Development of Management Thought


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Development of Management Thought

  1. 1. Development of Management Thought<br />Ms. Amanpreet Kaur<br />
  2. 2. Michelangelo…<br />The lonely genius trapped between agony and ecstacy, isolated on his back on a scaffold, single handedly painting the ceiling of Sistine Chapel – <br />A Myth….!!!!!<br />
  3. 3. Reality…<br />Some 480 yrsago, was running a mid-sizedfirm.<br />13 people helpedhimpaint, 20 in carving and 200 helped in building the library.<br />He used to personally select, train, and assignthem teams.<br />Kept a detailedemployment records of names, daysworked and wages of everyemployee, everyweek.<br />He wasjust a trouble-shooting manager with us evenbeforeIndustrialrevolution.<br />
  4. 4. IndustrialRevolution..??<br />The advent of machine power, mass production and efficient transportation begun in the late 18th century in Great Britain.<br />
  5. 5. ClassicalApproach<br />The termisused to describe the hypotheses of the scientific management theorists and the general administrative theorists.<br /><ul><li>Inter-relatedfunctions
  6. 6. Based on experience of managers
  7. 7. Based on basic truths and facts
  8. 8. Managers weredeveloped by formaleducation and training
  9. 9. People are motivated by incentives and penalities.
  10. 10. No conflictwithinindividuals, if any, interest of orgn prevails</li></li></ul><li>A) BureaucracyMax Weber (1864-1920) A German Social Scientist<br />Principles<br /><ul><li>Division of work
  11. 11. Rules and Regulations
  12. 12. Hierarchy of Authority
  13. 13. TechnicalCompetence
  14. 14. Record Keeping
  15. 15. Impersonal Relations</li></ul>LegitimateAuthority<br />Traditional<br />Rational<br />Charismatic<br />
  16. 16. +ves & -ves<br />
  17. 17. B) Scientific ManagementFredrick Winslow Taylor (1856-1915)Father of Scientific Management<br /><ul><li>Grew out to increaseproductivity
  18. 18. In 20th century, skilled labour in US were short in supply, soneccessary to increaseefficiency.</li></ul>Objectives<br /><ul><li>Providescientific basis for designing and performing jobs.
  19. 19. Managers to followscientific and systematicapproach to managerialproblems in place of rule of thumb</li></li></ul><li>Principles<br />Science – No rule of thumb.<br />Harmony, not discord.<br />Co-operation not Individualism.<br />Maximum output not restricted.<br />Development of each man to his best capacity and ability.<br />Maximum prosperity of employees, coupledwith maximum prosperity of Orgn.<br />‘Mental Revolution’<br />Eyes off division of surplus, rather focus on increasing the size of surplus<br />
  20. 20. Techniques..<br />Time Study (workMeasurement)<br />Motion Study<br />Method Study<br />Fatigue Study<br />Differentialwage rate system<br />Scientifictask planning<br />Standardization + Simplification<br />FunctionalForemanship<br />
  21. 21.
  22. 22. C) Administrative TheoryHenry Fayol (1841-1925)Father of Adminstrative Management<br />His Contributions…<br /><ul><li>6 Business Activities
  23. 23. 5 Management Functions
  24. 24. 14 Principles</li></ul>Business Activities<br />Technical<br />Commercial<br />Financial Operating activities of business<br />Accounting<br />Security<br />ManagerialActivity Most Neglected<br />
  25. 25. 14 Principles<br />Division of Work<br />Authority and Responsibilty<br />Discipline<br />Unity of Command<br />Unity of Direction<br />Subordiantion of Individualinterest to generalinterest<br />Remuneration of personnel<br />Centralisation<br />Scalar Chain<br />Order (Materialorder + Social order)<br />Equity<br />Stability of tenure<br />Initiative<br />Espirit de corps (Unity of efforts throughharmony of interests) <br />
  26. 26. Neo-ClassicalApproach<br />A classicalapproachled to efficient orgn, but failed to recognize the overwhelmingrole of people in management.<br />People began to resistformal and impersonaltreatment.<br />The resistance and the need to securewillingco-operation of workersled to the development of neo-classicalapproach.<br /><ul><li>HawthroneExperiments
  27. 27. Human Relations Movement
  28. 28. Behavioural Sciences Thinking</li></li></ul><li>A) HawthroneExperimentsGeorge Elton Mayo (1880-1949)Father of Neo-ClassicalApproach<br />Experimentsconductedat a plant at Western Electric Company.<br /><ul><li>Illumination Experiment
  29. 29. Relay Assembly Test room studies
  30. 30. Mass Interview
  31. 31. Bank wiring observation room study</li></ul>Conclusion-<br />A work group- not a techno economic unit but a social system<br />Workers not only rational economicbeingsmotivated by money, but alsorespond to work conditions<br />Social+Psychologicalfactorsexercisegreater control on employeebehaviour.<br />
  32. 32. B) Human Relations Approach<br /><ul><li>Pertains to motivating people in orgn to develop team workwhicheffectivelyfulfillstheirneeds and leads to achievingorganisational goals.</li></ul>Contributions-<br />Moral Justification<br />Satisfysocial and psychologicalneeds to increaseproductivity.<br />Highlights the people side of orgn.<br />A trueconcern for workers<br />Focuses attention on inter-personal relations + Dynamics<br />Stressed on training of people management skills and managerial styles.<br />
  33. 33. C) Behavioural Science Approach<br />Belief thathumanis more complexthan the ‘economic man’ description of classicalapproach and the ‘Social man’description of the Human relations approach.<br /><ul><li>Concentrates on the nature of workitself and degree to whichitcanfulfill the humanneed to use skills and abilities.</li></ul>Contibutions-<br />More use of teams to accomplish goals, focus on training and development and the use of innovativereward and incentivesystems.<br />
  34. 34. Systems Approach<br />Attempts to explainorganisationalbehaviour by analysing the structure of orgn.<br />It was a result of thoseorgnsthatweretrying to adapt to the rapid change in business environment.<br />Features-<br />Unified and purposeful system<br />Each inter-related parts and subsystems.<br />Each system has a boundary- Internal or External<br />Open system Vs. Closedsystems<br />A business enterprise as a open system<br />(Draws Inputs- convertinto output- sends to environment)<br />
  35. 35.
  36. 36. ContigencyApproach<br />Wasdeveloped by managers, consultants and researcherwhotried to apply the concept of earlierapproaches to real life situations.<br />‘ There is no best way to tackle the problem of management. The application of management principles and practices is contingent upon the environment’<br />
  37. 37. Best solution is one whichis responsive to the pecularities of a given situation.<br />Features<br />Mgt issituational.<br />Should match or fit itsapproach to the requirements of a particular situation.<br />Mgt’ssuccessdepends on itsability to copewithitsenv, itshouldsharpenitsdiagonisticskillsso as to anticipate and comprehend the environmental change.<br />Mgrs shouldunderstandthatthereis no best way to manage.<br />
  38. 38. 4 SequentialSteps<br />Analyze and understand the situation<br />Study and examine the validity of various concepts, principles and techniques to situation.<br />Make the right choice by matching the technique to the situation.<br />Implement the choice.<br />
  39. 39. Practical Utility of Approach<br /><ul><li>Clearview of the realities of managerial job.
  40. 40. Suggests situation specific solutions.
  41. 41. Common sense value and widenspractical utility
  42. 42. Integrateclassicalapproach + apply contingent to situation
  43. 43. Organisations environment are dynamic to bealwayseffectivelymanaged in the samemanner.
  44. 44. No golden rule – Applicable in all situations.</li></li></ul><li>Negatives..<br />Confusion<br />No theoriticalfoundation<br />Does not incorporate all aspects of systemstheory<br />Reactivestrategyratherthan proactive theory.<br />
  45. 45. Queries… ???<br />Ms. Amanpreet Kaur<br />