Development of Management Thought<br />Ms. Amanpreet Kaur<br />
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 />
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 />
IndustrialRevolution..??<br />The advent of machine power, mass production and efficient transportation begun in the late 18th century in Great Britain.<br />
ClassicalApproach<br />The termisused to describe the hypotheses of the scientific management theorists and the general administrative theorists.<br /><ul><li>Inter-relatedfunctions
B) Scientific ManagementFredrick Winslow Taylor (1856-1915)Father of Scientific Management<br /><ul><li>Grew out to increaseproductivity
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.
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 />
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 />
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 />
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
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
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 />
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 />
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 />
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 />
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 />
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 />
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 />
Practical Utility of Approach<br /><ul><li>Clearview of the realities of managerial job.
Common sense value and widenspractical utility
Integrateclassicalapproach + apply contingent to situation
Organisations environment are dynamic to bealwayseffectivelymanaged in the samemanner.
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 />