Evolution of management thoughtEvolution of management thought
Early approaches to ManagementEarly approaches to ManagementThe Industrial Revolution, which began inEurope in the mid-1700s, was the startingpoint for the development ofmanagement concepts and theories.
Classical ApproachClassical ApproachClassical management can be divided intothree separate schools:-Scientific management – F.W. TaylorAdministrative theory – Henry FayolBureaucratic management – Max Weber
Overview of classical theoriesOverview of classical theoriesApproach Rationale FocusScientificmanagementOne best way to doeach jobJob levelAdministrativeprinciplesOne best way to putan organizationtogetherOrganizational levelBureaucraticorganizationRational andimpersonalorganizationalarrangementsOrganizational level
Classical ApproachClassical ApproachThese views are labeled as classicalbecause they form the foundation for thefield of management thought.
Scientific managementScientific managementIt is an approach that emphasizes thescientific study of work methods toimprove the efficiency of workers.It became popular in 1900s.
Scientific managementScientific managementF.W. Taylor was known as the ‘father ofscientific management.’Midvale Steel Co.SoldieringTo counter the soldiering problem Taylordeveloped the science of Management.
Scientific managementScientific managementSteps DescriptionStep 1 Develop a science for each element ofthe jobStep 2 Scientifically select employees andthen train themStep 3 Supervise the employeesStep 4 Continue to plan but get the work doneby the workers
Scientific managementScientific managementThe two major managerial practices thatemerged from Taylor’s approach :-Piece-rate incentive systemTime-and-motion study
Limitations of scientific managementLimitations of scientific managementScientific management focus on problemsat operational level.People are motivated only by materialgains.It ignored human desire for jobsatisfaction.
Administrative TheoryAdministrative TheoryIt focused on principles that could beused by managers to coordinate internalactivities of organization.Henry Fayol – FrenchAccording to Fayol, the businessoperations of an organization could bedivided into 6 activities
Administrative TheoryAdministrative TheoryThe 6 activities are :-TechnicalCommercialFinancialSecurityAccountingManagerial
Fayol’s 14 principles of ManagementFayol’s 14 principles of ManagementDivision of workAuthority and responsibilityDisciplineUnity of commandUnity of directionSubordination of the individual interest tothe general interest.
Fayol’s 14 principles of ManagementFayol’s 14 principles of ManagementRemunerationCentralizationScalar chainOrderEquityStability of tenure of personnelInitiativeEspirit de corps
Bureaucratic ManagementBureaucratic ManagementMax WeberMajor characteristics of BureaucracyWork specialisation and division oflabourRules and regulationsImpersonalityHierarchy of organization
Limitations of bureaucratic andLimitations of bureaucratic andadministrative managementadministrative managementNot universally accepted principles.Bureaucracy destroyed individualcreativity and flexibility.Important aspects of O.B. was ignored.External and internal environmentignored.
Behavioral ApproachBehavioral ApproachThe behavioural school of managementemphasized what the classical theoristsignores – The human element.
Elton Mayo : Focusing on HumanElton Mayo : Focusing on HumanRelationsRelationsFather of the Human Relations ApproachWestern Electric’s Hawthorne Plant
Elton Mayo : Focusing on HumanElton Mayo : Focusing on HumanRelationsRelationsThe experiments were conducted in fourphases:Illumination experimentRelay assembly test room experimentInterview phaseBank wiring observation roomexperiment
Contributions of Hawthorne studiesContributions of Hawthorne studiesThe group is the key factor in jobperformancePerceived meaning and importance of thework determine outputWorkplace culture sets its ownproduction standards
Criticism of Hawthorne studiesCriticism of Hawthorne studiesCritics felt that the conclusions weresupported by little evidence.The relationship made betweensatisfaction of workers and productivitywas too simple.The studies failed to focus on theatitudes if employees.
Abraham Maslow : Hierarchy of needsAbraham Maslow : Hierarchy of needsPeople are motivated by a hierarchy ofneedsHis theory had three assumptionsAll of us have needs which are neverfulfilledThrough our actions we try to fulfill ourunsatisfied needsNeeds can be classified into 5 types
Abraham Maslow : Hierarchy of needsAbraham Maslow : Hierarchy of needsAccording to Maslow, once needs at aspecific level have been satisfied, they nolonger act as motivators of behaviour.Then individual strives to fulfill needs atthe next level.
Douglas McGregor : Theory X andDouglas McGregor : Theory X andTheory YTheory YThese theories reflect two extreme setsof belief that different managers haveabout their workers.Theory X represents an essentiallynegative view.Theory Y reflects a more positive view.
Chris Argris : Matching human andChris Argris : Matching human andorganizational developmentorganizational developmentMaturity –immaturity theoryModel I and Model IIModel I – Employees are manipulativeand not willing to take risks
Quantitative approachQuantitative approach1. Management scienceAnother name for it is operationsresearch2. Operations management3. Management information systems
Modern approaches to managementModern approaches to management1. Systems approachOrganizations cannot exist in isolationFour major components – Inputs,transformation process, output andfeedbackOpen and closed systems
Modern approaches to managementModern approaches to management2. Contingency theorySituational theory
Emerging Approaches in ManagementEmerging Approaches in ManagementThoughtsThoughtsWilliam Ouchi – theory ZConducted research on both American andJapanese management approachesTheory Z involves providing job security toemployees to ensure their loyaltyQuality management