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Evolution of Management Thought

Evolution of Management Thought , Theories of Management

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Evolution of Management Thought

  1. 1. Evolution of management thoughtEvolution of management thought
  2. 2. Early approaches to ManagementEarly approaches to ManagementThe Industrial Revolution, which began inEurope in the mid-1700s, was the startingpoint for the development ofmanagement concepts and theories.
  3. 3. Classical ApproachClassical ApproachClassical management can be divided intothree separate schools:-Scientific management – F.W. TaylorAdministrative theory – Henry FayolBureaucratic management – Max Weber
  4. 4. Overview of classical theoriesOverview of classical theoriesApproach Rationale FocusScientificmanagementOne best way to doeach jobJob levelAdministrativeprinciplesOne best way to putan organizationtogetherOrganizational levelBureaucraticorganizationRational andimpersonalorganizationalarrangementsOrganizational level
  5. 5. Classical ApproachClassical ApproachThese views are labeled as classicalbecause they form the foundation for thefield of management thought.
  6. 6. Scientific managementScientific managementIt is an approach that emphasizes thescientific study of work methods toimprove the efficiency of workers.It became popular in 1900s.
  7. 7. Scientific managementScientific managementF.W. Taylor was known as the ‘father ofscientific management.’Midvale Steel Co.SoldieringTo counter the soldiering problem Taylordeveloped the science of Management.
  8. 8. Scientific managementScientific managementSteps DescriptionStep 1 Develop a science for each element ofthe jobStep 2 Scientifically select employees andthen train themStep 3 Supervise the employeesStep 4 Continue to plan but get the work doneby the workers
  9. 9. Scientific managementScientific managementThe two major managerial practices thatemerged from Taylor’s approach :-Piece-rate incentive systemTime-and-motion study
  10. 10. Limitations of scientific managementLimitations of scientific managementScientific management focus on problemsat operational level.People are motivated only by materialgains.It ignored human desire for jobsatisfaction.
  11. 11. Administrative TheoryAdministrative TheoryIt focused on principles that could beused by managers to coordinate internalactivities of organization.Henry Fayol – FrenchAccording to Fayol, the businessoperations of an organization could bedivided into 6 activities
  12. 12. Administrative TheoryAdministrative TheoryThe 6 activities are :-TechnicalCommercialFinancialSecurityAccountingManagerial
  13. 13. Fayol’s 14 principles of ManagementFayol’s 14 principles of ManagementDivision of workAuthority and responsibilityDisciplineUnity of commandUnity of directionSubordination of the individual interest tothe general interest.
  14. 14. Fayol’s 14 principles of ManagementFayol’s 14 principles of ManagementRemunerationCentralizationScalar chainOrderEquityStability of tenure of personnelInitiativeEspirit de corps
  15. 15. Bureaucratic ManagementBureaucratic ManagementMax WeberMajor characteristics of BureaucracyWork specialisation and division oflabourRules and regulationsImpersonalityHierarchy of organization
  16. 16. Limitations of bureaucratic andLimitations of bureaucratic andadministrative managementadministrative managementNot universally accepted principles.Bureaucracy destroyed individualcreativity and flexibility.Important aspects of O.B. was ignored.External and internal environmentignored.
  17. 17. Behavioral ApproachBehavioral ApproachThe behavioural school of managementemphasized what the classical theoristsignores – The human element.
  18. 18. Elton Mayo : Focusing on HumanElton Mayo : Focusing on HumanRelationsRelationsFather of the Human Relations ApproachWestern Electric’s Hawthorne Plant
  19. 19. Elton Mayo : Focusing on HumanElton Mayo : Focusing on HumanRelationsRelationsThe experiments were conducted in fourphases:Illumination experimentRelay assembly test room experimentInterview phaseBank wiring observation roomexperiment
  20. 20. Contributions of Hawthorne studiesContributions of Hawthorne studiesThe group is the key factor in jobperformancePerceived meaning and importance of thework determine outputWorkplace culture sets its ownproduction standards
  21. 21. Criticism of Hawthorne studiesCriticism of Hawthorne studiesCritics felt that the conclusions weresupported by little evidence.The relationship made betweensatisfaction of workers and productivitywas too simple.The studies failed to focus on theatitudes if employees.
  22. 22. Abraham Maslow : Hierarchy of needsAbraham Maslow : Hierarchy of needsPeople are motivated by a hierarchy ofneedsHis theory had three assumptionsAll of us have needs which are neverfulfilledThrough our actions we try to fulfill ourunsatisfied needsNeeds can be classified into 5 types
  23. 23. Abraham Maslow : Hierarchy of needsAbraham Maslow : Hierarchy of needsAccording to Maslow, once needs at aspecific level have been satisfied, they nolonger act as motivators of behaviour.Then individual strives to fulfill needs atthe next level.
  24. 24. Douglas McGregor : Theory X andDouglas McGregor : Theory X andTheory YTheory YThese theories reflect two extreme setsof belief that different managers haveabout their workers.Theory X represents an essentiallynegative view.Theory Y reflects a more positive view.
  25. 25. Chris Argris : Matching human andChris Argris : Matching human andorganizational developmentorganizational developmentMaturity –immaturity theoryModel I and Model IIModel I – Employees are manipulativeand not willing to take risks
  26. 26. Quantitative approachQuantitative approach1. Management scienceAnother name for it is operationsresearch2. Operations management3. Management information systems
  27. 27. Modern approaches to managementModern approaches to management1. Systems approachOrganizations cannot exist in isolationFour major components – Inputs,transformation process, output andfeedbackOpen and closed systems
  28. 28. Modern approaches to managementModern approaches to management2. Contingency theorySituational theory
  29. 29. Emerging Approaches in ManagementEmerging Approaches in ManagementThoughtsThoughtsWilliam Ouchi – theory ZConducted research on both American andJapanese management approachesTheory Z involves providing job security toemployees to ensure their loyaltyQuality management