the group acceptance and security.
  24. 24. • After the hawthorn experiments theorists tried to identify the way to enhance effectiveness and efficiency by satisfying the human needs and motivating them for higher level of efficiency and effectiveness. • Maslow’s Hierarchy of Needs • McGregor’s Theory X and theory Y • Hertzberg’s two factor theory
  25. 25. Quantitative Approach Management Science Approach • After the World war II • Approaching management problems through the use of mathematical techniques
  26. 26. SYSTEMS APPROACHES • To recognize organizations as a; • Complex, integrated system of inter-related variables. • The systems theory looks at the organization as a whole, examining all relevant organizational variables simultaneously.
  27. 27. CONTINGENCY APPROACH • Different and changing situations require managers to use different approaches and techniques. Because organizations are different, they face different circumstances (contingencies) and, thus may require different ways of managing.
  28. 28. TOTAL QUALITY MANANGEMENT • Total Quality Management (TQM) is an organization wide strategy that focuses on achieving or exceeding customer expectations. • An organizational cultural commitment to satisfy customers through the use of an integrated system of tools, techniques and training.
  29. 29. Deming’s 14 Points for Managers • Create constancy of purpose • Adopt a new philosophy • Cease dependence on inspection to achieve quality. • End the practice of awarding business on the basis of price tag. • Improve constantly and forever the system of production
  30. 30. • Institute training on the job. • Institute supervision • Drive out fear • Break down the barriers between departments. • Eliminate slogans, targets for the work force • Eliminate work standards that prescribe numerical quotas
  31. 31. • Remove barriers to pride of workmanship • Institute a vigorous program of education and retraining. • Put everybody in the company to work to accomplish the transformation
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