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Principles and Fundamental of Management
Thoughts
“EVOLUTION”
1Aditi
Early
Classical
Charles Babbage (
1792- 1871)
Robert Owens (
1771-1858)
Henry Robinson
Towne ( 1844-
1924)
Charles Dupin
(1784- 1873)
James Watt
(1796- 1848)
Mathew Robinson
Boulton (1770-
1872)
Classical
1. SCIENTIFIC
a) F. W. Taylor 1875-
b) Henry Gantt
c) Harlow Person
d) Harrington
e) Frank and Lilian
Gilbreth
2. ADMINISTRATIVE-
a) Henri Fayol (1841-
1925)
3
3. BUREAUCRATIC
Max Weber (1864-
1920)
Aditi 2
NEO-
CLASSICAL
Human Relation
Approach
(Elton Mayo-
Hawthrone experiment
1924- 1930)
BehaviouralScience
Approach
A.Maslow
Douglas McGregor
Frederick Herzberg
Kurt Lewin
Keith Davis
Chris Argyris
George Homans
MODERN
Quantitative/
Management Science
System Approach
Contingency
Aditi 3
Continued......
Schools of Management Thought
1. EARLY CLASSICAL APPROACHES:
HENRY GANTT
&
FRANK & LILLIAN GILBERTH
A) F. A) W. TAYLOR- (SCIENTIFIC MANAGEMENT
CONCEPTS
B) MAX WEBER- BUREAUCRATIC APPROACH
C) HENRI FAYOL-ADMINISTRATIVE THEORY
4Aditi
1.A) Scientific Management Theory
FREDERICK WINSLOW TAYLOR- (1856-1915) Father of Scientific
Management theory
CONDUCTED EXPERIMENTS ON : 1. MIDVALE STEEL
2. SIMONDS ROLLING MACHINE
3. BETHLEHEM STEEL
5
Main objective: Improving economic
efficiency
 Labor productivity.
 Earliest attempts
jobs were allocated
Relationship of the workers
Differences in talent, intelligence,
motivations. Aditi
PRINCIPLES OF SCIENTIFIC
MANAGEMENT
• Science not the rule
of thumb
• Harmony not
discard/
• Scientific selection
T&D
• Division of work
/responsibility
• Mental Revolution
Contribution
• Time and motion study
• Differential payment
• Drastic reorganization
of supervision
• Scientific recruitment
and training
• Intimate friendly
cooperation between
the Management and
workers
6Aditi
Contribution in Scientific Management
1. Henry L. Gantt (1861-1991)
 incentivewageplans.
 differential piece ratesystem
 Taskwork witha bonus.
 A graphicschedule for theplanning
 controlling of work
 recording progress towardsstagesof aproject.
1. Frank and Lillian Gilbreth (1868-1924 and 1878-
1972)
"man’srecord”"dailybalanceof work“
 "Organizingfor Work“
 Measureactivities
 Thespace on thechart
7Aditi
CRITICISM FOR SCIENTIFIC MANAGEMENT
• reductionist approach
• The allocation of work
• Increased output would lead to less workers
• Inefficiencies
• Poor design of the performance
8Aditi
Classical Organization Theory : Administrative Approach
Henri Fayol’s 14 point principle
• DIVISION OF WORK.
• AUTHORITY.
• DISCIPLINE.
• UNITY OF COMMAND.
• UNITY OF DIRECTION.
• SUBORDINATION OF
INDIVIDUAL
INTERESTS TO THE
GENERAL INTERESTS.
• REMUNERATION.
• CENTRALIZATION.
• SCALAR CHAIN.
• ORDER.
• EQUITY.
• STABILITY OF
TENURE OF
PERSONNEL.
• INITIATIVE.
• ESPIRIT DE CORPS
9Aditi
Two essential elements.
1) It entails structuring an organization into a hierarchy.
2) the organization and its members are governed by clearly defined rational-legal
decision-making rules
CHRACTERISTICS
• Hierarchy
• Division of Labor
• Consistency
• Qualification
• Professional–Private Separation
• Devotion to Purpose
• Advancement / Seniority
10
Max Weber
“Bureaucratic Approach to
Management” (1864-1920)
German political economist and sociologist Rationalism in the sociology
of religion and government, Vast majority of works
Aditi
Contd.....
2. NEO CLASSICAL APPROACHES
ELTON MAYO -HUMAN RELATION
MOVEMENT
&
BEHAVIORAL
SCIENCE APPROACH –
11Aditi
The Hawthorne Effect – Elton Mayo
1. Illumination experiments
2. Relay Assembly test room
12
3. Interviewing programme
4. Bank Wiring observation
Room
Aditi
Behavioral Science Approach
Behavioural sciences approach recommends a study
of behavioural sciences (like, psychology, industrial
psychology, sociology, anthropology etc.) for
understanding human behaviour at workAlso called
"Human Resource Approach“ importance to
attitudes, behaviour,
performance of individuals, groups in the
organisations.
• Some important sociologists and psychologists who13Aditi
14
Maslow’s Hierarchy
Self-
Actualization
Need
Aesthetic Needs
Need to know & Understand
Esteem Needs
Belongingness & Love Needs
Safety Needs
Physiological Needs
Being (growth)
Needs
Deficiency
Needs
Motivation increases
as needs are met
Motivation
decreases
as needs
are met
Copyright 2001 by Allyn and Bacon
Aditi
Herzberg’s Two-Factor
Theory
According to Herzberg, there are some
job factors that result in satisfaction
while there are other job factors that
prevent dissatisfaction.
15Aditi
McGregor's Theory X and
Theory Y
16Aditi
Vroom's Expectancy Theory
17Aditi
Contd.....
3. MODERN APPROACHES
QUANTITATIVE APPROACHES
THE SYSTEM
APPROACH.
THE
CONTINGENCY/SITUATION APPROACH
18Aditi
1. Quantitative/ Mathematical Or Management
Science Approach:
• Use of Quantitative techniques
• Improve decision making
• Management science
• Application of:
- Statistics
- optimization models
- informational model and
- computer simulation
19Aditi
2. System Approach
 It treats an organization
as a system.
 closed or open.
 inputs. Throughputs.
Outputs
20Aditi
3. Contingency Approach
Contingency approach/ situational approach given
by Fred Fielder. also known as situational approach, is
a concept in management stating that there is no one
universally applicable set of management principles
(rules) to manage organizations
*one can assess situational favourability 3 factors:
• Leader-member relations
• Task structure
• Position power
21Aditi
• Thank you
Aditi 22

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Principles and Fundamental of Management Thoughts

  • 1. Principles and Fundamental of Management Thoughts “EVOLUTION” 1Aditi
  • 2. Early Classical Charles Babbage ( 1792- 1871) Robert Owens ( 1771-1858) Henry Robinson Towne ( 1844- 1924) Charles Dupin (1784- 1873) James Watt (1796- 1848) Mathew Robinson Boulton (1770- 1872) Classical 1. SCIENTIFIC a) F. W. Taylor 1875- b) Henry Gantt c) Harlow Person d) Harrington e) Frank and Lilian Gilbreth 2. ADMINISTRATIVE- a) Henri Fayol (1841- 1925) 3 3. BUREAUCRATIC Max Weber (1864- 1920) Aditi 2
  • 3. NEO- CLASSICAL Human Relation Approach (Elton Mayo- Hawthrone experiment 1924- 1930) BehaviouralScience Approach A.Maslow Douglas McGregor Frederick Herzberg Kurt Lewin Keith Davis Chris Argyris George Homans MODERN Quantitative/ Management Science System Approach Contingency Aditi 3 Continued......
  • 4. Schools of Management Thought 1. EARLY CLASSICAL APPROACHES: HENRY GANTT & FRANK & LILLIAN GILBERTH A) F. A) W. TAYLOR- (SCIENTIFIC MANAGEMENT CONCEPTS B) MAX WEBER- BUREAUCRATIC APPROACH C) HENRI FAYOL-ADMINISTRATIVE THEORY 4Aditi
  • 5. 1.A) Scientific Management Theory FREDERICK WINSLOW TAYLOR- (1856-1915) Father of Scientific Management theory CONDUCTED EXPERIMENTS ON : 1. MIDVALE STEEL 2. SIMONDS ROLLING MACHINE 3. BETHLEHEM STEEL 5 Main objective: Improving economic efficiency  Labor productivity.  Earliest attempts jobs were allocated Relationship of the workers Differences in talent, intelligence, motivations. Aditi
  • 6. PRINCIPLES OF SCIENTIFIC MANAGEMENT • Science not the rule of thumb • Harmony not discard/ • Scientific selection T&D • Division of work /responsibility • Mental Revolution Contribution • Time and motion study • Differential payment • Drastic reorganization of supervision • Scientific recruitment and training • Intimate friendly cooperation between the Management and workers 6Aditi
  • 7. Contribution in Scientific Management 1. Henry L. Gantt (1861-1991)  incentivewageplans.  differential piece ratesystem  Taskwork witha bonus.  A graphicschedule for theplanning  controlling of work  recording progress towardsstagesof aproject. 1. Frank and Lillian Gilbreth (1868-1924 and 1878- 1972) "man’srecord”"dailybalanceof work“  "Organizingfor Work“  Measureactivities  Thespace on thechart 7Aditi
  • 8. CRITICISM FOR SCIENTIFIC MANAGEMENT • reductionist approach • The allocation of work • Increased output would lead to less workers • Inefficiencies • Poor design of the performance 8Aditi
  • 9. Classical Organization Theory : Administrative Approach Henri Fayol’s 14 point principle • DIVISION OF WORK. • AUTHORITY. • DISCIPLINE. • UNITY OF COMMAND. • UNITY OF DIRECTION. • SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS. • REMUNERATION. • CENTRALIZATION. • SCALAR CHAIN. • ORDER. • EQUITY. • STABILITY OF TENURE OF PERSONNEL. • INITIATIVE. • ESPIRIT DE CORPS 9Aditi
  • 10. Two essential elements. 1) It entails structuring an organization into a hierarchy. 2) the organization and its members are governed by clearly defined rational-legal decision-making rules CHRACTERISTICS • Hierarchy • Division of Labor • Consistency • Qualification • Professional–Private Separation • Devotion to Purpose • Advancement / Seniority 10 Max Weber “Bureaucratic Approach to Management” (1864-1920) German political economist and sociologist Rationalism in the sociology of religion and government, Vast majority of works Aditi
  • 11. Contd..... 2. NEO CLASSICAL APPROACHES ELTON MAYO -HUMAN RELATION MOVEMENT & BEHAVIORAL SCIENCE APPROACH – 11Aditi
  • 12. The Hawthorne Effect – Elton Mayo 1. Illumination experiments 2. Relay Assembly test room 12 3. Interviewing programme 4. Bank Wiring observation Room Aditi
  • 13. Behavioral Science Approach Behavioural sciences approach recommends a study of behavioural sciences (like, psychology, industrial psychology, sociology, anthropology etc.) for understanding human behaviour at workAlso called "Human Resource Approach“ importance to attitudes, behaviour, performance of individuals, groups in the organisations. • Some important sociologists and psychologists who13Aditi
  • 14. 14 Maslow’s Hierarchy Self- Actualization Need Aesthetic Needs Need to know & Understand Esteem Needs Belongingness & Love Needs Safety Needs Physiological Needs Being (growth) Needs Deficiency Needs Motivation increases as needs are met Motivation decreases as needs are met Copyright 2001 by Allyn and Bacon Aditi
  • 15. Herzberg’s Two-Factor Theory According to Herzberg, there are some job factors that result in satisfaction while there are other job factors that prevent dissatisfaction. 15Aditi
  • 16. McGregor's Theory X and Theory Y 16Aditi
  • 18. Contd..... 3. MODERN APPROACHES QUANTITATIVE APPROACHES THE SYSTEM APPROACH. THE CONTINGENCY/SITUATION APPROACH 18Aditi
  • 19. 1. Quantitative/ Mathematical Or Management Science Approach: • Use of Quantitative techniques • Improve decision making • Management science • Application of: - Statistics - optimization models - informational model and - computer simulation 19Aditi
  • 20. 2. System Approach  It treats an organization as a system.  closed or open.  inputs. Throughputs. Outputs 20Aditi
  • 21. 3. Contingency Approach Contingency approach/ situational approach given by Fred Fielder. also known as situational approach, is a concept in management stating that there is no one universally applicable set of management principles (rules) to manage organizations *one can assess situational favourability 3 factors: • Leader-member relations • Task structure • Position power 21Aditi