4. MANAGEMENT PERSPECTIVES
OVER TIME
Exhibit 2.1, p.44
2000
The Technology-Driven Workplace 2010
1990
The Learning Organization 2010
Total Quality Management 1980 2000
Contingency Views 1970 2000
Systems Theory 1950 2000
Management Science Perspective 1940 1990
Humanistic Perspective 1930 1990
1870
Classical 1890
1940 2010
4
5. CLASSICAL/SCIENTIFIC MGMT
SCHOOL
Originators : F.W.Taylor, Henri Fayol, Frank
and Lillan Gilbreth
Emphasis : Science, rationality
F.W.Taylor (Father of Scientific Management,
1911). Propounded Scientific Management
Principles.
Replacing Rules of Thumb with a true science of work
Achieving cooperation of human beings, rather than
chaotic individualism
The scientific selection and progressive development of
workmen
Working for maximum output rather than restricted
output.
6. HENRI FAYOL
Father of Modern Operational Management Theory, 1841-1925.
French industrialist
Propounded 14 universal management principles
Division of work for greater efficiency and productivity
Authority and responsibility
Discipline requires good superiors at all levels
Unity of command – orders from one boss
Unity of direction – commitment to same plan
Subordination of individual to the general interest
Remuneration -methods of pay should be fair and satisfactory to all
Centralization – extent to which authority is concentrated or
dispersed
Scalar Chain – chain of superiors from highest to lowest
Order – arrangement of things and people
Equity – management should judge things and people with fairness
Stability of tenure – there ought to be proper training and settling
down of the people, freedom from interference.
Initiative – to be encouraged to full
Exspirit De Corps – to build good team spirit and morale among
workers.
7. HENRY GANTT
Colleague of Taylor. He replaced old piece rate
system of pay with a day-rate system. Concept of
bonus for those who met and exceeded the target
set. He developed a type of bar chart to show the
time relation between the task achieved in
comparison too the optimum target set.
9. FRANK AND LILLIAN GILBRETH
Proponents of Motion Studies, 1917.
Defined a motion study as “dividing work into
most fundamental elements possible; studying
these elements separately and in relation to one
another; and from these studies elements, when
timed, building methods of least waste.
10. MAX WEBER
“theoryof bureaucracy,” thought an
organization should be based on 5
principles:
Formal authority of managers
Jobs based on qualifications
Authority and responsibility clearly defined
Hierarchical positions
Rules and SOPs control organization
11. CONCLUDING REMARKS
Achievements:
Brought formal and rational approach to
management
Improved working practices that resulted in
vast increase in productivity.
Drawbacks :
Tasks were reduced to their simplest, smallest
elements which led to boring, repetitive and
monotonous.
Misconception that workers were only
motivated by money.
12. HUMAN RELATIONS
Originators: E.Durkheim, M.P.Follet, C.Barnard,
E.Mayo, D.McGregor, A.Maslow, F.Herzberg.
Emphasis : Micro Environment (needs,
motivation and leadership ) Macro environment
(social and technical systems analysis)
13. ELTON MAYO
1880-1949
Experimented and proved that the working
conditions on levels of productivity at Hawthorne
Plant of Western Electric Company, Chicago (1927-
32).
Physical conditions like lighting, working
conditions, length of work period, effect the output
of workers. When these conditions were altered,
production continued to increase.
Interpretation : Close-nit social conditions among
workers caused them to group together and
produce output even in adverse conditions.
14. MAYO’S EXPERIMENTS
Illumination Studies - 1924-
1927
Relay Assembly Test Experiments - 1927-1929
Relay Assembly Room #2 - 1928-
1929
Mica Splitting Test Group - 1928-
1931
Plant Interview Program - 1925-
1932
Bank Wiring Observation Group - 1931-1932
15. MARY PARKER FOLLET & CHESTER
BARNARD
MPF -1868-1933
CB- 1938
They stressed the importance of
group working which is superior to
individual working.
Concepts like participation
cooperation, communication,
coordination, authority sharing were
supported by them
16. DOUGLAS MCGREGOR
1960
Proposed assumptions about people in
general namely theory ’X’ and Theory ‘Y’.
Theory X
People do not like work and try to avoid it
So managers control, coerce and threaten.
People prefer to be directed, avoid
responsibility, wants security and have little
ambition
17. Theory Y
People do not naturally dislike work ( work is
natural part of life)
Internally motivated to reach objectives
committed
Committed to goals to the degree that they
receive personal rewards
Seek and accept responsibility under favorable
conditions
Have capacity to be innovative in problem
solving
People are bright , but under most conditions
their potential is underutilized.
18. THEORY J AND THEORY Z ?
I think you need to learn on your own
Who is William Ouchi?.
19. SYSTEM SCHOOL OF
MANAGEMENT THOUGHT
Originator : Not clearly known
Emphasis : People, Structure, Technology and
environment as interacting elements which
comprise an organization
Achievements:
1.Management considers all the four variables as
a cohesive whole and not as separate items.
2.Drawn attention to importance of planning
which is vital for successful performance in
organization
3.Achievement of plan depends on monitoring
actual result against planned results and
correcting any deviations
20. SYSTEMS THEORY
Key concepts
Organization is viewed as a managed system
Management must interact with the environment
Organizational goals must address effectiveness and efficiency
Organizations contain a series of subsystems
There are many avenues to the same outcome
Synergies enable the whole to be more than the sum of the parts
Contributions - Unknown
Recognized the importance of the relationship between the
organization and the environment
Limitations
Does not provide specific guidance on the functions of managers
21. CONTINGENCY SCHOOL
Contributors : J.Woodward (1965),
Thompson (1967), Lorsch & Lawence
(1970).
Emphasis : Management style and
organization structure should reflect and
change with the chancing environment
the company finds itself in.
There is no one best way of management
The most appropriate method of management
will change overtime as circumstances of
org.change.
Factors like size and technology influence
organization structure.
22. Managers have always asked questions such as “
What is the right thing to do?
Should we have a mechanistic or an organic structure?
A functional or divisional structure?
Wide or narrow spans of management?
Tall or flat organizational structures?
Simple or complex control and coordination mechanisms?
Should we be centralized or decentralized?
Should we use task or people oriented leadership styles?
What motivational approaches and incentive programs
should we use?"
23. Mechanistic Organic
Individual specialization: Joint Specialization:
Employees work separately Employees work together and
and specialize in one task coordinate tasks
Complex integrating mechanisms:
Simple integrating mechanisms:
task forces and teams are primary
Hierarchy of authority well-defined
integrating mechanisms
Centralization:
Decentralization:
Decision-making kept as high as
Authority to control tasks is delegated.
possible.
Most communication lateral
Most communication is vertical.
Standardization: Mutual Adjustment:
Extensive use made of rules & Face-to-face contact for coordination.
Standard Work process tends to be
Operating Procedures unpredictable
Much written communication Much verbal communication
Informal status in org based on size of Informal status based on perceived
empire brilliance
Organization is network of persons or
Organization is a network of positions,
teams. People work in different
corresponding to tasks. Typically each
capacities
person corresponds to one task
simultaneously and over time
24. J.Woodward (1965)
Supported from her research found that
technology effects on organizational structure
Thompson (1967)
Long linked – production lines, differential
departmentation
Mediating – the customer groups, like
financial agencies, borrowers, advertising
agencies
Intensive – involves application of a variety
of technologies to the solution of problems
in organization (ex. Space programme
agencies, ICUs)
,
25. Lorsch & Lawence (1970).
Relation between organization and environment
and successful organization continue to structure
according to environmental demands
Formality of structure
Goal orientation (market targets, not goals)
Term (short and long)
IPR
26. CONTINGENCY
PERSPECTIVE
Key concepts
Situational contingencies influence the strategies, structures,
and processes that result in high performance
There is more than one way to reach a goal
Managers may adapt their organizations to the situation
Contributions
Identified major contingencies
Argued against universal principles of management
Limitations
Not all important contingencies have been identified
Theory may not be applicable to all managerial issues
27. economies of scale - reductions in the average cost of
a unit production as the total volume produced
increases
