It includes neo classic theory..mc George's X and Y theory and many things..

1. Evolution of Management
Thought

2. Classical Approach – Work Oriented
Also known as Traditional Approach, Management Approach Empirical
Approach
Features:
• Systematic network of interrelated functions
• On the basis of experience of practising manager
• Functions, principles & skills are considered universal.
• Formal education & training is emphasized for developing managerial skills.

3. Scientific
Management
• Focuses on the individual
worker’s productivity
Bureaucratic
Management
• Focuses on the
overall
organizational
system
Administrative
Management
• Focuses on the
functions of the
management

4. Scientific Management
Developed by engineers & technicians like FW
Taylor, Harrington Emerson, Henry Gantt, Frank
Gilberth & Lillian Gilberth
Looked management mainly by technical view
point, i.e. improving efficiency in the use of men
& machine.
Father of scientific management: F W Taylor

5. Principles
• Science, not a rule of thumb – Develop a scientific
approach for each element of one’s work.
• Scientifically select, train, teach & develop each
worker.
• Cooperate with workers so that jobs match plan and
principles.
• Ensure appropriate division of labour.
• Universality – one way for everything

6. Four basic parts of a
series of ideas developed by Taylor are as follows
• Each person’s job should be broken down into elements and
a scientific way to perform each clement should be
determined.
• Workers should be scientifically selected and trained to do
the work in the designed and trained manner.
• There should be good cooperation between management
and workers so that tasks are performed in the designed
manner.
• There should he a division of labour between managers and
workers.

7. Areas of Focus
•Task Performance
•Supervision
•Motivation
Two Managerial Practices
•Piece Rate Incentive System
•Time & Motion Study

8. Taylor’s Differential Piece Rate System
• It’s a penalty to under performers.
• No minimum wage rate.
• Standard Output = 50 units
• A produced 40 units, B = 50 & C = 60
• A will get ₹3/unit while B & C both will get ₹4/unit.

9. Henry L. Gantt
• He emphasized the psychology of the worker and the
importance of morale in production
• Gantt insisted that willingness to use correct methods and
skills in performing a task was as important as knowing the
methods and having the skills.
• He propounded the concept of motivation.
• Gantt devised a wage-payment system and developed a
charting system or control chart for scheduling production
operation which became the basis for modern scheduling
techniques like CPM and PERT

10. Frank and Lillian Gilbert
• Time-and-motion study is a process of analyzing jobs
to determine the best movements for performing
each task.
• Time-and-motion study and piece-rate incentives are
two major managerial practices developed by
scientific management theorists and widely used even
today.
• The piece-rate incentive system envisages, that the
largest amount of income goes to workers who
produce the maximum output

11. Limitations
• It may not always be true that economic incentives
are strong enough to motivate workers
• There is no such thing as ‘one best way’ of doing a job
so far as the component motions are concerned and
hence time and motion study may not be entirely
scientific.

12. II. Administrative Management
• Functional Approach – developed by management thinkers and
practitioners like Henry Fayol, Lyndall F Urwick, James D Mooney.
• They focused attention on the development of managerial functions
and principles of universal applications.
• He used the word ‘administration’ for what we call management
• He focused on the managerial activity and propounded that
fundamental functions of any manager consists of planning,
organizing, commanding, coordinating and controlling.
• He emphasized that the process of management is the same at any
level of an organization and is common to all types of organizations.

14. Uses
• Helpful in drawing common principles out of past
experiences with some relevance for future
application.
• It focuses attention on what managers actually do.
• Highlights the universal nature of management.
• Scientific basis for management practice.
• Henry Fayol was a French Engineer

15. Bureaucratic Management
Father – Max Weber, a German sociologist & management
who envisioned a system of management.
•Germans are very particular about their rules.
•It is a highly structured, formalized & impersonal
organization.
•It focusses on the overall organization system.
•Need for organization to function on a rationally basis.

16. Characteristics
•Division of labor by functional specialization.
•a set of rules covering the rights and duties of
employees
•a system of procedures or dealing with work
situations
•Impersonal relations between people and
promotion and selection of employees based on
technical competence

17. Advantages
•Consistent employee behaviour
•It eliminates overlapping or conflicting jobs or duties
•Consistency and precise job definitions help to avoid wasteful
actions and improve efficiency
•Bureaucracy has the advantages of basing its mode of hiring
and promotion on merit, developing expertise in employees
and assuring continuity in the organization.
•Bureaucracy emphasizes the position rather than person and
organization continues even when individuals leave

18. Disadvantages
•Too much of red tapes and paper work not only lead to
unpleasant experiences but also to inefficient operations
•Employees are treated impersonally and they are expected to
rely on rules and policies, they are unwilling to exercise
individual judgment and avoid risks.
•Machine like treatment makes employees unconcerned about
the organization and exhibit indifference regarding the
organization and job performance
•Bureaucracy expects conformity in behaviour rather than
performance

19. Neo Classical School
• Worker Oriented
• Human Relations School
• Behavioural School

20. Human Relations School
•Elton Mayo has been considered as the father of the human
relations movement, which later became organizational
behaviour
•The other two important co-researchers of this school are F.J.
Roethlisberger and William J Dickson
•They believed that the human aspects of business
organizations had been largely ignored.
•They felt that satisfaction of psychological needs should be the
primary concern of the management.

21. •Worker Oriented
•Hawthrone Experiment – Revealed the overwhelming
influence of social n psychological factors on employee
morale & productivity.
•The jobholder became the focal point of attention in place of
the job.
• Maslow’s need Hierarchy
•Theory X & Theory Y

22. Hawthorne Experiment
•Elton Mayo – 1924 – 1932 Illinois plant of Chicago Western
Electric Company
•Illumination Experiment – Light: some factors other than light were
responsible for increased productivity
•Relay Assembly Test Room Experiments – Supervision
•Mass Interviewing Programme: people were not leaving their feelings,
attitudes, and emotions at home and employees were not at work simply for
economic benefit
• The workers had developed their own idea of the level of fair output. This
informally developed, called a norm,

23. • individuals are motivated by social needs
• people obtain their sense of identity through
interpersonal relationships
• because of industrial progress and routinization, the
work has become dissatisfying
• employees are more responsive to the social forces of
peer groups than to incentives and controls of
management
• employees respond to provisions for their social needs
and acceptance offered by management.

24. Behavioural Schools
• The term modern behaviorism refers to the current stage of evolution
of the behavioral school of management, which gives primacy to
psychological considerations but treats fulfillment of emotional needs
mainly as a means of achieving other primary economic goals.
• Important behavioural scientists who contributed to gain insight in
ways to achieve managerial effectiveness and developing techniques to
utilize people more effectively in organizations, are Abraham Maslow,
Douglas McGregor, Chris Argyris, Frederick Herzberg, Rensis Likert, Kurt
Lewin, Chester Barnard, Mary Parker Follett, George Homans and
Warren Bennis.

25. • They regard the classical management theory as highly mechanistic,
which tends to degrade the human spirit and is nonresponsive to the
human needs.
• As against overly specialized jobs, under-utilized people, too much
control over employees with no scope to make decisions and little
concern about subordinates’ needs for recognition and self-
fulfillment.
• The behaviorists preferred more flexible organization structures with
jobs built around the capabilities and aptitudes of average
employees
• The behavioral school is a logical extension of human relations
school and both in turn lead to social system theory and modern
behaviorism.

26. Human Relations
1. Focus on interpersonal
relations
2. Study of individual
behaviour
3. Motivation & Job
Satisfaction
4. Originated from
Hawthorne Experiments
5. Elton Mayo
6. Conflicts are avoidable and
harmful
Behavioural Approach
1. Focus on group relations
2. Study of group behaviour
3. Group dynamics &
Informal Organization
4. Improved and wider
version of human relations
5. Rensis Likert & Keith Davis
6. Conflicts are unavoidable
and sometimes useful

27. FOLLETT ON EFFECTIVE WORK GROUPS
Four Principles of Coordination:-
• Coordination requires that people be in direct
contact with one another.
• Coordination is essential during the initial stages
of any endeavour.
• Coordination must address all factors and phases
of any endeavour.
• Coordination is a continuous, ongoing process.

28. Maslow’s Need Hierarchy

29. McGregor’s Theory ‘X’ & Theory ‘Y’
Theory ‘X’
•Most people dislike work
and they avoid it when
they can.
•Coerced and threatened
with punishment before
they work.
•Avoid responsibility and
have little ambition
Theory ‘Y’
•Work is a natural activity
like play or rest.
•Capable of self direction
and self control.
•Committed to
organizational objectives

30. Modern Theories
•System Approach
•Situational Approach

31. Modern Management Theories
•Modern management theory represents one of the numerous
theories used by organizations.
•This theory recognizes that today's organizations face rapid
change and added complexities, with technology serving as
both a potential cause and solution for these factors.
•When implementing this theory, managers use technology and
mathematical techniques to analyze their workforce and make
decisions.

32. •This theory serves as a response to classical management
theory, which believes workers solely work for monetary gain.
•The modern management theory believes that employees
work for numerous reasons, including to achieve satisfaction,
happiness and desired lifestyles.
•With this theory, managers understand employees' behaviors
and needs and can implement strategies to meet those needs
and support their skill development over time.

33. Benefits of the modern theory of management
1. Boosts productivity:
•Modern management theory uses mathematical and statistical
methods to assess performance within an organization.
•Managers can use this data to understand employee behaviors
and develop solutions that maximize the potential of their
workforce.
•For example, they may implement processes that make
employees' tasks more efficient or offer training programs to
improve their skills.

34. 2. Aids decision-making:
•Modern management theories often provide managers insights
into the factors they need to examine, which they can use to
evaluate their organization or department.
•When managers know what to look for, it can help them
identify problems and begin coming up with potential
solutions.
•The use of mathematical techniques also enables them to use
data to support those solutions and final decisions.

35. 3. Improves employee engagement:
•As mentioned, the modern management theory examines
employees' motivation for working beyond financial gain.
•Managers who utilize this theory can then identify and
implement processes or procedures that take employees'
varying needs into account.
•If employees feel satisfied at work, it can boost their morale
and engagement and make them want to continue working for
the organization.

36. 4. Promotes objectivity:
•The modern management theory emphasizes the use of
mathematical techniques.
•These techniques allow managers to make decisions based on
data and evidence rather than personal opinions or feelings.
•They also enable the testing of different options to assess
which one best supports the organization.
•As a result, managers can implement more effective solutions.

37. 5. Enables adaptability:
•Modern management theory recognizes that today's
organizations often existing within rapidly changing
environments.
•This theory emphasizes the importance of recognizing the
influence of internal and external factors on business and
encourages managers to use several techniques and
approaches to work with them.
•For example, managers can use new technology to streamline
processes or perform statistical modeling when developing
solutions.

38. Quantitative approach
• The quantitative approach to management uses statistics and mathematical
techniques to solve complex problems.
• Depending on the business area, managers may use techniques like computer
simulations or information models to assess performance.
• This analysis enables them to understand what is working and what is not within
the business, then develop solutions to solve or improve the issues they find.
• Managers can also use these techniques and data to determine the benefits or
risks of different ideas.
• This approach can help managers make objective decisions based on data and
facts, rather than personal opinions or feelings, that support the business.
• This modern management approach often consists of three branches:

39. 1. Management science:
•Management science focuses on the use of mathematical and
statistical methods to form effective business solutions and
achieve goals.
•Examples of these tools include the Program Evaluation Review
Technique (PERT), the critical path method (CPM) and
sampling.
•Managers can use these tools in various situations, including
project management, budgeting and developing schedules.

40. 2. Operations management:
•In operations management, managers implement practices
that help make business and production processes more
efficient.
•Depending on the situation, this method may require managers
to restructure or redesign their processes.
•Some of the tools they use include forecasting, quality control
methods and project planning.
•Often, these managers aim to make more or better products
through the more efficient processes they implement.

41. 3. Management Information System:
•A management information system (MIS) represents a
database that organizes an organization's data, and managers
use this system to support informed decision-making.
•This system collects and stores real-time data, allowing
managers to run reports on areas like financials, timelines,
personnel and inventory.
•Managers can then monitor this information and use it to
assess performance and make improvements or develop
solutions as needed.

42. Contingency approach
• The contingency management approach states that there is not just one
management approach that fits every organization.
• It believes that the optimal management style depends on the situation.
• Leaders who utilize this theory do not adopt a single management style and
instead must identify and use different styles for different situations.
• As a result, these leaders also develop additional traits and skills that ensure they
can employ various management approaches effectively.
• The use of diverse styles can help make these leaders more flexible and
adaptable in the workplace.

43. • This theory outlines three variables that it believes influence an organization's
structure: the organization's size, the technology it uses and the leadership styles.
• An effective manager understands these factors and how they may impact
performance.
• For example, a small organization may represent more flexibility and less
separation between departments, whereas a large organization may be more
complex and divided.
• Managers in smaller organizations can have more control over processes due to
their flexibility and potentially make changes to them more easily.

44. Systems approach
• The systems approach of management states that organizations represent a
complex collection of various components that work together to reach a common
goal.
• An organization is made up of numerous subsystems, such as different
departments.
• Managers using this theory examine how these subsystems interact with and
affect one another, rather than analyzing them separately.
• They must also consider their surrounding environment and external factors that
influence or affect these systems.
• The systems approach further defines an organization by dividing it into different
components.
• These components demonstrate how different parts of the organization work
together toward a common goal:

45. • Inputs: Inputs represent the factors that are needed to create goods and
services. For example, inputs may include raw materials, capital, technology or
information.
• Transformational process: Transformational processes represent the activities or
abilities that convert the organization's inputs into outputs. For example, these
processes may include employees' work tasks or operational activities.
• Outputs: Outputs represent the results produced by an organization. These
outputs may include products, services and financial results, such as profits.
• Feedback: Feedback represents information related to the organizations'
outcomes or outputs. Leaders can use this information to influence or make
decisions related to the organization's inputs.

46. • In the systems approach, management staff members develop goals and
processes that support their organization's overall objectives and performance.
• For example, department managers can look to the department above them in
the hierarchy to determine their department's purpose and priorities.
• They may implement deadlines for their team that ensure that the other
department can begin and complete its necessary tasks.
• Aligning their department's activities with the next department's goals can help
processes run more smoothly and efficiently throughout the organization.