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Presurcors of management


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Presurcors of management

  1. 1. Management in antiquitiesEarly management pioneers
  2. 2. Management in antiquities: Romans (1000 B.C-400 B.C): Organized structure for communication• Egyptians(3000-1000 B.C): Management practices to construct pyramids
  3. 3.  Sumerians (3000-2500 B.C): Written rules and regulations for governance• Chinese ( 1000 B.C -1000 A.D) Laws ,policies and structure for governance
  4. 4. Early management pioneers: Charles Babbage (1792-1871): Production efficiency• Robert Owen (1771-1858): Employee welfare
  5. 5.  Henry Robinson Towne (1844-1924): Skills and management Organized effort to pool the accumulated knowledge• Captain Henry Metcalfe (1837-1913): Improvement of administration Cost estimation and details of work
  6. 6. Is an attitude and philosophy which discards the traditionalmethod of hit and miss, rule of thumb, trial and errors ofmanaging work and workersCocerned with application of scientific problem solvingapproachPurpose is to improve labor productivity
  7. 7. Frederick Winslow Taylor(1856-1915)• Known as father of scientific management• Prominent scholar to introduce scientific management• Made efforts to replace primitive rule of thumb method by modern scientific method• Convinced that there is a science for doing each job• Published book “principles of scientific management”
  8. 8. Principles of scientific management Science not rule of thumb Scientific selection, development and training of worker Co -operation Division of work and responsibility By-lateral mental revolution
  9. 9. Contribution of scientificmanagement Helps in increase in production Developed workers efficiency Leads to greater economic prosperity Differential wage payment system Time study, motion study and economic incentives
  10. 10. Limitations of scientificmanagement theory Laid too much emphasis on technical aspects of work Totally ignored human interests Leads to monotony in worker Forced to speed up process beyond their capacity Not allowed to take initiative use of modern machines reduced the number of workers
  11. 11. •Concerned with entire range ofmanagerial performance•distinct field of study•Focuses on functions principles andskills needed for management
  12. 12. Henry fayol(1840-1925) French industrialist and mining engineer by profession Developed theory of administrative management Known as father of administrative management Was the contemporary of Taylor
  13. 13. Management consists of: Business activities Management Administrative Management functions management skills Management principles
  14. 14. Division of industrial activities intosix groups Technical • Production, manufacturing commercial • Buying,selling,and exchange Financial • Acquiring, controlling capital • Protecting people, property security Accounting • Recording financial transactions • Planning,organising,staffing,leading,controlling managerial
  15. 15. •Principles of administrativemanagement:-fourteen principles Division of work Authority and responsibility Discipline Unity of command Unity of direction
  16. 16.  Subordination of individual interest to general interest Remuneration of personnel centralization Scalar chain Order
  17. 17.  Equity Stability of tenure of personnel Initiative Espirit de corps
  18. 18. Contributions of administrativemanagement Focuses on efficiency of organization Lays down universal principles of management Identified skills needed for management Regarded management as a profession
  19. 19. Limitations: No proper attention to human behavioral aspects Not considered situational factors No clear distinction between structure and process of organization
  20. 20.  Principles of management are not applicable in all situations Based on personal experience and little observations
  21. 21. Bureaucracy form of organization characterized by: •Division of labor •Rules and regulations •Impersonal relations
  22. 22.  Developed by Max Weber(1864-1920) Was a German sociologist
  23. 23.  Most common in large organizations Applicable to organization where more number of employees Performing activities to meet common goals
  24. 24. Principles of bureaucraticmanagement: Formal rules and procedures Functional specialization Well defined hierarchy of authority
  25. 25.  Supervision by a higher authority Technical competence for employment and promotion All decision should be recorded Interpersonal relation
  26. 26. Advantages / Contributions: Focus on chain of command Proper division of work Specific procedures
  27. 27.  Relationship based on position Focus on technical competence Job security
  28. 28. Limitations of bureaucratic theory: Rigid rules and regulations Ignores innovation Lack of effective communication
  29. 29.  Problem of role conflict Ignores informal relationship
  30. 30. Are modified ,enlarged and extended forms of classicaltheoryEmphasized on social and psychological factors at workand emotions
  31. 31. Two categories of behavioralperspective:I. Human relation approachII. Behavioral science approach
  32. 32. HUMAN RELATION APPROACH: The term “human relation” is generally used to describe the ways in which managers interact with sub ordinates Workers should not be treated as mere factors of production They should be considered as human beings
  33. 33.  Elton Mayo and his colleagues laid the foundation for human dimension in organizations Was a professor at Harvard Business School
  34. 34.  Conducted series of experiments At Hawthorne plant of Western Electric Company at Chicago
  35. 35. Four phases of experiments:1. Illumination experiments: Conducted to measure the effects of lighting on productivity of workers Illumination was manipulated for one group of workers Held constant for another group
  36. 36. Conclusion was: Illumination didn’t affect output Social acceptance influenced work performance
  37. 37. Relay assembly test roomexperiments: Two groups of six female telephone relay assemblers were put in separate rooms Frequent changes made in their working conditions
  38. 38. Conclusion was: Output increased Recognition and appreciation are important for production Social setting and group cohesion needed
  39. 39. •A group of 20,000 workers were interviewed•To find out factors responsible for human behavior atwork
  40. 40. Conclusion was: Importance of informal relations influenced the workers attitude Social and psychology needs influenced behavior and productivity
  41. 41. Bank wiring observation roomexperiment: 14 male workers were formed into small work group Observed for seven months In bank wiring room
  42. 42. Conclusion was: Workers formed informal organizations They set their own production norms Supervisors paid special attention and care to them Management concerned about their welfare
  43. 43. Personal and social factors are important to motivateemployeesThe concept of “social man "because unavoidableEffective supervision to improve productivity
  44. 44. Limitations of Hawthorne studies: Lacks adequate focus on work Laid emphasis on interpersonal relations and informal groups Financial reward were ignored for symbolic reward
  45. 45. Concerned with scientific investigation, analysis andunderstanding human behaviorImproved and more modern version of human relationapproach
  46. 46. Behavioral science theory consistsof:I. Need hierarchy theory: Abraham MaslowII. Theory X and Y : Douglas Mc GregoryIII. Two factor theory : Frederick Herzberg
  47. 47. Need hierarchy theory: Advocated that human behavior is motivated by needs When one need is fulfilled another arises in predictable sequence Employees are motivated to work in best possible efficiency to fulfill needs
  48. 48. Lower order needs (psysiological,safety):Should be satisfied first before higher order needsHigher order needs (social,ego,sel-actualization):
  49. 49.  To sum up this theory says- Man is never fully satisfied- Unfulfilled needs influence human behavior in organization
  50. 50. •Douglas Mc Gregory proposed:two distinct views of human beingsNegative labeled theory XPositive labeled theory Y
  51. 51. THEORY - X• Set of pessimistic assumption• Employees are lazy• Tends to avoid work• Need managerial control• Seek formal directions by superiors
  52. 52.  Avoids responsibility Security oriented ambition Lower order needs Focus on organizational goals
  53. 53. THEORY - Y Set of optimistic assumption Employees are active, dynamic They liked, accept the work Self control by employees Learn to accept and seek responsibility
  54. 54.  Creativity oriented ambition Higher order needs Integration of individual and organizational goals Creativity is not the monopoly of managers
  55. 55. •Frederick Herzberg developed two factor theory for workmotivation•This theory based on the contents of interviews conductedon 200 engineers and accountants•Hygiene factor and motivation factor
  56. 56. Hygiene factor: Known as dissatisfies or maintenance Presence of these factors do not motivate employees But their absence causes dissatisfaction
  57. 57.  Necessary to maintain minimum level of need satisfaction Includes: company policy and supervision, relationship with supervisors , relationship with peers, personal life, salary etc
  58. 58. Motivation factor: Known as motivators,satisfiers,or job content factors Its presence causes high levels of motivation and job satisfaction Their absence do not cause high dissatisfaction
  59. 59.  Includes: self respect, sense of responsibility, working condition,achieveent ,recognition Conclusion: enriched jobs are key to motivate employees
  60. 60. Contribution of behavioral sciencetheory: Identified the role of human elements in organization Recognized the quality of leadership as imp factor for success of management Emphasizes on non financial rewards
  61. 61. Limitation of behavioural sciencetheory: Neglects the economic dimension of job satisfaction Not considered situational variables Views mgmt as nothing but applied behavioral science Lacks scientific validity;
  62. 62. Involves the use of quantitative techniquesQuantitative tools such as:statistics,informationmodels, and computer simulations to improve decisionmaking
  63. 63. Management science theory: Emphasizes on application of mathematics and statistics Useful for taking decisions and solving management problems
  64. 64.  Linear programming, game theory, sampling theory, probability theory are some techniques Manager uses to solve resource allocation problem Computer programs are used to analyze the programs
  65. 65. Operation management theory: concerned with managing the process of transforming materials,labors,and capital into products Pays close attention to demands of quality,customer,serviceand competition Proves to be the best technique for solving complex management problems
  66. 66. Contribution of quantitativeperspective: Developed quantitative tools to aid decision making Widely used in production and operation management Found in solving technical problems and forecasting
  67. 67. Management information system: Organizes past, present and projected data and processes it into usable information Collects data from both internal and external source Makes then available to managers at all organizational levels
  68. 68. Limitations: Does not deal with people aspect of an organization Required data cannot be updated and are not accurate It requires unrealistic or unfounded assumptions
  69. 69. Integrates the earlier perspectives consisting two theories i.e. The system theory The contingency theory
  70. 70. The system theory of management Relatively new approach to continually expanding body of management thoughts Well known scholars research deeply planted in physical and biological sciences Other universalistic theories studies fragmented ,upgraded form Group of interrelated parts acting together to accomplish a goal of unified purposes Deals with the organizational environment scanning the whole internal and external ones
  71. 71. EnvironmentInternal External Organizational plans and policies Organizational structures Organizational resources Micro task macro Organizational culture 1. Suppliers 1.political(P) 2.customers 2.Economic(E) 3.socio-culturall 4.pressure group 5.competitors 5.Nature {To some extent controllable} {uncontrollable}
  72. 72. Various elements of system theory open system closed system sub system Goal directed Synergy Boundary Entropy Flow of information
  73. 73.  system view of an organizationInput conversion output Feedback
  74. 74. Contribution of system theory: Takes an integrative total view of organization Holistic view taken for problem solving Recognize interrelation &interactions among subsystem Provides better understanding of environment Useful for studying complex organization Facilitates feedback changes in system
  75. 75. Limitations Isnt useful for small organization Too abstract, practically not applicable for all Doesn’t provide specific guidance on functions and duties of manager
  76. 76. THE CONTINGENCY THEORY Profounder: Tom Burns and G.M. Stalker in Britain Paul Lawrence and jay Lorsch in U.S Emerged from experiences of many other Management concept are contingent on a particular situation Situational characteristics “there is no best way to manage” Recognizes situational nature of management taking an integrative view Each situation is unique and demands unique managerial action
  77. 77. Differences between universalistic and contingencytheory: Bases Universalistic contingency 1.characterstics Firm is insulated from Proactive recognition outside changes for it than external external environment environment has a isnt a factor. it just look critical impact on like a “technical core” internal firm design. 2.Definations Defines "there is one Best way to manage way to organize” depends on various contingencies 3.Organizations Maximum Level of specialization effectiveness specialization, .formalization or maximum employee are contingent formalization, upon needs of maximum employee organization and should participation like factors be matched accordingly with maximum performance
  78. 78. Contingencies/ situations variables Organization size Task technology Uncertain environment Geographical spread Strategies Individual differences Types of work being done
  79. 79. Contingency theory of structural adaptionto regain fit{SARFIT} Contingencies variable Other causes •- Fit • performance • • + + LOW Organizational • If less than satisfying structure • Adaptive Changes
  80. 80. Contributions Situation regarded as important aspect of management decisions after emergence of contingency theory Situational Applicability of various management theories Development of ideas the no one best way to manage as depends on situation Widely adaptable in planning, organizing,directing,motivating,and controlling.
  81. 81. Limitations Very complex as to determine variables and their interrelationship is tough task every situation is unique and impossible to handle and analyze it Fails to identify all the contingencies May not be applicable in all managerial issues
  82. 82. Emerging challenges/Issues formanagement Globalization and e-commerce Development of environmentalism Quality assurance and productivity Managerial ethics and social responsibility(corporate governance) Workforce diversity Innovation and change Empowerment of employee Knowledge management Technological development Multi cultural effects Learning organization Managing expatriate employees multinational
  83. 83. THEEND
  84. 84. Thanking u all….ANY QUERIES?????