Osm cl5 mgmt theories

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Osm cl5 mgmt theories

  1. 1. OSM – Prof. Rajesh Satpathy
  2. 2. ManagementTheoriesObjective:To acquire basic understanding on the following schools ofmanagement theories:>> The Classical Management School>> The Behavioral Management School>> The Human Resources Management School>> The Management Science School
  3. 3. ManagementTheoriesThe practice of management is as old as human civilization. Theancient civilizations of Mesopotamia, Greece, Rome and Indus-vallyhad the history of good management practices.However, the study of management in a systematic way as adistinct body of knowledge is only of recent origin. That is why,management is often described as "oldest of the arts andyoungest of sciences".
  4. 4. ManagementTheoriesThe traditional management practices remained quite stablethrough the centuries until the birth of Industrial revolution in themid 18th century.Industrial revolution had sown the seeds of modern managementas the then industrialists faced many problems, which werecompletely unfamiliar to them, in managing the industry.
  5. 5. ManagementTheoriesCharles Babage, Robert Owen and James Montgomery are amongthe notable management thinkers of earlier days. All the earliertheories of management together constitute the Pre-scientific eraof management.Disagreement exists as to the exact number of managementschools. Different writers have identified as few as three and asmany as twelve.
  6. 6. ManagementTheoriesThis topic has following five sections.They are:1. The Classical Management School2. The Behavioral Management School3. The Human Resources Management School4. The Management Science School
  7. 7. ManagementTheoriesThe Classical Management School:The twentieth century witnessed tremendous management theoryferment and activity.Efforts were taking place for the development of a comprehensivemanagement theory. Traditional or classical management school oftheory is a result of such efforts.Henri Fayol (1841-1925) is widely acclaimed as the founder of theClassical Management School.
  8. 8. ManagementTheoriesThe Classical Management School:Classical Management Theory concentrates on efficiency.Classical school has three distinct branches, viz. scientificmanagement, bureaucratic management, and administrativemanagement. It visualize s a pyramid hierarchical structure,autocratic management, clear chain of command and short spansof control.
  9. 9. ManagementTheoriesScientific Management:Frederick Winslow Taylor (1856-1915)is known as the "father ofscientific management". Taylor began work at the age of 18 as amachinist apprentice to a pattern-maker.He later joined the Midvale Steel Company as a laborer andbecame chief engineer in eight years. During his period at the steelmill Taylor performed comprehensive experiments on workerproductivity and tested what he called the "task system" , laterdeveloped into the Taylor System and eventually progressed intoscientific management.
  10. 10. ManagementTheoriesScientific Management:Scientific management theory analyzes and synthesizes workflowprocesses and improving labor productivity.Scientific management is also called Taylorism, the Taylor system,or the Classical Perspective. The core ideas of the theory weredeveloped by Frederick Winslow Taylor in the 1880s and 1890s,and were first published in his monographs, Shop Management(1905) and The Principles of Scientific Management (1911).Taylor believed that decisions based upon tradition and rules ofthumb should be replaced by precise procedures developed aftercareful study of an individual at work.
  11. 11. ManagementTheoriesScientific Management:Taylors experiments included determining the best way ofperforming each work operation, the time it required, materialsneeded and the work sequence.He wanted to establish a clear division of labor betweenmanagement and employees.
  12. 12. ManagementTheoriesFollowing are the four basic principles of Scientific managementtheory:>> Study the ways jobs are performed now and determine newways to do them.>> Codify the new methods into rules.>> Select workers whose skills match the rules.>> Establish fair levels of performance and pay incentive for higherperformance.
  13. 13. ManagementTheoriesThe scientific management is a manager centric approach. Themost fundamental aspect of scientific management is that themanager is primarily responsible for increasing an organizationsproductivity.Scientific management principles are to be applied by managers ina very specific fashion.
  14. 14. ManagementTheoriesThe shortcomings of the Scientific Theory had triggered the questfor more workable solutions and resulted in the formulation ofbureaucratic management, and administrative managementtheories.The scientific method was also got refined further during thecourse of time.
  15. 15. ManagementTheoriesBureaucratic Management:Max Weber (1864-1920)is one of the strong advocates ofbureaucracy. According to Weber the major characteristics ofbureaucracy are:A well defined hierarchy-All positions within a bureaucracy are structured in a waypermitting the higher positions to supervise and control the lowerpositions. This provides a clear chain of command facilitatingcontrol and order throughout the organization.
  16. 16. ManagementTheoriesBureaucratic Management:Division of labor and specialization-All responsibilities in an organization are streamlined in a way thateach employee will have the necessary expertise to master aparticular task. This necessitates granting each employee therequisite authority to complete all such tasks.Rules and regulations-All organizational activities are streamlined in a way that standardoperating procedures are developed to provide certainty andfacilitate coordination.
  17. 17. ManagementTheoriesBureaucratic Management:Impersonal relationships between managers and employees-Weber believed that managers should maintain an impersonalrelationship with the employees so that the managers will be freeto take rational decisions rather than one influenced by favoritismand personal prejudice.This organizational atmosphere would also facilitate rationalevaluation of employee outcomes where personal prejudices shallnot interfere.
  18. 18. ManagementTheoriesBureaucratic Management: Competence-Competence should be the basis for all decisions made in hiring,job assignments, and promotions. This would encourage ability andmerit as the most important characteristics of a bureaucraticorganization.Records-Weber felt it is absolutely essential for a bureaucracy to maintaincomplete files regarding all its activities. This necessitates anaccurate organizational "memory" where accurate and completedocuments will be available concerning all bureaucratic actions anddecisions.
  19. 19. Thank You!

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