Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Management thoughts

28,052 views

Published on

Published in: Business

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 ?

×