Management thought


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Management thought

  2. 2. SCHOOLS OF MANAGEMENT THOUGHT Classical School Behavioral School Modern Management School
  3. 3. Classical School a. Scientific Management – focused on matching people and tasks to maximize efficiency. b. Bureaucratic Management - ocused on the ideal form of organization c. Administrative Management – focused on identifying principles that will lead to the creation of the most efficient system of organization and management
  4. 4. Scientific Management  arose because of the need to increase productivity and efficiency. The emphasis was on trying to find the best way to get the most work done by examining how the work process was actually accomplished and by scrutinizing the skills of the workforce.
  5. 5. Taylor & Scientific Management  Experiment in Iron Foundry  Shoveling Coal  Standard Operating Procedure: Hire the man with the shovel  New Idea: Use  standardized shovels!!!
  6. 6. General Principles of Scientific Management 1) There is one best way to perform a task 2) Selection and training of workers 3) Incentives should be provided for workers to use the "one best way" 4) Managers and labor share work and responsibility.
  7. 7. Bureaucratic Management  MAX WEBER (1864-1920) a German sociologist, was a teacher at Berlin University. He was a chief exponent of a bureaucratic model. Bureaucratic organization, in Weber’s views, is the most efficient form of organization.
  8. 8. According to Weber the major characteristics of bureaucracy are:  A well defined hierarchy  Division of labor and specialization  Rules and regulations  Impersonal relationships between managers and employees  Records  Competence
  9. 9. PRINCIPLE OF BUREAUCRACY 1. a manager’s formal authority derives from the position held within the organization. 2. people should occupy position because of their performance, not because of their personal contact. 3. The extent of each position’s formal authority and task responsibilities, and its relationship to other positions in an organization, should be clearly specified. 4. So that authority can be exercised effectively in an organization, 5. Manager must create a well-defined system of rules, standard operating procedures, and norm
  10. 10. BENEFITS OF BUREAUCRACY 1. The rules and procedure are decided for every work. It lead to consistency in employee behavior. 2. overlapping or conflicting job duties are eliminated. 3. The selection process and promotion procedure are based on merit and expertise. 4. The division of labor help workers in becoming experts in their job. 5. The organization does not suffer when some person leave it. If one person goes then some other occupies that place and the work does not suffer.
  11. 11. Administrative Management Henri Fayol (1841-1925) Functions of management 1. to forecast and plan organize 3. to command coordinate control
  12. 12. Principles of Management 1. Division of Work 2. Authority 3. Discipline 4. Unity of command 5. Unity of direction 6. Subordination of Individual Interests to General Interest 7. Remuneration of Personnel
  13. 13. Principles of Management 8. Centralization 9. Scalar chain 10. Order 11. Equity 12. Stability of Tenure of Personnel 13. Initiative 14. Esprit de Corps
  14. 14. Limitations of the Classical School of Management  Reliance on Experience  Untested assumptions  Failure to Consider The Informal Organization  Unintended Consequences  Human Machinery  Static Conditions
  15. 15. DISADVANTAGES OF BUREAUCRACY 1. The system suffers from too much of red tape and paper work. 2. The employees do not develop belongingness to the organization. 3. The excessive reliance on rules and regulation and adherence to these policies inhibit initiative and growth of the employee. They are treated like machine and not like individuals. 4. The employees become so used to the system, they resist to any change and introduction of new techniques of operations.
  16. 16. Behavioral School • Neo-classical theory deals with the human factor. Elton Mayo pioneered the human relations to improve levels of productivity and satisfaction. • This approach was first highlighted by the improvements known as ‘ Hawthrone Experiments’ conducted at Illionois plant of western electric company between 1927 and 1932. • Neo-classical approach also causes ‘Behavioural Science Management’ which is a further refinement of human relations approach
  18. 18. • ABRAHAM MASLOW – Father of Humanistic Psychology – Theory of Motivation/ Hierarchy of needs: physiological, safety, social esteem, and self actualization – Each step of the hierarchy must be satisfied before the next can be activated, and that once a need was substantially satisfied, it no longer motivated behavior. – Self actualization, achieving one’s full potential, summit of a human being’s existence
  19. 19. Free up employees to unleash their full creative and productive potential
  21. 21. THE MODERN MANAGEMENT SCHOOL  Modern management thought has evolved from older theories of management and years of management experience. Additionally, supporting and conflicting theories have been offered over the years leading to more confusion.
  22. 22. Decision theory approach  The decision theory school focused on the managerial decision making which, in its view, is the core management task, pervading all management functions. Management science theory  is an approach to management that focuses on the use of rigorous quantitative techniques to help managers make maximum use of organizational resources to produce goods and services.
  23. 23. PRODUCTION AND OPERATIONS MANAGEMENT  This school focuses on the operation and control of the production process that transforms resources into finished goods and services. It has its roots in scientific management but became an identifiable area of management study after World War II. It uses many of the tools of management science.
  24. 24. Systems Approach  Views organization as a system composed of interconnected-and thus mutually dependentsub-systems.  Sub-systems can have their own sub-subsystems.  A system can be perceived as composed of some components, functions and processes (Albrecht, 1983)
  25. 25. Characteristics of Systems Systems have structure, defined by components/elements and their composition; Systems have behavior, which involves inputs, processing and outputs of material, energy, information, or data;
  26. 26. Characteristics of Systems Systems have interconnectivity: the various parts of a system have functional as well as structural relationships to each other. Systems may have some functions or groups of functions
  27. 27. Open versus closed systems. According to Ludwig von Bertlanffy, there are two basic types of systems: closed systems and open systems. Closed system are not influenced by and do not interact with their environments. Open systems interact with their environment. All organizations are open systems, although the degree of interaction may vary.
  28. 28. Contingency Approach Based on the belief that there cannot be universal guidelines which are suitable for all situations. (Selznick, 1949; Burns and Lorsch, 1967) Suggests that different environments require different organizational relationships for optimum effectiveness, taking consideration various social, legal, political, technical and economic factors. ( Hellriegel and Slocum, 1973)
  29. 29. Contingency Approach Based on the belief that there cannot be universal guidelines which are suitable for all situations. (Selznick, 1949; Burns and Lorsch, 1967) Suggests that different environments require different organizational relationships for optimum effectiveness, taking consideration various social, legal, political, technical and economic factors. ( Hellriegel and Slocum, 1973)
  30. 30. Contingency Approach Four important ideas of Contingency are: 1. There is no universal or one best way to manage 2. The design of an organization and its subsystems must 'fit' with the environment 3. Effective organizations not only have a proper 'fit' with the environment but also between its subsystems 4. The needs of an organization are better satisfied when it is properly designed and the management style is appropriate both to the tasks undertaken and the nature of the work group.
  31. 31. Thank You