Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Evolution of Management Thought

Evolution of Management Thought , Theories of Management

  • Login to see the comments

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

×